Monday, December 7, 2009

Loan For A House Or A Business




Loan is something than anyone cannot take it lightly because its not effect on the one that made the loan but also its generation if the debt cannot be settled. There are a few reasons to take loan such as buying a car, a house or even opening a business. So, if you have a choice on making one loan, which one you prefer, a house or a business?

I'm come across advertisement regarding a famous convenient store that wanted to open up a store, calling anyone that wanted to invest under them with an early payout investment of RM120 000. Seems quite a lot for convenient store but since it's 7 Eleven, its worth a shot. I've been thinking will this offer still available after I started my service as a civil servant? I'm going to graduate in two years time and with the initial salary, I'm eligible to make a loan up to RM200 000. Some people say its better to start by buying a house first but opening a business is not a bad idea after all.

The reason why a house is also an option is simply because the property value has never decrease within the year before and will never will in the year following because land is something that don't grow, its going to decrease every day unless if you're in middle east where there are a lot of land but its dry and hot, not suitable for something to settle down. A house might cost RM120 000 today and RM300 000 next year. Logically, I should be hitting for a house.

But come to think of it, having a business will ensure a better income growth. Eventually if I had a lot of steady income on the line, I might be able to buy a house after managing my business and later on I might move forward with a much bigger business that requires a much bigger investment such as opening a gas station. It will cost around RM 200 000 if you just want to be a seller and a few million if you want to be an entrepreneur. That's a lot and you need to be rich if you want to be richer, or simply create a team and gather up the money. Till then!

P/s : Opening up a business is a good deal but by being a civil servant as well, don't abandon our duty as well.

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