Good Investment III?

Before we put into conclusion, let see if we place $ 270,000 in bank’s Certificate of Deposit (CD, in US) or Fixed Deposit (FD, in UK) account which earn 4% per annum, how much will we get after 30 years? $ 875,717.33. At a glance, AP investment seems a good investment, isn’t it? Before we jump into a conclusion, let see what will we get if we invest in say BI investment that earn 15% per annum over 30 years period? The result? $ 1,787,717.84. What if we invest in KB investment that earns 20% per annum over the same period? $ 6,409,160.47!


We often hear the interested parties and the promoters of AP investment urging us to invest in AP. The reasoning given are we can use the power of leverage to maximize our investment, the value of AP is always going up, we only need to lay out the initial payment and the less is borned by our tenants….etc. We also been “brainwashed” decades by decades and we really believe that AP is really a good investment subconsciously. No matter how nice words put on the investment, business is business. At the end, businessman would look at his income statement, balance sheet…etc to determine whether it’s a good investment or not. By showing the example above, it’s obvious that the perception we have is totally out in term of the businessman point of view, that’s creating values to his initial capital investment. Ironically, most people still put their faith into AP investment. Are they ignorant? If one day, the investors realized the truth, will the market crash? The history will tell us the story. “The man who ignores history does not have his story.”

Finally, what’s AP investment? REAL ESTATE.