T.I. became the owner of a studio apartment in his late 20s on the recommendation of a senior colleague at work. He travels a lot for business and often gets home late. Investing in real estate, with its medium- to long-term return horizon, seemed like a suitable option for him as opposed to other forms of investment where you need to stay up to date with daily developments. Life postretirement is always at the back of his mind; however, for now, he is keen on enjoying himself. We spoke to T.I. about this.

Some of my more experienced colleagues at work recommended it. I was in my late 20s at that time, but I was gradually building up my savings, and I thought it might be a good idea to invest some of the money I had left over from my daily spending. I could have opted for stocks or FX, but I went for real estate investment, as it was so easy to get started and to get involved in. Stocks and FX are always fluctuating, so you constantly have to stay on top of what is going on. I thought that a long-term view would be more of an advantage for investing in real estate, especially studio apartments.

Of course, I did! There were plenty of old hands at work I could talk to, but even so, there was still so much that I did not really understand. The thing that I was the most worried about was money, as you’d expect. There were plenty of stories on the internet about people who had gone bankrupt through investing in real estate. But, I think it’s my personality; I don’t like overthinking and just doing nothing. I would rather just give something a go; so, although I was nervous, I decided to take the plunge.
Also, the PIM sales staff carefully explained all the risks to me, as well as the benefits, so that helped soothe my concerns. I’d have been a bit suspicious if they’d focused on the positives! (Laughs).

It’s hard to put my finger on it, but I just felt they were on the same wavelength as me. I would have been uncomfortable if they had just aggressively sold the product to me; but equally, I would have been unhappy if they had not come up with any suggestions at all. Looking back on it, I think they evaluated my situation and adjusted their approach accordingly. I rely on them, and their admin and reporting are good, so I think they are a reliable partner. I like the way that they are always there to talk about real estate investment when something comes up or when I am not sure about something.

C.M, a studio apartment owner, is planning for life postretirement in a few decades’ time. She was interested in investing anyway; out of the many financial products on offer, she chose real estate investment because of the long-term perspective and the opportunity for diversification. We spoke to C.M. about her investment decisions and her cautious approach.

Some of my best friends invest in real estate. They recommended it to me, and that is how I started. I have some experienced colleagues who are happy to give me advice on all sorts of things, and I have spoken with them on a variety of topics. I said, “I am interested in investing. How should I go about it?” They encouraged me to invest in real estate, which is easy to get started in. I wanted something with a long-term perspective, and because I wanted diversification, real estate was exactly the right thing for me.

The deciding factor was the strength of their properties. They concentrate on location and design; that is what I really liked! Also, I feel very reassured about the company’s philosophy and approach. Before starting out in real estate, I went along to a real estate investment seminar held by PIM to find out more about the company and the kind of properties they have. I also wanted to find out more about the sector in general. The lecture was easy to understand, and I liked the interaction with the staff. I got a proper insight into the company, and I was very impressed. So, I thought it made sense to go to PIM when I started investing in real estate.

I still have a long way to go before retirement, but I want to be well-off and live comfortably after I retire. By “well-off,” I’m talking about a state of mind. I want to have sufficient money available so that I can comfortably live the lifestyle I want to live. So, I think about the kind of lifestyle I want to have when I retire, and I work out roughly how much income I need to generate from the rent to pay for this. I want to earn a bit more than what I am getting at the moment as rent; so, I am thinking about timing, and I plan to buy some more properties in due course.