Hold onto your land, Tun M advises landowners
NURHIDAYAH HAIROM
SHAH ALAM - Former Prime Minister Tun Dr Mahathir Mohamad urged landowners to think twice before selling their assets, highlighting the benefits of utilising land as investment capital through tenant development.
He highlighted the consistent appreciation of land value, promising greater returns down the line.
"Selling now locks in a lower price compared to what you could get in the future.
"Land, whether developed for farming or construction, experiences significant value growth over time," Dr Mahathir explained in a statement today.
He provided a stark comparison: city land fetching RM7,000 per square foot versus undeveloped land at a mere RM5.
"This potential for exponential increase makes holding onto land more lucrative than selling it off quickly," he said.
Instead of immediate disposal, Dr Mahathir recommended utilising the land as leverage for tenant development.
"By contributing a portion of the land's value as investment capital, landowners can reap significant benefits from future rent increases and the overall appreciation of the developed property," he said.
"Consider this. If land valued at RM5 per square foot is used as 10 per cent investment capital, when its value rises to RM1,000 per square foot, the 10 per cent investment becomes RM100 per square foot," he said.
He cautioned against the pitfalls of selling, reminding landowners that spending proceeds can quickly deplete savings, leading to future financial hardship.
"Once land is gone, it's gone.
"Think carefully about the long-term benefits of holding onto your valuable asset," he pointed out.
