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1. FEATURE ARTICLE: MORE FAQS ABOUT MONEY
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Q 1: Is it true that I can only own four properties? And
then I have to wait five years before I can sell the
properties?

ANS: No, it is not true. You can own as many properties as
you like and as many as you can afford. There is no law
against it. Remember, Malays ia is a capitalist and not a
socialist or communist country.

Next, you can sell the properties at any time, even the day
after buying the property. As there is no more RPGT charged,
you can keep all of the profits.

For a more complete explanation on properties and RPGT,
read my books “How to Become a Property Millionaire” and
“How to Become a Millionaire Landlord”.

Q 2: How do you get the compound interest calculation
figures mentioned in your books “Millionaires are from a
different planet” and “The Millionaire in Me”? I tried
calculating them but cannot get the figures.

ANS: You need a financial calculator to calculate compound
interest. I use an HP 17B and find it extremely useful. A
normal calculator cannot calculate compound interest, wh ich
explains why you did not get the same figures.

An alternative way is to use a spreadsheet such as Excel.
Of course, you need to set the formula first. Remember that
compound interest convert interest into principal.

Finally, if it’s too much trouble, just accept the figures
in the books. They are correct.

Q 3: You quoted 10 percent return from savings. Where can I
get a 10 percent return now?

ANS: When I wrote the book, the return was 10 percent. That is why
I quoted 10 percent. Of course, in real life, the rate of
return fluctuates. The rate of return from savings and FD
now is low, about 3 percent or so.

However, the returns will not remain this low forever. It
will go up one day, perhaps even higher than 10 percent.

While I always update my books, there will be times when it will not reflect the current rate of return. This cannot be
avoided.

At the same time, what is more important is the concept of
saving, investing and compound interest. The principle
remains the same regardless of the rate of return.

In short, we must always save and invest our money
regardless of bad or good times.

Q 4: Can we apply the lease-purchase-contract (wrap around
technique) of properties mentioned by Robert Kiyosaki in
his books?

ANS: Not to my knowledge, no. One reason for this is that
no bank in Malaysia will agree to the same property being
mortgaged to a different bank at the same time, which is the
situation happening in a wrap around sale. (By the way, this
means that there can be more than one mortgage loan on the
same property - as long as they are from the s ame bank.)

However, this does not necessarily mean it cannot be done.
One day, somebody is going to engineer the first wrap
contract in Malaysia - you could be the one! I am not a
lawyer, so you will have to run the scheme by a lawyer who
is familiar with property transactions. The lawyer will
be able to give you a better and more accurate advice.

As for me, I have no intention of being the richest guy
in jail!

Q 5: What do you think about properties that comes with
rental guarantees?

ANS: Folks, always remember this - a guarantee is only as
good as the person giving the guarantee. A homeless, broke,
liar or dying man can also give you a guarantee. But you
will have serious doubts about his ability to honor his
guarantee - even if you had signed an agreement.

Now, the same appli es to a company. A company can guarantee
you 8 percent rental return for five years. But if they fail
to pay, you can take them to court and yes, you may even
win the case. But if the company has no money (or claims to
have no money), it will all be in vain. The court judgement
will be a paper judgement. The bottom line is that you are
still not getting your money.

What I’m trying to say here is that do not be impressed or
swayed by people or companies giving guarantees, because
they can guarantee anything! Whether they can back up the
guarantee is another story altogether.

If a company has a poor track record of honoring its words,
walk away. There are tens of thousands of properties in
Malaysia. Just because you missed one or even ten does not
mean that you have missed the boat. There will be plenty
more opportunities to buy at least one property in the
future.

An inve stment should be weighed by its ability to generate
income, and not about guarantees.

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2. QUOTE OF THE MONTH
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“Marketing ideas are a dime a dozen, but the business
owners who put them into action is priceless.”

* Patrick Bishop *

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3. YOUR QUESTION ANSWERED
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QUE: This is my first time that I’m forwarding questions
to you since you are the expert on property investment. I
would like to invest in landed properties. Can you
highlights on what are the cost and the hidden cost when
investing in it? And how do I know whether the properties
are worth investing or not?

ANS: The cost includes:
- price of the property
- legal fees
- stamp duty
- interest charge
- agent’s commission

The highest cost though, is missing out on one of the best
investments if you do not invest in properties.

If it makes money - invest. Otherwise, move on to the next
property.

* HOT TIP *

Read “Mobile Millions” by Syahazzly Izham Hamzah