All Posts by Jimmy

Homestays, a booming business

Residential properties are meant for people to live in.

Thousands of homeowners have discovered how to make money with their properties and avoid paying taxes.

They have joined global home-sharing marketplaces, and just like how Uber has made life for government-regulated taxi drivers difficult, the home-sharing phenomenon is shaving off hotel revenues.

By paying a mere 3% service fee per booking, homeowners – also called hosts – can connect with over 60 million travellers worldwide through online giants like American company Airbnb and Singapore-based HomeAway.

Airbnb’s website has a tool to help homeowners gauge their expected weekly income and according to this, the country’s chart-toppers are those in Langkawi who can make RM2,801 a week, followed by those around Malacca’s Jonker Walk (RM2,495 a week).

Close behind are Penang home-shares in Tanjung Tokong (RM2,494) and Pulau Tikus (RM2,449). In Bukit Bintang in Kuala Lumpur, they can expect to earn RM1,676 weekly, while those near Taman Pelangi in Johor Baru can expect RM2,287 a week.

The above estimated earnings are for apartments or houses catering to groups of five travellers.

There are homeshares even in the hinterlands. They can make an average of RM923 a week in Kota Baru, Kelantan. In Kangar, Perlis, homeshares can expect to collect RM1,619 a week.

Unlike hotel occupancies, the government has no knowledge nor way of tracking these check-ins.

All the payments are transacted via the home-sharing portals’ overseas payment gateways and the earnings are transferred to homeowners through international money wires, PayPal or direct deposits.

Their guests are also “exempted” from the RM2 per room per night heritage tax fee in Malacca and Penang’s local government fee of RM3 per room per night for four-star and five-star hotels, and RM2 per room per night for three stars and below.


“They don’t have to pay corporate or income taxes. They don’t need to collect GST or report their occupancy rates.

“They don’t need to install fire doors or water sprinkler systems. If this goes on, budget hotels can just take down their signboards and become home-share operators,” said Malaysia Budget Hotels Association president P.K. Leong.

He said his association had raised the issue of home-sharing with the government several times and urged them to regulate this business but no action had been taken.

“We estimate about 15% of our business is being siphoned into the home-sharing market. And it’s not really sharing,” he said.

“People are buying residential properties specifically to start short-term rental businesses. We believe this is growing at an alarming rate but we don’t have any way to track them.”

In 2014, Airbnb was reported to have over 800,000 listings worldwide. Now, the company declares on its website that it has over two million.

Five-star resorts contacted, however, do not feel threatened by the home-sharing operators.

Managers in two five-star hotels, who declined to be named, said these setups target budget travellers who come to Penang on business or already know what to do when they come to Penang.

“Our hotel offers a level of service not found in home-shares. It’s a different market,” said one manager.

Article Source: PenangPropertyTalk
Exceptions should only be allowed for people who are providing genuine ‘homestay’ programs and renting out owner occupied homes.

For more information about Property Investment, please visit 👉 Property Millionaire Intensive

Not all apartments are the same

It is a good idea to find out the legalities, whether these developments are regulated under the housing legislations.

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wealth conference 2016

The names are coined by housing developers with creative plans to woo investors with enticing marketing tools on yet-to- be-built stratified properties.

Where people used to buy an apartment unit/parcel for a roof over their heads, of late, so many other styles have crept up to boggle the minds of investors and buyers.

However, for the uninitiated – not all apartments are created equal. Although the sales and marketing brochures may look alike, the small prints will tell you the difference, if you care to take a magnifying glass to inspect.

Then again, for the first-timers, they are unlikely to spot the difference. This article aims to shed some light for those who have yet to decide on the various offers of apartment projects and for those who have suffered the fate of having bought into a problem.

It is a good idea to find out the legalities, whether these developments are regulated under the housing legislations.

How many of us have based our decision to buy a home on colourful brochures and enticing lifestyle illustrations? Many prospective house buyers usually have little knowledge of what aspects to look for when acquiring a home.

The construction of a housing project involves numerous parties and legislations, and when problems arise, help in any form is often time consuming and costly. The onus is on prospective house buyers to be educated on their rights and to seek help from all sources available before they make their first payment.

It is important that buyers know their rights and how to use them. The Housing Development (Control & Licensing) Act 1966 (amended 2012) (‘Housing Act’) controls the development of “housing accommodation”; “housing accommodation”; may not be the same as what you think you are buying. Purchasers of service apartments and Soho are often surprised when told they have bought a commercial property.

The statutory sale and purchase agreement (S&P) is schedule H (building or land intended for subdivision into parcels) and schedule I (built then sell 10:90 concept for stratified property) pursuant to the housing development (control and licensing) regulations 1989 (amended 2015).

Under the statutory S&P, some of the pertinent clauses for the protection of house buyers are the following:


Date of commencement and completion – Generally, the date of the S&P is the date the contract takes place and is binding upon both the covenanting parties – the developer and buyer. It is scheduled to be completed within 36 months from the date of the contract.

It is a pre-requisite that all building plans, lay-out plans and all the approvals from the local council must be obtained before a housing developer is able to obtain the APDL (advertisement and sales) permit and developer’s licence.

Compensation for late delivery commonly known as LAD (liquidated ascertained damages) – is calculated at the rate of 10% of the purchase price should the developer exceed the stipulated period of 36 months.

Manner of delivery of vacant possession – Delivery of vacant possession shall be supported by a certificate of completion and compliance (CCC) and includes the handing over of keys of the parcel to the buyer. Water and electricity supply are ready for connection to the said parcel.

Defect liability period – The developer is mandatorily required to warrant against defect, shrinkage or other faults in the parcel, building and the common property that may become apparent within 24 months after the date the purchaser takes vacant possession.

Stakeholders’ money – The retention sum against repairs and replacement is 5% of the purchase price and is kept by the developer’s appointed lawyer stakeholder and to be released in two tranches.

Schedule of payment of purchase price – Every stage of the works completed must be supported by a certificate signed by the developer’s architect or engineer in charge of the housing development and such certificate so signed shall be proof of the completion of the various stages of progress works.

Tribunal for home buyers claim – The Parliament has created the housing tribunal as an alternative platform for house buyers to seek legal redress. It is an easy, cheap and speedy alternative forum. Since it was to be a tribunal or “court” for the ordinary house buyers, numerous measures were taken to ensure that it was user-friendly and affordable, including a cap on filing fee at a nominal sum of RM10, and keeping lawyers out.

These non-standard S&P agreement are drafted under the whims and fancies of those developer with their lawyers. Efforts are not spared to ensure that they are disguised with bold titles appearing to emulate the statutory S&P but with diverse terms and conditions embedded otherwise.

It is not uncommon to find buyers stressed out and frustrated after having identified the differences between the standard and non-standard S&P agreement. By that time, the relationship between the developer and the affected buyer would have been strained and stained.

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wealth conference 2016

Date of commencement and completion – At the time of sale and the date of the S&P the developer often has not obtain the necessary approvals – be it building plans, floor plans or the likes. Their completion date is what is stated in the S&P – often between 42 and 48 months from the date the “building plans” approval is obtained or date developers under this category are not licensed (thus, not under the purview and jurisdiction of the Housing Ministry) because they are not building “housing accommodation”. There is neither any requirement for an APDL nor need to comply with the Housing Act. Those built on commercial titles will have to bear commercial rates of assessment, quit rent, utility charges (electricity and water tariffs). There are instances of housing developer constructing Soho that has been granted exemption from the Housing Minister – thus, to be precluded from the ambit of the Housing Act: on the pretext that they are developing commercial development.

Compensation for late delivery commonly known as LAD – It is often calculated at the rate of 10% on such portion of the purchase price as the buyer may have paid to the developer where it exceed the stipulated period of 42 to 48 months, as the case maybe.

Manner of delivery of vacant possession – Delivery of vacant possession is often only supported by the developer’s architect’s certificate of practical completion not tantamount to CCC. It does not give the buyer the right to occupy the parcel until such time as the CCC is issued. Where there is no time frame to issue the CCC, it becomes meaningless and the buyer will not be able to plan his occupation. There is no provision for connection of water and electricity supply to the said parcel. It is sometimes at the peril and mercy of the utility provider.

Defect liability period – Here, the warranty against defect, shrinkage or other faults in the parcel is often 12 months after the date the purchaser takes vacant possession.

There is often no warranty on the building and common properties.

Stakeholders’ money – What retention sum? Often, there is none. All monies are released to the developer immediately upon date of notice of delivery of vacant possession, whether the buyer takes physically possession or not.

Schedule of payment of purchase price – normally all installments are released to the developer on the commencement of works; no need to be certified. For example, 15% of the purchase price is due to be paid to the developer when the developer commences earthworks at site.

He will conveniently have his tractor scoop up the earth and hence – commenced. He too will get another payment 15% on commencement of his first piling and footing works.

Most of these projects fail because they collect profit before completing the job. Their payment schedules are top heavy – meaning they collect the bulk at the beginning leaving less for the later stages of works.

Tribunal for home buyers claim – The tribunal is not available to the aggrieved buyers. Their legal recourse is through the courts and they will have to argue within the four corners of the S&P contract. They cannot say that they don’t know – as the maxim goes: “Ignorance of the law is no excuse’

Article Source: PenangPropertyTalk

In the cases of “unfriendly terms and conditions”: “Don’t buy”. The prerogative is the house buyers’ to safeguard themselves though all means.

For more information about Property Investment, please visit 👉 Property Millionaire Intensive

Debt Management – Pros & Cons

This article takes a look at the pros and cons of debt management in terms of three topics close to any borrower’s heart: saving money, reducing stress levels and protecting credit rating.

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wealth conference 2016

Topic #1: Saving money

Pros: Monthly payments lowered. Interest frozen. Charges waived. The better their relationship with creditors, the better a debt management company’s chances of successfully negotiating for one or more of these concessions. This can save the client a considerable amount of money – not just every month, but potentially over the course of the debt management plan as well.

Cons: Lowering monthly payments means debts take longer to pay back. If interest hasn’t been frozen, they’ll also accumulate interest for longer, adding to the long-term cost. Plus, there’s no guarantee creditors will agree to any concessions, or that they’ll save the client more in the long run than the debt management company charges in fees. And since a debt management plan is an informal agreement, they’re free to change their minds.

Topic #2: Reducing stress levels

Pros: Some people don’t have the time to deal with complicated finances, or don’t feel confident about doing so. For them, it’s a huge relief to hand their debts over to someone else, who might handle everything from letters and phone calls to negotiations and payment distribution. And some people admit they’re no good at juggling numbers and negotiating deals, so it makes sense to let a professional talk to creditors and propose a repayment plan that leaves them enough money for essential bills and other expenses.

Cons: Not everyone feels like this. Many people would rather keep their finger on the pulse personally, so the thought of adding an intermediary just adds more complexity to an already-complicated matter. In short, they feel less stressed when they know they’re handling it themselves.

Topic #3: Protecting credit rating

Pros: By making new arrangements with creditors, a debt management company can minimize the impact of debt on someone’s credit rating, keeping debt problems from escalating into CCJs (County Court Judgments) or even bankruptcy. Plus, even though debt management addresses unsecured debts, it frees up money for secured debts such as mortgage payments, so people can avoid getting into arrears – or even being evicted.

Cons: When they agree to reduced payment terms, creditors may register a default (if they haven’t done so already) and this will appear on the borrower’s credit report, potentially making it harder and more expensive to get credit.

Article Source:

Debt management isn’t for everyone. Some people don’t like the idea of delegating their financial affairs like this.

For more information about Property Investment, please visit 👉 Property Millionaire Intensive

What Is Debt? How Can I Eliminate It?

Some people wonder what is debt and how can it affect you. Basically debt is the amount of money that is owed to financial institutions, business and individuals. In 1973 the total consumer debt owed by the American people totaled about 8 billion dollars today the total US consumer debt is approaching 900 billion dollars. The largest portion of this debt is in the form of credit card debt. Each year credit card companies earn approximately 150 billion dollars as a result of this debt. Almost 90 billion of these earnings come from late fees and penalties.

3d people - man, people push up word "tax"

The consequences of all this debt is staggering to the financial security of our nation. Credit card companies have replaced the local sleazy corner loan shark in dispensing pain and suffering to the American family. What is debt? The Bible states in proverbs that “the borrower is the slave to the lender” If you have consumer debt especially credit card debt then you are a slave to these institutions. Credit card companies have invented the FICO or credit score to encourage you to increase your debt. The more debt you have the higher your score. It is interesting that several millionaires and one billionaire that we know have credit scores of 0 that’s right Zero.

So what is debt doing to the American family? At this time of recession and the mortgage crisis many families are using their credit cards to get by and even buying groceries with this plastic money. Eventually they cannot meet the monthly payments. This is just what the credit card and consumer credit companies want. A late or missed payment and the interest rate on a credit card can rise to over 30%. Remember all the money credit card companies make each year in the form of late fees and penalties?

Wood block building and hand writing

The number one cause of divorce is money or better yet the lack of it. Excessive credit card debt is tearing families apart and is linked to domestic abuse and violence. What is debt? Debt destroys families and threatens to undermine the financial security of our country. Basically as one of my friends who recently became a millionaire stated “the best way to become wealthy is to stay out of debt”.

The only way to protect yourself is to develop a debt elimination plan and stick to it. You may need the assistance of financial counseling service to set up your plan. Step one of the plan is stop borrowing money. That means that you cut up all your credit cards and you live on a cash basis. This is hard for many people who have used credit cards all their life and have never lived at or below their means. But the system really does work and in many cases a family will be totally out of debt in less than 3 years. It is simple and very effective if you love your family and have the discipline to stick to the plan.

Article Source:

Compounded Returns On Your Money Invested – It Matters!

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wealth conference 2016

The next time somebody tries to sell you some investment plans, ask him (or her) this – “What’s the annual compounded return that I can expect on my own actual money invested?” If he can’t understand the meaning of “compounded returns” or “own actual money invested”, then he is really not qualified to advise you on any investment plan. If he gives you a percentage, then you should know exactly how much of your money invested would materialise in a certain period of time, given a set of assumptions. That’s the basic of investment. One must have an objective before taking the plunge. There has to be a financial goal. Otherwise you are just investing for the sake of investing without knowing where it takes you.

Let’s say you aim to accumulate RM1 million in 10 years by putting aside or investing a certain fixed sum every month. Let’s start with the most basic way, by allocating a certain sum every month into a bank savings or fixed deposit account. The best rates you can get in the market today pays 4.5%. To save RM1 million in 10 years with a constant return of 4.5% per annum (p.a.) compounded, you would need to save RM6,590 every month for the next 10 years. That’s a lot of savings for the typical Malaysian.

What other investments can you look at? Unit trust or mutual funds? The top 10 best performing mutual funds in Malaysia made an average return of 12.71% p.a. over the last 10 years. Not bad, considering it beat the returns of the KL Stock Exchange ($KLSE @ average returns of 8.09% p.a. over 10 years 2005-2015) and the Dow Jones over the same period ($DOWI @ 5.79%). Assuming the unit trust company you invest with is going to make the same returns of 12.71% p.a., you would need to invest RM4,126 per month to accumulate up to RM1 million in 10 years.


None of the above is an easy route to take. Possible, but not attainable in practice. First, you need high discipline in constantly investing, month after month. As your account builds up, you may stop and ponder. Doubts set in, if your return is going to continue the way it did. You may also be tempted to dip into your accounts for a nice holiday, or to purchase luxuries, derailing your plan.  

So what other types of investments to consider? ETFs, CFDs, forex, commodities (cotton, coffee, corns & pork bellies) & precious metals (gold, silver, platinum)? If you speak to enough investors involved in such investments, majority would have lost monies. You need to be at the top of your game to make significant meaningful profits from these markets. And a cool head too, with high control over emotions.

So what is the best investment that gives the best compounded returns? PROPERTIES! No doubt about it. Property investment is the best, safest and surest way to wealth accumulation. Every person planning for the future, either for their children’s education, or for retirement, must consider property investment. Property investment provides a high rate of return because of the leverage factor. Banks love to give loans for property purchase, as they are deemed to be the safest collateralised loans. Hence, an investor need not pay the full purchase price of the asset, he can take a loan of up to 90%. In fact, there’s lots of opportunities in the market today where one can structure a purchase to minimise the initial outlay, making it possible to buy a property from as low as RM5,000.

The table below show some examples of financial commitments required in buying and maintaining well selected properties within Greater Kuala Lumpur; and the resultant compounded returns. With such cash outlays and monthly commitment, it is definitely easier to accumulate wealth through property investments when compared to others.


A carefully selected property will always double in price within 10 years. That’s when substantial capital gains are made. One of my client  purchased a property in 2009 costing RM258K with just a cash outlay of RM10K (and zero monthly maintenance thereafter) In 2014, he sold it off for RM450K,  earning RM220K net profit (after repayment of bank loans and all other related selling expenses). That’s a staggering 2100% return over 5 years from the initial outlay of RM10K. Using the principle of compounded returns (where interest is added to principal annually), the rate of return will be 85.6% compounded annually over 5 years.

Another client invested RM25K in buying two properties worth RM520K in 2004 (also with zero monthly maintenance thereafter) and sold them off in 2014 for RM1.73 million,  making RM1.38 million net profit  That’s 5420% return over 10 years, but when compounded annually, the return is calculated to be 49.35%.


Investment in properties is a very lucrative business, as can be seen from the examples given above. In fact it is estimated that 90% of millionaires in the world made their money from properties. Be a landlord. Collect monthly rental from your tenants and hand that over to the bank to pay the monthly bank instalment. Do that willingly and patiently, for over a period of time, your property will increase in value, and your outstanding bank loan will decrease. When your loan is fully extinguished, then the rental income becomes a source of passive income. At any time, you can also sell your property to realise some cash.

Even if monthly rental income does not cover bank instalments, treat the shortfall as a “monthly commitment towards investment in properties. Treat that as a forced savings. But depending on your loan tenure, it is always possible to cover the bank instalment with the rental income, freeing cashflow to embark on a second purchase.

Learn how to invest in properties today; for investment in properties will give you the best compounded returns on your money invested!

Source: PropertyInsight

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wealth conference 2016

For more information about Property Investment, please visit 👉 Property Millionaire Intensive

Rich Debt, Poor Debt

There are many types of debts. There are many reasons why people take on a debt. People may incur debt because of an emergency, a large purchase made earlier, to improve one’s lifestyle and, a mode of investment and etc. Yes my friend, people and organizations use debts to grow. Let’s dive deep into how debts puts you in a worst off situation, and what is actually a good debt.

growth investor


In the world that we live in today, especially for middle class employees, it always seems that the cost of living is picking up faster than what we earn from our pay cheques. Despite this, we have seen tremendous growth in lifestyle expenditure. The unfortunate part of this culture is that it has created a lot of debts which makes people poor. Let’s take credit cards as an example. An average of 40% of customers today revolve (never pay credit card spending in full every month) on their credit cards. It is shocking that this has grown from only 25% more than a decade back. When you spend beyond your means and revolve unnecessarily, especially on lifestyle expenditure, you are paying as high as 18% annual interest. To make matters worse, most of these expenses depreciate over time.

Personal loans are another form of new age credit facilities which has an attractive easy cash access with no security pledged or charged. Many have been attracted to the sudden access to large volumes of cash which can be used for anything at all. This is another lending that gives an after effect of possibly one week of pure enjoyment and up to 5-7 years of painful commitment. A commitment that after a while you may ask yourself; was it even worth it.

Credit card and personal loan debt is one of the most expensive debt in the market. Please see below on the comparison of the interest rate based on EIR (effective lending rate).

Personal Loan – 16%-24%

Credit Card – 15%-18%

Car Loan – 7%-8%

Mortgage – 4.5%-5%

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wealth conference 2016

People who get stuck in expensive debts ie Personal Loans and Credit Cards will eventually become poorer and poorer.  Let me show you how this works:

You get continuously stuck in an expensive debt trap

You see that your debts have continued to pile up with no way to get out of it

You are trying to have it all but have no financial roadmap

Your money is being spent faster than being used to make more money

You continue to ignore big debts

You continuously pay debts which you can then incur more debts

You buy depreciating items

You put today’s happiness before future Financial freedom

You incur debts that gives you short term happiness and that does not work hard to grow your wealth for the future

You invest on other things instead of yourself.

You are spending too much on housing

This refers to your own house. You invest heavily into your house where lifestyle expenditure on it exceeds the current market value of the property.

According to Robert Kiyosaki (author of Rich Dad, Poor Dad), wealth is measured in time. If you were to lose your job today, how long could you afford to live at your current standard of living? If it’s 3 months, then you are “3 months wealthy.” Your income becomes largely irrelevant.

In short, a poor debt is basically using any future income to pay for past expenses.


Let’s look at debts that can actually make some of you richer.

Imagine this.

  1. Catherine buys an asset worth RM1mil, and after 3 years, she sells it off for RM1.2mil and makes a handsome profit of 20%. She has the cash to pay the entire asset of RM1mil but she chooses not too.  She initially took a loan that financed 90% of this asset. Her capital outlay is only RM100,000. After 3 years, her property is potentially worth RM1.2mil.  
  2. Tommy buys the same asset worth RM1mil, and after 3 years, he too has the potential to sell it off for RM1.2mil making a handsome profit of 20%. He too has the cash to pay the entire asset of RM1mil in cash and decides not to take a mortgage for it.  After 3 years, his property is potentially worth RM1.2mil.  

What do we see above? Who is a smarter investor? Who makes more money? Who is financially more resilient?

Here are some observations to ponder

Catherine only used RM100,000 to make RM200,000 over 3 years.

Tommy on the other hand used RM1Mil to make RM200,000 over 3 years.

Catherine has a remaining RM900,000 in her banking account for any life emergencies she might have. She can also continue to invest when the opportunity arises.

Tommy on the other hand does not have this advantage.

In simple terms, your RM100,000 investment has given you a return of RM200,000 over 3 years. Doesn’t that make more financial sense? Catherine has successfully leveraged her way for higher gains.

Many of us know that property is one of the safest investment journey’s one can take and make money over time. But it only makes sense if the initial cost of investment is pushed to the minimal such as a low down payment on a property, while the benefit of appreciation and capital gains are based on the total value of the property.


By definition, leveraging is any process that compounds risk. In the context of investing, leveraging is the process of using borrowed money (someone else’s money) to make money. A mortgage is a cost-effective way of borrowing. Interest rates on mortgages is no doubt the cheapest form of borrowing available in the market simply because the loan is secured against your property. You are essentially using other people’s money (the mortgage) to purchase something (property) which increases in value over time.

What this has created is that you are now boosting your wealth with effective returns. Just as the example of Catherine and Tommy. But, what about paying for monthly instalments? Is that still a bad debt? Alternatively, leveraging can be a means of force savings too. The difference is you would invest a lump sum of borrowed money and your money would start working immediately. On a monthly basis, you would be paying the interest instead. Any way you do it, forced savings is essential to building wealth.

On top of that let’s look at it from a financial security stand point. While there is a certain sense of security that comes from paying off your mortgage, there is security too in having cash in the bank because you have a mortgage on your home instead of paying all cash. Life is fraught with rainy days–from car breakdowns to illness and job loss–and every one of them is costly. You will be in a much better position to weather economic storms with a mortgage than without, assuming you have put money aside. This money would become handy in needy times and are not locked into your investment.

On the other hand, taking up a mortgage and freeing up existing cash flow has another benefit. There could be a future opportunity which you may come across. The value of opportunity may be difficult to define but it is certainly real. If a once-in-a-lifetime business opportunity arises overnight, would you be able to take advantage of it if your money has gone to pay off your mortgage or purchase a property without a mortgage? You might be saving a great deal of money by avoiding mortgage interests but that might pale in comparison to what you could make in a business venture. It could be a new business opportunity or it could be another new property investment opportunity.

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wealth conference 2016


Think about it, you borrow money everyday. We borrow to buy our homes, we borrow to buy depreciating assets like cars and we also borrow to buy items that have no value like consumer goods (via credit card). Most of the time we borrow to do things that are not financially productive. Leveraging can be incredibly productive when it is understood and used properly.

Even corporations understand this is the right way to do it. Many large companies have the cash to pay off debt but they do not. They understand the power of leverage. In fact, most companies are highly leveraged! Why? They raise public debt in the form of bonds at 8% and turn around to make 15% on that money. They have it figured out.

Why can’t individuals do the same?  We certainly can! Equip yourself with the right financial knowledge and start using mortgages as a wealth creation tool.  A mortgage is not necessarily a bad thing.  It can be used as arbitrage to leverage what you don’t have and yet benefit base on the total current value of the property when it appreciates over time. The key here is mortgage allows us to leverage and leverage allows us to Do More with Less!!


Source: PropertyInsight

Be a SMART investor, pay off the Poor Debt and start accumulating Rich Debt today!

For more information about Property Investment, please visit 👉 Property Millionaire Intensive

Smart Financial Management

The most commonly asked question is whether credit card a boon or a bane? It will end up being a bane if you spend without proper planning and end up paying more interest than earning the benefits. However, this plastic money can be a boon if you can control the credit facility towards your own benefits. Below are examples of how you can leverage on credit cards.

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wealth conference 2016

Sign up bonuses

Often, banks offer lucrative offers just for a credit card sign up. There are typically 3 stages where you can benefit.

At point of signing up: At this stage there is normally a small value premium gift just for you to sign up. This can be in the form of vouchers or an item.

Upon your credit card approval: Banks want you to start using the credit card as soon as possible. They do not want to give you a plastic to be left in your letterbox or stored in the card holder for emergency use. Some banks offer reward for card activation, while some banks reward when you start spending.

After activation: Banks are in the business of getting you to recur usage on your credit cards. Often it is done via frequent engagement plans to get you to spend more. High value rewards, like cashbacks, are offered when you meet certain spending criteria.

Earn up to 59 days of interest free period by using your card

When you make a purchase using a credit card, you are given an interest free period of 20 to 59 days, depending on the transaction date. By choosing to make more purchases with your credit card, your money stays in your savings account or fixed deposit and earn you interest. Meaning, you’re earning interest on the money you’ve already spent. You most certainly cannot do this with cash!

This is especially beneficial when you make large transactions.  Putting in a down payment for a property or a car using your credit card can give you handsome rewards in return. It is a timeline game. If you time your larger transactions at the start of the statement, you will earn more interest on money spent.

0% Instalment Plans

Some retail shops allow you to charge your purchases and convert them into 0% instalments plan of up to three years. This means, you can split your purchases into equal monthly instalments over the period and pay no interest for that purchase. This is done at the point of purchase. You normally need to look out for these sort of promotional signage at the payment counter or by asking the cashier. Don’t be afraid and ask! Do take note that every retailer is different. Some will look into credit cards offered by certain banks and some will look into tenures offered. Most of the time, retailers would not place a minimum amount for such transactions.

All you have to do after making large purchases is to save that same amount of money in your fixed deposit or savings account. By the end of the tenure, the interest you’ve earned is your profit.

Credit card debt consolidation

Here are some simple money making tips from such debt consolidation programmes (normally called Balance Transfers).

If you some have outstanding balances with other banks, this is a great opportunity to consolidate the various credit card balances you have into a 0% interest rate installment loan of up to 12 months or more under the balance transfer plan. The money that you have can be kept in the savings account longer to help you earn some interest.

Credit Card Reward Points

Most credit cards offer reward points when you spend. The accumulated reward points can be converted to cash value for subsequent spending. Some banks offer fast track reward points, which basically grants you between three and 10 times more rewards if you spend in those categories. Redeeming a cashback or voucher which normally requires a spending of RM20,000 to get 20,000 points, for instance, can be fast track way to earn reward by spending RM4,000 to get the same 20,000 points if you meet the needed requirements.

Cash Back on credit card

“All the above are a hassle to me because I am forgetful?” A simpler but less lucrative way to make free money from credit card is by using a cashback credit facility and paying it off in full every month. Different cards offer different cashback rates. Some offer a high introductory rate that reduces over time, while others offer higher rates on certain spending. So, make sure you get the card that best matches your shopping habits.

Merchant discount on selected retailers

Banks are very competitive. In order to make their credit cards more appealing to consumers, banks generally offer merchant discounts. Meaning, if you use their credit card in a listed store, you will get extra rewards points, upfront discounts or end-of-bill discounts. For example, some banks offer rewards like complementary tickets or immediate discounts when you watch movies at a particular cinema. Again, you would not be able to do this using cash. Cash is king? Maybe not in this case.

Source: PropertyInsight

For more information about Property Investment, please visit 👉 Property Millionaire Intensive

Financial Planning Insights Into Property Investment

At the time of purchase, those units were located in hot areas and were quickly snapped up for its rental yield.

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wealth conference 2016

With the current economic situation, some of them are facing tenants who delay payment or are unable to get new tenants when the existing one leaves. This leads to the situation where the secondary market and the property auction list starts to grow.

In fact, there is a growing list of Bandar Utama double-storey link houses up for sale. Once upon a time, the moment one is available, it is quickly snapped up and will rarely make it to the For Sale list.

The next challenge property investors face is the repair bill when a tenant leaves. You need to spruce up your place to attract new tenants.

Another major challenge is the tenant’s deposits that you hold on to. Nowadays, tenants will happily contra their deposit with their rental whether you like it or not. Chances are, after they have left, you will find areas that need repairs which the tenant conveniently forgot to inform you before leaving.

Another nightmare is the tenant who turns into a freeloader citing bad times for not paying their rent. You must get them out after the stipulated period in the contract to avoid potential sabotage from your angry freeloader. A model tenant is undeniably a blessing, but they are a rare breed.


Financial Planning Strategies of Property Investment

Many property experts out there would have shared with you where, when, how and which are the valued properties to invest in. To complement all these knowledge, the Financial Planning Association of Malaysia is providing insights from a personal financial planning angle.

This is a reflective piece in view of the above scenario being played out with each economic turbulence over the years. Here are some ideas on how you can invest in properties and survive during tough times.

First and foremost, property experts will continually stress on the importance of location, so this is a given. On the personal finance side, the investor must keep enough cash reserves to cover the installments in case you are unable to rent out your property.

This cash reserve should come from emergency money that you put aside, which should amount to 3-6 months of your expenses. Your emergency money must either be in the form of fixed deposit or a vehicle which is liquid. Tying up your emergency money in shares or an equity fund is not a good idea as, during economic turbulence, these may drop in price or it may be hard to dispose of to raise the cash you need.

When you are collecting rent, remember to set aside a portion of your rental, aka sinking fund, towards:

  • Repairs and repainting for when your tenant leaves
  • Advertisement for new tenant
  • Annual payments for quit rent, assessment and house owner insurance

This is a separate sum from the emergency money, which is to pay for instalment whilst you find another tenant or find a buyer to purchase your property.

Last but not least, for those who have been saving their money and think that this is an opportune time to pick up bargain properties, do a quick calculation of your income and expenses to make sure that you have enough savings to fall back on before you plonk your hard-earned money in an investment property.

hot tips

Having the down payment alone is not good enough, especially if you are solely responsible for all the finances and do not have a spouse or parent to fall back on for financial help should it arise. You must factor in the following cost of acquisition in terms of fees and payments:

  • Lawyer and agent’s fees
  • Bank loan agreement
  • Insurance premium
  • Renovation and furnishing
  • Stamp duty
  • Goods & Services Tax

Property valuation fee to determine your eligible loan amount by the bank

Source: PropertyInsight

Don’t stretch your purchase price now unless you want to be financially stretched later.

For more information about Property Investment, please visit 👉 Property Millionaire Intensive

Real Estate Investing for Beginners: A 10 Step Plan

Here is a ten step plan anyone can use to invest in real estate.

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wealth conference 2016


1. Find your market

(geographical area, location, close to your current address is preferred)

Finding your market means finding your target area, the geographical location, of where you want to purchase real estate. Ideally, it’s best if you purchase property within a 10-20km radius of your home. The closer you are to your investment property, whether it’s a house, mobile home, or vacant land, the better.

Choosing your market will be determined by the amount you can make, known as the Return On Investment (ROI), minus your expenses, when you sell or rent the property. And your ROI will be effected by a number of factors-current market values of the existing properties in this area, upcoming developments planned for the area, proximity to landmarks or bodies of water, crime rates for the area, employment opportunities for the area, and a lot more.

Visit the area at night. During the day, an area with a few abandoned houses or commercial buildings may appear like an opportunity. At night, however, these buildings may be a haven for criminal activity or a camp for homeless people. Talk to the people that live in the area to get a feel for what’s going on there.

2. Determine or choose your investment property type

What kind of real estate property would you like to invest in? Buying a house? Buying a mobile home? Buying land? Buying commercial property?

How would you like to buy the investment property? Buy it outright, or put the down payment on it in order to secure the mortgage? Securing the mortgage of an investment property allows you to save money while, also, getting control of the property.

Okay, you’re probably wondering “but I don’t have the money to buy the property, what about the money?” We’ll get to that.


3. Find five properties

Find five properties (houses, mobile homes, land, commercial properties) investment properties to purchase, rent for profit, or flip for profit.

Research. Study the area where you plan to purchase a property. How? Follow these steps.

1. Search online for “___________ ________ tax assessor” and “_______ _____ tax clerk” and “______ ______ property appraiser”. Fill in the blank with the county in which the property is located. Fill in the second blank with the state.

For example, if you’re searching for an investment property in Gilchrist County, Florida, search for “Gilchrist County, Florida tax assessor” or “Gilchrist County, Florida tax clerk” or “Gilchrist County, Florida property appraiser”.

Research the area. Find out what properties are selling for, how long they’ve been on the market, annual taxes, appraised values, etc.

Study the area. Determine the comparable market values of real estate. Become an expert and this will enable you to forecast, or predict, trends so you’ll understand where to buy and when to buy and where to sell and when to sell.

4. Develop your strategy. Lay out a plan.

* Buy and rent for profit?

* Buy, fix up, resell for profit – buy and flip? You make money when you buy! You can find a buyer before hand by using the internet classified ads and social and classified ads in local newspapers. Find out who’s willing to buy and what they are willing to pay before even making an offer on the property you want to buy.

* How are you going to find the money? We’re getting to that. Once you have an action plan or a plan-of-action, then finding the money becomes easier.

plan b

5. Establish a back-up plan.

Just what it says. Set up a plan in the event that everything goes wrong, in case of a situation in which everything goes south. Establish a contingency plan. You’ve made it this far, now make a backup plan. You can do it.

This-making a backup plan-will lessen any worries you have, enabling you to move forward, to take action, to make things happen. Action eliminates fear

6. Determine your exit strategy.

In order to know where you are going, first decide where you want to end up. What’s your end goal? How do you plan to exit this RE deal with a handsome profit, and with all parties (buyers, sellers, investors) satisfied and happy?

7. Present your plan to investor or investors.

Read over your notes and reduce everything to a simple plan of action. Then, write down this plan of action and reduce it to numbered steps… 1, 2, 3 and so on. Set the dates of when you’re going to do what. Make copies of this, both PDF copies and hard copies.

Get everything in writing, signed, in the presence of a notary public.


8. Execute your plan.

Take action. Action eliminates fear.

Start putting your plan into action by taking action.

Star Property

9. Get people competing to buy your property.

When selling or renting the investment property, gather a crowd by scheduling a specific time. If you want to rent or sell a property, set up a specific time frame in which to show the property, preferably on the weekend. Schedule an open house on Sunday, 2pm – 4pm, gather a big crowd. Get a mortgage broker at the place to, in order to set up mortgages for people who want the place.

10. Put your exit strategy into motion.

Collect rents. Sell the property. Keep records of everything (video, audio, paperwork, keep backup paperwork).

Article Source:
For more information about Property Investment, please visit 👉 Property Millionaire Intensive


5 Must-Knows for New Investors

wealth conference 2016

wealth conference 2016


Lesson 1: Don’t place all your eggs in one basket. Although necessary, risk should never be painstaking.

Fortunately, my investment was cash-flowing and I officially became an entrepreneur.

High on investing, I planned to move forward with another deal. What does a motivated entrepreneur do? Find money.

I didn’t hesitate to ask for a loan. Friends, family, banks. Denied, denied, DENIED. I had no investor network, minimal investment history, and an average income. In short, I had no lending credibility.

Lesson 2: No one is obligated to give you money. Earn it with work, knowledge, associations, and credibility.

My goal remained delayed until a networking event inspired change. A speaker intently spoke about the ease of business funding. Moreover, he claimed effort and resourcefulness separated the haves from the have-nots.

Sounded great, so I investigated.

Google searches really make dreams come true. A few key words went a long way. Aspiring and seasoned entrepreneurs were accessing large sums of money I formerly thought were hard to reach.

‘Creative financing’ became my favorite phrase:

  • business credit
  • cash-out refinancing
  • master leasing
  • seller financing

All methods I now considered options.

Wood block building and hand writing

Lesson 3: Take advantage of free resources. Things like internet searches, downloadable documents, and networking events accelerate your efforts.

Back in action, ready for a deal. Yes! I just knew I’d have more properties in no time. Unfortunately, it wasn’t that simple. I kept running into properties that didn’t pan out. I couldn’t believe it! I had financing options with no deals to close. Then I realized why I was stuck, AGAIN.

Solely focused on financing, I placed no effort in actively pursuing a deal. At the time, I figured I had to achieve one goal before beginning on another.

Lesson 4: Success is not linear. Work on your goals simultaneously to maximize on time and efficiency.

Had I owned this mindset, I would’ve closed on my next deal sooner.


Lesson 5: JUST GET STARTED, embrace risk. Never stray away from pursuing what you want regardless of the challenge.

Things may not happen as planned. Commit to the end-goal and you will earn the result you desire.

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For more information about Property Investment, please visit 👉 Property Millionaire Intensive