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1. FEATURE ARTICLE: Q & A 2007
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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, Malaysia is a capitalist and not a
socialist country.

Next, you can sell the properties at any time, even the day
after buying the property. The only thing is that you have
to pay RPGT (Real Property Gains Tax) on the gains made.
The RPGT is calculated on a sliding scale.

After five years, there is no more RPGT for individuals.
However, companies have to pay RPGT of 5 percent even after
five years.

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. What do you think about Swisscash?

ANS: I’m the Millionaires Coach, not the Poor Man’s Coach.
But if you really, really want to know the answer, read my
latest Special Report entitled “The Burning Truth about
Swisscash, Get-Rich-Quick Schemes and Other Unworldly
Investments”. This 40 pages report is mandatory reading for
those who value their money and those dreaming of becoming
rich. So before you send in a single cent to the
Get-Rich-Quick Scheme operators, read this report first.
It could be the best RM19 you’ve ever spent.

The Report is available at
www.MillionairesPlanet.com/books_SpecialReport.htm.

Q 3: Tahukah anda yang conventional loan itu haram kerana
ada riba? Kenapa anda masih rekomen benda yang haram?

ANS: Pertamanya, saya tidak mencipta alat-alat (loans)
tersebut. Ianya sudah sedia wujud di negara kita (sebuah
negara Islam). Mereka bertanya bagaimana untuk mengurangkan
bayaran loan, jadi saya berikan jawapannya.

Apakah anda akan melabur di dalam saham (atau lain pelaburan)
yang halal tetapi ianya menjahamkan alam semesta
(environment)? Soalan yang senang; jawapannya susah.

Based on your argument, no Muslim in Malaysia can work in any
airlines, hotels, banks, finance companies, trading
companies, etc., etc. kerana syarikat-syarikat tersebut
menghidangkan minuman keras atau memberikan conventional loan
atau mengenakan interest (riba) bagi pembeli yang berhutang.
Kita buat kerja amal sahaja.

Tetapi kita tidak boleh komplain, kecil hati, iri hati atau
marah apabila orang lain lebih bahagia, tinggal di rumah
besar, berkereta besar, bergaji besar dan anak-anak mereka
belajar di sekolah yang lebih canggih.

Lebih utamanya, we shouldn’t cry when other countries run
all over us because they have more money (and therefore
more muscle power).

Q 4: 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, which
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 5: You quoted 10 percent return from savings. Where can I
get a 10 percent return now?

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 6: 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 another bank at the same time, which is the
situation happening in a wrap around sale.

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 man in
jail!

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2. QUOTE OF THE MONTH
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“Accumulating wealth is difficult; losing wealth is not.
It does not take a genius to squander a fortune.”
 

* Ong Eu Jin *

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3. YOUR QUESTION ANSWERED
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Q : BANK SIMPANAN NASIONAL (BSN) ada menyediakan personal
loan seperti berikut: kita berikan SIJIL AMANAH SAHAM
BUMIPUTRA sebagai cagaran dan pihak bank akan memberi loan
sebanyak 95% daripada jumlah sijil ASB yang dicagarkan.
Sebagai contoh, sijil ASB sebanyak RM100,000, pihak BSN akan
memberikan kita loan sebanyak RM95,000 di mana kadar
pinjaman adalah 3 - 5 tahun - 4.5 % PA (kadar tetap) dan
6 - 10 tahun - 5 % PA (kadar tetap pinjamannya adalah secara
Syariah Bai Al-Inah).

Soalannya sekarang berapa lamakah tempoh terbaik yang
sepatutnya saya ambil? Saya cadangkan akan memberikan sijil
ASB sebanyak RM70,000 sahaja.

ANS: Jawapannya pula ialah untuk tidak mengambil loan itu
langsung!

Bila kita ambil loan, kita terpaksa membayar loan dan juga
faedah itu balik (tak kira Islamic loan atau tidak). Bila
nak kaya kalau semua dividen ASB yang patut kita dapat
diberikan kepada pihak bank? Apa yang kita ada hanyalah
modal RM70,000 itu sahaja.

Alternatif yang lebih baik ialah untuk menambah simpanan
di dalam ASB setiap bulan. Simpan setiap bulan, simpan semua
dividen dan bonus yang dibayar setiap tahun, dan jangan
keluarkan wang tersebut. Wang modal yang mulanya hanya
RM70,000 akan bertambah dan bertambah setiap bulan.
Begitulah caranya untuk membina kekayaan.

Ianya mungkin perlahan (dan boring), tetapi ianya cara yang
paling pasti.

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4. CHINESE NEW YEAR GREETINGS
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We’d like to wish everyone a happy and prosperous Chinese
New Year. May all your good deeds be multiplied a hundred
folds and may all your dreams come true in the new year.
Let’s make 2007 a year to remember.

* HOT TIP *

Read “Can Wealth Last Three Generations?”

by Ong Eu Jin