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1. FEATURE ARTICLE: More FAQs
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Since it proved to be a HOT HOT thing, I’m answering more
questions this month. As usual again, the questions are
presented the way they came in, broken English, grammar
errors and all. Enjoy!

Q1: Please tell me about Capital Allowance you mentioned in
your book “How to Become a Millionaire Landlord”.

A1: Please click on www.millionairesplanet.com/article_045.htm
for the complete answer.

Q2. I met a motivated seller who wants to sell his house
with cheaper price. The problem I facing is the seller has
debt with loan shark. Could you advise me whether to buy or
not. Thanks.

A2: You will be doing the seller a huge favor by buying the
property from him. He can use the money to pay off the loan
sharks. But before doing so, ensure that he did not mortgage
or use the house as collateral to the loan sharks.

Otherwise, he will be transferring the problem to you if you
take over the house! If in doubt, look for other properties.
There are hundreds of thousands of properties in Malaysia.
Surely, you can find one or two that meets your
requirements.

Q3: I’ve bought an auction property from Bank. My problem is
the previous owner is a lawyer and still staying inside the
property. I’ve fully settled the balance purchased price,
what can I do next to the claim property? What is my right
to use in order to chase her out ASAP? I’ve complied with
all the conditions of proclamation sales and all
understanding bills are paid. Even the worse the current
maintenance fee and utility bills are on us since the date
of auction in last October. The present lawyer is taking
advantage of her profession to delay moving out.

What should we do other than the court order? (We are nice
people to chase them out.)

I still pending the bank to come back with letter of
authorization and Deed of Novation, how long do u think
they should hold on the document since my cheque to them
was cleared last week?

A3: If an auction property is tenanted and the tenant is not
willing to move out, walk away. That property is trouble
because it will take a long time before you can take over.
In this case, you are in a double bind as the tenant is
himself a lawyer. It will take ages.

Perhaps, you could make a complaint to the Bar council
regarding the conduct of this lawyer (after exhausting all
the legal avenues first). Anyway, good luck. You’ll need it.

Q4: I would like to take this opportunity to thank En Azizi
for providing us a very good information and guide to the
millionaire property and landlord.

Currently I would like to buy a completed penthouse
apartment around 2,466 sq feet which have 5 bedrooms,
3 bathrooms, one store room and two car parks for RM2888,000
in Setapak near Jalan Genting Klang from the developer. Most
of the apartments in that area are rented by the students in
XXX College. The market value of the standard unit of the
apartment around 1,231 sq feet which have 3 bedrooms, 2
bathrooms and one car park is around RM205,000. The rental
for the standard apartment is around RM1,100 to RM1,300 and
the rental of the penthouse is around RM2,000 to RM24000.
The maintenance fee is RM0.10 per sq feet.

I understand that we should buy two unit standard apartments
instead of buying one unit of the apartments will cost
around RM400,000.

Should I buy the penthouse and rent to the XXX college
student? Will it be difficult to me if I sell the penthouse
next time? Furthermore there is a huge development of condo
and apartments near that area will there an effect of the
rental next time in future especially on penthouse?

A4: Your prospective tenants are the students (very few
professionals would want to stay with students). What you
can do is buy the penthouse, add in 2 or more rooms and
then rent it out to the students on per room basis. This
way, you can get a much higher rental compared to renting
out the penthouse as a unit. Of course, be prepared for
higher repair costs as well!

By the way, this is how Conrad Hilton (the founder of
Hilton hotels) started out - renting out rooms in New
Mexico.

Q5: I’d like to congratulate Mr. Azizi for being a
millionaire which I could only dream about. Being so
inspired by his successes, I made a step forward towards
reaching the same success by purchasing his debut “The
Millionaire in Me”. I learnt a lot from the book and have
started making, saving, and managing the money as
illustrated in there.

The money is not so much after all, just around 10k. My
question is what would be the best initial investment for
that amount of money?

A5: The answer may sound basic and perhaps even boring, but
it is also the truth. While we all want to become money
machines as soon as possible, it can only happen if we have
the knowledge and the discipline.

So the answer? Invest in yourself by reading more books,
attending talks and seminar or even formal courses. The best
investment we can make in our lives is in ourselves. It
will make you more money than any other investment.

PS: I read three books a week. That’s why I’m a millionaire.

Q6: I’m a new investor in stock market. I would like to
invest a small amount of RM100 in mutual fund. It is a
good idea?

Can you give me some idea where I can invest the money for
better return?

A6: Learn about unit trusts first and then invest your
money. Learn about investments first before parting your
money. That way you’ll be a better and more informed
investor. Your chances of making money are significantly
higher.

As you can see, the answer is always the same. Before you
invest your hard earned money, get the knowledge about the
particular investment that you are considering first. While
you will obviously spend a little bit of money to buy books
and doing the research, it is peanuts compared to the losses
you could incur by investing in something that you don’t
understand.

Also, knowledge stays with you FOR LIFE!

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2. QUOTE OF THE MONTH
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“If you want to earn more than you get,
you need to be worth more than you are paid.”

* Napoleon Hill *

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3. YOUR QUESTION ANSWERED
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QUESTION: Should I buy properties under my own name or
a company straightaway?

ANSWER: If you have every intention of starting a property
empire, then go ahead and register a Sdn Bhd. However, for
most people, I would recommend buying under your own name
initially. One reason is because of the higher margin of
financing for individual buyers. Another reason is that
you can keep your costs down while you learn about the
business.

If things work out the way you planned, then you can
always transfer the property to your company later on. If
you decide otherwise, then it will be easier and cheaper
to sell under your own name.

* HOT TIP *

Read “Wang, Anda dan Islam” by Zaharuddin Abdul Rahman