Allow me to answer some of the above. EPF is part of your wealth, so why not? I believe you need MRTA more than life insurance, especially with your low cash holdings. I personally believe you need to be more discipline in the next few months to save more and to apportion some into FD as well.

No, you do not need to convert your properties into a Sdn Bhd. The costs involved is not worth the hassle. Plus the act has been changed recently that expenses for that unit can only be deducted against the rental for that unit unlike previous property investments companies. So no tax benefit. The only benefit would for succession but you are still young so no need to think too much about it.

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Added on April 10, 2011, 1:06 amWithout knowing your monthly cash flow, it is not easy to work out an ideal but let me give it a try.

Your Condo A installment seemed to be on the high side, you might want to consider asking the bank to reduce your interests (currently the market rate should be BLR -2.3 to -2.5. It is yielding around 5% without taking into account of your management fees and other outgoings, so the yield could be potentially lower. Personally for me, 5% yield is very low. Since you have quite a number of properties, I believe you do want to build up your passive income then you seriously need to reconsider your property investment strategies. An ideal yield should be around 8% or more.

Your Condo B seemed okay but again yield is on the low side.

Condo C, even if it is not fully paid up is yielding good at around 8% (sorry cannot be bothered using calculator.. hehehe)

D, cannot comment since no data.

Being in the sales line a big part of your salary would be commission base, so there are some risks but I am sure you know how to take care of yourself.

Overseas Land banking in my book does not work, so I personally would suggest moving the investment to other more profitable investments. Palm oil I believe would be country heights scheme? coz for RM25k, you cannot even buy 1 acre of palm oil land. It is okay to invest in this for diversification but i won't suggest you into putting more money into it. Wawasan is paying good interests, so it is handy to keep some. UT is something I do not favour as I would personally advise people to buy blue chip shares. You get more dividends and possible capital appreciation.

Info I need: who owns what? condo A, B... so that you can plan your property investment better for future. What is your net cash (income minus all expenses beside your rental income).

In summary from the info I can see, I believe your most important goal is to build up your cash.

This post has been edited by michaellee: Apr 10 2011, 01:06 AM

Yes, either you spend minimal to maximise the rental OR dispose and acquire others which are higher yielding. But in doing so, there are of course risks and added costs.

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Added on April 10, 2011, 5:13 pmDamm, the internet.. heheeh had a long reply for you but all gone.

Ok. ROI. I believe historical costs might not be the right way as it does not give a true picture. an extreme example would be a shoplot bought 30 years ago at RM100k now being rented out at RM12k a month. That means yield is 120% but if shoplot now costs RM3million, suddenly current yield is 5%.

There are ways of enhancing a property's value. You could either cash in and buy another place with better yield (can be risky too). Or you could redo the unit and then maximise the return.

knowing who owns what is quite important. For example, if you are planning to buy another property, perhaps your wife could transfer her 50% in either B or E to you, so that the next property if 100% under her name, she could still qualify for 90% LTV. If she transfer both B & E to you, then she could buy another 2 more under her name with 90% LTV.

One thing, you do need to get some cash at hand. Your net cash per month is quite good at 1.5k to 2k. Assuming it is 1.5k then you should have around RM18k a year. But holding RM5k now is kind of low. You need at least 6 months of total mortgage repayments at hand to ensure that you are prepared for adverse situations.

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Added on April 10, 2011, 5:15 pmI think your car is an asset as it has been fully paid up and it is a gift to you.

I presume all the monies listed are gifts to you?

Rather than moving FD to tabung haji, you can consider buying properties with some of the money for investment purposes. Your parents have not bought any insurance or medical for you? No point to overspend on insurance.

This post has been edited by michaellee: Apr 10 2011, 05:15 PM

For 2.5 years effort, it looks good especially on the EPF side.

Personally, I have not touch stocks and not planning too on any big way. But I believe if you play blue chips, it can be good investments. Not sure if you should go into speculative shares. Personally, I have been concentrating and putting all my eggs into properties and so far it has worked out well for me.

(1) I would not spend too much for my own stay, with the assumption you are not married. Depending on your salary bracket, I would say if you can find some low or middle cost apartment which normally brings quite good yield, easy to sell, get that as your first unit. Maybe not to stay but to start off your passive incomem adventure. Your proposal of 100k for renovation would wipe out all your FD and stock UNLESS you are planning to get it from "somewhere". RM400k house would mean repayment of RM2k (quite high).

(2) Again, unless someone is funding your car purchase, avoid getting an expensive car. A cheapo Malaysian made car of around RM50k would does the job just as well. But again, it is your personal preference. Remember a car is more of a liability than an asset.

(3) I wish you success in this venture.

(4) As per above, good luck.

I would presume it is savings from allowances given by parents which if true is still admirable. Most teenagers nowadays would spend everything given that it is a very material world.

Sole proprietor for properties? I think the bank will tell you to use your individual name as it is the same.

If you save RM200-300 a month, it would mean around RM10k max for 3 years effort. In between you received "well behave" bonus? hehehe

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Added on April 12, 2011, 10:22 amSo sorry I am not into shares, so cannot comment much on them. I supposed Penang is getting expensive for everything. I guess you have your finances planned. Good luck in your quest!

This post has been edited by michaellee: Apr 12 2011, 10:22 AM

You owe your parents RM190k? But what is cash flow - 90k means?

house? Salary? When you asked what should you do, what are your objectives?

Illegal car rental business is profitable but very high risks. If your car encounters an accident, the insurance company may not pay as your car is meant for private use and not commercial.

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Added on April 29, 2011, 10:52 amFirst, my personal opinion is the pound may not rise to 5 in the short to medium term (having said that, I am not a currency expert). Savings of RM6k a month is very enviable. Just on a very personal note, to be able to save that much at such age, I believe you are more towards "self employed" right, ie. working for family. But I don't understand the part where you say your cash flow is negative 90k. What do you actually mean by that.

From what i can see, you have quite a healthy financial standing and should have nothing to worry about. Property and share market are very choppy. There is virtually no direction anymore nowadays. Best to invest in low risks low return until the weather is clear.

This post has been edited by michaellee: Apr 29 2011, 10:52 AM

My advice would be to re-invest your money into opening a tuition centre since it is a business you know quite well and seemed to be generating good income for you. Hire more teachers to leverage on them. Then instead of saving RM7k a month, you might be saving RM70k a month.

Reinvestment in own business normally brings the highest gains as you would be the one who would be most familiar with the entire operation. Expansion does not mean more branches but could be increase in the size of your current operation. Employ subspecialist teachers for individual subjects. I know Malaysia is still at its infancy for tuition centre. If you could market your product well, your centre will be a kill. I always have the concept of providing free or half price tuition for outstanding students. These students are your marketing tools. You can brag about how these students came and succeed in your centre, prompting other mums to hope for the same for their children. Provide direct interaction with parents making sure the parents know their children progress. All these could mean more work but at the end of the day better returns too. Sorry for harping on, but that's my 2 sen.

If we enter a bear market, having RM122k in FD is definitely much better than anything. Chances are we should be heading towards a bear market soon.

Just curious, how come your gf gets an allowance for just being your gf?