Nice, inspirational story. Thanks for sharing. I'm into property investment myself, but not earning as much or have properties valued that much. I'm still happy with what I have nonetheless and always strive to increase my wealth... :-)

There always needs to be a starting point. I'm not trying to be too critical of today's youths, but a lot of Gen-Y's seem to be complaining more than anything else. If you take a look at lamode's story and experience, he bought a cheap property back in 2009 at RM210k, which is a 3 bed-room unit. Well, it does seem cheap now, but was it considered cheap back then? If you compare relatively to the early years in 2000, it was already considered expensive. One just need enough courage and conviction, besides enough homework, before jumping into property.

When I got my first property back in 2011, it was a 3 bedroom, 750+sqft unit at RM230k. To make things worse, it was a leasehold property. Yeah, it is considered on the cheap side, if you were to look at today's market, but back then, it was crazy! And I guess that's how one gets started.

I just secured my 3rd property recently at Mah Sing's Southville. And just like lamode, my debt has also increased significantly, for the better or worse. Today's Gen-Y's need to be realistic and not so choosy. I have young colleagues (mid 20's) who are earning around RM5k and yet lament that they can't afford to purchase any property in KV. Besides a hire purchases loan, they have no other financial obligations/debts. And yet they say they can't afford to own a property? If other people can do it, I don't see why they can't.

If today's launches are using future's prices, I doubt it that the future launches will be using today's prices. So why wait? Again, if the motive is clear and outright necessary (for own stay as opposed to rental play), then I think one should jump in.

A lot of wealth creation by individuals are through investment vehicles (securities/share market, business, real estate..etc).... :-)

Hahaha, it's scary that you know my 2nd prop is Solstice.
Well, simply because I am not able to afford a reasonable landed prop at the moment, and yet, I want to stay close to the city centre (within KL). Landed for around RM400k within KL would at best get me a 20"x65" single storey terrace which is rather worn out. I think I'll be better off in a high rise, which should offer better security and also are more readily in supply and also demand for the younger generation.

As for the property strategy, I think I don't need to stay in such an expensive home. I could have consolidated my properties and just make a single purchase of a RM1mil home. But I figured that it would be a waste and I wouldn't be able to generate any income at all. Thus, I spread it over 3 properties to be safe.

Jumped into the 2nd and 3rd prop after knowing that 1st prop has appreciated reasonably a lot.

Hahaha. I think 90% is an overstatement. The figure should be more like 99%. RM5mil, if you were to put inside FD and also bonds, it can easily yield RM16k/month. That's way more than my current salary and also more than 99% of Malaysians, as per the current stats released by the government. 80% of Malaysians don't even earn more than RM10k/month.

What is your debt service ratio (DSR)?
Although your loan amount is small (RM180k), if the period is short, your monthly commitment will be high. There might be a chance your application for your RM600k loan will fail.

How much is your current monthly commitment for your mortgage loan and hire purchase loan?

I've done a short calculation for you, will surely burst, your commitment.
Assuming a max of 35 years for your 1st home loan of RM180k, your monthly installment should be around RM820.

For you hire purchase, 9 years, will be around RM800/month.
Add together the latest loan, assuming you take 90%, which is only RM540k, even if max of 35 years, min will be RM2.3k, if the rate is BLR-2.4%.

If you put together all your debt, it will be RM800+RM820+RM2,300 = RM3,920.

The maximum DSR for most people will be 70%.
RM3,920/RM5,000 = 78.4%.
And that's based on the calculation that RM5,000 is your nett salary, after the necessary deductions (income tax, EPF contribution). If you work backwards, for you to be able to get the RM540k loan, your net salary must be RM5,600, which should equate to a gross salary of RM6,500.

This post has been edited by DrPitchard: Oct 17 2013, 01:03 PM

Your car loan is killing you big time. Try to refinance it? That's the only way, I think. Even if it's rented out at RM700/month, banks only take 80% of it for their calculation.

The best way to go about it is a full settlement for your car. Then, you will be able to take on a new loan.

DSR = RM2,300+RM802 / (RM4,000+ 0.8*RM700) = 68%

Here, I'm assuming your net income is RM4k. And for your rental, you will need bank-in proof, besides the stamped copy of the rental agreement.

Thank you for sharing this. But it seems that this is rather hard to believe. Before he can even invest this RM10mil/year, he has to earn it, right? Money can't just drop out from the sky. And I'm assuming since he is into real estate, the money that he makes is also from there? Given a conservative 10% yield (which is a significant return!), that would mean his company would need to have properties worth RM100mil to enable him to generate the profit of RM10mil every year!

If his company has properties worth that much, trust me, he will not be doing what he is currently doing, giving talks.

LOL. I like the way how you have sniffed deep within and got your hands on all this info. Really great info! Thanks very much for sharing. I've always preferred white & black, reported figures, as compared to flowery sentences from the mouth.

This post has been edited by DrPitchard: Oct 17 2013, 11:28 PM

Don't want to put down or insult anybody here, but this is certainly not the way it works or even anything close to it. Any registering a property under family members name won't help either, as the source of funds can easily be tracked.

On a seperate note, I think you're missing the point on the reason why I brought up all those figures and calculation in my earlier post. As forumer Giggs pointed out, a large majority at such talks are just blowing water only, blowing their figures out of proportion in order to convince their audience. The best part is how many people actually walked out after the talk, feeling totally convinced of what the speaker has just presented on.

Same here, don't have high regards for Mr.Ho anymore, he's appearing everywhere and anywhere just because he is paid to do so. Unless he whips out a S&P agreement that he has invested in a property that he is giving a talk on, I don't think what he says is credible.

True also. But I don't think his figures are into that kind of range, enough to warrant a 10-20% discount, which is totally insane. I would say a good figure would be anything between RM1k-RM5k? It's just half a day's work of talking and that's about it. Developers don't use posters of that event to continue on promoting the property.

Even for the likes of Milan Doshi, I think he'll command more but still less than RM10k. More than RM10k has to be the likes of Robert Kiyosaki, who have wrote world wide bestsellers.

Again, it's just my guesstimate.

Hahahaha. For who? Mr.Ho?
Nah, I'm very sure not. I just did an event a few weeks back, and we got a well known local sports figure to attend a Sporting Event. The well known local sports figure has a title to this name and virtually all Malaysians know him..

And his fee was only RM15k, after a serious of negotiations with his manager.

Mr.Ho, how many people know? LOL

Depends on the purpose. If one has too many properties, although all are giving very good, positive cash flow, it's still best to consolidate to have less properties. For example, if one has 3 RM300k properties and is planning to get a fourth prop, also at RM300k, he/she will need at least 30% downpayment. Instead, I would rather sell all 3 and get 2 properties worth RM700k each. It's pretty much the same as refinancing, as one will be taking loans that is based on the property's current market value. Refinancing a current property will give cash but without a doubt also increase the monthly installment.

Mathematically, it will work out to be the same.

Example was given based on my experience and current position actually, LMAO.
I have 2 properties already, market value of each one is around RM300k+ now. Planning to get another one, around RM350k, but it means having to fork out 25% of the purchase price since LTV only 70% for the 3rd property. Luckily developer giving some rebate to cushion the impact. Regret that I diversified too much... :-(

I think I won't be touching properties for a long time (at least a few years down the road). Because if I do, I will sell my first 2 properties in order to buy my next one (so that I am entitled to 90% loan). And both still are within loan lock down period. Might also be taxed for RPGT since net profit will be more than RM100k for the first property. Damn.

Hahahaha, triumph card for a net profit of RM120k only? LOL
That means a tax of RM12k if within 2-5 years.

To make matters worse, exemption is for RM10k and below.

I think I'll only use triumph card much later on in life, then dealing with profits of a few hundred k...

If I consolidate my property and whack a big one, would be possible. For example, purchasing a RM1mil home. RM400k increase within 5 years is nothing really surprising. Desa Park City is a good case study. And my example, RM400k increase over 5 years is just a healthy 8% growth year on year.

Oh no, you're referring to another exemption already. Basically, there are 3 cases for exemption, under the current 1976 act.
(a) RPGT exemption on gains from the disposal of one residential property
once in a lifetime to individuals;
(b) RPGT exemption of up to RM 10,000 or 10% of the net gains,
(whichever is higher) from the disposal of real property by individuals;
and
© RPGT exemption on gains arising from the disposal of real property
between family members (e.g. husband and wife, parents and children,
and grandparents and grandchildren).

I am referring to the 2nd one, whereby as long as the amount to te paid is less than RM10k or 10% of net gains, then one will be exempted from RPGT.

From what I understand, there is no limit to this at all.