Im 95% sure of investing in the Dolphin Capital GmBH property investment scheme. Seems legit and provides decent returns of 24% over 2 years.

My monthly expenses is the same as my take home salary. Paying off 3 housing loans + car.

Still surviving la.

Not sure. But what I know is that my overall NAV is about RM2 mil.

I wouldn't call that a smart move. You are still with the old mindset of paying off home loans fast. But it was valid back then cuz home loan rates were about 7-8% unlike the current 4%+.

What's the point of having a fully paid up house? Your value is stuck on the house and u cant touch it unless you sell/refinance. Its just a feel good feeling that you have a fully paid up home.

If u were a savy investor, u would know how to utilise loans to grow your money and your NAV faster. I would rather have 4 properties on loan (with high capital appreciation) vs 2 fully paid up properties.

We should focus on growing our money not saving. Saving is a very slow process towards financial freedom. Learn to diversify, invest and grow your NAV. You can achieve a much faster growth rate than just saving.

I grew my NAV by RM1.8mil within 9 years using this method.

This post has been edited by cybermaster98: Jun 21 2016, 09:34 AM

I was referring to Net Asset Value (NAV) not just taking RM10 mil worth of loans.

NAV means the worth of all your assets when converted to cash minus all debt & liabilities.

The key word here is 'savvy'. I'm not referring to people who buy properties with the herd mentality.

A savvy investor would have a financial back up plan to service the 4 loans in the event home loan interest rates go up.

My rule of thumb when purchasing properties is in a worse case scenario, I must have sufficient finances to pay off the monthly loan for at least 18 continuous months without the need to rent, sell or unlock other investments. If not, that property investment is not for me.

Those who go bankrupt are those who weren't prudent in their short & long term financial planning or took on more risk than their finances could withstand.

Not investing sufficiently to avoid going bankrupt is a poor investment strategy. Learning how to be a smart investor is the best strategy.

Exactly my point. Well said!

Many ppl run from risk as if its an out of control cancer. Many ppl don't realise that risk is only bad when its not evaluated and mitigated. There are 4 steps to dealing with risk in anything.

1) Risk Identification
2) Risk probability analysis
3) Risk impact analysis
4) Risk mitigation

Most ppl run at Step 1 thus losing an opportunity to turn the risk into a gain by going through Step 2,3 & 4 properly.

U clearly have no idea what is NAV.

U need to learn how to calculate NAV the CORRECT way. Its not just based on rubbish bank valuations of your property and surely isn't some imagined figure.

And if ure really having a NAV of RM20mil, u will surely not be on this forum talking about settling bank loans for a terrace house.

Lets argue with real facts shall we?

Exactly! Complete nonsense. He's got to be earning RM5.8 mil a year to be given RM30mil worth of loans.

Your calculations are correct.

The only differing bit is how you evaluate your property. It should always be based on average actual transacted property sales. I usually have a buffer of 10-15% when I evaluate my property value based on transacted prices.

Calculated correctly, NAV is one of the best indicators of your overall financial health.

And for u to say NAV's mean nothing clearly shows u have very little financial knowledge or even investment in general.

Why don't you ask more questions and learn instead of just vomiting nonsense?

Yes debt free but with a very low NAV because you have not learnt/refuse to learn how to take advantage of loans to generate more income/wealth.

You may live without income for 5 years because u have no debt but a savvy investor can fully retire much earlier than you with X amount of loans because his other investments are generating far more ROI than the interest he is paying for his loans.

Are u 100% sure that when u step out of your home everyday that u will come home alive? No right? But u still leave your home every morning rite?

Same logic!

Learn not to run from risk but learn how to evaluate probability, impacts and then learn how to mitigate risk. Also learn how to diversify investments to distribute risks and reduce impacts and increase potential gain.

You have a lot to learn my friend.

Nope I don't need 'ideas' to get my point across. Facts are sufficient. You clearly didn't get what I was trying to say. Nobody said life=money. You made that equation yourself.

We're talking about risk here and everything we do is a risk but we still go ahead and do it because we have evaluated the probability and impact of that particular risk and have adopted mitigation measures to reduce or eliminate that risk.

Its the same with investments. Nothing is guaranteed but we don't and should never sit back expecting the worst and therefore adopt the 'money under the pillow' mentality.

Investment is NOT gambling. Are you trying to say a savvy investor is also a gambler similar to those at Genting? Come on. You can't be that naïve.

'Investing' without proper risk evaluation and mitigation IS gambling. But smart investors never gamble with their investments neither do they 'hope' their investments pay off. That's what a gambler does. Learn the difference.

This post has been edited by cybermaster98: Jun 23 2016, 08:38 AM

You may have misunderstood me. The only loans I take to invest are housing loans. I don't take personal loans, SME loans, etc to invest.

And no I did not say we MUST borrow to invest and if we rely on savings alone cannot be rich. I also did not say don't have savings. I said make your savings work for you.

Allow me to break down the bulk of my NAV portfolio for you:

ASB - 22%
EPF - 27%
Property - 42%
Others - 9%

And for those who still do not understand the meaning of NAV, this is the % when converted to cash minus all liabilities / debt. This however does not include investments in my company (side income besides my day job), cash value of insurances, smaller assets and cash reserves in savings.

The 42% for property is based on actual transacted market prices less 15% buffer after deduction of all outstanding housing loans (most of which are being paid using the rentals yield of each property anyway).

You will note that I maintain a healthy 'secondary cash reserve' in ASB which I have access to within 24 hours should the need arise. But at the same time it generates about 7.5% return per annum.

In short, except for a small primary emergency fund in my savings account, everything else is generating a return for me. I believe that our money should always be working for us not sitting idle as 'savings'. But to do that, i'm constantly evaluating risks, adjusting my investment portfolios and looking at new opportunities.

If you know me in real life, you would know that im quite risk averse but that doesn't mean I don't take risks and that surely doesn't mean I gamble.

This post has been edited by cybermaster98: Jun 23 2016, 10:23 AM

Gamble again? That's like your catch word to defend yourself. You use words like gamble then u assume the worse case scenario that our income is only sufficient for day to day spending.

And only a fool would say that we can borrow money only if we're at Warren Buffet's level. How do u think WB got to his level? By not taking loans?

And all these statements coming from a guy who claimed that he has a NAV of 20mil?

FYI, my current outstanding housing loans are at RM1.4 mil yet 42% of my overall NAV is from property. Why don't you work out what kind of income level does one need to be at in order to obtain RM1.4mil worth of loans? Then maybe ull be able to work out if the income is only sufficient for day to day expenditure.

This post has been edited by cybermaster98: Jun 23 2016, 02:53 PM

Im just baffled how a person who doesn't even know what is NAV (let alone calculate it) can argue with me utilising nothing tangible or fact based.