May I ask how do you refinance when you havent settle your current loan from your first props?

May I ask how do you refinance when you havent settle your current loan from your first props?

U can refinance ur property if ur current house value has been increase.

Example, current house market value at 500k, ur current outstanding is 200k, so u can refinance and cash out for 250k.

Thanks for the explaination. So whats the advantage of refinance since you still have to repay your loan and starting it all over again?

Thanks for the explaination. So whats the advantage of refinance since you still have to repay your loan and starting it all over again?

Thanks for the explaination. So whats the advantage of refinance since you still have to repay your loan and starting it all over again?

u use the money from refinance for investments that are expected to give u greater return than the interest rate charged

layer by layer, leveraging to the max

Hi sifu sifus...
I went to a seminar last night regarding I call it " THE ART OF DEBTS" LOL
I guess most of the people are knowing what seminar i'm talking about.

Anyone heard about it before?
What do you think about his talk?

Refinance just a concept of cash out. Is depend how the client utilise the fund. Some may cash out for standby use, expand their business. In conclusion must know to use ur cash out wisely.

Hi sifu sifus...
I went to a seminar last night regarding I call it " THE ART OF DEBTS" LOL
I guess most of the people are knowing what seminar i'm talking about.

Anyone heard about it before?
What do you think about his talk?

My friend had he attended it.
I roughly get the idea.

One thing you must pay attention is the details.

1. Rental yield
- Last time rental yield is higher than instalments.
If you rent out your unit, you still roll using the refinance money to buy many more units without chances of depleting that stash of cash,
- can cushion until found new tenant to rent or appreciate
- Now is different, all rental market is bleeding money unless those low cost apartment. Or if you make your unit into hostels or rent out per room
2. Appreciation
- again last time is different than now
- properties dint drop hard enough to appreciate. You need a hard drop to sapu that bottom then only it will rise.
- Malaysia current properties I expect to stagnant 10years because our household debt, government debt, corporate debt is very high. It will take sometime to absorb excess condo in the market
- frankly if you could buy back 10years price then only the properties is cheap.
3. Leverage cash
- if you use that amount to pay as instalments then will run out very fast.
- lots of properties are bleeding money. Don't believe ask your agents where got positive yield. They will tell you none.
- if you have other ways of generating more money out of that cash it's alright.

___________________________________________________

Recently I use overloan a unit (cash out).

1. Use the cash to roll other things / business
Every month will be negative RM1,400 even with rental included. To me it's only 0.8% of the cashout but I can grow 5-7 percent on monthly basis so it's fine.

2. I will only buy those way below its 2013 peak with good location for rental purposes to manage cashflow well and for the unit won't stay empty for long

3. I will only cash out to grow that stack of money. No spending it on vacation, cars or luxury things. Meaning I don't increase my lifestyle at all

4. What I'm doing is locking in future profits only. Locations I bought has good rental (good cashflow) and can appreciate quite well.

When let's say reach 50s only I will get the MLTA or buy MRTA now
Pay attention
- That guru's time was the good old days where the properties appreciated fast and rental you get is able to pay off instalments easily.

- rental was high back then because there aren't so many condos back then

- developers were not selling at futures price as well

- Bank Negara wasn't tightening so many thing so there are many thing can get approval easily

- if you have things you can grow with that cash then go ahead, if not the units got to have good cashflow. Wait for appreciation is kinda hard, or you might run out of cash before it happened.

- Banks are also not stupid as they are reducing their risk by not lending out so high percentage

This is an article from a doctor (professionally qualified medical doctor and not any fake qualifications which was the rage many weeks back) who is now immersed in the property world and is a property speaker where he shares his strong views about real estate issues too. He wrote an article recently which was shared by many people and for which we could learn a lot from. Remember, regardless of how awesome any property guru may be, we need to be clear headed and objective with what we ‘invest’ into because the future depends on what we do today. If we could suddenly have any windfall profits, that’s only because we are lucky, not because we are great investors… Investment must always be long-term.

— article by Victor Gan. — ( https://www.facebook.com/drvictorgan/posts/...11178039571040/ )

HOW TO DIE WITH MASSIVE DEBT (PART 1)

Once upon a time…..
There was a young man who paid RM4000 to attend an investment seminar. After going to the seminar, feeling all good about the knowledge he gained from the seminar, he went to some more “advanced” courses. This cost him an additional RM10000.

As part of the benefits of joining this “advanced” course, he get to join the “insider” bulk purchase club. So, a few months down the road, he was being offered to purchase a property in Kuala Lumpur at 40% discount from developer. Don’t play play lo….40% discount!!!! 😱
Wah Lao Eh, each unit he purchase is going to give him a RM250,000 cashback!!! 😱😱😱

Well, he feel it is a fantastic deal because the property guru he paid so much money to says so. Everyone in the “advanced insider” group was super excited and they plunk down their down-payment without doing any research.

So he bought 4 units immediately via multiple submission and was given a RM1,000,000 cashback. 😘 Well, he was taught that as long as you have cash, “negative gearing” is acceptable. After all, with RM1,000,000 in cash, this will last him a significantly long time even though the rental might be negative a few thousand per month, right?

His logic was… 4 units of properties. Each unit loan amount is RM5000/month. Upon completion, each unit can fetch RM2500/month in rental. So yeah, negative yield of RM2500/month, but hey, there is no problem because I have RM1,000,000.

So, since I have 4 units, that is “negative gearing” of RM2500 x 4 = RM10000/month.
And seeing that I have RM1,000,000, this will last me 100 months = 8 years 4 months. By that time of 8 years, I hope the property would have appreciated to that amount and then I can sell off for profit since my guru says that property price double every 10 years.

REALITY OF THE MATTER

🔵 POOR MONEY MANAGEMENT
Upon getting that RM1,000,000 of cash back, he took his wife for a holiday in Spain (RM10000 only), then bought himself a nice Apple iPhone XS Max (RM5000 only), then bought himself a nice Honda City (RM80000 only)…etc When it was time to collect keys to the property, he spend another RM150k only to renovate his 4 units to prepare them to rent out. He realised that by then, he only have around RM700k cash left. Well it is ok….he still can last around 5 years. Right?

REALITY
A person who has never earn RM1,000,000 will never know how to manage RM1,000,000.
Read this statement again and again. This is the reason why those who won huge amount of lottery money never get past 5-10 years. They simply have no financial literacy to manage the huge windfall of cash. Remember, the cash back from property is NOT YOUR MONEY!
It is the bank’s money on loan to you.

🔵SELLING PRICE DOES NOT CORRESPOND TO VALUE
When he bought those properties back in 2014, the SPA value was RM1400psf. Developer gave him a 40% discount so he was buying at RM1000psf. But the reality of the matter is, the median price psf in that area at that time was only RM700psf. So, he was literally still paying above market price to buy that property.

REALITY
At the end of the day, the developer’s valuation and market valuation is totally different matter. The subsale market always reflects the actual valuation of an area. Unfortunately most investors in the primary market still do not realise this.

The reality is…
If the developer want to make the buyers feel good, they can increase the price to RM1400psf and give 40% discount to buyers (feels good right?) and sell it at RM1000psf and still give cashback because the market rate is around RM700psf only.

Buying at RM1000psf is still financial suicide despite the 40% discount, can you guys see why this discount nonsense is IRRELEVANT to the true value of the property?
.
So at the end of the 8th year as a property buyer…
➡️He is out of cash to continue this “negative gearing” (remember the loan is 30 years)
➡️His rental is still bleeding RM10000/month from that 4 units
➡️The bank valuation of the property is not double as he hope it will be, banks are only willing to give a valuation of RM900psf (due to inflation from the original market rate of RM700psf), still below what he paid for at RM1000psf
.
➡️He went into default as the rental in that area has not risen much
➡️Banks issue him show cause letters
➡️Unable to service his loan anymore…😫
➡️Went into bankruptcy
➡️Committed suicide so that he will not burden his family anymore because he is in massive debt
.
This my friends, is how you die in massive debt.

— end of article by Victor Gan —

Provided one died young else bank loan would be nearly paid off when near retiring age.

This one actually in Platinum Course Dato' Sri got teach...

People attend DWMD only never attend Platinum so take money and don't know what to do with it...

Got secret one la... But I cannot share too openly... PM me la I guess =/

This one actually in Platinum Course Dato' Sri got teach...

People attend DWMD only never attend Platinum so take money and don't know what to do with it...

Got secret one la... But I cannot share too openly... PM me la I guess =/

https://kopiandproperty.com/2019/03/25/of-c...ney-management/ - March 25 2019.

This seems to be the extension of the 1997-98 Asian Financial Crisis which was the culmination of banking liberalization policy by the WTO/IMF in 1992-93 when loans from banks got easier, cheaper and more generous but riskier, eg from maximum 80% and 15-year tenure house loans to max 100% and 30-year = most workers like even KFC/McD waiters could afford to buy a house/flat and higher-income workers like doctors and engineers could buy a few or up to 40 houses for investment.
....... This created an artificial economic boom, eg a DST house in PJ that cost RM150k in 1990 shot up to RM500k in 1994. Many Malaysian companies borrowed heavily in US$ short-term high-interest loans to satisfy the pent-up demand for highways, houses/condos/apartments/flats, cars, consumer goods, etc. When the RM was manipulated to drop from RM2.5 to RM4.2 to the US$ in 1997, many of these companies defaulted on their US$ loans. Those who invested in more than 10 houses in 1995-97 mostly got bankrupt or a few jumped 14th floor in 1998-99.

Now, in the 2010s and 2020s = no more economic boom, so the housing companies use easy inflated valuation, cash-backs and multi-loans to artificially create another artificial economic boom which will culminate in another crisis.
.

i know old comment, but, as to which, you would have benefit from capital appreciation. And if you were smart, it was rented out to cover the loan payments.