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 post has been edited by AllnGap: Jan 20 2020, 08:26 AM