My story:

I've read dozens of property investment books for years. 4 years ago, the idea of venturing into property investment sparks me after I've attended a property investment seminar by our very local property investor, Renesial Leong (u may read her success at www.upia33.com). I do invest in stocks too, quite heavily at one time Anyway, my story continues below...

Year 2005 (Salary: RM2500)
I jumped start by buying my first property, a condo, without any downpayment for RM150k. I signed a 15 years contract with the developer, with the criteria having the rental paid to me RM900 monthly for 15 years. Then, I secured my financing with a local bank. Managed to work out installment of only RM850 for 30 years. Positive cashflow of RM50 per month. Dun forget, my salary is still untouch

2nd and 3rd property are rather unique.

Year 2006 (Salary: RM2800)
I bought my 2nd property together with my brother who has the same earning power as mine. Together we bought a RM250k worth of property. Secured a local bank loan and work out the installment to be only RM750/month/person. Ok wat.....

Year 2007 (Salary: RM3000)
Recently, I've just bought into RM380k worth of property together with my wife who has the same earning power as mine. It's for own stay. Secured my company's loan (interest rate a slightly lower than local bank) and work out the installment of only RM1000++/month/person. Ok wat...

Year 2008 (Salary: hope it rises)
Rent out some of the rooms from the 2nd and 3rd property to help service the installments. Hence, boost my monthly income enabling me to secure another bank loan for my 4th property as an investment...

Year 2009 (Salary: rise rise rise)
Buy my 5th property, by manipulating my 1st, 2nd or even the 4th property. How? Read 'em up... it's all in the books. Attend seminars! Learn from the successful people.

Hope I did shed some lights to some of you out there.

Nothing is impossible

Cheers
Roger
wcwroger@yahoo.com

Dear Dreamer,

FYI, My 1st property is referred. Remember I mentioned that I've signed the 15 years contract with the developer. That actually taken into consideration for the margin of safety that I need, and I don't have to worry about not being able to rent out the unit. The only downside here is the rental will be stagnant at RM900 for 15 years. I don't have to worry about it coz my rental is enuf to cover my installment, and still have RM50/mth cashflow. I've managed to work out the installment fixed at RM850/mth for a period of 30 yrs. After 15 years, I'll raise the rental and could soon repay my loan in 5-10 years or so.

yewkhuay,
My contract waived the maintenance fees for 15 years. MRTA is included in my bank loan. Other fees are covered nicely with the extra of the RM50/mth. So, no big deals.

Dreamer,
I admit that I've actually violated the rule of 10mths but I'm still stick with the rule no. 1, rental must always be greater than installment. There are time you'll have to be flexible in order to achieve things you want.

Like I've mentioned previously, it's all drive down to how you organize your personal finance. Saving is very important in the beginning.

Hmm, now mentioning about it, I've gotta do some part time to have more cash.

Oh ya, did I mention that the 2nd property I've bought are 40% below market and the 3rd property I've just bought is 10% below market in a strategic location? Property hunting is important too. Like yewkhuay said, anything could happen in the future, so worst come to worst, I could still sell my properties slightly below the market value and still gets away with a little profits.

Cheers
Roger

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Added on July 19, 2007, 7:41 amAll,

Things could become nasty if you don't know what you're doing. Well, this also happens if you are investing in stocks, units trusts, insurances, land and any other investment vehicles.

Dreamer and yewkhuay are right. Always be prepare of consequences. But let us put it in another way. Take the consequences as a challenges! Trust me, you will see opportunities, success and bright future ahead of you.

Do your homework and have your calculations make sense to you. Lots of investment books out there could assist you in becoming a better stock investor, property investor or even land investor.

Design your personal finance well. Determine your investment risk. Have different investment vehicles. As for me, besides investing in property, I invest in land and stocks too. So far so good

Best regards,
Roger