RPGT is 0% but you are still tax base on income tax.

Rental income minus expenses will be tax base on your income level.


All the above can achieve 0% tax if you find a good tax CPA who can give you solid advise.

You're staying in JB or KL?

I am asking the other forumer.

Anyway, let's get back to your "problem".
How would you collect rent if you property is at KL?

Ok, now the toilet break in the middle of the month.
Your tenants call you up.
What will you do?

Ok.

So now you have properties in KL and other places?

A month later, your family went out to a holiday.
Your tenants call, they decide to move out today as the toilet fix by your dad still has problem.
Sometimes it will flush, sometimes not.
As the lease agreement expired last week, they wanted their deposit back.

You are busy working and required to work this weekend, the project you are handling requires your full attention.
Once the project is successful, your boss promise promotion and pay raise.

Now your tenant would dismantle the AC if they don't see their money today.
They don't accept cheque as you could not get your toilet fix.

Ok.
You're gonna learn a valuable lesson.

Haha, it's a regular landlord joke I always make.
The hardest part for real estate investor is management.
Manage well, the money follows. Ultimately I want to enjoy life and go out to look for more deals.

Commonly a management company is needed to take care of the property.
Collect the rent, selection of tenant, mow the lawn, etc.
The problem is, there are good and bad ones.
To know the good and bad requires first hand experience.
Without management experience, I doubt that will work for the investor in the long run.

Ya, heard such horror stories.
In the US you have to stand beside the door when collecting rent, not in-front.
Your tenant will shoot you if you do, claiming you're tresspasing.

Expect to make mistake and learn from it.
Many dai kor here make mistake when they first started out, now they are season player.

This is a good suggestion.

From another chinese forum, a forumer bought a house but receive notice from MPSJ.
The previous owner built an extension for the kitchen but fail to get the proper extension plan.
Now MPSJ want to see the the plan, or the kitchen will be dismantle.

Seems like she have to spend additional $2k to get the plan done by an architect.

With more capital, can acquire more properties is the myth between the middle-class.
The actual fact is you don't need capital, you work for free and the properties is yours.

The problem arise when all the shareholder have different views on how the property should work, that will make your deal went bad. Till the day you guys can't stand each other guts and decide to sell.
I'll be the one behind buying your deal.

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Added on February 20, 2009, 9:15 amNo matter how prepared we are, how much due diligence we have done.
There bound to be something might go wrong.

If you expect to make mistake, you would have the courage to move forward.
In the process uncovering the gem of wisdom.

I almost forgot to mention, do a small deal, that way when you done something wrong, the price is small.
The problem with Malaysia, buying low cost flat requires low income.
My income is too high and that make me lost a deal earlier.

This post has been edited by jasonhanjk: Feb 20 2009, 09:15 AM

Good! Now you can re-finance.

Don't trust me. Please get competent advise from tax advisor on this.

1) Incorporated properties are not liable to creditor attack if you have done something terribly wrong, eg knock somebody over and he decides to sue you. He can't touch your property that your company owns. Unless you fail to uphold proper business ritual, like not doing proper accounting or never pay state liscense fees.
Hold 4 or more residential rental properties (other type of properties different rule), will enable them to be counted as business income. Enabling more expenses to be deducted.
1 house per business entity doesn't count, the income will be consider as passive income and not business income. Business income have more expenses which can be legally deducted.

2) In the US they have LLC, Limited Liability Company. The money earn is flow thru.
Our capital allowance is similiar to their depreciation, you can make money but declare as a lost. Hence no tax.
You can have a corporation to manage the LLC that holds RE.

3) Yes, 4 or more.

You can hold them under your name if you like. Another rule is 3 commercial property.
Your car now can be an expense.
The fuel to drive you around to look at properties are deductable.
"Belanja" lunch on agents whom work for you is an expense.
Real estate courses / books is an expense.

Since I never done this before, don't trust me on these things.

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Added on March 4, 2009, 9:47 amThere are good debt and bad debt.

Bad debt is the debt you have to repay for you house that you stay in.
Good debt is your debt on the investment house that generates income and put money in your pocket.

The more good debt you have, the richer you become.
Of course I have to caution the excessive use of debt.
Treat it like a double edge knife.

This post has been edited by jasonhanjk: Mar 4 2009, 09:47 AM

I don't know. Please seek professional advice.

Just to update you guys, I am getting 100% loan from the bank.

Will be signing S&P on the 8th after I am back from overseas.

Thanks.

Banks nowadays are only willing to loan 80% of the market value for apartment.
Luckily my banker manage to get 100k for 120k property.

Joining the ranks of landlord soon.

If you're serious at becoming a professional real estate investor.
Start with a small deal which require less than 20k to put down.

All of us at start will make mistake, so make a small mistake.
Losing 200k is much better than losing 1 mil.

To expect the price to go up is really more of a speculation.
You need to find out for yourself, will people willing to pay more for your property 5-10 years later.
Check out the demographic, who is coming and who is leaving?
With the current recession, high priced property will be falling down faster than the others.

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Added on May 4, 2009, 2:48 pmThanks Phoemi and meejawa.

Still waiting to get my keys. >.<
The strata title is still with the developer.
So need to go from developer to me, if Maybank agrees.
If not, developer -> seller -> me.

This post has been edited by jasonhanjk: May 4 2009, 02:48 PM