i see,
so basically
the owner of the company becomes the guarantor of the loan.
the owner has limited liability to the company,
but since the owner is a  guarantor , the owner's liability is extended to the loan,
ok
how do i calculate the company's income for a house?
for a person, it's
rent - interest paid to the bank

but for company, is it the same formula
for first month on a 72k loan @ 4.65% p.a (CIMB NZEC)

rent = 550
pay bank = 370
interest = 276
maintenance = 20
cash after pay bank and maintenance = 550 - 370 - 20 = 160

taxable income = 28% of (160 - 276) = 28% of negative = 0?
or
taxable income = 28% of (550 - 20 - 276) = 28% of 254 = 71.12

if its 71.12 then 44.45% of 160, which is a lot.

how to make profit when you buy if the price not go up after you buy?

Motivational books you can use those feel-good catchy phrase lar, but this about investment mah.

so it doesn't matter if you sell or not
it doesn't matter if the house price increase or not
it doesn't matter if the rent price go up, well if it goes up, you get more profit.

I see your point.
Always calculate your profit as rent/house value.
Assume house value = 120,000 that will give you 6000/120,000 = 5% profit.

Think about this: You may get positive cashflow of RM100 every month but you can only buy your second rental property after 30 years?

i have done research

And here comes another RK basher whom have no experience in RE dealings. Oh well.

Buying property under co..will get more benefit only if the co is designated as 'property investment ' co..Otherwise, lots of expenses can't be offset for tax purpose. Like someone rightly said, got to think of audit , a/c ting fees and secretarial fees...
Benefit is if u have more than 1 property, then any losses can be offset from other that is showing profit.

My research? That you can quickly decide whether property rental yield is good enough by rental/house price formula. Ask some real estate agent about investment property, then ask how they calculate the rental yield. I think 8% is consider good.

If you pay cash, that 8% is working for your money 100%. If you start with 15% dp, then only 15% of that 8% is working for your money (75% work for the bank). Overtime, your installments will increase that 15% to 100% when you settle the loan.

Why need to setup company when the tax for company is 26%? I think for employees if have 4 rental property can also deduct all those expenses like what Pai listed? Maybe only 1 rental property also can?

The key word is value, can the price of this house gives you a good rental return.
My rule is to find a house where monthly rental is 1% of the purchase price.
I also found someone in Melaka bought a "house" at 160k with a rental of RM3300.

Still searching for a second property.
First one is a low cost unit.

Century Mahkota. It's a condo.

Post 105.
It's in Chinese though...

http://cforum3.cari.com.my/viewthread.php?...page%3D1&page=5

how to calculate return.
this is my formula, kinda new, so feel free to comment.

one time payment:
-(a) down payment 10%? 5%?
-(b) Sales Purchase Docs
-© Loan Docs (if i can use ZEC, i choose that one)

monthly payment
-(d) pay bank (321.04 -> 326.00)(round up to next ringgit, ad RM 2.00 for maybank2u transfer, maybank easiest for most tenants, but no way i',m getting a house loan from maybank)
-(e) maintenance

yearly payment
-(f) land tax
-(g) quit rent

so basic formula is
money coming in every year = (rent * 11) - ((d + e) * 12) - f - (2 * g)
start up cost = a + b + c
rent * 11 = expect half a month empty per year + misc expenses
(d + e) * 12 = even if the unit is empty, still have to pay bank, maintenance fee
f = once a year land tax
g = twice a year quit rent

so percentage is calculated in this way for me

money coming in every year / start up cost * 100

any comments on this calculations?