Thank you for your inquiry about Malaysia's no:1 Property Seminar.
We're very pleased to append herewith a brief description of our Seminar, the Speaker and how we can help you achieve your goals and dreams.
Title: How to MAKE A MILLION from property investment
Date: Sat 11th Dec 2004
Time: 9 am - 6 pm
Venue: Holiday Villa, Subang Jaya
Click here to find out how you can benefit from the real estate revolution and also take advantage of the early bird offer.
P.S. Each participant will receive a complimentary copy of Azizi Ali's latest best seller "How to Become a Property Millionaire."
Our team has been running this seminar all over Malaysia for over two years now. Over 1,000 participants in KL, Penang and Kuantan have benefited from this electrifying 1-day workshop.
Our featured speaker, Azizi Ali is the Millionaires Coach. He is the author of two best selling books on financial matters - Millionaires are from a Different Planet! and The Millionaire in Me. He has conducted workshops at the Securities Commission, EPF, PNB Investment Institute, Malaysia Airlines, Takaful Nasional, Public Mutual, Am Assurance, Prudential Assurance, Maxis, UTM Johor, MIEA, FIABCI, ISM, PUJB, Brunei, Singapore and has spoken before a crowd of 12,000 participants at BITEC Hall in Bangkok, Thailand - all on the subject of money and finance.
Azizi is the only non-player in the property sector who has spoken at the Malaysian Institute of Estate Agents (MIEA), Institute of Surveyors Malaysia (ISM) and FIABCI (Malaysian chapter). He has appeared regularly on TV3, RTM, Astro Ria and has also made guest appearances on Radio KL, Radio Era, News Radio in Singapore and also RTB (Radio TV Brunei).
More importantly, Azizi is himself is an investor in the property market. In fact, he has over 50% of his net worth in properties. He owns properties in Bangsar, Subang Jaya, USJ, Kelana Jaya and has been a landlord for over 5 years.
In this seminar, Azizi will share real-life strategies - not theories taken from western books - that will optimise your returns while minimizing the work and mistakes. All the strategies are practical and more importantly, proven! He will also share his success, his mistakes so you will avoid them (!) and also how to get on the Fast Track to save years off your learning curve.
During this seminar, Azizi will also share:
1) Why properties are better than GOLD
2) 5 ways that you can make money from properties
3) 5 critical success factors that you must know about property investment
4) 4 essential points that you should be aware about property investment
5) Hot locations for you to invest
6) How you can win at AUCTIONS
7) How you can become a Superstar landlord and eliminate tenant problems
8) Real Property Gains Tax (RPGT)
9) Feng Shui, you and property investment
10) The one fatal mistake 90% of property investors make
11) What you must avoid in property investment
12) How you can make money automatically with minimal work
13) How to cut your loans and save thousands
14) Step by step guide on how you can become a Property Millionaire
15) And much much more...
We will also have a Q & A session in which there will be a lawyer and banker. In other words, ALL your questions and queries about properties will be answered at this seminar. And yes, our seminar has been accorded five (5) credit hours by the Lembaga Penilai, Pentaksir dan Ejen Hartanah Malaysia.
We will provide 4 tea breaks, 1 buffet lunch, workbooks, support documents, a FREE book "How to become a Property Millionaire" written by Azizi, an attendance certificate and of course, a fabulous time.
In other words, this seminar can change your life for the better. It is the first step to catapult yourself towards a happier richer you. Imagine what the extra cash will mean to you and your family. Imagine worries. And it is all in your own hands!
We sincerely hope that the information given above is as clear and sufficient as we intended it to be. Register now and take that action towards the Millionaires Planet!
Please feel free to give us a call should you require further assistance.
Our team look forward to welcome you at the seminar.
Thank you & Best regards
TRUE WEALTH SDN BHD (515454-T)
Azlynn Azizi
Operations Director
Tel: 03-7880 6051
Fax: 03-7880 8051
E-Mail: azlynn@millionairesplanet.com
Haryati Dulbahri
Senior Operations Executive
Tel: 03-7880 7051
Fax: 03-7880 8051
E-mail: yati@millionairesplanet.com
When Should You Borrow Money
to Invest?
One of the most common question Azizi Ali gets is this:
"Is it a good idea to borrow money to invest in investment x (the x can be unit trusts, ASB, properties, business, Bank Rakyat shares, etc., etc.)?"
Let Azizi Ali answer the question in real world terms.
Firstly, that is how folks build serious money -- by using other people’s money. This strategy is a regular occurrence in business. Entrepreneurs borrow money from the bank to finance their expansion. They conquer the world, repay the loan and make tons of money. And that is always a good thing.
Now this concept of borrowing money to make more money works a treat for businesses as the margins are wide. The interest charged for the loan is often below 10%, but the business reaps thirty, fifty or even one hundred percent return on their investment.
Further, because of the wide margins, even when the returns drop, the businesses still make loads of money.
Now you can see why this concept is made-to-order for businesses.
However, the same does not apply when it comes to investments such as shares or unit trusts. Often time, the margin or spread between the interest and return is slim -- less than 3% most of the time. For example, the interest charged is 9% but the return is only 12%.
Now if the situation remains like that - interest 9% and return 12% - things are still hunky dory. You would do well taking the loan and making the investment. However, what usually happens is that the return starts to drop off. From 12%, they drop to 10% and then to 9%. (By the way, this is what happened to the fabulous ASB.)
The way things are going, the return could very well drop below the interest charged! And this is not an unusual thing. When that happens, instead of making money, the investor is now forking out money. And that, needless to say, is not a very nice thing to happen. Not exactly fairy tales stuff. (By the way again, this is what usually happens when folks borrow money to invest in stocks.)
Now after painting the real world scenario, let me answer the question. Yes, you should borrow money to invest -- if the spread is wide (more than 5%) and you are pretty sure that the situation will remain status quo for the loan period. For example, if the interest is 9%, the return should be at least 14%. Otherwise, let others be the test-pilot. You watch by the sidelines.
Now, I know a lot of people will jump and shake their heads. They will quote how their father, grandfather, uncle, auntie or neighbour made tons of money by borrowing money to invest even when the spread is ultra-thin. Of course it can happen. People also strike the lottery but has it happened to you?
If the spread is thin, you are taking unnecessary risk. While you can make a little bit of money, but the chances of you losing a lot of money is significantly higher. Once the return starts to drop and/or the interest start to rise, you lose both money and sleep. And that is no way to make a fortune.
In case anyone thinks that this is a theory from the ivory tower, I personally will not borrow to invest if the spread is less than 5%. In fact, I will not borrow to invest in unit trusts or shares - period. I only borrow money to expand my business and for property investment.
A lot of readers have written in to inquire about "capital allowance" (mentioned in How to Become a Property Millionaire).
QUESTION: I would appreciate it very much if you could be kind enough to further explains to me the following which appears in your latest book, "How to Become A Millionaire Landlord". Firstly, on page 26 the last paragraph you mentioned about depreciation to reduce tax. Please give me more detailed example and clarification. Also please explain to me in greater details how to claim capital allowance as mentioned on page 110. Your kind explanation on the above would be very much appreciated. Once again I would like to thank you for bringing such valuable books to the market. I am eagerly awaiting your next book on real estate purchase.
ANSWER: Basically, capital allowance is a tax term while depreciation is an accounting term. Both are paper entries only and both increases the expenses (and therefore reduce the profit). For our own accounts (Profit and Loss), we deduct the depreciation to get the next profit.
However, for the tax calculations, the Inland Revenue Board (IRB) will add the depreciation back to the net profit and then deduct the capital allowance. The C/A rate is 8% and is only applicable for furniture and fittings (and not the building itself).
As you can see, it is pretty confusing already, which is why I suggest everyone to get the views of a tax consultant.
Don't say I didn't warn you!
Copyright 2004 Azizi Ali
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