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Since it proved to be a HOT HOT thing, I'm answering more questions this month. As usual again, the questions are presented the way they came in, broken English, grammar errors and all. Enjoy!

QUESTION 1 : Hello Mr Azizi Ali,

Assalamulaikum, first of all, i've been reading some of your books and telling you the truth, it really gives me a lot of knowledge regarding financial management esp. a person like me who is from engineering background which has a little knowledge in that area. Thanks once again.

I have a question for you regarding the 0% installment which has been offered by some banks now a days when using their
master or visa cards. Some banks offers 6, 12, 18 or 24 months 0% installment. What's the catch here?

is there any pros and cons for me and the banks?

Your help is very much appreciated. Thank you indeed.


1. Yes, this easy payment scheme or zero-interest scheme is certainly useful. Why? It’s because the credit card company is not charging us interest on the loan, which is always a good thing.

2. There is no catch as far as the selling and the credit card companies are concerned. The selling company would have build in their cost already into the sale price while the credit card company would also gain from the sale (commission charged to the selling company).

3. The only thing is that it may trap us to buy things we don’t need or buy more than what we can actually afford (as the payments are spread out).

4. But if you are disciplined enough, the the zero-interest scheme can be of benefit to you.


QUESTION 2.: Dear En. Azizi,

I was reading the December E-zine where you briefly touched on stamping of rental agreement. My questions are:

1. Is stamping necessary?
2. What is the implication of not stamping?
3. Is it a normal practice where tenant have to pay the stamping cost?

Looking forward to receiving your answers. Thanks.


1.Stamping documents is NOT a must. Both parties can just sign it and it becomes a valid document.

2. So why do we stamp agreements then? The answer is because only stamped documents are admissible in court. In other
words, if the document is not stamped, it cannot be used in court – which perhaps beat the purpose of having the
agreement in the first place!

3. Having stated that, the main purpose of agreements is to spell out the responsibilities of each party so there is little, or even better, no confusion on the terms and what is agreed upon.

4. If you have to go to court to enforce it, then you would have already lost because of the time, effort and cost involved.

5. This is why an agreement is only as good as the parties signing them. As I have always said, parties can sign agreements and even guarantees, but how sure are you that they can or will honor the agreement? A homeless guy can sign an agreement guaranteeing you a million ringgit but it is obvious that he will not be able to honor it, which makes the agreement worthless.

6. Yes, the tenant pays for the agreement, which is just a nominal sum anyway. If he is not willing to pay, then look for another tenant! See point 5 above.
QUESTION 3: Mohon penjelasan, adakah wajar saya gunakan pinjaman peribadi pada kadar 5.7% setahun untuk dilaburkan dalam unit trust yang mampu beri pulangan 15% setahun?

Terima kasih.

QUESTION 3: Assalamualaikum...

Di sini saya ingin meminta pandangan dari saudara tentang pengurusan kewangan.

Saya bercadang untuk membeli sebidang tanah di Kelantan dengan harga yang ditawarkan adalah RM50,000. Di sini saya
ada beberapa pilihan untuk membayar harga tersebut:

1. Membuat pinjaman sepenuhnya RM50,000. dengan jumlah tersebut, adakah mudah dengan membuat pembiayaan peribadi
dan kadar yang ditawarkan adalah dalam lingkungan 5.60% - 5.95% setahun.

2. Membayar dengan simpanan saya dan membuat pinjaman sedikit, contohnya mengeluarkan simpanan RM25,000 dan
membuat pinjaman RM25,000.

3. Mengeluarkan dari simpanan ASB saya untuk membayar keseluruhan harga tanah.

Berdasarkan pilihan di atas, yang manakah yang terbaik yang saudara rasa untuk saya membuat pembayaran tanah tersebut.
Saya sekarang ini keliru yang mana pilihan terbaik yang menguntungkan saya.

Sekian, terima kasih.

ANSWER 3: Kita hanya meminjam wang apabila kita boleh menjana lebih wang dengan wang pinjaman tersebut, dan pulangannya daripada pelaburan yang dibuat itu melebihi kos pinjaman. Sebagai contoh; kalau pulangannya 15% dan faedah pinjaman hanya 7%, ini bermakna kita patut membuat pinjaman tersebut. Kalau pulangannya 10% tetapi faedah pinjaman 12%, maka jangan pinjam.

Satu contohnya ialah bila kita meminjam wang untuk membeli hartanah yang boleh di sewa atau dijual balik dengan
keuntungan. Lagi satu contoh ialah dimana kita meminjam wang untuk menyambung pelajaran ke taraf yang lebih tinggi, i.e.
mendapatkan MBA atau PhD. Kenapa? Sebab kelulusan tambahan itu akan membolehkan kita menjana lebih wang dikemudian hari.

Dalam contoh di atas, faedahnya 5.7% setahun manakala pulangannya 15%. Jadi kita patut membuat pinjaman tersebut.

In theory.

In real life, it is very, very difficult for any unit trust fund to give a 15% yearly return on a consistent basis. Kalau setahun dua memang boleh, tetapi untuk lima tahun dan lebih - almost impossible. Malah ASB yang terunggul pun hanya memberikan pulangan dalam 8 – 10% setahun. And that is the best in Malaysia!

Semua ini bermakna anda patut berhati-hati sebelum membuat apa-apa pelaburan, terutamanya apabila hendak meminjam wang
untuk membuat pelaburan tersebut. (Untuk tips yang lebih komprehensif tentang pelaburan-pelaburan yang menguntungkan
di Malaysia, sila baca Handbook terbaru saya “Ganda Wang Anda”/“Growing Your Money”.)

Ini juga bermakna yang kita tidak harus meminjam wang untuk membeli barangan yang tidak memberikan pulangan wang dan
sudah tentunya barangan yang turun nilainya. Contoh: membeli kereta, perabut rumah, komputer, dsb.

Sudah tentu semua barangan tersebut adalah penting, tetapi belinya dengan tunai, jangan pinjam duit. Kalau tak cukup duit, buat apa yang saya buat – duduk di rumah senyap-senyap! Simpan duit dulu, dan belinya bila wang simpanan itu cukup kelak.


QUESTION 4: Dear Mr Azizi,

I had attended one of your seminars many years ago. As I changed jobs and have been overseas for a while I have not
updated my email to you and guess your ezine material has been sent to my old email address.

I remembered in your seminar that you mentioned it was a tax advantage to own 4 properties and put them under a company name to obtain the tax advantages. At that time some years back I didn't realise that it was applicable and didn’t take much notice of it and didn’t follow through as to what those advantages were.

Today I am lucky to own 3 properties and was thinking that it may be worthwhile to form a company and acquire the forth

If I transfer the properties to a company would I incur stamp duty on all of them?

2 of the 3 properties that I have are currently under financing and with no strata title out yet.

Thank you and regards.


1. Firstly, the properties must be owned by a company and not by an individual to qualify for the tax advantages.

2. Next, the company must own a minimum of 3 or more lots in a shopping complex or 2 or more shop-houses or 4 or more
residential properties or a combination of any four of the above to qualify.

3. The advantage here is the being able to treat the rental income as a business income.

4. As to why we want the rental income to be treated as a business income, it is because we can claim for capital
allowance (please read article_045.asp on my website for a detailed explanation on capital allowance).

5. Also, if the company incur a loss on the above, the loss can be deducted from the income in the subsequent year.

6. Having stated that, one should only consider a company if one is super serious about the rental business and wants to
have more than 5. This is because of the added cost involved in forming a company and lower financing margins from the
banks, among other things.

QUESTION 5. Can you tell me how to become a millionaire in the shortest possible time?

ANSWER 5: Marry a millionaire.

Copyright © Azizi Ali 2006

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