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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: Please tell me about Capital Allowance you mentioned in your book “How to Become a Millionaire Landlord”.

ANSWER 1: Please click on for the complete answer.


QUESTION 2.. I met a motivated seller who wants to sell his house with cheaper price. The problem I facing is the seller has debt with loan shark. Could you advise me whether to buy or not. Thanks.

ANSWER 2: You will be doing the seller a huge favor by buying the property from him. He can use the money to pay off the loan sharks. But before doing so, ensure that he did not mortgage or use the house as collateral to the loan sharks.

Otherwise, he will be transferring the problem to you if you take over the house! If in doubt, look for other properties. There are hundreds of thousands of properties in Malaysia. Surely, you can find one or two that meets your requirements.


QUESTION 3: I‘ve bought an auction property from Bank. My problem is the previous owner is a lawyer and still staying inside the property. I’ve fully settled the balance purchased price, what can I do next to the claim property? What is my right to use in order to chase her out ASAP? I’ve complied with all the conditions of proclamation sales and all understanding bills are paid. Even the worse the current maintenance fee and utility bills are on us since the date of auction in last October. The present lawyer is taking advantage of her profession to delay moving out.

What should we do other than the court order? (we are nice people to chase them out.)

I still pending the bank to come back with letter of authorization and Deed of Novation, how long do u think they should hold on the document since my cheque to them was cleared last week?

ANSWER 3: If an auction property is tenanted and the tenant is not willing to move out, walk away. That property is trouble because it will take a long time before you can take over. In this case, you are in a double bind as the tenant is himself a lawyer. It will take ages.

Perhaps, you could make a complaint to the Bar council regarding the conduct of this lawyer (after exhausting all the legal avenues first). Anyway, good luck. You’ll need it.


QUESTION 4: I would like to take this opportunity to thank En Azizi for providing us a very good information and guide to the
millionaire property and landlord.

Currently I would like to buy a completed penthouse apartment around 2,466 sq feet which have 5 bedrooms,
3 bathrooms, one store room and two car parks for RM2888,000 in Setapak near Jalan Genting Klang from the developer. Most
of the apartments in that area are rented by the students in XXX College. The market value of the standard unit of the
apartment around 1,231 sq feet which have 3 bedrooms, 2 bathrooms and one car park is around RM205,000. The rental
for the standard apartment is around RM1,100 to RM1,300 and the rental of the penthouse is around RM2,000 to RM24000.
The maintenance fee is RM0.10 per sq feet.

I understand that we should buy two unit standard apartments instead of buying one unit of the apartments will cost
around RM400,000.

Should I buy the penthouse and rent to the XXX college student? Will it be difficult to me if I sell the penthouse next time? Furthermore there is a huge development of condo and apartments near that area will there an effect of the rental next time in future especially on penthouse?

ANSWER 4: Your prospective tenants are the students (very few professionals would want to stay with students). What you can do is buy the penthouse, add in 2 or more rooms and then rent it out to the students on per room basis. This way, you can get a much higher rental compared to renting out the penthouse as a unit. Of course, be prepared for higher repair costs as well!

By the way, this is how Conrad Hilton (the founder of Hilton hotels) started out - renting out rooms in New Mexico.


QUESTION 5: I’d like to congratulate Mr. Azizi for being a millionaire which I could only dream about. Being so inspired by his successes, I made a step forward towards reaching the same success by purchasing his debut “The Millionaire in Me”. I learnt a lot from the book and have started making, saving, and managing the money as illustrated in there.

The money is not so much after all, just around 10k. My question is what would be the best initial investment for that amount of money?

ANSWER 5: Invest in yourself by reading more books, attending talks and seminar or even formal courses. The best investment we can make in our lives is in ourselves. It will make you more money than any other investment.

PS: I read three books a week.


QUESTION 6: I’m a new investor in stock market. I would like to invest a small amount of RM100 in mutual fund. It is a good idea?

Can you give me some idea where I can invest the money for better return?

ANSWER 6: Learn about unit trusts first and then invest your money. Learn about investments first before parting your money. That way you’ll be a better and more informed investor. Your chances of making money are significantly higher. Read my Handbook "Unit Trust Investment" for more details on the subject matter.

Copyright © Azizi Ali 2006

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