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Since it proved to be a HOT HOT thing, I'm answering more questions this month.

And as a special Raya gift and for your entertainment (and to keep with tradition), I've also decided to field the questions the way they came in (spelling and grammar errors included!)



I would like to invest on a property. Current bank loans have very cheap interest. However, a friend of mine who is very active in investing property advises me to take a shorter loan say about 5 years. I was thinking of at least 15 years instead of taking so much money to pay the deposit and monthly installment? But my friend says serious investors should limit the duration of the loan if we have the intention to dispose the property within a short period of time. Please advise what does she mean by that?


For owner occupied properties, it's better to take a short loan and in fact, to settle the loan as quickly as possible. This is because we are not allowed to deduct any expense for income tax purposes.

For rental properties, it's better to take a longer loan period as:

1. We reduce our downpayment and also monthly mortgage
2. It's easier to get a positive cashflow
3. We free our cash to buy more properties
4. We can deduct the interest portion of the loan for income tax purpose



I'm so touched by the way you stimulate your wealth. I've read your version "The Milionaire In Me" and it's very helpful.

For your information I'm a fresh graduate and just worked with a property development company with a salary of RM1,800 per month. After deducting for EPF the amount left for RM1,600. How should I utilize my money as well? What is the best insurance I can have?


Thank you for your kind words.

It'll take days to explain your short question. But start by managing your money better:

1. Pay yourself first
2. Create a reserves fund
3. Take adequate insurance
4. Manage your debt

For a full explanation, please review my first book "Millionaires are from a different planet!"

I'm not able to answer your insurance question as there are many other info that I need to give the right answer. Still, if you review the above book, you'll know what to do.



I have bought n read yr book (millionnaire...). Wow! The way you present it is never boring. I keep reading n readin it. My hsemate who is note a bookworm also like it, you know...

I am a female single 25 years old young executive with a net salary of RM1700 per month. (full salary 1800)

I would be pleased if the below queries would be answered by your side:-

How many insurance should I subscribe? Currently I subscribe (2) insurance:

1. Prulink (Prudential) 150 per mth
Purpose: medical n investment
return: twofold over the subsriptn that i made (due to its investmt nature)

2. Great Eastern Life 126 p.m.
Purpose: savings for my old ages (bcoz medical has bn covered under prulink above)

Which is better? Unit trust or insurance?

A friend of mine recommends me to take unit trust instead of insurance as unit trust covers insurance as well plus higher return. How far this is true?

Many thanks, Encik Azizi.


Thank you for your kind words.

As you have taken the two insurance above, I reckon you have plenty of cover already. For a more complete explanation on insurance, please review my first book "Millionaires are from a different planet!".

Both unit trust and insurance are good - if you use them for the right purpose, which in English means:

1. Invest in unit trust to make money.
2. Take insurance to cover high financial risks.



Thank you for your ezines.

I enjoy reading them & have learned quite a bit from your tips.

I have some questions that I hope you'd be able to answer in the coming ezine issues, they are:

1. May I know, how you would calculate the rate of return on a property investment?

2. How do you rate whether the property is making a good return?

3. Do you have plans of having any seminar in Singapore?

4. What is your view of foreigners/Singaporean investing in real estate in Malaysia?


1. There are a few different ways of calculating the return from property investment: capitalization rate, cash-on-cash return, payback, yield, net present value, internal rate of return, etc., etc, which I believe will confuse everyone enough till the next millineum!

Perhaps the simplest and most basic is the cash-on-cash return, which is shown below;

Downpayment: RM10,000
Rental collected: RM12,000
Expenses incurred: RM9,000
Cashflow: RM3,000

Cash-on-cash return: 3,000/10,000 x 100% = 30%

2. Again, different answers for different folks. For me, it's to have a ROE of > 10%.

3. I spoke in Singapore in July at the Berita Harian (SIN) Convention. I had a fabulous time, and hope to come back
and rock Singapore in 2009.

4. Sure, come and invest in Malaysia. Lord knows we need all the money we can get! As long as you know what you're
doing and have done your homework, you'll make money anywhere.


I have been married for fourteen years now and have two children. The first three years were wonderful but the last few years have been hell. My husband works long hours, drinks too much and is verbally abusive. I also think he is having an affair with his secretary. What do you think I should do?


Ma’am, I only solve financial problems.

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