The involved business is called  ”WaterDrop”, or “Mat Kiosk” or “Smart Kiosk”, a Vending Machine business that runs in a MLM scheme. The fraud was revealed by Persatuan Pengguna Islam Malaysia (PPIM) after collecting a year of evidence and information from about 1,600 individuals who were victims of the scheme, which involve 100 of millions.

The information I get to are mostly dated 3-5 years ago started from 2007 – 2011. Where lots of complains has been circling around the corner, giving warning to this business and the nearest information i got was dated 08-10-2011 from PPIM where the director has been hand-cuffed finally!

I drilled down into a few pictures, which doesn’t looks like ‘him’ on first sight~ so i just lay down all these photos for you to judge and compare if that is him ~

photo ref: kempenppim (photobucket)

photo ref: kempenppim (photobucket)

photo ref: kempenppim (photobucket)

photo ref: kempenppim (photobucket)

Is is him?

some pictures from theStar:

picture from: TheStar

his interview with the star: http://www.starproperty.my/PropertyGuide/Finance/3674/0/0

Now, is all for u to judge if it is the man so called ‘property millionaire’ that is involves in the scam.

and a video:

for more information about the scam, please visit the following links:

1. http://www.muslimconsumer.org.my/v2/index.php?option=com_content&view=article&id=292:crtf-membongkar-skim-tipu-jual-mesin&catid=60:top-news
2. http://s1106.photobucket.com/albums/h364/kempenppim/Dalang%20sindiket%20ratusan%20juta%20akhirnya%20tertangkap/#!cpZZ1QQtppZZ20
3. http://www.mfa.org.my/?forum:update-on-mat-kiosk:16300-FRM-4

Since then I wonder, what are the ingredients for a successful township? What should we be looking for to identify the potential of a township? Is the brand name of the developer enough?

1. Parks

Most of successful townships these days must contain their own recreational parks. Some developers are even very generous by offering large green areas to blend with the entire development. The parks must also contain sports and recreational facilities. Our market trend has proved that buyers are willing to pay extra for the greens.

My current favourites for recreational park are Desa ParkCity’s Central Park and Kota Kemuning Central Park comprising 22 acre lake and 25 acre park.

2. Retail mall

Unlike those yesteryears whereby we were comfortable with convenience stores and groceries being located just a stone’s throw away from our residence, supermarket and shopping malls have already become part of our lives.

People nowadays wish to have a neighbourhood mall that is just sufficient enough for their daily needs rather than a gigantic one located within the neighbourhood. All we need are just a supermarket, wide range of eateries, a few fashion outlets and a launderette under one roof.

Do you think Bandar Utama residents love One Utama? They prefer Centrepoint instead, believe me.

3. Basic facilities

A township is meaningless without basic facilities. The township must contain schools (both primary and secondary schools), a kindergarten and playground. I also believe a good township must contain mosque and temple (depending on the size) and a community hall for the residents to gather.

4. Security

Let’s admit this one; we are scared and paranoid! We need the security guards to feel safe. However, with aplenty of burglaries and break-ins reported in neighbourhood areas, we shall be forgiven for being paranoid.

All these 4 are the main ingredients of a successful township. The township can be spiced up with a clubhouse with facilities – but I prefer not to include it into the main ingredients as having a clubhouse will also mean hefty maintenance charge per house.

You should better watch out for these 5 urban integrated commercial-cum-residential developments that might change the way you live, work and play.

1. Empire City

Located adjacent to established townships of TTDI, Damansara Perdana, Mutiara Damansara and Bandar Utama, Empire City is set to become the next big hit along Damansara-Puchong Highway. Sited over 23 acres of leasehold land, Empire City shall become a self-contained township with service apartment, studio office suites, SoHo, corporate office and retail outlet.

For ones who still are lacking of faith on the developer, perhaps you should take a look at all their past developments, and then you will know what I mean. They have consistently deliver great products ever since they started walking – and they have never look back since then.

2. KL Eco City

This long-awaited development has finally launched recently. I have registered as buyer for months (and keen on it for years), and was only invited to the official launch last month.

KL Eco City is a project by the renowned SP Setia (and DBKL as the land owner). The development will comprise 3 residential towers, 3 corporate office towers. 1 serviced apartment tower, 1 retail podium, 3 clusters of boutique offices and 1 strata office tower.

How am I sure that this is going to be successful? Well, it is situated in between Bangsar, Mid Valley City and KL Sentral. Period.

3. Damansara Avenue

Just a stone’s throw away from Empire City, this is another fascinating mixed development to watch out for. Spans over 48 acres of freehold land, Damansara Avenue shall comprise private gardens (surrounding the development), condominiums, corporate office towers, lifestyle mall and SoHo.

Developed by TA Global, Damansara Avenue’s price range starts from RM400 psf, which is the cheapest compares to the others in this list.

4. Icon City

Spreads over a 19.6 acres leasehold land, Icon City features futuristic design over the entire development. The facade is just like a 3D puzzle with loads of missing pieces. Yup, I also believe that Icon Residence design is better even though both designs are really similar.

Icon City is strategically located at the interchange of Damansara-Puchong Highway and Federal Highway. Just like the others, Icon City features shop-offices, a gourmet street, SoVO (small-office versatile-office), service apartments, a retail mall, a hotel and office towers.

5. Bangsar South

Even though Bangsar South has already half completed, I still think that this urban development is worth mentioning in this article.

Bangsar South comprises Grade A offices retail outlets, resort-style condominiums and serviced suites. Conveniently located adjacent to Federal Highway, this urban enclave is also connected via Sprint Highway and New Pantai Expressway.

Yes, I have ranked them according to my preference. How about you?

‘Buy, Buy, Buy’ phenomenon, or popularly known as ‘BBB Mode’ is a buying-craze phenomenon among buyers whereby buyers buy properties immediately once they are available for them (pre-launch and official launch). Most of these buyers follow the ‘buy now, think later’ philosophy. BBB Mode is a popular term among property forumers and investors for this kind of buyers.

Obviously, these BBB Mode buyers are driven to be among the earliest to take advantage of the early birds discount offered and the ability to choose the best unit. Besides that, these buyers are also driven by the promotions offered.

Perhaps, you should be familiar with marketing statements (read: craps) such as ‘Phase 1 sold-out in 1 day’, ‘Last phase has appreciated by 100% in just 1 year upon completion’ and ‘Targeted yield from 10%’. Even though some of them are true, these claims are actually derived from just a limited few units to buyers – who received great discounts from developer.

However, not all buyers who place bookings immediately are the ones who buy without any initial homework made. This group of buyers is the one that we shall follow. They have done all the necessary studies before they proceed with their purchase. How can they do that as the property is just launched? Let me explain how.

Most properties are available in the market months or years before their official launch date

You must be among the earliest ones to know upcoming property developments before they are launched. The best way to get this information is via internet. All you have to do is to follow and subscribe to property blogs and forums.

Start your study by getting as much information as possible

Who says study is hard nowadays? All you have to do is just google the name of property.

Visit the actual site

Perhaps, you should be interested in a few upcoming launches after reading a few blogs and forums. Start your study by visiting the actual site of the property. Make sure you understand the flow of the access roads during peak and normal hours.

Know your surrounding

Besides accessibility, your study should also stress on the surrounding. Look for bad points instead of good ones – because the developer will always hide the bad points – cemetery, ‘pasar malam’ et cetera.

Know your neighbours

You should look for nearby properties that have similar characteristics to the one you are interested in. For example, if you are eyeing for a condominium, then you should compare it with nearby condominiums. Make sure you can estimate how old the condominiums are from the look – just make a rough estimation, either less or more than 5 years old. Only compare the property with properties that age no older than 5 years.

Who’s the developer?

As you are going to buy a new property, you should examine the developer’s past track records. Do visit its last projects to check the conditions and workmanships.

Estimate the launch price

Based on the findings, you should be able to estimate the appropriate launch price for investment. If there is a newly completed property in the same area, the new one that you are eyeing should not be priced more than 30% from it. Besides that, you can give plus or minus points based on the surrounding of the location.

Register with the developer

Once you have estimated the ceiling price for investment, you should register yourself with the developer. Afterwards, all you have to do is just lay back and wait for the invitation for the pre-launch or official launch date. If the launch price (after adding any discount given) is below your estimated price, then you should take out that cheque book and place your booking immediate. Or else, just enjoy the foods and drinks at the launch, and ready to leave.

No matter how great the response is during the launch day, you should never follow the bandwagon. Never trust your guts or instinct. Make sure all studies have been made before you make any decision.

By: Azril Arif

Property and Land Type

• Malaysian still prefer landed properties.
• But as an investment, condominiums and commercial property have yielded higher rates of return.
• Also considerate the type of land that your property sits on which might have a differ in property value. (read previous article: Freehold or Leasehold)

Existing or New House

• New House is are new projects from developers.
  • If buying from developer, you might not know the outcome until it is fully build up.
  • Cheaper comparing with existing/second hand houses.
  • Risk of developer absconding with your money
• Existing Houses is what you see is what you get.
  • can be occupied immediately
  • neighbourhood is establish, research and getting information on the area is easily achieve
  • No risk of developer absconding your money.
  • A higher possibility of renovation and fixing a rundown house.

Maintenance

• To get the maximum price for your property means keeping it in at least reasonable condition
• check piping and drainage, electrical wiring, any leakage and see if any repainting is required.
• Maintenance is responsibility of  the landlord for Residential Property.
• Maintenance is responsibility of  the Tenant for Commercial Property.
  

Tax on Rental Income

• Your rental income should cover your loan instalment plus maybe 5% minimum.
• Incidentally, rental income after expenses is also subject to income tax.
• The problem is finding good tenants; otherwise will turn into a nightmare.

Real Property Gain Tax

• A fix 5% on the gains from the disposal of real property within the first 5 years. Of course there are exemptions.
• for more info on RPGT, please visit Mida.

Budget

• What can you afford to buy?
• Besides monthly payment, don’t forget the down payment, legal fees, stamp duty, miscellaneous payments, maintenance, renovation cost

Financing

• Your monthly loan payment for your first property must not take up more than 1/3 of your income.
• Your second property however, financial institutions will look at your overall income to ensure thay you will be able to repay both loans.
• You can withdraw from your EPF Account 2 (ref: kwsp) for housing loan.
• You are NOT allowed to withdraw money from your EPF for second property.

Location

• The Golden rules of buying a property is always “Location, Location, Location“
• This is your real selling point. Areas commanding a premium value, even in an economic downturn.
• Check the area where the potential property is located. such as areas with highly populated areas, near city, employment centres. These areas are more easily to
• Observe yourself if it has a potential market or not. Such as future developments on the area that will vastly boost the property intrinsic value. Such as having a hypermarket or a mall that will be develop in the near future.
• In addition try to search out the place by visiting it. This way, you are able to set your hopes on how the property is capable to do as far as rental is concerned.
• Call and research the to understand the rental price.

Amenities

• In addition take note of the presence (or short of) of schools, libraries, shopping centres and other amenities that you would need in the area.
• Good transportation facilities (bus) may also lead to greater population and better rental opportunities.
• You might not want to stay too close to the school where it will cause traffic havoc in front of your house.
• You need to make sure which area is best suited for your way of life and job.
• It will keep you linked and in the centre of it all. You should make sure that you do not experience long hour’s travelling just to reach to your office and back to your house.

Security

• You also have to ensure that the location that you wish is calm and peaceful. You have to feel protected at your own home. You must check if your neighbours are quiet and tidy.
• Checking the garden of your potential neighbours can provide you an idea on how they care about their house and property.
• Is there a Community that is governing the area, or if the place is gated with security guards. (although security guards sometime may not be very reliable but at least better than nothing)
• Check with the local residents and police station regarding the crime rate in the area.
• Keep your eyes open for vacant land and developments going on in the area which could encourage incidents of criminal activity.

Leasehold

1. Simple understanding: The state still owns the land and it is leased to you.
2. has a limited duration of lease, usually 30, 60, 99 or 999 years.
3. Transferring or selling of land must have the land office consent. (means, hassle to sell)
4. lands less than 30 years, bank may not be able to finance a loan. (Take cautious the remaining years of your property before you buy)
5. In general cases, lands less than 70 years, Margin of Finance may only up to 70%, 50 years, Margin of finance 60%,  depends on banks, in other words, higher down payment for least remaining years.
6. if land leasing expired, you will have to to renew your land title with Land & Survey department by paying a premium.
7. Mostly located in prime/golden areas

Freehold

1. Has “Interest in perpetuity”, means you can own the property forever.
2. The right of ownership can be passed to your heirs.
3. Unlimited right to subdivide and aggregate of land subject to town planning controls.
4. Usually located further from the popular areas.

Which to choose?

A common question to ask, but without a perfect answer.

Entirely Owning something and taking control of it, is a natural greediness humans instinct.

People always tends to have the perception that leased lands will downgrade the intrinsic value of its property, but this may not be entirely true, and the effect could be minor.

To choose either Freehold or Leasehold, really depends on your personal perception, investment strategy, and your purpose of buying these properties.

Rules of  real estate is always “Location Location Location.”. Leased land could also fetch a higher value if it is located in prime/golden areas, for example, Tropicana, Mutiara Damansara, and KLCC are lease lands with sky rockets property values.

If your purpose of purchasing the asset is for investment purpose to generate passive income from rental or capital gain, will it really affect your decision?

if you have no choice to stay on a lease land, will you be able to live up to 99 years? Even if yes, the condition of your asset has drastically torn apart. Your children or grandchildren may not even be staying with you. of course, if you have the cash, freehold is at your choice.

Leasehold or Freehold, as long as it is in good location, definitely commands a price appreciation.

To recall the previous 2 Article of Malaysia Property Millionaires List, click below:

1. Malaysia Property Millionaires List – Part 1 (Peter Yee and Michael Tan)
2. Malaysia Property Millionaires List – Part 2 (Renesial Leong and Azizi Ali)

Profile 5: Milan Doshi

Milan Doshi

Milan Doshi did not come from Milan. (lame! ). 19 properties in Malaysia. 1 property in Singapore. Properties worth more than RM22 million. He achieved his passive income of RM15000 to RM20000 within the first 5 years where most income generates from commercial properties.

“The more you borrow, the richer you get.”

- Milan Doshi

“Good deals will always be there, whether the market is up or down. Question is are you ready when the good deal comes. When I say are you ready, are you mentally, emotionally and financially prepared”

- Milan Doshi, on starproperty interview.

Milan Doshi is a person that focused on personal developments, he emphasize on investing in oneself, getting the knowledge, learn from a mentor, network with like-minded people, and must always have a “win-win” mindset.

His first book: “How You Can Get RICH from the Property and Stock Markets: What the RICH Invest In and How YOU Can Do the Same!” This book was the Number 1 bestseller on the Non-Fiction Section of Popular Bookshops for the month of August 2004. Milan wrote his second book called “How You Can Become a Multi Millionaire Real Estate Investor ” Milan’s mission is to Inspire People to Improve Their Financial Intelligence and Achieve their Full Potential.

Downloadable Articles:

Milan Doshi – Toxic Investment mistake you must avoid at all cost

References:

1. http://milandoshi.com
2. http://eblog-entrepreneur.blogspot.com/2009/10/free-giveaway-milan-doshi-22-advices-to.html
3. Video from YouTube: http://www.youtube.com/watch?v=mtdzkee6d-E
4. http://www.iproperty.com/expo/2008/my_luxury/pdf/forum9.pdf

Profile 6: Gavin Tee

img ref: iproperty

Gavin Tee, Founder of Swhengtee International Real Estate Investor Club. He has more than 20 years of experience in property & retail marketing from both the United States & Malaysian markets. A professional trainer himself for the Continuing Education Program (CEP) of the KLSE Directors’ Training Program.

Surprisingly, his investor club was just established a year ago on may 2010. Same as Michael Tan, they form a group and have group purchase on development projects and so far their group have reached a total investments value of RM200 million. It seems his club does NOT only involve in group purchase, but also managing and taking control of the property themselves to maximized the profit. By the way, Not everyone can join his club, membership is by referral or invitation only.

Gavin recently has given his personal outlook on 2011 real estate market, and given the insights of beneficial areas from the MRT projects. In his point of view on Malaysia property bubbles, the bubble seems to be exist only when it is overpriced and oversupplied, and prices of properties in Malaysia that are supposed to be very high somehow are maintained low for 15 years. A Months ago, he reviewed 11 hotspots in Malaysia in smart investor magazines.

Malaysia property market will soon to be globalized and expecting a super cycle in 2013. – Gavin Tee

Reference:

1. http://www.starproperty.my/PropertyScene/PropertyScene/8992/0/0
2. http://mygavintee.blogspot.com/
3. http://blog.iproperty.com.my/tag/gavin-tee/
4. http://blog.iproperty.com.my/real-estate-industry/ready-for-property-super-cycle/

image ref: imdavidlee.com

This is going to be interesting. Recently launch My First Home Scheme has been the hot topic for young adults to obtain a 100% home loan. and Cagamas by will be providing a guarantee on the 10% down-payment for house priced below RM220k. On top of that, First-time house buyers will also be given stamp duty exemption of 50% on instruments of transfer on a house priced at not more than RM350,000. The Government has also proposed stamp duty exemption of 50% be given on loan agreement instruments to finance such first-time purchase of houses. Still not enough, hear this, “there is an allowance of additional 5% to finance the purchase of your mortgage insurance + BLR – 1.8% for the duration of their loan” . source: “BLR discount for young house buyer under scheme”

This sounds too good. to get more info on criteria and eligibility, please read the following link:

1. Criteria: http://www.srp.com.my/docs/html/fea_n_cri.html
2. FAQ: http://www.srp.com.my/docs/html/faq.html
3. Bank Involving: http://www.srp.com.my/docs/html/banks.html

However, some may complain that property prices are in sky rockets such as klang-valley areas and the availability of such properties are so limited comparing with the amount of urban poor. Don’t worry, our brilliant government has also launch “Affordable Quality Housing” Programme by providing lands to developers at no cost to ensure properties built are fall within the range of RM220k.  7 locations in Klang Valley has been named to build under the “My First Home Scheme” last week,

• Putrajaya
• Cyberjaya
• Rawang
• Damansara
• Shah Alam
• Kelang
• Puchong

Sounds too sweet? A few gave their comments and warn to be aware of your financial capability before venturing into the scheme.

1. http://www.malaysiakini.com/news/159088
2. http://www.kampunginvestor.com/my-first-home-scheme-the-drawback/

Personal Doubts:

1. Does this really to help the young groups to break free from middle-income group or creating more house slave?
2. 100% home loan means higher monthly instalment, means tighter cash flow and greater burdens.
3. Does the rental price of the 7 New locations for First Home Scheme properties capable to fetch up above the monthly repayment amount to the banks?

Other Sources:

1. http://www.themalaysianinsider.com/malaysia/article/mca-says-my-first-home-scheme-should-not-be-rushed/
2. http://biz.thestar.com.my/services/printerfriendly.asp?file=/2010/10/16/business/7240045.asp&sec=business
3. http://freemalaysiakini.com/modules.php?name=News&file=article&sid=11798
4. http://www.bernama.com.my/bernama/v5/newsbusiness.php?id=586777
5. http://imdavidlee.com/budget-2011-100-housing-loan-for-first-home-buyers/
6. http://thestar.com.my/news/story.asp?file=/2011/3/13/nation/8257040&sec=nation

Profile 3: Renesial Leong (a.k.a Property Queen)

Ref: starproperty.my

Property Queen, No one dares to address him or herself as the king or queen unless he/she has an extraordinary capabilities. According to her site, Leong has 20 years of experience in property investment, successfully owned 89 properties and analyzed over 3,500 units of property throughout her investment career. She is also currently earning a 6-figure PASSIVE income. OK, with this astounding figures, she deserves to be called the queen.

She might be the first few early property investor that was featured on the press. ‘Your Tenants, Your Jewels‘ and  ‘Property Jewels‘ may have sound familiar to you as these were her best selling books in MPH, Popular, Kinokuniya, and Times Bookstores nationwide, and ’Property Jewels’ was billed as the ‘First Malaysian Property Investment guidebook‘.

“I can think of two major factors why women should invest in property.  The first being that more so than ever today women want and need to be financially independent.  And the second is that women have so many roles to play, as wife, mother, at the workplace and etc. and hence time is almost always an issue juggling these various roles.” quoted under her interview with iProperty.

Come to think of it, property investment is not just a men game. it is just that the field is dominated by male populations. She is one of the role model for Ladies to venture into property investment and get rich with it.

Other Reference on Renesial:

1. http://forum.lowyat.net/topic/970042
2. http://www.starproperty.my/PropertyGuide/Profile/3816/0/0
3. http://www.iproperty.com.my/news/taggedArticles.aspx?tagid=2274&nid=3133

Profile 4: Azizi Ali

ref: millionairesplanet

Does this guy looks familiar to you? I bet you have seen his portrait  in some books stores. Yes, he is Azizi Ali the famous millionaire coach. Although Azizi Ali is famous among the Malay groups, but I think he is a hardworking and knowledgeable role model for everyone. There is a saying in chinese, “Shu Zhong Zi You Huang Jing Wu 书中自有黄金屋”, means “There is a golden house in every book”, Azizi Ali is a voracious reader, he reads three books in a week! my goodness! He is now also a columnist with Malaysian Business, Personal Money and The Star Property.

Azizi Ali was not entirely a property millionaire. His main focus was on his business. but property do made him millions too. His first investment was condominium. His formula is for rental. He sold most of his properties during 2010 and made aprox. RM6mil. He wrote an article on which regarding on property bubbles,  “The U.S. property crash – could it happen here?“, which it is an insightful articles that we should take aware off.

you will need to do your homework when investing in properties. This will include reading books, magazines, articles, observing and yes, learning from the experts. Of course, this will require time, effort and yes, even money. But all that effort is peanuts compared to the reward that awaits you. – Azizi Ali

Reading this guys profile, makes me wanna read more books from now.

There are 3 books that Azizi Ali written regarding on properties that you could pick up in the local bookstores, “How to Become a Property Millionaire”, “How to Become a Millionaire Landlord” and “Winning at Property Auctions”.

Other References on Azizi Ali:

1. http://www.millionairesplanet.com
2. http://www.starproperty.my/PropertyGuide/Finance/9663/0/0
3. http://www.starproperty.my/PropertyGuide/Finance/1729/0/0
4. http://afidie.com/blog/2007/10/24/azizi-ali-november-m-planet-ezine/
5. http://www.alantanblog.com/inspiration/irfan-khairi-azizi-ali-meeting-millionaires.html