I recently bought an old run down flat which required A LOT of work. To start off, the electrical wires were all stolen. All the doors(including the front door) were missing. It was full of rubbish.

My strategy was:
1. Buy it dirt cheap with all its flaws
2. Fix all that needed to be fixed
3. Touch up the unit to make it comfortable for tenants
4. Be kedekut gila in getting it done.

My aim was:

"To provide a quality residence at a fraction of a cost. Low cost living with style."


After getting all the doors replaced and the electricals in order (took a large chuck from the budget), I proceeded to the aesthetic part. This is the part that is worthy of sharing.

Before the touch up

At the beginning of the touch up:
1. The walls were plain white with some smudge here and there due to wear and tear.
2. The floor was just plain cement.
3. Looked very dull and not so pleasant to stay in.

I saw this post on Azizul Azli Ahmad's Facebook page page today and I thought I'd chip in to give some advice to any future or current practicing doctors on buying their first property. However, this piece of advice is purely based on my experience and my prior reading. I am NOT a financial consultant nor am I a property guru.

The questioned posed is (summarized):
I am a fresh grad in a medical field  and will begin working in the public sector beginning next year. I am eyeing a few condominiums in Penang with prices between RM 400K - 500K.
What is your opinion on this issue?



Let's just assume that this person will be a houseman (medical doctor) next year. I'm not sure if it is easy to get a placement in Penang though. It may take a while as most young doctors are making a beeline to work in a metropolitan city, be it Penang, Johor or Selangor. Back in 2010, my nett income was slightly more than RM 3500. Some will say banyak, while some will say cukup cukup makan. But it will all depend on perspective.

Let's discuss this point by point.

1. SAVINGS

Before you start investing, it is best to start building up your savings. Some people set their savings to be at three months their net income, some put it at six months. It won't matter how much, but just make sure it suits you. This savings can be a great life line in case any untoward incident happens.

2. CARS

If possible, don't buy expensive cars. Let's rephrase that;DO NOT BUY EXPENSIVE CARS! The Honda Civic or Honda HRV can wait. You don't need a flashy VW Golf Gti to go to work. If you are a single guy, get a kapcai. In case your parents (and wife) won't let you ride a bike because it is too dangerous, a Myvi or Proton Saga BLM will suffice. Don't sayang your car sangat as well. I guarantee you it will get scratched in no time at the hospital's parking!

1 Pint Normal Saline

I'm not sure where I got this from but it's been told time and time again by a few financial speakers. The rough guide of how much you can spend on a car is this:


May I also suggest you buy a brand new car? Being a HO require to have a hassle free ownership experience. I bought a 12 year old second hand car and it ends up in the workshop almost every month! A brand new car is usually hassle free within the first five years of ownership.

I don't really have regrets in life.What I do have are mistakes I made in the past that can be used to improve on my future undertakings. In investment, tipu lah if you don't make any mistakes. Sure got one. Here are my top three 'regrets' in my short investment history in properties.

1. Sell off a cash flow positive property.



I bought this property with my wife for roughly RM 170 K. It was in a rather hulu place. Nothing much there. It was miles away from the nearest restaurant and the developer wasn't that well known except for some political connections. It was in Shah Alam, but not in the Shah Alam people usually know. Back then, whenever I tell people which section it was in, people didn't even know the place. Malays will call it tempat jin bertendang. 

I was very fortunate to have attended a forum by starproperty.my yesterday. Why VERY fortunate?
1. It was FREE...who doesn't want free stuff? I'm an average Malaysian maaa!
2. I didn't have to go too far. It was just in town.
3. The knowledge gained was worth more than any RM 40 per hour locums.
4. The low turnout was a blessing in disguise as Mr Adrian Wee and Mr Ernest Towle (Assistant General Manager of propwall.my) managed to entertain all our questions and understand the different investment backgrounds of attendees.

Have you ever had something like this appear in your private message or Facebook wall?

I have just been into equities for slightly over a year. I must say, there are quite a lot of reasons why you should not invest in stocks, Bursa Malaysia in particular. I have listed FIVE common reasons.

1. It is capital intensive.
    Let's face it; you need money to invest in stocks. No money, no returns.

2. You will lose money.
    There is no way out of this you WILL lose money.

Duit oh duit!

3. It takes too much time.
    "I can't just look at the screen all day"
    "You can't expect me to look at the chart from 9 to 5!"

A screen capture from iBursa(Android) app

4. The market is going to collapse anytime soon. You should get your money out of stocks and invest somewhere else.

5. There are too many variables to predict the outcome. A counter can go up and down really fast within the same day.

Did I say common reasons?...No lah, these are common EXCUSES.

BANJIR 2014. The flood waters may have receded but the road to recovery has only begin. It would be difficult to determine how long life will return to normal for the folks affected by the floods. However, some fellow Malaysians are still facing hardships in the states of Sabah and Sarawak. The weather is still unpredictable. What's worse, access to some areas in the interior districts of Sabah and Sarawak was never good to begin with. I have yet to receive any news on how things are over in Sabah & Sarawak but I do wish them the best. We are separated by the South China Seas, but we are MALAYSIANS.

Picture from e-cukai.com

Finally, after more than a year, I can find closure in my sales transaction. It was my first time selling off a property and it there were so much hiccups that I almost coughed out blood!(hemoptysis in medical jargon). The hiccups were mainly due to issues with the lawyer (some how I have been having so much trouble with lawyers). The last piece of the puzzle was getting a refund for real property gains tax (RPGT) from the Inland Revenue Board (LHDN).

Background on RPGT in Malaysia

RPGT is a tax that is imposed on the gains or profit an individual makes after selling a property. This table from loanstreet.com.my sums it up really well.


Between 2008-2009, RPGT was suspended. This was the time when property speculators really had fun. (I was a still a student back then...a nerdy medical student who didn't know anything much about assets). In Budget 2014, RPGT rates were increased in an effort to curb property speculators from flipping. Speculators would buy a property under construction and sell it off once the property is completed. This contributed to the rapid increase in property prices to dizzying levels. Speculators might not care about 15% RPGT rates, but at 30%, they had to think twice before parting with 30% of their gains.

I have only started attempting to invest in properties for two years. Nothing much to shout about. The journey has been very challenging. I had lost hope more than THREE times trying to get into property investments. I can assure you that it can be time consuming, heart breaking and require tons of patience.