Lessons from Robert Kiyosaki

by Simon Zutshi

I have just come back from a fantastic weekend in London at the National Achievers Congress 2010 with Robert Kiyosaki, Kim Kiyosaki and the Rich Dad Advisors. It was a massive event with 3500 like minded individuals all interested in personal development and wealth creation. There were so many valuable tips and golden nuggets that I am going to share some of my key learning on this blog over the next few weeks.

To start with I want to tell you about the two most important things you need to Master if you want to become rich!

Robert Kiyosaki (author of Rich Dad Poor Dad) was very clear when he said there are two key areas you need to master if you want to come rich. These are managing debt and tax.

The quickest way to put more money in your pocket right now without doing any more work is to pay less tax. Many people focus on making as much money as they can but then go and unnecessarily give most of it away to the tax man. Tax laws have been set up specifically so that the rich pay less tax. Taxation in many cases is optional. The problem is many people rely on their accountants to advise them on how to save money. Most accounts (but not all) are reactive rather than proactive. They will give you the right answer, but you need to ask the then right questions, which means you need to educate yourself as to the correct questions to ask them.

I have spent a fortune on my personal Tax education and as a direct result I don’t pay much tax now. I legally use the tax laws in my favour as do all rich people. Luckily for you, my personal tax experts also regularly speak at the property investors network meetings which we hold every month all round UK. If you want to find out about the closest pin meeting to where you live check here www.pinmeeting.co.uk

The other key point was about managing debt. By using debt to purchase assets you can make a lot of money. As successful property investors we understand the concept of using other people’s money to buy investment properties. It was encouraging to hear Robert Kiyosaki share his investment strategy which is the exactly the same as the one I teach on my one day property investing Quick start seminar. The idea being that you buy an asset below market value and then you refinance as soon as possible to get your deposit back out. (even better if you uses someone else’s money for the deposit). This means you have an infinite return on investment if you don’t have any money left in the deal.

The main risk involved in this strategy is what happens if interest ratres go up. Well the fact is that interest rates will go up in the future so in the next article I am going to share what I learn from World Economist Richard Duncan and his top tips for investing in the next few years.  

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Mistakes Overlooked in Home Renovations

Let share!!!
Again here is good advise and tips to who want make a house renovation.
Just take your time to read through this advises.

Renovating a home isn't easy, and definitely isn't cheap. The last thing you'll need is to see a big failure after anticipating for the perfect dream house. Unfortunately, that is the experience quite a number of people get, and most of it are due to the minor mistakes that they tend to overlook from the start.

Mistake 1: Renovation without a Budget or Plan
Affordability is a big issue here, as there have been many who'd had lots of renovation plans but not enough budgets for them yet still went ahead with it. Some haven’t even decided on what they really want to renovate and keep changing decisions around, causing unnecessary delays. Shoddy work and out of character designs are the results.

Mistake 2: Didn't Obtain the Relevant permit and approvals
Yes, it is true, and is a must, to obtain permits or legal approval for your local Dewan Bandaraya before you start your renovation project. Failing to do so will have the Dewan Bandaraya on your heels, demanding that you undo the 'illegal' renovations of your house.

Mistake 3: Being too trendy
If you're planning to have your house on sale in a few years time, it is safer to stay back on more traditional or conventional designs. This year's trend may be out of trend next year, and having an outdated feature in your house will lower its appeal to potential buyers, economic crisis not withstanding.

Mistake 4: Assuming price will be the same for all
You have consulted your neighbour who had their renovation done 2 years ago, and you assume the price will be around the sum they got. Wrong. Renovation costs vary according to market conditions and economic situation: material costs, workers' pay etc; and most will definitely increase along with time. Be prepared to fork out a larger sum today.

Mistake 5: Didn't do Background Research
Some made the mistake of only getting contractors offering the lowest price, but never went through a background check for their work performance and reputation. Ask around at least 3 potential candidates then compare their bid. Choose the one with the most reliable reputation, and most reasonable price, if possible. Another way is to get reference from your friends and relatives; though you will still need to research on the price yourself.

Mistake 6: Staying put while renovation is in progress
Although it is still OK to stay through minor renovations, it is advisable to move out of the house with the renovation going on. Not only will there be noise and workers all around, there are also the dusts, debris and pieces of obstructing furniture around the area; a definite health and safety hazard. Try to put up in another place while you wait for the completion; a relative’s or friend's house, or hotels, if the duration isn't more than a week.

Tips for Home buyers and Home Sellers

Lets share!
I found this good references for anybody who want to buy or want to sell their properties.

Year 2009 is the beginning of a rough year ahead. More people facing financial difficulties will opt to sell off/ release some of their assets and properties, while buyers are actually getting lower mortgage rates in properties. However, tighter credit standard and loans do pose as a set back for most buyers. Thus, here are some useful tips for buyers.

1. Spare more Cash. During these hard times, ready cash is always better than liquid investments and other low-rate mortgages. Those with ready cash during the recession will always be better off than those who don't.

2. More freebies. With the recession, house-sellers, as well as developers are offering a wide range of incentives for buyers; but nothing beats incentives in monetary forms: FREE legal fees, low/NO interest rates.

3. Start Saving Up. Save up for your purchase, at least for 20%. It will be a great help in the future, with lower house payments and higher equity.

4. Determine your Budget. Before you look for borrowers, calculate and sum up how much you can afford. Be realistic and include extra for unforeseen negative circumstances. Finally check out a few lenders before getting the most suitable package.

5. Clear your Credit Debts. If you have any outstanding credits (utility bills, credit card bills, loans etc), it is better to clear them off first. Otherwise, it will drag down your finances in the future, along with your house mortgage.

6. Research. Do your own research before buying. Listen to what your agent tells you, while you do your own research through newspaper or online: housing inventory backlogs, the average for-sale time and average selling prices. Also, be wary of the number of area foreclosures and major-employer layoffs. Then, only you negotiate and decide.

7. Check out Neighborhood. Quality of schools, traffic noise, upcoming zoning issues, neighborhood stability, home turnover, crime levels; these are the important issues too look at before buying and moving in. A trustworthy, experienced agent will be a good help here.

8. Look for Other Opportunities. If you can’t get any loans or any sales now, just wait for a while. Situations should improve later in mid-2009. Loans may loosen, though don’t expect everything to come back to normal in just a short while.

For Sale - Metropolitan Square & Armanee Tarace II at Damansara Perdana

Metropolitan Square Introduction
Metropolitan Square is a project by MKLand Bhd targeted at modernized living lifestyle. With its first glass swimming pool in Malaysia and probably one of the largest condo project that has a mix with commercial and retail shops all at one center. It has few swimming pools, squash court, tennis court, sauna, steam, Jacuzzi and many facilities like a small mini condo township. Build on an escalated land and has a superb view over the entire Petaling Jaya city. It is probably one of the most strategic condo lifestyle living today.


Location
Located at the new golden triangle in Petaling Jaya with immense high profile developments that seldom seen in Malaysia with variety hot spots like shopping centers, lifestyle and fashion, golf driving range, commercial center, hotels, colleague, Luxurious car show room, food and entertainment center all housed by a few known operators like One Utama, The Curve, Ikano Power Center, Ikea and upcoming class A commercial office called PJ Trade Center.

It has many high profile and mature neighbors like Bandar Utama, Mutiara Damansara, Taman Tun, Damansara Uptown, Desa Park City and a high growth area like Kota Damansara. It is well connected via LDP and Pencala Link situated at a position that can reach Kuala Lumpur within 15 Minutes and Mon’tKiara within 5 minutes. Under the new government’s plan, LRT will extend it route from Taman Tun towards Kepong further bring convenience for this modern development. In term of location, I hardly find any dispute about this strategic spot.


Developer
MKLand Bhd is a well known and largest developer in town with many projects across nationwide. In late 90s and early 2000, MKLand uses their strength in lifestyle living has captured many home buyers attention. By far, the most successful project would be Damansara Perdana that has begged millions of profits to the group. However, the recent corporate exercise may paint a different picture and that will only know when the exercise is completed. But in term of stability, I will not have any question about them since they are listed in KLSE and reported profit every year with positive NTAB.

Residents and Public Opinions
The most special about Metropolitan Square @ Damansara Perdana is the location. As it is located in this vibrant and growing new golden triangle of Petaling Jaya, it has a unique advantage over other locations. Looking into the master plan of development this so called New Golden Triangle in Petaling Jaya, if more commercial, international school and hospital are to be completed in the future, the value of this golden triangle will be tremendous. Foreigner always expressed this location as different from other parts in the city cause it looks very Western. Proper planning play a major role in this factor and it is a good job well done to all developers that form this Golden triangle.

Many people talking about the subject of traffic jam at Damansara Perdana. However, this is an overall unstructured challenge to the fact of life in Malaysia. Till date, we have not seen a township that is doing well with no jam.

If a good property that can carry good return is always first location and second is the developer. Then they would probably suggest that the investment in Metropolitan Square will still carry handsome return due to its location.

These biggest developers would embark on something like Warner Bros center in this Golden Triangle or something similar. It will becomes one of the very unique township in the whole of Malaysia.

For details and Units View, please leave me your details in Comments Box.