Mega Auction!!!

Yesterday, i knew that there was a mega property auction going on. So basically it means, an opportunity for some of us to get a property or two at a price below than the market value.

Why we buy properties via auction in the first place? Well, the number one reason is to get a property that is well below its market price. For example, i bought mine for 35k and the market value of the property is somewhere between 50 and 60k. Not too bad I think. Why bother buying a property via an auction just to get a price that is 1k or 2k cheaper? Not worth the trouble isn't it?

When you get a property that is below its market value and you get it relatively 20% off the MV, later on, you'll be able to refinance it according to its present MV. For example, perhaps you bought a property via auction in Oct 2008 for RM80k. Maybe now, the MV for such property is about RM120k or RM130k. So you may refinance it according to the present MV. So after settling the 'dust', you may get some cash that you can use to buy moew properties...That's how some people do it all this while....even Azizi Ali admits it in his book...hehehehe

To a certain extent, I have to admit, I've made some mistakes with regards to my properties, but hey, i'm no angel. As of now, I'm much wiser and a wee bit clearer as what to do if I decide to buy more properties in the future....There will be more, I believe so but for the time being, like i mentioned earlier, I would like to see the progress of this 2 properties. I believe, one has already been tenanted and the other one is just waiting to be tenanted....If everything is hunky dory for the next couple of months...then I'll go to my phase II project!!

Btw, my loan application for both houses has been approved. Goodbye CIMB and hello RHB!!...
I need to go to RHB tomorrow and open up a savings account for my properties. Hehehe. I think it's a good way to track the transactions in the future. A special account for the properties. Cool isn't it?


Have a nice day........