This is FAQ with properties millionaire – Azizi Ali
Q 4: What do you think about properties that comes with rental guarantees?
ANS: Folks, always remember this – a guarantee is only as good as the person giving the guarantee. A homeless, broke, liar or dying man can also give you a guarantee. But you will have serious doubts about his ability to honor his guarantee – even if you had signed an agreement. Now, the same applies to a company. A company can guarantee you 8 percent rental return for five years. But if they fail to pay, you can take them to court and yes, you may even win the case. But if the company has no money (or claims to have no money), it will all be in vain. The court judgment will be a paper judgment. The bottom line is that you are still not getting your money. What I’m trying to say here is that do not be impressed or swayed by people of companies giving guarantees, because they can guarantee anything! Whether they can back up the guarantee is another story altogether. If a company has a poor track record of honoring its words, walk away. There are tens of thousands of properties in Malaysia. Just because you missed one or even ten does not mean that you have missed the boat. There will be plenty more opportunities to buy at least one property in the future. An investment should be weighed by its ability to generate income, and not about guarantees.