An investment went bad ~!

During the time we were living at house # 4 in Taman Melati, I purchased, on impulse, a service apartment developed by the then MBf holding. The property was located in Ayer Keroh Malacca and named Century Paradise, rather inaptly, as later on the buyers had to go through hell after the collapse of the MBf empire..

The story had a happy beginning...~!



One day he will grow up to be a tycoon...inshaallah~!
Luqman posed by a car which took his fancy at
the Malls of Emirates, Dubai, in 2007.



One fateful weekend, Lil and I were at a shopping mall and we walked straight into a sales man's lair. We were sweet talked into believing that with a small down payment and a readily approved loan (also from MBf), we could get big rental returns by buying a one bedroom service apartment on a lease back arrangement. We were guaranteed of a rental income of 7 percent yield for five years. In Malaysia, at that time, circa 1993, MBf was a pioneer of this concept. I was gullible and made an impulsive purchase! I learnt later on that acting on impulse, in real estate investment, is a cardinal sin!

The collapse of MBf Empire started almost immediately after the death of its founder and head of the family business conglomerates. Perhaps because I tried hard to forget this bad investment and huge financial loss, I even had forgotten the name of the tycoon who was in the Rich and Famous list in the eighties and early nineties!

The property was actually completed. However, the property was placed under receivership and all owners suddenly were in a No Win situation.

I stopped paying the monthly mortgage installment, only to be sent a summoned letter and later on a threat of bankruptcy!

*wtf!* we lost the property and we still had to pay and threatened! -  where got meaning~! But that was the situation we were in. I had to pay up for fear of being blacklisted by banks, and of being declared a bankrupt! The threat of these big boys (Finance institutions) really sucks big time! But what to do...had to pay, so I paid lah~! huhuhu

The red brick building is still standing there facing the Ayer Keroh lake. Darn. It would have been, at least, sweet sour taste for me if it were to collapse or to have been swallowed whole by the earth! It is a sickening memory of my investment which went bad.

Lessons which I have learnt (hopefully lah) and vowed never to repeat:

> No more purchasing properties on impulse

> To be extra cautious of any investment opportunities that sound like easy and sure money! There is just no such thing as sure money.

> Study the track record and financial strength of the developer. MBf at the time was already financially over exposed. I didn't have a clue then, mainly because I didn't care and I should have!

> If property investment is all about location, location, and location, why did I decide to invest in a property in Ayer Keroh. On hindsight, the reason was purely an emotional one. It was close to where my in-laws were. The lease back arrangement gave us 20 days free stay! We thought we could use the free stay and the facilities especially the swimming pool for our recreation.

I should not have followed my emotion alone. Logical and calculated consideration must be used for decision making.

In the end, I lost more than RM300,000~! In the nineties, that was a lot of money.

This summer when I return to Malaysia for vacation I wish to consult with a real estate lawyer on how to regain possession of my property! I have fully paid for it, and it should and must be mine!