Sunday, April 30, 2017

To Buy or Rent a House?

Accidentally comes across the video below, to buy or rent a house for your own stay?

Your call.

Sunday, April 23, 2017

How Good is Your Adversity Quotient (AQ)?

I came across Aversity Quotient while reading a business magazine this morning. Hence, would like to share it with you here. Hope it will helps in your success and performance of whatever you are doing.

The information you are about to read is a clip of the introductory concepts and principles of Adversity Quotient (AQ) developed by Dr. Paul Stoltz. Complete information on this subject can be further accessed through his website at

Definition & Concept 

Dr. Paul Stoltz defines Adversity Quotient as “the capacity of the person to deal with the adversities of his life. As such, it is the science of human resilience.”

For many years, researchers have devoted a great deal of their studies to Intelligence Quotient (IQ) and Emotional Quotient (EQ), which are considered to be determinants of success and superior accomplishment. A decade ago (1997), Paul Stoltz introduced a new yet interesting & intriguing concept – Adversity Quotient (AQ), which tells how well one withstands adversity and his ability to triumph over it. In fact, more researches recently have shown that measurement of AQ is a better index in achieving success than IQ, education or even social skills.

By understanding the concept of AQ we can better understand how we and others react to challenge and adversity in all aspects of our lives. In fact, how people respond to adversity is a strong indicator of ability to succeed in many endeavors.

Scientific Backbone of AQ 

AQ is rooted in three sciences: psychoneuroimmunology, neurophysiology, and cognitive psychology. They are its building blocks. Hundreds of research studies lend support to the role AQ plays in determining one’s ability to triumph over obstacles.

Psychoneuroimmunology is a field in science that examines the mind-body relationship. In essence, it studies the relationship between what one thinks and feels and what goes on in the body. How do thoughts and feelings affect the body and its overall health?

• Bottom Line Your thoughts and emotions determine the strength of your body chemistry down to the cellular level.

Neurophysiology is a field in science that focuses on the brain. It studies how the brain learns and functions. How are habits formed and what must occur to change habits once they are established?

• Bottom Line The brain is ideally equipped to hardwire habits of thought and behavior.

Cognitive Psychology is the most popular aspect of psychology focusing on the relationships between thoughts and feelings associated with one’s mental health. While there are many aspects to cognitive psychology, of particular importance to AQ is the research examining the human need for control or mastery over one’s life.

• Bottom Line Learned Helplessness, considered to be the “Landmark Theory of the Century,” explains why many people give up or stop short when faced with life’s challenges.

Measurement Tool 

To measure AQ, Stoltz developed an assessment instrument called Adversity Response Profile (ARP).

The Adversity Response Profile is the only scientifically-grounded tool in existence for measuring how effectively one deals with adversity, or one’s AQ. AQ, according to him, is a valid predictor of one’s success, stress-threshold, performance, risk-taking, capacity for change, productivity, perseverance, improvement, energy, and health.

The ARP is a highly valid assessment instrument based on 25 years of research and 1000+ studies at more than 150 universities and organizations worldwide. Unlike IQ, AQ can be improved!

AQ scores fall into 3 broad bands, with an expected normal distribution.

Low (0-59) AQ characteristics:
• Low levels of motivation, energy, performance, and persistence.
• Tendency to ‘catastrophize’ events.

Moderate (95-134) AQ characteristics:
• Under utilization of potential.
• Problems take a significant and unnecessary toll, making climbing difficult.
• A sense of helplessness and despair arises from time to time.

High AQ (166-200) characteristics:
• Able to withstand significant adversity and continue forward and upward progress.
• Maintains appropriate perspective on events and responses to them.

AQ response is comprised of four CORE dimensions. Understanding them is the first step toward improving your response to adversity, expanding your capacity, and, ultimately, increasing your overall AQ.

Now, look at your CORE breakdown and determine which aspects of the AQ you need to improve.

C = Control 
To what extent can you influence the situation?
How much control do you perceive you have?
Those with higher AQs perceive they have significantly more control and influence in adverse situations than do those with lower AQs. Even in situations that appear overwhelming or out of their hands, those with higher AQs find some facet of the situation they can influence. Those with lower AQs respond as if they have little or no control and often give up.

O = Ownership 
To what extent do you hold yourself responsible for improving this situation?
To what extent are you accountable to play some role in making it better?
Accountability is the backbone of action. Those with higher AQs hold themselves accountable for dealing with situations regardless of their cause. Those with lower AQs deflect accountability and most often feel victimized and helpless.

R = Reach 
How far does the fallout of this situation reach into other areas of your work or life?
To what extent does the adversity extend beyond the situation at hand?
Keeping the fallout under control and limiting the reach of adversity is essential for efficient and effective problem solving. Those with higher AQs keep setbacks and challenges in their place, not letting them infest the healthy areas of their work and lives. Those with lower AQs tend to catastrophize, allowing a setback in one area to bleed into other, unrelated areas and become destructive.

E = Endurance 
How long will the adversity endure?
Seeing beyond even enormous difficulties is an essential skill for maintaining hope. Those with higher AQs have the uncanny ability to see past the most interminable difficulties and maintain hope and optimism. Those with lower AQs see adversity as dragging on indefinitely, if not permanently.

Note: The average ARP score is 147.5.

Responding to Adversity 

At the highest level people fall into two groups:

A. Pessimists
• Consider any adversity to be permanent, all pervading, and deeply personal.
• They believe that any crisis will never end, and that it will destroy everything.
• They also believe it is their fault.

B. Optimists
• See adversity and problems as challenges
• See problems as temporary, limited, and external to themselves.
• Do not internalize issues, and have a ‘This too shall pass’ philosophy.

How to Improve AQ?

Listen to your response to adversity.
Explore all origins and your ownership responses.
Analyze the evidence.
Do something. 


Sunday, April 16, 2017

Property Investment - Loan Compression Strategy?

A lot people want to make money out of property market due to its 'easiness' and 'do nothing' but via rental and capital appreciation. However, there's a guru shared in FB that the one should try to avoid Loan Compression.

What is "Loan Compression"? Do you know what the consequences are if the local banks found out?

It means when you are greedy wanting to buy 3 properties at the same time knowing that your income can only support 1 unit, u are trying to trick different banks by submitting different applications for your 3 separate unit loans, and when both bank gives loan approval, u sign at the same time *(hoping that the bank won’t check your CCRIS before releasing your loan) and you've successfully tricked the bank by buying 3 property at the same time which your income supposedly only able to afford 1 unit.

Everybody knows in year 2011 Bank Negara had imposed a ruling of MoF (Margin of Finance) 70% or LTV (Loan to Value) 70% for 3rd property onward. (Which was meant to bring down household debts, reduce gearing, and control housing prices).

When one is being greedy, in order to buy more at the same time with 90% loan young innocent individuals are advised by so called expert Property Guru to Multiple Submission using "Loan Compression" technique.

This is based on true story where a local financing expert property guru teaching an innocent lady to execute Loan Compression.

Last night a little naive and innocent lady came to me and ask for this ethical FB guru advise that whether what she is doing now being rational or not. She paid money to join a class conducted by a Property Guru and join them into purchase of a RM1million property with rebates up to 20%.
(If she can get a loan up to 90%, she is able to Cash out RM100k from this purchase, because developer mark up SPA giving higher rebates).

As a matter of fact, this little lady is a salary earner only getting a paycheck of RM8,000 a month.
She was advised by the property guru to WHACK x5 units at the same time (RM1mil x 5 = RM5million portfolio = RM4.5mil loans = RM500k Cash Out).

Using Loan compression technique trying to deceive the banks by submitting application into 5 different banks hoping that all loans will get through so that she will Cash Out RM500k with a RM4.5million loans to repay, a monthly installment of up to RM25,000 *(plus maintenance = RM28,000 TOTAL).

Banks before releasing/disburse the loan to the developer, the credit/risk department will once again check the applicant ccris, and all the loans will reflect in the ccris if Loan Offer signed. Once the bank sees there are x5 loans under ccris with a total of RM4.5mil loans, it will trigger an "ALERT" and Then the Risks & Investigation Officer will:

1.    Terminate the applicant loan acceptance (and put the individual name into Special Attention Record) within all the banks (Internal Systems) in future she will likely not being able to get loan from this bank anymore.
2.    The bank will recall the loan acceptance (consider nothing happened). LUCKY case.
3.    The bank will INVESTIGATE this individual by interviewing the applicant to justify what are the loans. Once found out, the bank will REDUCE THE LOAN MARGIN to 70% and applicant requires to pay additional differential of 10% to the developer (because got 20% rebates off spa initially).
4.    If the loan has disburse/drawdown to the developer, and after few months Bank's risk dept will random pick applicants to check their ccris, if found out there are multiple loans in ccris, banks will investigate the applicant to justify the loans. If cannot justify, the banks will RECALL and REDUCE the margin to 70%. Hence applicants need to top up the 10% to BANK, because bank has release the loan money to developer.

If the purchaser cannot afford to pay and bail out, then BANKRUPTCY is her only option!

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