Yup, it's there too.

Divorce.

The husband is left with all of his 3 kids and half of his estates.

Just got my loan signed yesterday in the lawyer firm.

These days bank aren't that willing to loan more.
To get 90% loan, I have to put RM15k FD as deposits into this bank; with 5 years bond.
I also buy MRTA to up the total loan amount making it exceeding 100k, so the bank is willing to loan me BLR-1.85%. Some other fees are also borne by the bank. If you guys still remember, this unit auction price is RM109,400.

I have the intention to put my sister name and my name on the SAP but since the auction was in my name, I have to go ahead with just putting my name only. The lawyer is kind enough to draft an additional agreement that whenever I sell this property, 50% of the gain will be return to my sis.
So the next property will put under my sis name with the same agreement yesterday. Since there is a 50% discount for the stamp duty, that could save us around RM500.

Also spoke to my banker, for me to lend money on next property would be a bit problematic. The loan amount would be lesser.
So what I would do is, there is another auction tomorrow and my sis name will be in it. Latter there will be another agreement being draft that states I own half of the property. Of course I will be the one financing the monthly payment.





Attached thumbnail(s)

Wow, not bad.

I only got BLR-1.85%. So which bank is it?

Gee, I think most kids ask money from their parent to buy their first house when they marry.

In real estate investing, it's always best one can come up with their DP for their first property.
If not, it is a possible symptoms of mismanaging of his own money.

Since my second property, I'll let others pay for the DP and I'll manage it. That way I can acquire property faster.
If my family is not able to finance the next deal, time to find my "cash rich" friend.

Exactly, my next deal will base on my age even though the SAP is solely using my sis name.
Since I am the one paying for the loan.

Yup, my sis married to a foreigner and she is a housewife.
She would have problem securing a loan.

Anyway I'll profit more this way and she'll have a piece of mind leaving her money with me as she got to put her name in the deed.

---

Added on August 13, 2009, 7:49 pmI lost the bid. Well some time we win, sometime we will lose.
Time to move on for a new deal.

This post has been edited by jasonhanjk: Aug 13 2009, 07:49 PM

It depends on how good an investor are you.

Start looking at your financial statement, do you spend more than you earn?
Overspending is a warning that you could mismanage a good in investment and turn it into a bad one.

That is when I come in and buy your property.


Learning to manage your own personal finance and have a monthly financial statement would help you gain insight on how to spot deals that make you money.

60% is a good value to start off.

My measurement is using the rent to judge it's value.
A fully furnish apartment with rental of RM1000 is worth RM100,000 to me.


1. The first property I got 83% loan of the SPA value but in reality it's a 100% loan.
Second property I top up the loan to exceed RM100k by buying MRTA, this time round I got 90%.

That is very good.

This Friday I got another 3 more auction unit that I want to get but 1 called off and left 2.
Luckily the one called off is a less desirable one.
Not affecting the one that I really want.
Cross finger hard!

I may get into a problem of bank not loaning me money.
Oh well.

One of the important rule when starting out in property investment.
Invest near home.

So nope, no KL for me at the moment.

I have no idea on those location.

Maybe you can visit www.reijb.com
There are lot's of info there.


Not all JB area are the same.
For example, the area I selected didn't drop much due to the current financial crisis.
It's price drop due to the earlier speculation in 97, pretty much stabilize 2 years back and more people are moving into this area. Rental starts increasing RM50 in some property as demand picks up.
It's very hard for people to rent in this area as all has been taken up. Yes, no more rental unit. Zip. Natha. Will be kicking a few ex-landlord to make way for my new tenant.

Also do note some areas are experiencing speculation due to the Iskandar project.
Half a mil for a semi D.


Interest rate is another factor.
Now such a low interest, take 3 to 5 years for price to increase substantially.
Why the increase?
Inflation.

This post has been edited by jasonhanjk: Aug 19 2009, 01:12 PM

All website that I visited are lacking in information. You must look a few properties in the same area to understand it better.
Or you can call a season agent in that area or banks.
They have past transaction price and banks valuation.

I believe the price will go up base on previous data, but don't believe me for it as it's not accurate.
I also would prefer you to find you own agent, interview a few first and get some experience.
Learn it from the streets will put you far ahead.

---

Added on August 22, 2009, 8:59 amHar, what Ho?

Not really.
What happen is at a low interest rate, people will start to buy property again.
It's cheaper compare to 10 years back.

Whenever a loan agreement is sign, money is created. Or the so called fiat currency.
The supply of money increase in a few minutes but the supply of property remain un-change for a few years.
With the increase of money supply, that causes inflation.
Not just to property, but to everything.

Inflation has it's good and bad.
Good, you get richer is you are a rich person.
Bad, you get poorer if you are a poor person.


In Malaysia, the government is trying to reduce the inflation to 0%.
That is a propaganda to get more voters by reducing prices in necessary items.
The result of it is you get to buy stuff cheaper but you can't buy them as it is either sold out or being ship to other country for profit.

Having inflation is not that bad at all, it also promote growth and more job opportunity.
Must Read Website on Money, Let YOUR money work for you. Learn that.


Today the market is already bad, so buying now for cashflow would not damage my financials.
If 5 years down the road, the economy is still bad.
It doesn't bother me if I can't sell it as I already got my money back from the rental.

Will the housing price go down?
That depends on the masses, if everyone have jobs, able to pay off their debt, happily spending their money and have confident the economy will rebound soon.
Unlikely.

This post has been edited by jasonhanjk: Aug 22 2009, 09:07 AM

Err, that is not my main investing location.
But that area is also good, going towards high end homes.

My target is mainly on the middle class.


Also, I don't buy developing projects.
Only completed ones.

This post has been edited by jasonhanjk: Aug 23 2009, 12:07 PM

Err, not really.
Here is the calculation for my third unit.

Town house
Market value RM80k as of today.

Purchase price RM60k
Stamp duty RM50
Bankers cheque RM5
Loan RM57k @ 4%, 30 years (estimate)
Down payment 5% @ RM3k
Agent fees RM3k
Lawyer fees RM2k (estimate)

Today I put in RM8055, if the price remain the same for 5 years and I sell.
My profit would be RM80k - RM57k - RM8055 + amortization + cashflow = RM14,945 + amortization + cashflow

First, the cashflow.
Rental is RM450 per month.
Maintenance is RM33.
Mortgage RM272

Cashflow for 5 years = (RM450 - RM33 - RM272) X 12 X 5 = RM8700


Secondly, amortization.
For 60 months the tenants put money into my town house's equity.
That comes up to RM5595.


Finally, the profit is RM14,945 + RM8700 + RM5595 = RM29,240
Compare to the RM8055 I put in today, the gain for 5 years later would be extra 363%.



If I buy a developing property today, I put my money down and it get traps for 3 years before the project is fully complete then I can sell it away.
The question is, what is the market value after the project is complete?
I don't know as there is no past history for reference.

Also I lose money every month as I have to pay interest on my loan.
When calculating the gain for the incomplete property, one has to add interest into the calculation.
For a developed property can be rent out immediately and the tenant pay for my interest.
So it's not required to add into the calculation.

Maytower?

I have not furnish the unit, furnishing it would get a higher return.
But see how first, have not look at the internal yet since I got it from an auction.

---

Added on August 23, 2009, 9:53 pmhi constant.

If I bought at RM80k market price, loan RM72k @ 4%.
The cashflow per month is RM73.
5 years would be RM7380.
Amortization is RM6877.

The money put in would be:
Down payment RM8k
Agent RM2k (fee without bidding)
Lawyer RM2k

Total RM12k.


If sell at RM80k, the profit would be RM7380 + RM6877 - RM4k = RM10,257
Extra gain after 5 years 85%.

After including other expenses, this is not a very good deal.



For number 2. BLR increase from 5.55% to 6.05%.
Then I re-adjust the interest rate from 4% to 4.5%.

My cashflow drop from RM144 to RM128. Or RM16.
But then I might increase the rent by RM50 every month.

When interest rate increase, it's harder to buy a house to live in.
So what happen is the property value will go down and rental value will go up.

This post has been edited by jasonhanjk: Aug 23 2009, 09:53 PM

How long it will take it to build and what is the interest have to pay every month?

Oh, I am not familiar with that area.
If can get BLR-2.2%, your loan exceed 200k?

Interestingly my first bank that I take loan from only gives me 70%.
Since it's a 3rd unit, they classify it as an investment property.

So I would be meeting new banker.

Nope, 'cos I got 2 loan from this bank already, hence the lower amount.