hi all,

my hubby bought a house & apartment in 'untung' area 10++ years ago, now the house abandoned but still paying the loan. Now still got around total loan of 120k to pay and been paying 1.5k everymonth.

we hav around 70k cash in hand, very struggling to save this money for the past years.

Do you think we should tak our cash to payoff the 'untung' loan ? as the house loan interest now is about 5% ++
Not worth to put into FD as now only 2%+, hubby said better use the cash to pay the house loan.

But thats all what we have, my 2nd bb will be due soon, and we planning to renovate the current house next year as the condition is very bad. We roughly can take out around 150k from epf accounts 2 for renovation.
I feel a bit heartsick when we have to use our cash to pay his 'untung' house loan that i feel dumping into the sea only.

What is the best advises to make use the cash money ? i feel very 'empty' when we have no more cash on hand..

Many thanks..

http://www.akpk.org.my/ this organization might help you to make decision. Not just credit card issues but also other financial troubles also. They will give you good advice regarding your problem.

which bank do you have your loan with? try to talk to the bank officer. a friend had a property there with citibank as well. and she didn't want to pay anymore since the property "died".... instead of suing her for bankruptcy, they allowed her to pay off her loan minus the interests lor.

if you don't want to spent it all, you can spent partially. Personally i would not spent all the cash. Need to have some reserve for emergency.

refinance is best choice

When u said abandoned, does it mean the whole project got abandoned? Meaning the building is not completed? Or the building is completed but u dowan to stay there?

Yeah, what do you mean by abandoned?
If you need the cash, you can consider re-financing with cash-out options. Use the extra cash for renovation. But I guess you really have to forecast the value of the 'abandoned' home.

if its an abandoned project, ie. an incomplete property, can re-finance ar ?

this property is a liability to you and you are digging deeper for more liabilities.

1. Sell or get rid of such property immediately asap
2. learn proper personal finance like visit malpf.com
3. apply money management, allocate portion of your saving into investment.

good luck !

U should refinance!!

the apartment the whole lot dont have tenant. i guess only got those drug addict stay there.

the house never stay there. all the windows also gone. all with the lalang. very dead area.

i think got built up, but its almost collapsed when i go to see the house 2 years b4..haha..

hubby using his current house that already paid off to refinance to offset that 'untung' house. Means, that 'untung' house no more debts but the current house which he refinance still hv about 120k to pay.

So i guess a bit difficult not to pay the loan, as the bank will tarik the current house and not the 'untung' house, rite ?

and i heard, the refinance is not mature to 5 years yet means if paid off, have to pay penalty.

what should we do ?



This post has been edited by YannYann: Oct 23 2009, 03:26 PM

Any chance that torn down house could be sold at 50% of its current value? SOme cash better than none.

Is it possible to refinance when the MV of the house is lesser than the Balance Loan? I believe the house is in Bkt Beruntung.

i saw apartments in the untung area for 10k in the bank lelong section.
quite pity

you should have stopped re finance the house and let the original bank with the untung house together.
then stop payin the loan.bank will tarik balik the untung house only.

OR

get as much possible of the house owners in the untung area to sue the developer using guidance from the house buyers association.see here http://www.hba.org.my/

but if stop paying the house, sure kena black list by bank.
unless u use ur wifes name in the future. Haha

This post has been edited by airline: Oct 23 2009, 08:01 PM

Haha..I keep wonder what is 'untung' house until Battle-Hardened pointed it out.

the only option to protect your hard earned money is to find developer and sue them (of course dont do this alone unless u know a lot of Tan Sri and Dato`, but you can gather all other owners affected to make headlines and bring this case up)

after clarify with my hubby, herewith more info, need advises help from the sifus here..

1 apartment and 1 corner double storey house bought at bukit beruntung > 10years ago.
Apartment : 59k
House : 159k
Loan <> : 185k

The properties there become 'dead' after the government built the airport at sepang instead of bukit beruntung.

Both the apartment n house got built up, so kenot sue the developer. But both of it almost collapsed as no one stay there at all for more than 10 years.

Hubby refinance his current staying house at KL to pay off the balance of loan for beruntung. If he dont pay the loan, i guess the bank will tarik his current house instead of his untung house.

He is paying 1.5k monthly to HSBC with a daily interest calculation. Now got 120k loan to pay.

We got cash of 70k after saving for more than years. Thinking of throwing the cash into the loan to reduce the tenure of loan.

We will renovate our current staying house in KL nxt year and we got around 130k from our epf accounts that can be taken out and planning to get some loan from bank to furnish the house.

Our 2nd bb coming out early next year too. With all these coming out at the same time, i dont know how to arrange the cash or loan....

can helps?

Actually just curious. Why did ur hubby use his current KL house to offset the 'untung' houses? What would have happened if ur hubby did not pay the loan for those 'untung' houses? I think the bank will just lelong right?

But since the current KL house is being used, why is it an issue to pay RM1.5k monthly? I mean u and him can come out with RM750 each which is a fair price. Sometimes cash is king. Pay more only when u have more cash.

Just my humble opinion. I am no property expert.