This is my first time into investment. Need some advise.

Property is an office lot (RM450,800) for rental investment. Ready in 2 years time.

Currently these 2 banks offered me the package below.

Bank A
85% Loan
Flexi - Can withdraw money anytime. Per transaction RM25.
20 years loan
BLR -1.95
Without MRTA
5 years lock in

Bank B
90% Loan
Non Flexi - Money in cannot be withdrawn
25 years loan
BLR -1.7
With MRTA 5% (90% + 5%)
5 years lock in

My concern is the extra 5% difference. I can afford the extra 5% but my at the same time now I am also buying my first house (RM377,000) for staying. Already did the booking. It requires 5% down payment too.

The house will be ready in 2 years time, and by then I will need cash to buy furniture and renovation. So I am wondering whether should I get Bank B and save the 5% upfront cash for the office and used it for my house later on.

Which deal is a better deal for me? I'm not too sure how to count this, but is there big difference in terms of interest for Bank A and B?

This post has been edited by auhckw: Dec 4 2009, 02:20 PM

Delete

This post has been edited by auhckw: Dec 4 2009, 02:49 PM

I applied few banks... but came down to this 2 which is the 'best' among them

Bank A = Maybank
Bank B = Affin Bank

I have excluded
UOB = 85%, 20 years, BLR -1.6, Flexi, Zero Movinng Cost, No MRTA
CIMB = 85%, 20 years, BLR -1.7, Flexi, Zero Movinng Cost, No MRTA

---

Added on December 4, 2009, 2:21 pmMost banks said for commercial property these days, one can only get 85% loan.

This post has been edited by auhckw: Dec 4 2009, 02:22 PM

Check liao.. I am 30 but they give 20 years

~Removed~

This post has been edited by auhckw: May 27 2010, 05:18 PM

Time to finalize which to choose...