I was wondering is there any thread or website that can INTRODUCE those who are new in properties?
I am thinking to buy myself a condo somewhere next year. That's my plan.. but I do not know where I should start.. Wish to get some advice from u guys.

Currently I am renting a middle room in Pelangi Utama Condo (near one utama) for Rm 450 a month. I also rent a Parking Lot for rm 140 a month.

Total I am paying almost Rm 600 a month.


I am 25 coming this June. I think I shouldn't be renting room for any much longer and should start paying for something that belongs to myself.


My question are:
1. Where should I start looking at? I have been loving Bandar Utama/ Damansara Utama area a lot. I feel comfortable n peaceful here... but is it worth buying?
2. How much commitment should I put in to own a property? If Possible, I am thinking to pay around rm 600 a month...which is less burden to me.

I am planning to buy 1 unit. Stay in the Unit. Taking the mid/master bedroom + car park myself. I can rent out the other 2 rooms to cover my monthly house loan. Any suggestion on this? Is that how people do it?

3. Lets say 200k - 300k condo. How much downpayment should I be preparing? 5%? 10%? I also aware that there is a lot of other additional charges...I wish to know around how much will they usually cost.

4. My sister who earn SGD was interested to buy with me (she said if will Untung, why not...but she also never into properties b4) so if she is joining me... we might be able to own a better one... But more expensive not necessary can have more profit next time we sell it , correct me if im wrong.


* I do not know my planning is it called "investment" since my purpose is for me to LIVE IN.. So if i want to buy and live in... but has the potential to sell it in future with higher price... what should I be aware of?


A big thank you for those willing to share some tips with me

u could ask Pai for advise. =)

Pai? May I know who is that? a forumer here?

Thinkproperty.com.my
www.iproperty.com.my


among the very good sites for ur reference. Especially the Resources & Forum sections of Thinkproperty.com.my ...
Lots of other misc fees actually, besides the usual 10% down payment.

And starting this year, the bank which u're going to take the house loan would impose about 1% loan a/c legal fees out of ur total property purchasing price ..

Hi Clivengu,

Its good that you're thinking of buying property at such a young age. You'll be definitely better off paying of your own housing loan monthly rather than paying to your landlord. Right now you are actually helping him pay of his loan.

For installment of RM600-RM700, there's actually a place quite near your area. Ritze Perdana Studios in Damansara Perdana. If you manage to buy a unit at RM170k-RM180k, and take a Graduate Loan, monthly installment can be < RM700. Its only 380sf, but still bigger than your middle room and with own carpark too =)

If you're planning to join with your sis to get something bigger then there are more options around your area. Advice you to consider the place you're currently renting as you're already familiar with the place. Check out the asking prices and the rental rates, if 12 months rental/selling price > 7%, you can start to study deeper.

Downpayment is 10%, S&P legal fees is around 2.5%-3% of the buying price, best to budget around 15% to be on the safe side.

If you need further advice on property purchasing process and home loan, please feel free to contact me.

Regards,

possible for rm 600 (only monthly loan repayment), provided that you have a large upfront (possibly close to 50% of the property selling price(, and this does not include maintenance charges, utilities and so forth....

i'll give it a shot at trying to answer your Q's.
firstly, start by scouting your own area. just checked your area under iproperty. should be in the region of rm300-rm350k. seek some loan tabulation. this can be easily done by walking into any bank and getting their present chart to determine the repayment installment or you can just google some financial calculator. that would give you an idea of how much monthly installment that you can afford but bear in mind for single income earner, it's usually limited to 1/3 of your salary.
to make it simple, eg. your salary is 3000 means you can finance upto max of rm1000/month. if you own a car or paying other permanent loan, then it's actuall (3000-car installment-loan installment)/3. now assuming your monthly installment is rm1000/month as your affordability limit, your loan application for say 30years should be around 200k.
and for subsale, let's assume you get 80% loan coverage therefore bringing your purchase price of your choice unit to 200/0.8=rm250k. again assuming misc. cost for all legal, stamping, etc works out to say approx 5% of your purchase price, therefore it.s 250k x 5% = 12.5k.
so in short, cash you need to standby would be 262.5k - 200k = 62.5k! of course this is quite an exaggerated figure. go look for financing that can give you higher margin or zero entry (meaning bank finance all related transaction costs) to reduce your capital investment/downpayment. a few key points for your consideration:
1. try to buy individually where possible without your sis name appearing in SPA. she may help you financially but make it clear that's between you and herself without her name appearing in SPA. this is for tax purposes in future.
2. would generally encourage you to go ahead with your thinking of getting yourself one room and renting out the rest. it does wonder for your cashflow. thus, my advise would be to avoid studio/soho units. this is basically helping the landlord pay his/her mortgage (sorry pai!)
base on your criterias, you may wish to consider the following depending on your 'capacity':
1. palm spring - cheap! <rm200k i think can still get and 3 rooms 2 beds
2. riana green or sunway sutera; ideal living conditions but may be a lil pricey but better tenants mix and higher yield. possible future appreciation too.
good luck!

Thanks. I'll check out the forum.


Very precious information Roy. Thanks a lot.. it really gives me a much better view of the overall thing. Actually I do quite interested in Studio style since Im comfortable living by myself, and do not wish to take care of too large space. (but that is just my personal lifestyle)... I am more concern in the value of the properties. I do not wish to just go ahead and buy it just because i like it. and regret later

So If lets saying I am taking the studio ... and im paying below rm 700 a month for the total of rm 180k properties... Will it be better if i buy (example) rm 280k condo with 3 rooms... and rent out 2 rooms... So beside having to pay around the same amount as the Studio. I get additional 2 rooms that People are paying for me.... Does it work that way?

Correct me if I am wrong... the property price will always go up and hardly go down? If I get a bigger sf space (more expensive)... and in the future.. when I sell it... would I be getting more profit? compare to a STudio...By logic.. d more i pay no d more money in return? tats d point of investment?

Another question I'll like to ask... Would it be good to look for condo/apartment that has not been build... or just has not complete... Since from what I heard, those are the time when one can get a much lower price...compare to when It has been completed or even years after completion?

I am planning to buy next year. Because I still do not have enough saving. So I can still look around and do not mind considering a place that has not completely built. Will that be a good idea? Kindly share your experience. Thank you.

one of properties sifus in this forum. Paging Pai !!!

"cash you need to standby would be 262.5k - 200k = 62.5k! " u scare the hell out of me........

For Loan... I have a bad feeling I would not easily get approved.

First of all.. I have a 9 years car loan... paying rm 550 a month. Then I have another housing loan back in sarawak (430k ) ... a landed house my sis & I bought for our parents. The housing loan including my name & my sister name... and another additional 2 names are both my parents. My mum income not qualify for the loan. and my dad is too old to LOAN!

Although the house currently is being payed by my dad... but the loan is still under my sis n my name..

ANOTHER serious problem for the moment is that.. I am not employed. I do not have income statement and do not pay tax~ epf etc... I am a design freelancer for the past 1 and half year. Although very soon I will register for a company name... and have a proper company acc. This should help... currently I even have problem applying for maybank Creditcard!! eventhough all transition of my incomes come from there.

Anyway... Ill just put aside the loan stuff for meantime.. since I still have a year to fix them.

Thanks Kochin.. good key points u shared.. So avoid studio/soho ... is actually quite tempting... since i will not need to bother to look for people to rent.. but... i guess getting a more rooms to rent out would be wiser. I'll take note of the area u have suggested.

Thanks again.

Dear Life_house,

Could you please provide further details to the statement in regards to the 1% misc fees of TOTAL PROPERTY PURCHASING PRICE?

This is something huge and would impact the whole property industry. I have not known this or heard anything from Bank Negara.

Please, I'm thirsting for more details.

Best of wishes,
MFLooi

hmmmmm....
1. Damansara areas or PJ areas wont have cheap condo anymore

2. RM600 ar... not really possible.. unless like leongal said ur down payment is great... for my current resident which located at Kepong, not condo but apartment with swimming pool and management, guards... market value around RM160k, installment required RM600++ (for current BLR rate) not include extra car park rental for me (there is one car park ready for one unit apartment which utilize by my hubby already)

3. those additional cost are eg. Legal fee (for S&P lawyer, loan lawyer), stamp duty, property valuation fees, late penalty if ur case drag too long

4. Ya there are ppl invest in Condo and sell next time when the market value increase...but bear in mind property gain tax has been started this year... so it is one of the cost...so u want to invest make sure the location u buy is strategic and has good growth value lo...

just my little 2cents hehe

the 1% here is the loan a/c legal fee.. As far as i know from my lawyer & agent. it's a new policy from the bank side starting this year onwards... me also have yet to dig more details about that ...

I had spoken to an OCBC Sales manager based in KL and he exclaimed surprise. He himself also wanted to know the details. Which is why I am asking you. I believe such a move would have some directive from Bank Negara. Would you mind to enquire and provide us with the information?

1% of the total house price is a huge amount even if it is a ONE time fee. Whereas normally an agent claims for 3% of the house price.


Example:
House Price is MYR 500k but we're only taking MYR 150k of loan.
1% = MYR5k goes to the bank?

Life_house, I'm looking forward to further information from you. Thanks again.

This post has been edited by MFLooi: Apr 1 2010, 08:05 PM

Unfortunately, it's true.. i guess it's still a very new update that not so many ppl aware of it..

i take cimb loan. And i've juz make an enquiry at maybank housing loan dept, and the officer confirm this news.
According to the maybank officer, the housing loan a/c legal & misc fees have been existing since long time.. juz that all the while it's the banks that bear these cost, and now the property purchaser to bear it.

Also, 1% on loan agreement side is only for legal fees ... there're other misc fees for loan a/c also.


btw, this web link mayb could help ...

http://www.bankinginfo.com.my/04_help_and_...ID=1&intTipID=3

http://iproperties.wordpress.com/legal-fees

http://iproperties.wordpress.com/stamp-duty

http://iproperties.wordpress.com/standard-procedure







This post has been edited by Life_House: Apr 2 2010, 08:16 PM

interested, may I know what is the original developer price? and any high floor units for sale?