Hi all

For a person who not able to save up or come up with a downpayment (of at least 10% right) as bank only give Housing loan 90%

What other ways to be able to buy a house then???

Recently government launched those household below 3k income and buy first house no need downpayment can 100% bank loan, BUT subject to 220k house price n below...Lets face reality, its so tough to get house 220k n below unless outskirts area (maybe Rawang or Meru)..

Mind to share your experiences and advice...?

Thanks

U need to be realistic. No money = dont buy

i agree. i think the idea of buying a house without money is frankly said dumb. you just dont have the financial means for it so wait and save.

on a sidenote: gov should reduce max loan to 70% across board. that way ppl will not be suckered into a debt-track so easily.

EPF account2
alternative... start saving

if you cant even save up for downpayment
what makes you to have the ability to pay the installment?

wait 1-2yrs first, save up

Agree.

Legal fees and stamp duty need to include.

''U need to be realistic. No money = dont buy '' -->true

At this moment, a house price on average is around 300k or 400k.
10% is abt 30k or 40k...plus legal fees,S&P,etc..need 50k
so wow..an average earner earning say 3k/month...by hook or crook save 1k per month..wah, 1 yr save 12k..4yrs +

*faints*..
I see people nowadays..age 24..age 26..purchasing house..at locations such as Damansara..Sunway..prices are like 1/2 MIL!

yoki ...1-2yrs? think no enough time..monthly installment depends lor..if around 1.5k..by 2yrs time (prays hard for increment n promotion or job change) can able to...BIGGEST issue is downpayment

Any possibility to purchase house without need downpayment?

HAHA

Big mistake in youths these days,

they ASSUME they will get promoted and raise in the near future.

TS, don't look at other youths and see their ability to buy in prime area, you also wanted to follow them. Different youths different case. I bet only a few % are truly HONEST and/or frugal high earners at their early twenties. Many should have "backup" by their parents.

btw, its useless to scrape high and low to bypass downpayment and get 100% loan. If the house is completed, $$$ has to be spent for renovation too. What's the plan by that time? magnum or toto?

yeah, no money = no buy...

btw, try scouting for DIBS based projects. a friend of mine pay only 1% and nothing else... (early bird package)

Another solution
-> if you're single, get married first so that you can combine epf to pay
for downpayment.

find a rich gal who own a hse.
save all ur problem

look for discounts and early bird prices for launches. Some launches allows 100% loan depending on how they price the units.

ermm......property really so cheap ke?? when i went to a new launching & met one fren, chit-chat then know that he looking for 2nd property after he bought 1st property at damansara perdana......

Sometimes life is truely unpredictable, a friend of mine found a girl, yeah, they like each other, the girl is quite well-to-do, then when the though come up about settling down, the parents on the girl's side is sending her off to a western country for some work.

So how ? Rich ones don't stay in this country for long, or perhaps must find the rich ones who do stay in this country, is it ?

it's true that if u don't have enough capital, u can't buy.

young people that bought expensive houses is either living beyond their means or parents help them out. only the lucky few are high earners.

in most cases, u need to have downpayment for buying houses. those new houses that says free SPA, loan agreement fees or what ever it is, most of the time the developer doesn't have confidence in selling the house fast. those hot areas usually offers u nothing and you need to queue up to buy it.

if u really want to buy a house very soon and only limited money for downpayment, u don't have much choices but to go for those which are not so good in location.

sorry, pal... that the way how the world works.

I agreed with most of the replies here, nowadays alot of youngers buy house w/o a deep thought... u must think twice b4 get urself committed to a property which may "follow" u for the next 30~40 years...

Dun compare urself with others which have backup from parents, I believe that their parents cant even take care of them after 10 years w/o educate their children in a proper way

If u really need a house for own stay, please go to buy the 1st hand house direct from developer, discuss with them u wanna opt for 100% loan, they will guide u accordingly

Why everyone keep discouraging those youngster to purchase the house ? and what does it has anything to do with pooor educated by their parents etc ?? Stop ruined their dream ...

i don't think forummers here are discouraging young peeps to buy properties. they are just cautioning the risk of buying properties as there are chances that the it is a losing investment. if they are able to handle it, by all means go ahead.

yes...totally agreed with WWJD kor......
if everybody huha huha & nobody cautioning, one day if really bubble burst, who kena burn?
sometime got +ve & -ve, the life only will balance....

st127

there is no hard and fast rules to acquire properties

save up first, when you have $$$, it is always easier to pick up good deals

even if you want to buy a new property, if you dun have $$$, how to pay, loan agreement lawyers fees, MOT (i discourage to finance these small fees)

if you wait 1-2 yrs, your epf balance would grow, and if you manage to find a wife, combine the income + cpf, surely you'll be able to get our dream house

dun rush for it, and buy anything just for the sake of owning of property

You can only use the money from EPF after you got the S&P (which means after you pay the 10% downpayment) ...
Maybe you can apply for personal loan instead ... as far as i know, OCBC now loan up to 97% of loan amount (7% is consider as home extra etc) ... once the bank disburse the money to you, use those money to pay off your personal loan .. done

Ways to do it:
1. Share it with someone, joint name
2. Borrow from family members
3. Get rid of your car(if you have one) and take public transport
4. Company borrowing (advance)
5. Credit Card (but not advisable but people have done it) - very risky
6. Look for DIBS and developers that do creative ways to almost 100% loans. Usually applies to lousy or expensive property or both.
7. Mortgage family property if any.
8. Work another 2 years and think again.
9. EPF if any
10.Ah Long loan for downpayment but very high risk of getting painted red free of charge.

Personal loan is a suicide advise to a person who already cant effort a downpayment..
how r u going to repay home installment + personal loan installment for the next few years..
Interest rate for personal loan is higher and it is an immediate effect loan (like hire purchase) and they way of calculation is different compare to home mortgage..

No point providing such suicide advise to realize someone's dream... my 2 cents~

EPF withdrawal can be applied once have the sales order/booking receipt + bank offer letter(normally developer will give u a letter if u wanna apply epf withdrawal), money will be rec'd in 1 week, then u can proceed to sign the S&P...

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Added on October 27, 2010, 2:31 pmyup agreed with you, please not opt to this...

This post has been edited by De_Legend: Oct 27 2010, 02:31 PM

If you read my post correctly, I suggest him to take up HomeExtra package !!! once the bank disburse it, he can use those remaining 7% to pay off the personal loan .. what he rugi is just 2-3 months interest and that's it ... it's not a huge amount, probably few hundred ringgit lost ??

no wonder tis mth 2 friends bought property oso applied ocbc la.....but of coz maybe got some other offer la.....this i never clarify......

thanks all for your sharings...

im not guy have (or want) parents that can subsidize and sharing joint account epf with partner, it isn't possible either unless she says or suggests...

in other words, i will have to work my ass off , save up real discipline and pray hard that 2yrs from now the price do not sky rocket..

else seriously lah... it will become..only way to buy house would be get help from parents + share with partner OR wait till mid 30's OR TOTO / 4D

HAHA...*Faints*

Unfair world....tough being a guy.....

not to say unfair la bro...i am a lady but also work hard to buy a proeprty for my parents....ended in deep shit...because there's hiccup in the process....but just to let you know that responsibility is not only on guy

Hey dude.. ur background is almost same as mine and my other frens' lar
I also hope to own my property soon, but buying a house without being able to afford the pre-requisite (downpayment) is really impractical.

100% loan for buying houses below RM220K, to me isnt a good idea as well. Because it means you end up paying more to serve the interest


Anyway, if and only if you are sure that you can afford the installment that comes after, you can look for new launch development which discounts are given (now I see this strategy being practised by quite some developers). Some even give 10% discount which means no downpayment needs to be paid, you might only need to pay the legal fees.

See the examples:

http://forum.lowyat.net/topic/1459517 <- Pacific Plance @ Ara Damansara
http://forum.lowyat.net/topic/1604230 <- The Sanderson @ Taman Bukit Serdang
http://forum.lowyat.net/topic/1610198 <- USJ One Park, Subang

den it depends how high your income is... not to forget the moment you apply personal loan, the installment will immediately counted as part of ur commitment..
using rule of thumb for loan to income ratio of 40%, you hav to ensure ur personal loan installment and home mortgage installment does not exceed 40% or 50% of your income... lets face the reality, if you wan to buy a 300k house, u need an initail cost about 40k for deposit, stamp duty and legal fees.. personal loan installment might varied between 500 to 1k depends on rates and tenure. If you hav other outstanding credit card debts or car loan, chances is even slimmer..

you might qualify for personal loan, but later on, bank might reject ur home loan application because too much commitment.. at the end, applying personal loan for nothing..

** unless you are high income earner... then can try...

This post has been edited by eugene jk: Oct 27 2010, 11:13 PM

look for below market value properties from motivated sellers and then find yourself a creative lawyer :-)

you still need to come up with the 10% but you will get it back

but pls talk to some seasoned investors before you try this :-)

HomeExtra package?

SOunds interesting...possibility to apply in high?

Income range or income to debt ratio calculation?

whats high income earner? *Tough to decify that these days with the inflations and sky rocketing prices of goods right???*

If you earn 7k per month I will that is high income earner.

Hi, just get a banker and they will do the calc for you ... If you need any help, i might intro my banker to you (no, i didnt earn a cent and u can deal with her directly) !!!!

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Added on October 28, 2010, 8:51 amas i said,, u go and get a banker to do the calc for you before u even pay the booking fee ...
and no, u dont have to earn RM7k per month to entitle for the loan etc ... if's pretty much depends on your monthly income / commitment etc !!

This post has been edited by Adrian1981: Oct 28 2010, 08:51 AM

pretty well considered then..

well guys,

I am a OCBC mortgage consultant.

fyi, the Home Xtra is charged at different rate from the BLR-2.3%

It is charge BLR+0% for first year, BLR+1.4% for 2nd year to 7th year.
Min loan tenure is 3 years and max 7 years.

Anyway, it is still cheaper than personal loan.

minimum 3 years ?? i thought u can do the early settlement for homeextra if you got extra money ?? !!

statistics have shown that there are more and more youth under 25 years old who apply for bankruptcy these few years due to financial difficuties which results from property loans.

so if you can't afford it don't buy or buy a cheaper one. spend within your means.

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Added on October 28, 2010, 11:03 amthere is always lock down periods for loans. banks of course want to maximise their profit on their loans. it's a business otherwise why they want to loan you money.

if you want to settle your loan prior to that of course you can, but the bank will want you to pay a certain amount of "fine". usually it's 5% of your total loan amount. read your loan agreement.

This post has been edited by rourou: Oct 28 2010, 11:03 AM

i would like to get hold of the statistic you had

the housing loan will not kill you, becos if you dun pay installment you also need to pay rent, plus getting help from FAMA bank is very valid to pay for housing needs

the one that kill you is credit card debt, personal loan

call my FM. i heard from radio.

i have a cousinswho had to apply for bankruptcy cause can't afford to pay housing loan. even when bank auctioned off their property (which depreciates from RM80k to RM30k) they still need to pay the RM50k difference which unable to do so, end up bank sues for bankruptcy.

i spoke with the bank officer which handled my cousins' case as well and they have advised that many ppl have applied for bankruptcy due to inability to pay loan especially in cases of multiple purchases and also cases of aborted development.

I agree ... for those properties that I bought, it's more like an income to me than burden
yea there might be a 5% fine if you make early settlement .. but u can pay off let's say 99% of your loan , let them charge the remaining 1% .. how much would that costs in 3 years ? RM100 ? lol !!

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Added on October 28, 2010, 11:29 amand u sure ur cousin declare bankruptcy because of the hopuse he purchased ?? according to you, his property is 80k .. so i assume that his monthly installment will be around RM500++ per month !!! that's almost the same price u have to pay to rent a room in let's say PJ area ...

so i dont think that's the case why he declare bankruptcy ..

This post has been edited by Adrian1981: Oct 28 2010, 11:29 AM

Can't afford to pay housing loan means bad management... I don't think bank will blindly give u a higher loan then u deserve, im sure its based on ur current commitments (other loans) + less then < 40%... So it suppose to be manageable but if u r someone who loves partying n goin on shopping spree then there's where ur problem starts... Wif having up to 40% of ur salary to pay ur debts, u need to spent wisely to be in a healthy financial state...


These is wat will happen if u try to go on the fast lane to bcome rich.. Failed flippers! Bad investment choice wit no holding power... U need to b strong financially in order to reduce the flipping risk, at least u should be able to hold on the property for the next 6 months by having at least the 6 months loan repayment cash wif u!

Hi, i would like to know.. if its possible for me to get 100% loan to buy a house should i proceed.. or should i still pay 10% downpayment?
Lets say if in 2 years time, the company i work in will start paying the interest on the loan.. is it worthwhile for me to take 100% loan for the house? Tq

You need to ask the vendor whether he/she can accept the 10% later. That is important also for agent. Tips.

Wat i ment was buying a house wif 100% loan.. is it alright financially or should i wait till i have 10% down payment before purchasing

dello: the answer to ur q is simple: (1) if u do not hv enuf money for 10% downpayment yet, and (2) if u r willing to pay extra $ to serve the interest, then take up 100% loan la.

But normally if u r financially ok u might wan to reduce the loan % as much as possible to avoid 'donating' too much to the bank. Tats my 2cent

Actually can take up 100% loan...if possible lah...since now ''some of us'' are short of $$$

of course provided in the years to come once we can start to earn more...then settle the loan faster ?

what say u?

my 2cents =)

AGREED