Yo guys. If you earn RM3500, realistically how much should you pay for your first house? Taking into consideration that you have no other commitments like car loan an you only have to pay for your Internet, rent and phone bills.

Or would you wait till you earn slightly a bit more then only buy a house.

rm1000 is ok

50% of your salary will do since properties price will always hike and un like other stuff which will price drop after purchase.

1/3 of your income I guess..

Buy for investment/rental income or buy to live in?

Btw, properties overpriced nowadays.

Buy for myself to stay. Additional room I plan to rent it out.

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Added on August 13, 2012, 10:24 amIf that's the case, maximum I can spend on a house is about RM300,000.00 or less right?

This post has been edited by SmittyUser: Aug 13 2012, 10:24 AM

1k monthly = 200 -300k

Dont be so naive. Better ask TS to visit Property section and ask there. many experts inside.

which "Naive" you mean ? i seen almost all the properties are hiking or slow hiking, never see anything like property price droping.
BTW, TS asking how much to put for house loan only rite ?
and you suppose to answer TS thread and question, or else just say duno. lol

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Added on August 13, 2012, 4:23 pmfew month ago i got salary like you and i able to take 400k loan + 10% downpayment
but it will be 40 years repayment + i am using around 60% + car loan of my total income.
the difference thing is i am going to rent out the whole unit >.< so if you plan to stay your self, 1.5k + rental for a room , u see you can survive with the remaining $$ ? if yes then you can go for it but before that just carefully calculate all your expenses and see how much you left. remember there are still MRTA and elect + water bill etc etc

This post has been edited by FishnChipx: Aug 13 2012, 04:24 PM

Does the bank use nett income or gross income for loan calculation?

1/3 car, 1/3 house

if my salary 2800 and i got vios, what house can i by?

usually,paying for the house is 1/3 of your salary

Actually I wish to gauge how much I should spend for a house and then see how much I need to pay per month for loan. And I forgot to factor in the MRTA until you mentioned it.

Also for your 400k house, how much did you spend in total including the 10% downpayment, legal fees, stamp duty etc? Would it safe to assume around 60k to 70k?? Reason I'm asking because I need to see how much I need to fork out from my savings for the initial downpayment.

1/4 is good, u have to remember the commitment is for the next 30 years, not the future few months, u wont know what might happen, so suddenly u need to get married or get a car or medical or anything, dont assume your life wont change.

Bank rule

if 1/3 of your income, need to pay for how long?? 50 years?

the property price when i purchase was 440k, then take 90% loan, downpayment + lawyer fees is around total 50k + -
so, if let say there is problem where the bank rules not allow you to loan so much, you can try to take the loan with join name account, example with one of your parents, spouse etc and see how banker's advice ^^ anyway, i loan 404k total and 40 years repayment, permonth is around 1.7k already.. lol

i planning to buy this 2 room flat, near seksyen 1 wangsa maju, 5min walking distance to lrt wangsa maju. cost around RM120k.

I planning to buy it, as it got 2 room, i want rent another room. should i go with this plan? The room rental rate is around Rm250 here.

Me only 22, and my gaji bersih, let say Rm2.5k (after epf/socso/bike loan).

1/3 of your salary

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Added on August 14, 2012, 2:20 amgo property section

This post has been edited by aaronsuarez95: Aug 14 2012, 02:20 AM

Thanks for your feedback. Your input will be a great benchmark / reference point.

anybody got something similar to share?

Thanks.

no problem, just feel glad that my 2 cents can help
but for more accurate, you can just sit down with baankers and they will advice you how to get the loan.

btw, ofcourse you also need to study abit where you going to buy your property, study abit about the location, developer, price etc, then if you have confidence on the property you going to purchase already, then try to ask few banker from difference bank to talk about your problem and loan, they will assist you. But not all bank are 100% able to approve the loan, so u can go one round with few banks and see which bank approve your loan and their package is all slightly difference, so choose wisely.

it's not a rule, only a guide...

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Added on August 14, 2012, 10:17 amgross as a supplementary support, nett is the main criteria

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Added on August 14, 2012, 10:18 ami think you should be asking, how much are you willing to spend... then calculate the loan amount based on that...

some people are more willing to sacrifice... most not... think about it

This post has been edited by kenji1903: Aug 14 2012, 10:18 AM

have u count in the downpayment u need to save before able get bank loan?

Lessay u earn 3.5k can pay for 300k house. But if u dun have downpayment oso cant buy.

When u already collect enuff money for downpayment, the house is not 300k anymoe...

FFUUU.. poor ppl cant buy house

This is the reason why US got into subprime crisis and bring shit to us as well.....

but still, the fact is that malaysia property are hiking, maybe it will drop but let wait malaysia is as advance as US those big country 1st XD

Just saw news from 东方日报。 RM7000 to buy 450-550k house. Every month pay RM2000.

They said if the family spend banyak 1 then cannot tahan also.

Generally, the house you intend to buy should not be more than 6 times of your annual income. Work out some math after down payment, loan repayment year, etc...and your monthly repayment should not be more than 1/3 of your monthly gross income. Still this is the advisable guideline, not necessary to be followed completely as long as you know where you are, plus minus around the figure should be ok. Just don't kill yourself will do...

Read the news too just now. How sad...but yet this seems to be the truth now...

But that's because family have more commitments right? Like children's welfare, education, etc.

Yeah.

my pay is approx the same,
Loan amount: 350K; MI: 1.8K; 30 years tenure
no car loan though...got cc, but clearing it up

This post has been edited by cutejams2004: Aug 16 2012, 10:24 AM

1/3 of your slary

Ahh same as me. I've got no car loan, stay with distance relative but I pay them monthly rent small amount. Got cc but pay on time. The rest is just bills like phone and maxis broadband.

500-700rm should be ok...dont be like average joe where wan to buy big house so pay more then 30%-40% of their incomes.....youre paying for 30-40yrs ....your pay doesnt always increase over the 30yrs u know....

to be honest, even a 200k loan would not amount to that little of a MI...and to find a 200k property is a challenge indeed...

pay RM700 for rental or loan?

RM700/month for 20 years, you can't even buy an RM130k property
also good luck finding anything livable for less RM200k in Selangor/KL

buy house with roughly RM200k value.
mthly installments = RM1000.
married or not? if not married, rent out spare rooms
and become live-in landlord.

Have you talk with a banker yet?
Shouldn't you do a survey with a few bankers 1st to determine whether you can actually afford to buy & manage a loan for a property?

It may sound easy but properties prices nowadays are quite high (& getting higher by the minute).
I don't think it's gonna be easy to get a bank to approve a loan for those earning RM3500.00 unless you have another person applying this loan with you.

Have you try/consider MBSB - Malaysia Building Society Berhad?
(There are pros & cons in this too)

TS...u got 30k cash or not for downpayment? and you need further 10k cash for minor renovation...installment part, later u decide when the house ready

bankers dont really care, the approvals for housing loans are quite easy since there is a mortgage tied to the bank. the housing loan folks are not really financial fellas, their specialty is in sales.

personally i wont advise TS to get a loan, housing loans are bad the commitments are long and very painful. often the loan outstrips all your income and most of it for major of your lifetime. in sense you are saying you will pay that loan rain or shine, unless of coz you opt for insurance programs and shit but i never feel comfy with that

Ts i would suggest nothing above RM300k, its crazy hard to find but if you cant get it nvm. remember live within your means, not buy a house ebcause u afraid prices will increase then on.

if your pay doesnt increase, (which most people dont) and your cost of living increases, can you imagine how much you have to put on a house where liquid value is 0?

meaning continue renting? or stay with parents? till when?

also... loan approval is not easy like how you describe... banks won't simply borrow money any amount you request for... gold diggers are not dambasses...

i suppork expanding your means, not live within it...

i come from a family with a mentality, commitment is bad... don't buy with loans... we have only one house and that house is refinanced so many times that its a never ending painful paying process like you mentioned...
that's why you should invest in more than one... i've seen all those and i'm changing it... i'm not going to follow my parent's financial mistake no matter how much they dislike and object...

Half of it yes. The remainder probably get parent to support a bit.

simple, work for the money dont put down money because someone else it putting down on it. the logic was never not to dont buy a house, but buy only when needed and can afford. if you got 1m in the banka nd want to buy a RM500k hosue sure

trust me, mortgage loan is damn easy process time probably 1 week i dont expect more. once your income match, can pay fee and the housing price ok. banks will approve and they are not dumbasses, your loan is pledged by a security which is your house. you wont own the house untill full settlement of the loan, this can be a touchy area that most people dont understand.

well no, those cases of high gearing mentality ala robert whatever guy is a sure fine way for disaster. you will get the short time, but unless you live only 10 years, then yea.

who doesn't need a house? buying cash is the perfect idea... why not if you can do it right?
not sure how long you have been working but after 8 years as an employee, my personal savings (exclude EPF) never reached RM50k...
not going to be ambitious of having 1mil savings... i'll half it, RM500k, you do the math how long and painfully you need to save...
to make things better, by the time you save that amount, you can no longer afford that house in that location... you'd be lucky to get a pigeon hole somewhere else further away

from personal experience... after doing some basic affordability calculation, if you think you can, you can...
the longer you wait, the worse it becomes... a house for own stay, it will be good if you can get it at a reasonable price... if not, you still have to buy, no? or continue renting?

looking back... my greatest regret is doing too much calculation a few years back and missed so many opportunities

This post has been edited by kenji1903: Aug 18 2012, 06:54 PM

RM2k

its not about buying vs renting, they both have their perks.

when im saying is that, you dont over gear yourself to buy something. sure you wont save enough to get probably a house, but then someone with 4k buying a few houses is not entirely right either.

that one of course lar, its call pushing your luck

but with 4k, your loan won't get approved... unless you have the balls to buy a few undercon in a single shot

TS is buying a first house mar?

Yeah first house.

you yourself will know how much you are willing to part your salary with

sacrifice has to be made but not up till the extent of having maggi or bread/water...
health, food, etc must continue... things like gadgets, outings, makan at expensive places, amusement, etc, depends how much you are willing to forgo

good luck

not more than 40%.... maybe 30% of income liddat... then 20% goes to car....
Then 50% sendiri makan, saving, hope to buka own business

u berani ke bro loan rumah lama-lama? if u gomen servant its ok.but if u Private company ..i dont think thats a good idea.

i see alot of ppl lives on apartment less then 200k ...buy what u need ...who doesnt want big house ? but average landed oredi over 500k and most take 30-35yrs loan...liveable or not is up to your own preference ....

why you say so ? hmm, mind to share / explain abit about your comment so we can learn somthing new ?

got 1m only can consider buying 500k house?
Seriously?
Assume that ur an average msian taking average salary here
when uu gonna save up to 1m? imagine how old are uu, imagine hw much property price will hike

its an extreme example, but also if you overspend or overgear shit can be bad also.

note that houses are not liquid, sure you own a house at the end of the day (at like 50 years old for most youth). but the critical assumption people make is pay will increase or cost of living will maintain. so if you cap your pay at RM5k then you watch inflation eat up everything, what you going to do? complain?

this is the exact problem faced by many malaysians now, when there is a economic shock you can watch their cash flow and dream houses go up in smoke.

the idea is not that you dont buy a house, but not to overgear youself which i find it strangely popular in a once financially conservative nation. i do my math and i seriously dont understand how someone can afford houses today, RM4-5k want to buy a RM400k property liao.



This post has been edited by +3kk!: Aug 22 2012, 08:18 AM

why? taking 40 years loan does not mean you pay exactly 40 years...
you can pay the 2.4k and finish up the loan in 20 years... its all up to how much you want to pay

bro.u pay the installment in A MONTH not in YEARS.but bank give time tenure loan IN YEARS not in MONTH. 20 years meaning 240 Month..in 240 month tu anything can happend...if u goverment servant MBSB can give u loan up to 25 years with interest low gila...just give slip gaji+ic. 2 weeks approved. ...hutang rumah tak habis.boleh buat hutang kredit kad.

i am ok with RM 1000 per month but i am not ok with 20 years tenure loan...reason? just like i post before.

eh guys.kalau kes projek beli rumah tak siap tapi duit installment dah bayar kat bank then how?



This post has been edited by K.I.T.T: Aug 22 2012, 03:03 PM

bro, i shortcut a bit cos thought you understood since that guy said that he's paying 1.7k/month for 40 years, so you can pay 2.4k(/month) for 20 years, same effect...

cos definitely your loan application will get rejected if you apply for 20 years with a low salary... some more people nowadays have credit card debt...

what i'm trying to convey is you can take a long loan but don't take a long time to repay... you got increment, dump in more, you can bonus, you put more in... then you can get out of debt earlier... housing loan is not a car loan where the interest is calculated and charged upfront...

my dad has this interesting thinking... want to buy house, don't take loan, buy cash...
he's not wrong... just that houses don't cost 20k like 20 years ago...

MBSB... by giving gahmen servants low rates, they charge the public faqing high rates to cover up...

once you owe the bank, you owe the bank despite the project gets abandoned... this depends on how good your research is...

This post has been edited by kenji1903: Aug 22 2012, 03:19 PM

u punya father tu betul la.beli cash.nanti dah meninggal dunia anak beranak tak pening kepala tanggung hutang u punya bapa tak mahu anak-anak dia hidup susah fikir pasal hutang......itu style orang dulu dulu fikir..tak mahu hutang...tapi sekarng rumah secondhand pun nak RM 300k ....nak loan pun ambil 20 tahun baru habis bayar..lagi nak bayar cash?

macam exbos aku.beli lot kedai tahun 1996.masa tu harga jualan cuma RM 98k sahaja.kedai takde la besar.800 kaki persegi.dia bayar per month RM 2500.passtu only pay in 5 years (60-Month only).

Negara Malaysia kearah Kapitalis...lu kaya lu boleh beli rumah beli kereta.itu duit haram ka.halal ka belakang kira.bank mau tengok lu bayar TAX atau tidak....lu bayar TAX gomen tarak kacau.bank layan lu baik baik...tapi lu bumiputera/lu muslim/lu-nonbumi lu bayar tax sikit...lagi takde bayar TAX lagi mau kerajaan subsidi kuat kuat lu sila duduk belakang.sini tempat tiada utk lu orang.

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Added on August 22, 2012, 3:36 pmmeaning? aku selalu perhati banyak projek terbengkalai kebelakangan ni.kadang kadang tu 8 tahun rumah tak siap.tapi duit dah bayar kat bank..bagi alasan pemaju gulung tikar..syarikat dah bungkus......tapi bank dah bayar pada pemaju harga rumah...

This post has been edited by K.I.T.T: Aug 22 2012, 03:36 PM

why children will tanggung hutang? this will only happen for those who have no proper financial planning... passing down debt to the ext generation...

meaning you still pay the bank despite having a halfcooked house

beli kereta pun ada guarantorr.lagi beli rumah?

3.5k gross or nett?

if buy car also need guarantor then that person memang cannot buy a car... unless foreigner...

i beli myvi RM 558 sebulan.my mom jadi guanratorr.that time my gaji RM 1000 je.(my mom gov servant)

lagi hutang 9 tahun. ..mula mula pergi AMBank diorang reject.pergi RHB diorang approved. .......

Kid,

First of all, did you aware the 1/3 rule ?

Secondly, have you bought your own property yet ?

Third, If you have doubt with any of new development projects and scared it will be abandoned later, you can always choose to buy via subsale or properties that have been built to sell. Either way you can choose any of reputable developers too eg: Sime Darby, I&P, Sunway, SP Setia and so on. Expensive ? Yes, but that saves you from a lot of hassles.

This post has been edited by igor_is300: Aug 22 2012, 11:57 PM

+1. One can take a longer loan period but settle it off earlier than that. get bonus- dump in for house payment. Housing loan, unlike car loan, is based on reducing balance (check your loan terms first). So, if you have proper planning you can settle off faster than the stated tenure. Buying with cahs -possible if you are loaded , won a lottery or earn 30k/month. By the time you save just say 500k cash for your house, the houses might be a million. It is pretty unrealistic for a middle income person to buy a house by cash using his/her monthly salary.

yeah that time.i am kerja makan gaji.i know cukup bulan dapat gaji habis bayar hutang.bila hari raya dapat bonus...masuk pukul 11 pagi keluar balik pukul 7 malam.thats all.but now i am already takeover my exboss shop and bussiness so each sen and ringgit become my first priority.

next time aku beli kereta cash je bro.takde bodoh@otak kat lutut time memula kerja dulu hutang 9 tahun...bab propeperty..rasanya aku akan compare beli tanah buat sendiri berapa.harga rumah secondhand berapa.pastu property under good developers berapa.like i said.sen and ringgit become my first priority.

well korang jangan jadi macam exbos aku.beli lot kedai kat shopping kompleks.lepas 10 tahun management buat hal.gaduh.bawak lari duit maintance..habis semua tenant lari. ...

BNM lending guideline.. every person can only carry up to 40% of his/her salary as debt.. n for housing loan itself max is up to 33%.. the other 7% is for your other debt like car loan, personal loan n etc..

dun count like 1/3 or 1/4 or 1/2 of salary like that lah. thats marketing strategy by property advertiser. those are stupid rules created for stupid people to follow. Stupid 1/3 rules are used by property and loaners alike when they are lazy to help you to calculate your real needs and spending.

U should deduct all your spending from 3.5K.....like;

3500 - food 700 - bills 300 - misc 1000 - entertainment 300 - saving 200 = rm 500.

then rm500 is what u can pay monthly.

u can choose 100k house or 300k house and just pay 500 monthly. So the difference is how long you need to pay....10 yrs - 60 years?

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Added on August 24, 2012, 12:19 pmagain.. thats a stupid guideline. just like saying everybody can carry 40% of his/her own weight in kilos.

This post has been edited by woopypooky: Aug 24 2012, 12:19 PM

do u haf downpayment money for the house?

Reading this thread make me scared.
Lol i'm not even graduate yet but I'll have 21k study loan to be settled.
And I think I'll barely make 2k as fresh grad when I work later.

God help people like me

all i know 100k loan = lebih kurang 500@40years..

This post has been edited by hdd-corrupted: Aug 30 2012, 01:33 PM

200 apartment or condo. Rm 700-900

Quite a good threat, let's me share my story, ayam just signed snp last week for an apmt for 170K developed by SPSetia, around loan approval processing my salary is just 2.6 k gross and 2k nett, luckily I managed to get loan for tenure 35 years monthly rm665, buying property isvery messy, based on experienced is 1st u need to choose good developer and location, thats the first bank consideration to approve ur loan for new property, 2nd need to be ready a good fianancial plan, u need have atleast 20% for dowpayment + legal fee, do prepare 10%, but need to consider the MRTA- home loan insurance, some bank will provide good interest based on MRTA u take from them, that's just my 2 cent

This post has been edited by anz87: Aug 31 2012, 08:35 AM

i got few question for you.

1) Where yours location?
2) Did u buy sub sales / on going project / new project (Haven't start)
3) If on going project / new project, did u need to pay when your property is completed or when your loan is approved?

Hi..my reply as per below
1. Setia alam
2.New project
3. I only pay 10% dowpayment, the rest is covered by developer - SP setia