To pay back the monthly instalment is kinda waste because a big portion of your monthly instalment amount would be the interest that to be earned by the bank. Not to big offset your principal amount.

If your EPF has enough saving, try perform withdrawal money from account 2 for renovation.
Either to put the 111k at current account to reduce your loan interest, or put it somewhere else whereby you can earn > interest bank is earning from you.

However subject to your own survival in daily life. Can you survive if there is no one to rent your room? Can you survive if there is an emergency which you need to big cash?

I hope you have other form of savings as well because you are trying to use the rebate to pay for your loan. And dont forget the SPA & FA stamp duty is pay by you. Developer only pay the legal fees to lawyers.

And the maintenance of the house and yearly quit rent and assessment must also be taken into your budget as well.

I'm not sure your 35k renovation include the electrical and furniture or not if is included you dont really have much money to renovate..

Thank you both for the kind opinion, this seems to be a big risk. Will reconsider the option and decide from there.

Here's the calculation based on your figure given.

Current
Commitment: RM2035
Monthly Salary: RM 5100
Take home Salary: RM 3065 (after deduct the commitment)

If to clear off your phone loan using 111k
Phone: 285 x 11 = 3135 (clear off)
Commitment: 2035 - 285 = 1750
Take home salary: 3350

If to clear off both phone and car loan using 111k
Phone: 285 x 11 = 3135 (clear off)
Car: 750 x 5 = 3750 (clear off)
Commitment: 2035 - 285 - 750 = 1000
Take home salary: 4100

So the amount used from 111k = 6885. Left you with 104k.

Let say, you can find a tenant immediately agree with 1k rental per month (it won't be easy)
Now, you have:
Monthly commitment 700 + 300 + 3100 (Car + PTPTN + Home) = 4100
Monthly rental income = 1000
Take-home salary = 5100 + 1000 - 4100 = RM2000.

I do not know how much is your remaining balance of your PTPTN loan, so could not advise you to clear off. If it is within 10k and government is giving the rebate for full settlement, I would advise u to clear it off using the rebate.
But it is more than 20k, just continue to pay monthly as PTPTN loan has the lowest interest of all of your big amount loan.

If you do not have any saving on the renovation, you can use the rebate amount at a minimal cost. Like only to renovate the necessary. That furniture, you can buy it slowly.

Remaining to put it in the current account that tied to your loan account, to reduce the monthly interest of the home loan.

Then continue with higher salary job seeking. To cover your compulsory expenses on house.

The objective here is to release your monthly commitment for you to survive.

Again, the assumption here may not fit your current lifestyle, as I do not know your spending habit and other commitment such as buying pressie for gf, give money to parents, eat outside with friends and etc.

This post has been edited by ongonglai89: Feb 5 2020, 04:50 PM

Thank you so much for your kind effort.

Everything you said is on point.

Actually, both of my RM750 and phone RM285 is actually zero interest installment, as the car is actually not under my name. As I am just helping to clear the remaining installments of the car.

If that's the cause, should I still pay back fully for this 2 commitment? Since no interest. I can use the rebate money to dump into current account and also handle all the hidden costs.

No matter how the borrowed money is utilised, it is still the same – it is borrowed money.

The 1st mantra in personal finance is: Don’t borrow to invest.

Some may not agrees with this and loved to use the term “leverage” and practises the concept of money makes more money.

Well, this is personal finance… not business finance.

In opening and running a business, there are lots of risks undertaken. You would not want to run your personal life like running a business. When businesses are not successful, you closed them.

If your personal finance is in trouble, you closed your life? Sell your house and live under the bridge?

For sure we can give lots of suggestions and advices on financial matters. There are many options in life and everyone would have his own opinions.

As for me, I would rather refrain from giving any order advices other than being prudent with our money, and living within our own means. At the very least, this conservative advice do not leads one to financial ruins.

Your main objective should focus on reducing monthly commitment in order for you to have cash on hand monthly.

I'm suggesting you clearing off RM750 & RM285 because these are the lowest commitment that could settle it fast without using lots of rebate money.

Imagine, when home instalment kicks in, and you still holding your existing commitment, it would be :
Car: 700 + 750 = 1450
Phone: 285
PTPTN: 300
Home: 3100
----------------
Total: 5135(Commitment) > 5100 (Salary)

5135 is to bear by you once you have your home key. You can't find a tenant immediate right after you owned the house.

Agree with this sifu. Do not borrow to invest and end up getting more debt on hand. But have more cash flow on hand to invest.

Such big risk... Thanks man. I guess I'll just need to find ways to increase my income and reduce my current debt then only consider buying a property again.

The property is so appealing though, shorter distance to work, with central park that suits my lifestyle and dog friendly.

And not forgetting, your electric/internet/maintenance fee/ water bill that you have to pay monthly. These are the additional commitment that you don't even realise it.


Lastly, if you can go for a lower house price, it would be best.

No problem bro.

Dog friendly? Mind sharing where this is? Desa park?

Dog friendly? Mind sharing where this is? Desa park?

Tropicana Metropark. I been to their park.

DPC?

Sorry didn’t see you u replied TMP. How big is ur unit?

Hahah I think we are getting out of topic, 900++ sqft. Can't rmb the exact number.

haha because u can also check a lelong unit of paloma 1300 only 656100...

But from his postings... He wanted a unit with marked up price. So that he could spend the extra price variance