Folks,

I'm thinking of purchasing my first property. However, I'm wondering about what would be the best combination to obtain the best value for my hard earned money.

My understanding is that :
1. Higher downpayment = lower total interest paid
2. Shorter loan term = lower total interest paid

How do you determine the best combination of downpayment and loan tenure for a given property purchase - can I approach a Financial Planner on this ?

I don't think it would be a good idea to ask bank staff because they have a vested interest to maximize the interest earned on every loan.

Sorry but I don't think I fully understand.

My guess at what you're saying is (please correct where necessary):
If I take a 30 year loan with minimal 10% downpayment, I should place any excess cash that I have in investments which have higher effective returns than the interest rate I pay for the home loan ?

I especially don't understand the second part "or pay off loan balance periodically if you wished."

How do I decide when it's appropriate to pay the loan balance off ?

Yup, that's right.
I have my manager having rm30M of NAV, but if really cash it out, that's only rm600k.
Saving money no doubt it will be way slower, but then it is still real cash. My terrace house that I'm staying only cost rm130k when I bought it and now it can easily shout for rm800k but bank only put a value at rm600k. So I can always make my NAV higher by using rm800k as calculations.

i'm lagi kiasi - i value my properties based on last bank-lelong reserved price
feels good to value them at "hot prices" though - feel saja lar, not prudent of me

all income should goes to pay/acquire asset (FD, business) such that the assets can generate passive income to pay for all expenses/debt.

This cycle should be automated until passive income exceed all expenses, where you achieve financial freedom on paper.

That's all is needed for the so called Personal Financial Management.

any property 'owners' who only paid 10% deposit or pays 50% interest of his/her month installment would should rather consider their property as liability rather than asset. One should not call themselves owner owner unless they have fully paid a freehold property, they real owner is the bank.

Some are deluded into thinking they could sell at market for double of their initial purchase price, without realize how much they already paid to bank in the form of interest, legal fees, property agent fees, taxation, maintenance cost, quit rent, etc that wiped out any profit that they probably gain. Many of these 'owners' whose tenant barely help cover their installments and only pray that they could come out a little more profitable, majority after sold tried hard to convince others that they 'made' money from property, after their so called 'flip'.

Any 10% owners like to testify or counter my view feel free to share openly.

Hello, I'm not sure if this is the correct thread to ask this but what are your opinions on paying more for house repayment?

Currently I'm paying double for my repayment but i feel that I'm putting most of my savings there. I've put a lump sum of my FD there too last year to reduce the interest but i've just realised that i don't have liquid cash if needed. I have some company stocks, a little of ASNB and a few thousands of savings in my accounts. I'm staying with my parents so my personal expenditure is very low. Most of my salary goes to the repayment.

I was wondering, if i should pay may be 1.5x the repayment and save up more in FD? May be invest some in stocks too (which i've been delaying for some time)? Any other opinion on this? Thanks.

Yes, rented out.

PNB funds as in ASW/AS1M right? I put a little in ASW, was lucky when there was an opening and i was in the bank. I also have some in ASG (not fixed price) but i feel it''s not that great as the fixed price ones.

The property is still under loan at the moment. On the bolded item, rental is still taxable right even if it's still under loan right? I will need to minus off some expenses and the balance is taxable, correct?

Hi guys,

Would appreciate greatly if I can get some advise on how and where to grow my money.

Age: 33 years old (next year)
Salary : RM 2300

Monthly Expenses
Food: RM 300
Petrol: RM 50 (using motocycle to work)
Phone bills: RM45
House internet: RM30
Car loan: RM 800 (already pay more than 5 years)

Asset : got house market value RM800k

ASNB - RM200k
EPF - around RM50k

I might getting married and settle down next coming year.. if everything goes well..