Hi all, I am seeking some advice in acquiring my first home. I am targetting a 300k apartment near my wife's work place. Both our income are probably around 5.2k, both are new workers with less than 6 months experience. My questions are:

1. Is it possible? Assuming a 1.5k loan commitment per month, would the bank agree since we are still new to the working field. Maybe the Skim Rumah Pertama is a good choice? Also, we have zero credit card and zero loans for now. Should we take one to increase our credit rating? If I just apply for one card and never use it once, will it still count?

2. Is it advisable? My wife's working on a 1-year training contract, is it better to just rent there? However, renting there is ~1.2k which is probably around the same as buying. To buy or to rent?

3. If you advise me to buy it, what's the exit strategy if I need to move? Rent to other people or any other options?

4. If you advise me to just rent, why is it? I am still new and should focus on accumulating wealth first? Property sector not so good now? 300k is too much for me?

Thanks and sorry for the long questions!

This post has been edited by Cubed1437: Jan 27 2015, 03:04 PM

Hmm, that means I can just apply for the loan with my wife's credit only instead of joining. Good to hear that.

For the credit card, if I just apply for it and never use it once, does it still amount to 0 in the credit rating? Or I atleast need to use it first and service the credit, only then it will be rated? (Sorry for the newbish question)

Last question, if I opt for a long tenure (eg 35 years), the interest will usually be a huge part of the loan, can I do full settlement and thus minimising the money going to banks? If so, what kind/type of loan is it? Flexi? Any recommendation on which bank/product to apply? Thanks!

Thank you very much for the prompt and great reply. I'll make sure to contact you if I intend to apply loans in the future. Cheers!

Is it better to do advance payments or more payments per month to reduce the interest or just put the money in a higher dividend place such as Tabung Haji? I believe the second is better but why do people advice to settle home loan asap?

Hi there, if I can buy a market priced 240-260k apartment for 215k. Is it possible to get 100% finance of it for the 215k? When people say 90% loan, is it of the price or the value put on by banks? Thank you.

So if the owner is selling to me at 215k, is it possible for me to ask her to make the SPA 238.88k (10% higher) and then I can get technically 100% loan? (Zero downpayment)

Say the owner owes me 30k, is it better for me to:
1. Ask her to use the 30k for downpayment (21.5k) and legal fees (~9.5k) and then I just loan the bank for 193500

or

2. Do the above, ask owner to give back 30k, mark up SPA then do 100% loan. And use some of the 30k to pay the extra taxes and legal fees. Then balance, put into other investment.

1. will give a lower monthly commitment and 2. will be higher. ~rm100.

Which one is better? Please advice. I can negotiate with the owner since she is my mum.

This post has been edited by Cubed1437: Feb 15 2015, 06:56 PM

Hello, it is possible to sell your house before mortgage tenure ends right. So, how do bank calculate the amount they will give us when we sell the house before tenure ends but after lock in period?

For example, house is 100k, mortgage is 90k. Tenure is 35 years. Say if after 5 years, the house is 200k, but you only paid a small amount. So how do banks calculate the amount theyll pay us. Does only the principal counts and if not, is the interest based on 5 years or 35 years? Please help. Thank you.

This post has been edited by Cubed1437: Mar 15 2015, 12:58 PM

So to confirm, only the principal is counted at the 5th year right? This means my profit would be 200k - 86k - (whatever I pay for 5 years) - downpayment - fees/costs. Is that correct? And does this apply to both islamic and conventional loans?

This post has been edited by Cubed1437: Mar 15 2015, 11:28 PM