When you are going for subsale, do bear in mind that you need to cover all the differences between your loan amount and selling price. And loan amount is dependent on the market valuation of the property. If a condo selling for 350k, and the valuation is only 300k, you get 90% of loan equals to 270k only. Meaning you need to top up 80k CASH. Also when going for subsale, you need to folk out around 10% for legal documents and works. Therefore to complete the transaction, you actually need a lot of cash on hand (10% downpayment + remaining difference + 10% legal).

While for new projects, you can get more benefits from the developer. Usually there is no problem with banks valuing the property, meaning you can get full loan (90% of the selling price) easily. Plus those free legal fee, stamp duty and rebates from developer, the cash that you need to folk out can be as less as a few percent of the property.

Having said, subsale or new project depends on the objective of your purchasing. Capital gain or rental collections. If capital gain, it's quite obvious to go with new project for least capital spent; while for rental yield, a subsale at developed area will be more predictable, if you can afford the huge cash upfront.

All the best!

thank you for writing

erm i woulld not advise rawang flats, maybe the flats there are cheap but the quality of people are not really those you want to be associate with or even if you rent maybe its difficult to get good tenants, how about other areas like seri kembangan, serdang, or kajang. all this areas will have public transportation soon and you can get a > RM 300k condo in these areas.

Thanks for ur insight. Ayam keep that in mind.

fresh grad can pay 60k deposit
amazing already

Hi ts, thanks for bringing up this topic this will definitely help a lot of fresh grads including me heheh!

One question for sifu here, why is subsale cheaper and recommended? If it's not from developer and has been owned by few owners, it should be expensive right ?

subsale is not necessary cheaper but the good about subsale is that the house is ready and can be use immediately once it is purchase, what you see is what you get and you have also info on the neighborhood and facilities around. Another things is subsale price is negotiable most of the time.

If you buy from developer, there is always a risk that the units may not be completed or is not what you have expected. The neighborhood also is almost non-existent assuming is a totally new project. Besides that you need to wait for 2 to 3 years for the house to be ready. But the good thing is most of the developers will adsorb lawyer fee, and mark up selling price, this and that so you pay a significant lower downpayment

Oh, now i get it!

In this case i have to agree that subsale is much better for fresh grads like us.

Since subsale houses have been there for sometime, it is relatively easier to research and make more accurate guess on whether its better to buy one there. Plus, subsale can get key instantly, which means we can start looking for tenants straight after purchasing!

Hi guys, hopefully any loan consultants/property consultants here can give some advise. I'm not a fresh grad, just wondering what's the maximum that I can borrow from bank for my first property. For example, my gross salary is 5k, current commitment is 1.6k for a car. What's the price of a property that I can afford? Thanks.

Actually there is another thread on mortgage in this section. But anyway, let's do a quick calculation. Assuming you have no other loans other than hire purchase. BNM guide is not more than 70% of your income to service dept, meaning you will have 1.9k for mortgage (3.5k minus of 1.6k) Hmm... 1.9k for a 30 years loan at current interest rate will be about 400k loan amount.

Thanks bro, more or less I know roughly what I should be looking at now!

Just dropping by to add in my 2 cents,

For a fresh graduate, it might be better to buy a new property launched by the developer as a lot of upfront fees like transaction fees (valuer, legal fees, etc) are borne by the developer. Certain developers may also offer discounts for early birds and bundle in certain furnishings and appliances. As such, the upfront commitment to be paid by the fresh grad is not as high as compared to purchasing a sub-sale property

Furthermore, as the developer only draw down the bank loan in stages based on its construction progress, the fresh grad actually does not pay the full installment until delivery of vacant possession which by then the fresh grad's salary would have increased as well over the years (Normal developments would take 3-4 years from launch before it is ready for VP).

Nonetheless, my opinion is based solely on minimizing the impact of purchasing a property on a fresh graduate's cashflow without factoring in the current pricing of new developments, slowing market condition, reputation of developers and etc.

I
Greetings! I am newbie here. Well, I have read and interested in property investment . for the beginning, I thought to buy my first landed house landedto from cimb auction mart. The question is., could anyone tell me what is the best choice of buying first asset, newly build, subsale or auction? FYI, the house I am gonna bid is intermediate low cost single storey 3 rooms 2 toilet at reserved price of RM100k. And, what is the max price I should bid? Tqvm

Common misconception. All these costs "borne" by developer is already priced into the actual property cost. Developers do no favour for anyone but themselves.

To get the best deal (if you're a fresh grad or with 20y experience) the best is still sub sale. Why? Because you're dealing with the home owner and possible an owner who is desperate to offload.

Buying property is a numbers game, people don't seem to realize this. You hunt around and keep hunting every single unit for sale in a location you want to buy and negotiate to the max....the price you get from this effort will never be matched by buying from any developer in the country. To OP, I say please read up a bit on negotiation skills and hunting for the right property. Invest RM500 in reading material, and you save 10s of thousands when actually buying the property you want. Trust me, I bought my first property when I was 24 and my 2nd at 25....only after buying my first I found out I know so little. But I followed this rule of buying subsale in a great location and spent almost 3 weeks hunting for the cheapest and best deal in the area. And this time I spent was totally worth it.