can advise why buying properties with cash is not a good idea?

I tot got special type of loan for flippers? Why cash?

U have rm300k cash. U buy 1 property cash. After 5 years u sell value at rm400k, u get rm100k profit.

If take loan, u buy 2 ptoperties with 30% dp. After 5 years, u sell both at rm400k value. U get rm200k profit. While waiting for 5 years, u can use the balance of that rm300k to invest in something else

This post has been edited by silent_stalker: Jan 13 2016, 10:00 AM

but this flat i am looking into is like 50k only. its like a hassle to get loan.........

^

but also subjects to you can sell it or not.

Oh.. Rm50k, if me, ill still go for laon. Better if can get personal loan coz interest is much lower compared to house loan. Rm50k property u usually can get high rental yields, so can cover the loan and the cash i have will use for other things

Loan loan loan, when market crash, then u gg

LeveRAGE

personal loan is lower interest? are u sure?
whats the lowest PL interest now?

Take personal loan buy cash rm50k flat , will LHDN chase after you ?

It is best to leverage your income by taking loan from bank to buy property, because even if you have the cash, that cash can be invested in other places

in what universe?

ah.. small money only. cannot invest anywhere. unless FD. serious.

another flat is like rm25k. i rent it out every month rm400.

the profit too low... seems like a bad idea after all.

when u plan to flip

to me i always go this way

entry - holding - exit

whats the balancing of the account and what kind of duration of EACH stage.

50k property will be like what.. 400-600 rental per month?
how old? possible repair n maintenance?
i think that price is like for walk up flat..

But need pay interest.....


Y said so?

The interest will rise?

Flat just take cash. But flat no advisavle to buy for investment la. Cause capital appreciation low. Just keep for rental. Suitable for uncke aunty la

I vested in a 1sty house 6month ago. Bought below market rm120.( bank value was rm170k ). Did renovation 10k. Lawyer fee 5k. Sold at rm220k.

This post has been edited by FeeD: Jan 13 2016, 10:21 AM

dont forget in 5 years, you are paying 20% of the loan borrowed just for interest only.

Reporting in, woof woof

Personal loan i will always look at bank rakyat which interest seldom reach 4%. Whats the everage BR for banks now? Last I got was still using blr with interest at an everage of 4.2-4.4.

And personal loan interest wont be affected by any change in opr, blr or even br. U maintain the installment throughout the tenure

because cash is king

Nearlee