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

u buy 6 properties after 5 years
u cannot bare the loan n u bankrupt jump 14th floor

u buy 6 properties after 5 years
u cannot bare the loan n u bankrupt jump 14th floor

u see ah, ppl buy rm250k property and rent out like rm600 per month

i buy same area rm25k flat and rent out rm400 per month.

u see the diff?

plus i stay at that flat before, just different unit.

yup, apartment are easy to rent out, reason because your target market were cheapskate and people that cant loan for a house.
i think quite impossible to get 25k flat for hot area, maybe in the range of 100k already (still can yield minimum of rm500 rental per month)

This post has been edited by zerorating: Jan 13 2016, 10:26 AM

main target are students lor.

I knew some flippers who use cash.... this is the real flippers who is not afraid of any economy crash as they can sustain... afterall cash is still king...

coz it's 3rd floor (highest floor) so 25k.

ground floor asking 59k..

25k now?

but its good u know the area.. so there are some appeal to u as it might to others too

id say cash better.. but maybe u would want to think hard whats the worst could happened n how to go about first

even if u buy cash, should u need money later on, u could still opt to refinance the property right? (not quite sure whats the rate but it works like a bank loan correct?)

25k seems risky,maybe the condition were bad,not extra money for live-able condition

For low cost property i would rather take loan. Ts property is just rm50k. That kind of property u can easily get tenant to rent. And the rent can easily cover or much more than the loan installment.

U get a steady passive income every month, and the cash i have can use for other thing. If i was ts, I wont even sell the property. I will keep it

just remembered need to pay rm70 maintenance fee.....

yeah........

Do you think now is it a good time to buy/sell property? Or perhaps we should wait a bit longer?

i have no income in m'sia. lol

1 month get back more than 1% already. u so greedy.

flat 50k? sounds good..

i thinking i buy, my mum collect rent. the money all goes to her.

Haha.. I dunno la. If i comment this thread will be uuu vs ddd thread .

But personally, i already let go all my investment properties month back. Only left 1 that is still under con.

This post has been edited by silent_stalker: Jan 13 2016, 10:38 AM

if u buy in cash
HASIL will come and buy u coffee

let ur mum collect la. u want quick return, rental play is not for u.

Such low cost flats usually attract much undesirables. Just beware of who you rented out to.

don't put all your eggs into one basket. sometimes you got to put in apples too.

50k flat u wan for waT?

I suggest you get a loan.

With the rent collected, it can cover the loan repayments.

You can then utilise your cash on other things. Like putting in fixed deposit.

but i just got a huge housing loan last few months.

i am no longer buying first property.

anyway, the only perks is that first housing loan can get up to 80% right. other than that? nothing special?

90 % if I'm not mistaken but that is dependant on what prop you buy

also first property gets a discount on stamping


second one however no such discount

because flipping is an art of squeezing as much value from your money as possible.

1mil can buy 6-7 condos (Rm500k) paying 150k downpayment. flip each unit earn rm50k = RM300-350k.

1mil buy cash 2 condos (RM500k), after flip only earn rm100k.

big difference!

of course, you must be able to get the loan for the 7 condos in the first place. which was why they set up these investor clubs/investor groups.

u not get 90% for first loan?

i think 80% only.

http://www.iproperty.com.my/propertylistin...ma-flat-forsale

bukit mertajam.

a simple search can find u lots of flats under 50k

oh means your income can't get the 90%… 1st n 2nd property can get 90%..

or izzit 89%

i dun remember lulz.

only know how to sign initials on the papers.

others all lawyer gaotim

First and second housing loan can get up to 90%, IIANM.

Note the words - up to.

As it is a second property, your earlier loan would be taken into account when they calculate how much they can loan to you.

See - https://loanstreet.com.my/learning-centre/h...ow-based-on-dsr

Paying RM50K cash isn't a lot, especially since you are earning S$.

But there are also advantages in taking a loan......

take loan also need to do so many procedures! same as buying 1million property. lol

RM50k below property guarantee a lot of mix squatters in that place. You no takut this people move in d dun wanna pay rent and dun wanna move away? Happens a lot especially low property area. Rich or middle class decent family one won't rent this kind of place because too dense and mix with low income earners.

Ur assets need to have the same value as the two properties you bought for u to loan. Which era are u living in

That is example la dey. The point is, u can get more profit with 2 properties instead of 1. If u buy cash n use it all to buy 1 property, ur profit will only be with that 1. If use loan, u can get more than 1 property so ur profit will be more

That IF you can make profit.

Yea IF. Thats a risk u as a flipper must take. U want to be flipper, it comes with the risk. U cant be flipper with zero risk

Ko jangalah ko loan lama aangat. Bagi setahun settle habis dah la.

Many sohai here never consider

Bank loan interest
Tenancy guarantee
Renovation
Furnishings
Snp and all legal fees

Too bad party is over

Risk, yes as a flipper you must take but there is different type of risk.

assume 2 properties each 50k means you are asking ts to double the risk. If it doesnt work well, the extra loan that he/she take might get him/her into a bigger problem.

i say oredi maa

too bad ts never layan me

People say if buy in cash, tax will come after you.

If 50k pay cash also will come?

ketum or weed? share sikit

first you need bank to approve your loan

ever heard of "fixed rate home loan"?

main reason to get loan: you keep liquidity for shitty months instead of sinking more than half of your savings into a house

get a fixed rate home loan, and treat the interests as insurance

even better if you can rent the place out closer to the sum of monthly loan payment

if your tax filing (or the lack of it) says you are no better than homeless people (they probably earn more than you anyway), then suddenly you buy house with cash? confirm kena siasat

must have appetite for risk lor. spend some money, draw up actual tenancy agreement. if payment delay more than deposit amount, forcibly remove with help of law enforcement

U already expert at this. Proceed ahead. Dont listen to ppl that wants u to be drowned in debt just like em...

Id pay cash too for flat...

Every month rental 80-90% straight to my pocket...

if you got like 150k savings, then straight away buy flat with cash 50k no need blink eye also

but if your saving is like 57k, risky to just buy like that without any sort of loan

Lol worry what...

U can always pledge ur house geran as collateral to the bank to open overdraft loan account...

Bank would gladly accept

that's the point: shit hits the fan, you might end up losing more than just interests

but i guess it's just me being paranoid. i insist on keeping 1 year worth of loan-payment in cash, just in case shits are really bad. at least i got 1 year to work things back on track without going through these hassles

Even if got draft agreement still messy one .... telling trough exp.

legal fees .......

OD high interest also you are paying twice teh interest on the loan of your mortgage

its essentially a loan on your house

not a wise thing to do.

Lol worry what...pay cash 50k 1 flat...

Then pledge house get od from banks...

Buy another flat 50k...

Now u got 2 flat rental offsetting 1 50k loan...

Now thats real leverage on investor side

No they wont.

It depends on your yearly tax returns... if u makign 20k a month, paying 50k cash they wont give a fck

yup cheapskate damn fucking alot recently.

my rental service:
what their pricing RM350 a room but must have

include aircon, fully furnish, no partition house, water heater and internet.

base on my experience on electric bill for ^
aircon already took 600+ if none stop running,
water heater i doubt will turn off also took rm300 +
cooking etc rm100+

1 room already took 1000+, yea RM350 for these bullshit.

well we dont know his income, 50k flat in kl is something like hunting for a unicorn. most times such prices are reserved for lower income group, i think the standard rate a few years back for low cost government based flats was RM150k. also these flats tend to be heavily price controlled and selling them is impressively hard

if its outside KL/PG/SGR/JB, rental income is going to be a challenge, people are moving out from the rurals to the city.

this is also no accounting the fact that a lot of these places attract the people that you dont want to be with.

so all and all, you are taking 100k loan, to put investments in 2 flats, of which the rental tenancy is unreliable that might not cover the initial cost of ownership.

well we dont know his income, 50k flat in kl is something like hunting for a unicorn. most times such prices are reserved for lower income group, i think the standard rate a few years back for low cost government based flats was RM150k. also these flats tend to be heavily price controlled and selling them is impressively hard

if its outside KL/PG/SGR/JB, rental income is going to be a challenge, people are moving out from the rurals to the city.

this is also no accounting the fact that a lot of these places attract the people that you dont want to be with.

so all and all, you are taking 100k loan, to put investments in 2 flats, of which the rental tenancy is unreliable that might not cover the initial cost of ownership.

you can try

How much is the stamp and fees for od? No experience in these. Say if the bank valuation is around 440k. How much cash can be exchanged after deduct everything ? You tried before?

wow. that was a good investment

Did you apply personal loan for the purchase? How long did you wait until managed to sold it?

I pay cash upfront for my car also more then 50k, i dont see LHDN coming to knock on my door.

Start earning minimum /k standard before come tok nonsense.

dont rent too low cause those very low low rent 1, either is horder or long long time not going to pay rent.
rental biz is good revenue but current many ffker, very headache.

lhdn will knock your door if you salary 2000 and below but buy 1000000 property in cash.

i made average rm6000+ a month until today also no buy anything, bank keep calling me u want invest this that.


This post has been edited by RallyNight: Jan 14 2016, 11:34 AM

I pay cash. 6month. Earn bout 70k after rpgt

i now switch to game app developing faster money than property.

u put 50k into car but u still getting loan right?
BTW, they do not track car, bcos car is not a property, it depreciate every day
and you may buy car using other ppl name, this is how those taiko buying luxury car with cash
but u wont buy house using other ppl name
i bet i earn more then u loh

Ur so lucky bro congratz 😊

Not easy to flip in current market situation unless its really in a hotspot or the buyer is very motivated to buy.

Property rental and flipping is competitive right now bro..

If u follow the masses ur luck oso follow the masses...

When bad situation, all owner are gonna be throwing fown rental price or selling price...

If at first place u already overleverage with banks debt...

Gg loh...

How do u fight other neighbours who bought their house 20-30-40-50% down payment or full cash? U need to cover high instalment loan...meanwhile this owner may reduce rental but it only affect their yield profit a bit...

OD if u have more than 200k od favility only got commitment fee....also thrs no fixed repayment amount as long as u service the monthly interest its fine by the banks

Yup agree, that's why dun wan follow the mass, simpan bullet to hit again in June when people start dropping out.

From my experience on rental, the price can't be adjusted by people like me who owns 1 or few unit. If we lower the rental, big player who owns 10 unit follow lower the rental then we really dead.big player dun mind,they got big pipe .
So I rather follow the masses in terms of asking price. Everyone makes money

Some flipper decided to go solo and offers low rental spoiling the market cyberia smarthomes rent now drop to 1200.00. Luckily I escape early. Anyways, rental is dictated by big player who own a few unit in that place. We cant do much.

Be confidence la bro. In the end my buyer is my neighbour of that house few house away only