To me, only a fool would continue to rent and help others pay their mortgage, especially when the fella clearly could afford one.

In this case, Luv can afford it.

So what if their total loan repayment exceeds 33%? As long as they can save 10-15% of their monthly income, IMO they'll do just fine.

So what?

Why cant they?

There are many malaysian's whom their house is their biggest investment and commitment. Those who bought SSL in Bangsar 30 years ago for less than 50k(30 years ago 50k is deemed as a lot of money) now are selling their biggest commitment for 400k -500k today.



Not necessarily, and again this is just merely an assumption. U forgot that Luv is still young and whats is stopping Luv from earning 10k p/m 2-3 year down the road?

err.......Im quite lost here. I've never said a fancy house is more important than family time. Plus, there's no rule saying that u cant have a good family time if u have a fancy house.

then, in your expert opinion, care to teach us what would you do differently then? Bare in mind that our fren Luv here prefers to get a new landed property in Kepong.


Btw, I find that us arguing here is a waste of time, coz if I understand correctly, Luv HAS ALREADY BOUGHT THE PROPERTY. There's nothing we can say to change that, and I for one thought he made a good decision. Plus, the said property is for own stay, and as long as he is HAPPY WITH IT and he could afford it, lets just wish him good luck.

Happiness afterall, is a very subjective thing

This post has been edited by Pai: Sep 23 2007, 02:08 AM

Pai, thank you very much for sticking up for me and debating behalf of me and all your good wishes. Greatly appreciated.

Yew, I am not sure your commitment level since your and your gf earning more than 10k and thinking twice for 450k property. Well for me we have only one proton which is fully paid. No other study loans as both of us were scholars from overseas uni.

Dreamer, thanks for your advise but I were to protect my finance keep in the bank and wait for recession for next 10 years and start renting than I will be declared as fool cause in 10 years the property price will increase to 1.2 mil for 20X70 house and with 20 years bank loan as my age will catchup and paying high monthly loan where else some one who dare to take risk bought now with half of the price will be laughing at me.

My parents bought a bungalow with more than 7000 sqft in Kepong at 50k price tag in 1965. Today it cost over 2 million and property agents still interested to purchase my parents house. But my parents decided not to sell cause if they did and with 2 million they may end up with a corner unit in DPC or semi d in sunway spk with less than 4000 sqft.

My dad bought with 15 years loan paying rm400 when his was earning rm800. The moral of story, I am just taking a risk like all other 14.7 million home owners and will some how rather will find a way to pay the loan if there is a economic slump just like all other 14.7 millon home owners.

Wish me best.

regards
dr luv

dr_luv,

My rule is very simple. If your TOTAL monthly loan repayment is less than 33% of your gross income, you can afford it. Then, it is your personal choice whether you want to buy it.

Dreamerr

Since there is this topic, I would like to tumpang tanya opinion regarding property for own use from you guys

Me and wife's net income is > RM10k

Our age is 28

Our breakdown of monthly expense:-
Food: Home Cook (Free) & RM500 (Weekend - Optional)
My Car Loan: RM800 Hers is paid
Our Car Insurance & Road Tax: RM400
Parents: RM1000 (My side) + RM1200 (Her side)
Personal & Wife Insurance: RM600
Annual Vacation: RM1000
Entertainment/Wife Shopping: RM500
Car Petrol & Maintenance & Parking & Toll: Claim Company
Telephone: Claim Company
Internet (3G Unlimited): Claim Company
Whatever left goes into investment (FD & UT)

We are currently staying in her place (my parents is at johor). In return paying RM1200 to her parents (consider this as rental / commitment to her family). Home cook food is inclusive

She is the youngest in her family. So the house is left with her parents and us.

My job requires to travel outstation a lot. I'm usually back during the weekends

If her parents is on vacation and I'm not around. Her parents will ask my wife's sister to stay with her cause don't want her to be alone

Q: I have not bought a property for my own use because of the reason above (me traveling and her parents won't let her alone in house). So if you are me, what would you do?

dzi921,

1) Don't buy a property.

2) Re-visit that decision when you have children.

3) Perhaps buy a property near your in-law when (2) happened. But, remember if you move away, child care is big problem.

4) But, you may not like how your in-laws raise your child. Grandparent tend to spoil grand kids. But, are you willing to let your wife stay home??

5) In summary, do nothing until (2) happen.

Dreamer

My wife has been bugging to move out, but I've explain to her many times that I'm always not around with my current job

So I told her once my job settles down and does not require that much traveling, then I will buy our house

But what you suggested is true also Thanks

Dreamer has a point, no point buying a property for own stay now due to the nature of your current job.

Therefore, perhaps you might want to consider buying an investment property that you could ALSO use for own stay in the future. Noticed that you currently place all your cash in either FD & UT, so IMO you should try diversifying your portfollio and perhap give your idle $$$$$ a workout.

If you look hard enuff, getting a rental property that gives u double digit returns is possible. And this is before we start calculating the potential capital gains u might enjoy 5-10 years down the road

That is the problem
1) Finding a good property
2) Getting a loan
3) Finding a good tenant

I'm always not around, it is not easy to do all the mention 3 above. That is why I've to resolve to other types of investments

For no.2, i think there you can get plenty info on homeloans just by doing a 15 minutes research. As for no.1 & no.3, you can get agents to work for you bro

Im not so free myself, but am lucky enough that my agent always provide me with decent leads. Its free and I only have to pay the fella IF i decided to go with his reccommendation. Bought my 2nd property using this method, and so far so good

But, u need to be careful as there are many agents out there with vested interest, or basically just trying to sell what ever property they have in their hands. Talk to a few and you'll know what I mean

Thanks for the tip , but I think I'll stay off from property investment for now

no worries mate n good luck

Putra Heights, good place, capital appreciation.

@dzi921,
Just keep an 'active' look out for something that interests you in the papers - when you see something you like you can reconsider your options. No point rushing into purchasing something just for the sake of satisfying your wife or whoever else it might be

very true, that way the moment u r ready to purchase your own house u know whats would be the average selling price

Visited Amelia, latest launch of Desa Park City starting price at 78Xk for 24XX sqft. 50% sold out. Can't believe people do have money to spend and people are rich. Wonder wat they be will doing to transac such amount of money and buy properties. Most of the visitors age group between 37-45.

I just don't belong in that community.

DPC is full of speculators, and those will the ones burnt 1st when there's recession.


But still its surprising to see ppl willing to pay 800k odd for a link house in Kepong

DPC is consider under KL or PJ?

DPC is @ Kepong, mate

I would say no worries on recession if one is to purchase for own stay. Unless the property bought is as an investment tool.
Anyway, many places are overpriced and rated too highly currently with the property market booming.
In my opinion, our property market is over supplying the needs; and most ppl are buying it for investment purposes which is very dangerous if my prediction is correct, especially for those middle income earner who bought properties for investment.

I know. I'm Kepong mali also mar

Just curious whether they DPC is under KL or PJ

Like BU last time is supposed to be KL, but then they managed to change it to PJ (according to my auntie who stayed there)