Im so sad when I read this post, people can ask whether spend 60% of their income on property, with my income right now, i dont even have the allocation for it. Need to find better job and side income.

For TS question, if you could afford it, why not, it's a good investment.

Mine 43% housing loan + 11% car loan

no bro, just try makan roti, and steal food from company.

Very simple question but yet, has stir up quite some contrasting views and opinions. For me, yes, technically on paper, I’ve more than 70% of my nett employment income for home loan. But at the same time, from this 60% that goes to home loan, I do get back a fair amount of money from the rental generated. The 60% is also spread out among few home loans (few properties).

If I were to consider rental income as part of my total income, then the figure drops to about 50%.
Why am I leveraging so much? Isn’t 70% dangerous one might ask? Well, I would still consider myself young (early 30’s) and about to start a family. Rather take the risk (meticulously calculated risk), and hopefully make it big through properties than regretting later in life. So far, things are good. My only worry moving forward is not about having insufficient properties, but rather not being able to further increase this DSR figure of mine which is currently at the 70% level. I have not done the detailed calculations yet, but with a 20% pay rise, I am hoping that I can further push this 70%++ figure to 80%.

Noticed that another forummer commented on this thread and told you to close the thread as the topic is irrelevant. The DSR can also be googled up easily. Not sure what is his/her level of involvement or experience in property investment but it pretty much shows that he doesn’t have it both. For seasoned investor who have an impressive portfolio (and also very deep pockets), DSR can go easily cross 60% and way more than that. I’ve known of individuals who have breached the 100% mark. Imagine an individual having a nett worth of RM20mil (properties, securities, cash), borrowing a RM3mil home loan but with a monthly repayment that will clock his/her DSR at 100%. With the right and relevant supporting documents, chances of the home loan getting approved is very high. Of course, this policy differs from bank to bank. Each financial institution have their own risk appetite and evaluate opportunities differently.

Anyway, good luck in your investment journey!

Wah boss u tok till so CHIM u no sked the forumer lipot u n ask mod close tis tered ga 🙊🙊🙊

Anw gd sharing fr many sifu here.

Thank you very much Sifu for your words of encouragement and constructive comment.
Really exciting journey ahead awaits, lots of homeworks need to be done, and assess on risks as well. I've decided to put 60% of net income into mortgage, I'd rather take the calculated risk, than regret later too.

Don't worry, you will find you way there one day bro. Abit of luck and hard work, keep finding! Patience is important. Channel your energy into good use

How one looks at it depends very much on the situation that they are in. If part of the money goes to supporting the family, a small chunk to insurance, a fair bit goes to charity bodies and some to servicing education loans, then the actual scenario isn't so bad after all.

Rather decent I would say.

Like someone said

Love your job
Love your boss
Love your opis and
Love your wifey

nice sharing bro, like ManU says u no sked the fella report you and close this forum ka? sometime there is a few of those stars alot alot punya and like to showoff i dont understand why. @@
on a side note this is a very beautiful insight!

U will be assessed under net worth category
Probably the bank will need tou to pledge fd against the housing loan.

Inheritage
Retired individuals
Insurance payout.
Windfall
Illegal activities.

Elevated dsr is vulnerable to bank interest rate rise. In some countries, dsr of over 30% is considered​ stressed and over 50% is suicidal.

For DSR calculation, should include other regular income else it is not logical to have over 100% DSR.


This post has been edited by icemanfx: Apr 13 2017, 09:02 AM

Yea. But my banker friend also said nowadays FD means nothing..They will not take it into consideration when approving loan, cuz you can run anytime with FD. Unless you put big downpayment?

Another useless poll thread

Bank could tell borrower to pledge FD as collateral.

According to bnm, only about 6% of people have saving to support over 6 months of living expenses mean only a minority have substantial FD.

used to be 60% two years ago.... now already gone way below that.... so its either you improve your income or you dont get one.... especially nowadays millennial salary vs house price...

I see. Btw just wondering, when they say 6 months of living expenses savings, they mean 6 months of savings equivalent to 6 months of income right?

Yea, imagine the way forward, salary will stagnant, and price of houses go way up. 10 years ago, and today, the basic salary hasnt really changed much.

salary may stagnant... but u have to work harder now... compare to last time when one job able to get you house and car and still can spend on life... but then most of the millennials now... YOLO all the way... so they wont work anything more than they think the should... just 9-6pm work... and done... YOLO all the way.... for those with family is understandable... thats why must work super hard before u have a family of your own....

generally for me now is that i must have 6 months worth of my monthly income now.... lets say now u having 5k nett per mth... make sure u have 30k savings in your bank acc at least...

This post has been edited by aaron1717: Apr 13 2017, 10:23 AM

Uptown punya boss sudah spoken.

Problem is people always buy into hype believing it's a good investment while they themselves did not take the effort to study the idea of the project or etc.

Later when VP time kenot flip, then emo Liao. Cash flow stuck on a stagnant piece of property.

Time to earn more.