As per title, just for the purpose of discussion.

Would you, or are you spending more than 60% of your net income for home loan, and why?

How much would your ideal % of income be tucked away for home loan?

Anything above 50% of nett income just for loan repayments, for me that's living close to the edge already.

60% for home loan only, no.

But for starters, generally the millenials are having tough time, tend to fall into the 60+% bracket.
Salary will go up in time, maybe suffer for 2 years, then as salary goes up, things will be better?

This post has been edited by Michaelbyz23: Apr 12 2017, 08:52 PM

firstly, your question is wrong and not making any sense, please this close this thread and google DSR....

Mind further your explanation? My question was simple and simply for discussion purpose, on whether will you be willing to spend 60% of net income for home loan. Do I need to close my topic as per ordered by you, simply because I posted a discussion thread?
Please advise me, sifu
If it's wrong, or offensive, I apologize, you are free to hit the report button as well.

worth if salary above 10k

Mine 80% got for loan repayment 😂

me toooo

20% enough for other expenses?

if you want to gauge how many rich and poor pp in this forum, than your poll's question is make sense.

60% is affordable for high income but not low income.

This post has been edited by Nikmon: Apr 12 2017, 09:24 PM

Enof lo

i believe in work hard now relax later.. first few year is abit harder but at least at later age we can relax more.. if we dint give a go now with high commitments, then few years later our life will be more difficult..

Doubt the bank would approve the loan 270k wit juz 2.1k nett income nowadays

correct. 60% for person with 1.8k salary is madness. prob wont hv enough to eat. 60% of 20k on the other hand is still comfortable.

This is a very subjective question, if your annual income is like Lim Kok Thay, then you can well afford to spend more than 60% of your income on a home loan, as the balance income (after minus the home loan) is still tens of millions, and a small fraction of this is sufficient for you to sustain your living expenses.

On the other hand, if you income is 2k a month, if you pay 60% for home loan, the balance income is hardly sufficient to sustain a living.

In any event, please note that Bank Negara only allows around 30%-40% of one's income for payment of home loan, so even if you wish to use 60% of your income to pay your home loan, no bank will agree to this.

+1

imno,
everyone have to anticipate adverse future such as retrenchment, losing ability to work (touch wood) and etc.
don't say 60%, 50% also considered risky as putting own-self in the edge of cliff already; especially in current malai bole land economy/market which is bleak like Death Metal music.

What if monthly income RM3000 but have FD 500k and use the interest to pay housing loan?

FAMA fund leh 😂

Haha, you must be earning 20k to qualify for that!

Another top earner! Haha.. But I cant imagine that, surely very love and clingy to your job.

Depends on the total net income, haha. Bank got their bracket I think, if above 20k can loan up to 90%.

True, Thanks sifu for clarifying. I should have asked more specifically. To qualify for 60% and above, I think net income need to be at least 5k and above.. correct me if I am wrong.

I totally agree on this. Too relax-ed when you are young, sure tough life awaits when you grow older, when you have more commitments creeping in. Wife, kids, insurance, parents, etc.

But my friends and I myself, managed to secure up to 70% of loan to our net income. It is kind of odd, I am kind of worried too whether should go for it or not. Apparently banks are still approving loan installment of 60-70% of income.

You are right, even the most stable job also can crumble down. Everything comes with a risk. What about you? Do you put 50% and less of your net income into housing loan?

You'll be surprised.. my banker told me he dealt with many 20+ years old kids.. but buy 800k house... FAMA got alot of FD .. Got some case they actually put in 70-80% or more of the loan amount into flexi account, and pay monthly instalment just ngam ngam 3 years to escape from lock in period

This post has been edited by Michaelbyz23: Apr 12 2017, 09:54 PM

whats wrong with an 20+yr old buying 800k property on their own? jeli?

My house is 36% and car is 14% of my nett income (both acquire this year) Young and single, but also dont dare to press the pedal too hard

Some bizmen able to do above mof 100%

Good job bro,
Nowadays not easy to press below 50% considering the fact that salary has been stagnating and house prices go up like crazy.

+1. i know under 25 yr olds with 1.5mil+ portftolio all on their own. not everyone depend on fama la

Salute the successful person!

Total commitments>50%

Really got this kind of person..parent left one house and 500k cash for her but income only 3k

question, if u go for conventional loan 35 years. if u got money and repay it within 20 years. do you get a lot of deduction?

Hehe... biz men have lines of credit leh...

many. some under 30 own 10millions

Serious? Wow! 😳

you are also one of them, nothing to surprise

Yeah salary stagnating +1
Lucky for me paying 11% (progressive int.) only out of the 36% at the monent.

In the past 4 month, i spend over 100% of my income. FML.

Yea, still manageable. Still got roughly 2.5 years ahead before paying full amount right? I opt for 100% full installment payment straight away. Sakit..

Spent on mortgage?

Around there, 2-2.5yrs more to VP i reckon.
Good for you to reduce on interest amount.

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.

For me currently was 12% house loan & 14% car loan. However recently bought new launched property which would wiped out additional 44% of my net salary. However consider that the property will only complete in 3-4years time hope my salary can cope up to reduce the ratio. And currently rental income was 11% of nett income.

sapa boss sini.... sakit weh... lol.....

yeah... generally hype is everywhere... and most of them lazy to do some studies and research... if you ask me those who queue for those AK projects... mostly buy into the hype and the pricing.... and parents outdated knowledge + agent smooth talking add on to it....

and flipping... now is rolling... no such thing to flip upon VP nowadays... u have to roll till certain period only ur body is fully terbalik....

Sorry what is AK projects? Noob here

This post has been edited by Rinth: Apr 13 2017, 11:21 AM

some banks offering DSR up to 75%.
so yes, you can take use up your full 75% DSR for home loan only.

Wa make fun of AK.

Very dangerous line sia. Nanti kena tangkap and bash.

AK king of affordable housing to help ppl

aset kayamas

no la.. for own stay... they are definitely good to go ahead.... but more than 50% is investors... flippers.... they king of affordable housing meant for those to stay ma... haha.... but many buy for flip... for rental....

parents say dont own one now... cant own in the future... even dont stay also can rent ma.... so positive...

Sure, welcome. Feel free to ask if you need any other info. Wealth of knowledge in these forums, but at the same time, lots of empty, rusted tin cans that are rattling quite loud. I'm sure you will be wise enough to filter those out and not let them deter you.

All the best!

Can rent, bleed money only lor

Ownstay buy in hutan best. One day hutan become Bandar Utama and you can sell the property for millions

Everyone has their own strategy but those who never learn to research first to kaput in few years time....

no la... not necessary best la... if u like condo... go city stay ma... alot ppl like condo also.... easier to manage... feel safer.... like the facilities provided.... but in term of appreciation... nothing much to talk about on condo....

Yes I would spend 60% of my nett income to home loan, if got opportunity.

Now 14% home, 12% car and 8% personal.

So I have another 26% to spend to another home.

Now no dare to flip flip.. buy for own stay

Very well managed, keeping monthly commitment way below 40%.

Can start hunting again boss.

Must be earning 20,000 nett salary, assuming you left 20% which is rm2000 every month for all you other expenses, no car loan i guess.

80% property (30% commercial 70% residential) 5% car 5% leisure 10% others expenses + saving.

will not spend more than 60%..

This post has been edited by mafa2801: Apr 25 2017, 04:37 PM

I will got more than 60% because year by year will get increment in salary and it will fall to maybe 40% of Bert salary goes to home loan. If wait for increment only buy a house the house price increase way faster. Also if I got few 100k saving I will take the risk

for own stay? not a damn chance.

for investments? for sure, as long as the capital appreciation is good AND/OR rental can cover the installments and other costs