My family have no broad knowledge when it comes to property knowledge or anything. What they normally preach would be to buy property first instead of renting .

I am going to start working soon in Kl area upon return ing to Malaysia and they have been suggesting to get a property straightaway instead of renting. Problem is :

1) is it a good idea if to get a 3 room service apartment (around 400-600k) property and rent out the other 2 as passive income instead? - that’s their suggestion but I found out it to be much of a traditional approach.

2) would it be ideal to pay all of at once in one transaction for property of 500k? I could not get a mortgage for sure as I am currently unemployed and my means of profit are through crypto / stock investment which is not a valid basis for getting any mortgage. I am not interested In getting my parents being involved in any legal/equitable title . And I do not like the idea of bank getting profit through my loan interest since I hAve the capital for it. (Could someone enlighten me on this?)

Thank you everyone and As I said my close associated relatives and myself have very limited knowledge in regards to property.

u can try sublet method.

meanwhile, you need to build good credit record. so get asbf is you can. get cc asap. avoid high car loan.

don't buy house with cash. invest the cash in 2-3 different investment such as market share, fixed deposit etc. that way you can add different type of income to strengthen your portfolio.

make sure you have 20% of property buy price. it's not just deposit you need to pay. there are legal fees, stamp duty, loan fees, tax, house & loan insurance, buy house appliances etc.

buy house, stay in 1 room, then rent out the other 2 or 3 is best option. traditional approach, but the safe and best possible. you could end up stay for free.

This post has been edited by Invince_Z: May 4 2018, 02:45 AM

Buying a house is not just paying the house price, there are plenty of other miscellaneous expenses associated with it.

To purchase a house
1. House price
2. Lawyer fee
3. Stamp duty
4. Monthly maintenance fee, sinking fund, insurance etc.

A own stay property is a liability until you sell it.
Also, rent out may not as easy as one thinks, especially current soft property market.
While there may be lot of hassle in term of renting out especially if meet with troublesome tenants.
Don't take for granted.

Renting has its own advantage
1. If rent wrongly, or the place is no ideal, just move out and search another better one.
But if bought, you are stuck with it, until you manage to sell it, which may be year or years away.

2. Preserve capital, you do not need to commit a big sum capital into the property, whereby the capital can be invested elsewhere.
You have much strong cashflow.

In current soft property market condition, there is needless to rush to buy property, there are a lot of choice out there.
Better take time to survey around, before making any decision to buy or rent.

Both buy and rent has its own advantage, not necessary which side must be better, it depends on various condition and individual needs and preferences.

Before you even embark on such a huge decision I would suggest you do some research first
and be clear in your mind what are the pros and cons of buying as opposed to renting..

The market is weak now so its a good time to hunt around for deals..may it be for rent or to buy

You have to bear in mind that your first purchase will most likely not be your forever home so don't go
overboard with the reno expenditure..

if you plan to rent out the other rooms make sure its in an area where there is a demand for it - so
walking distance to lrt/mrt would be ideal but in a good neighbourhood

I noted your remarks about not wanting the bank to earn the interest if you were to take a loan - do learn
about leveraging first and understand the concept so that you could maximize the return on your $$$
by investing wisely

With those normal investment with Roi below 10% the profit that they yield is similar to what a bank interest would cost me and there is further risk associated to such investment .


Thanks a lot will look into different stuff and find it out. Right now too many suggestion from the elder generation about sublet method hence my thought . But I always felt buying a house directly is such a major transaction

Thank you so much for your detailed break down! Yea indeed .

As of now is it a safer assumption to purchase a house if I have the ability and cash flow for it? I understand that most people have not commit into House due to insufficient fund or does not have sufficient emergency fund in case mortgage fails etc..

Would it be a good idea to buy it now? Will be having a salary of around 4-5k as a fresh grad in few months and being free from any financial liabilities (no car loan , no house loan ) while fulfilling the basic needs of every worker would be my priority .

I decided to gave up on my current lucrative crypto investment as it will take too much time when I start working as it’s been going on downhill with unpleasable ROI.

Is there any particular website or forum suggestion to have more understanding on practical / theory knowledge for property etc? This includes information of newest propert update , info etc. Lowyat seemed lacklustre to me and other web info that I been browsing always give really generic advice that have no practical usage .

Distance near public transport and Reno tips have been in my mind beforehand but regardless really appreciate such tips and in fact these are the tips and advice unneeded as it cover various real life PRACTICLA SCENARIO .

Any more info about leveraging and other method of investment ? Tbh the normal bond / stock investment is not too my liking as of now as I am currently not in Malaysia and I do not have excess income from my job to create any substantial profit return . What I only have now is my half a million cash which I have accumulated throughout these years .
Then again I am really young - only graduating soon therefore I don’t have broad knowledge on other field. I decided to give up on my expertise of crypto investment as it take too much time and would jeopardise my job prospect which required inhumane working hours (up to 12 hours everyday)

All my questions are not in chronological order as I am replying on my phone ( just typing out whatever question I have) thank you so much !

Yea I am pretty sure I can’t get a mortgage and I would not like to have any additional monthly financial liabilities being tied to myself for sure . Hence I am curious if I should buy property straight away as I have the liquid asset to do so.

Unless your parents are financing your purchase, rent. Rental market is low and getting lower.

Your job has just started and you don't want to get tied down to financial obligations that can hold you down for years. You are likely going to change jobs or even move to a different field, maybe something that can pay better.

The more loans you have to pay off, the less flexible you will be with your future. And remember that while property generally doesn't drop, it's also an illiquid form of investment that can be hard to convert into money you can use.

There are other investment methods that are more liquid and can give decent returns.

Of course, if you have your family's financial backing, then that solves a big part of your problem.

I guess this sums up everything.
There is needless to rush, take your time to survey around before making any decision.

It is not like currently property is "hot" and price will escalate next week or next month if no decision is made now.

Having 500K cash, even put in bank, you have extra 20K pa.
Cashflow +20K, while 500K capital enable one to invest or as business start up capital or doing whatever.

Dump 500K into property and tight with, it is pretty sure the the likelyhood of -cashflow pa. until one sells it.

Also, please do not assume every property must make a profit.
If bought wrongly, one can "stuck" with it for long period of time.
That's why it is advisable take sometimes to survey and familiar with property market.
Not every property is the same.

Thank you!

Rent first and buy later after you have built and established your portfolio. Unless you have FAMA sponsorship, than by all means go ahead and buy now.

The best time to buy is always yesterday