Dec 14 2019, 12:28 AM
QUOTE(timidandslow @ Dec 4 2019, 05:23 PM)
currently i have rm200k sitting in FD. i am planning to buy property which costs rm400k for investment.
my question is , should i take a 50% loan and use my FD to pay 50% downpayment?
or , take a 90% flexi loan then move my FD into the mortgage to reduce the interest payable ?
--- edit ---
my general understanding is that , of course its better to take the minimum loan possible or no loan at all when buying a property . just pay cash if possible. in this scenario i forego the 4-5% annual returns that my funds are generating. but i skip the mortgage interest, valuer fee, legal fee, mrta.
of course i run the small risk of lhdn raising questions
200k isn't much... You'll go thru this fast if u spend...my question is , should i take a 50% loan and use my FD to pay 50% downpayment?
or , take a 90% flexi loan then move my FD into the mortgage to reduce the interest payable ?
--- edit ---
my general understanding is that , of course its better to take the minimum loan possible or no loan at all when buying a property . just pay cash if possible. in this scenario i forego the 4-5% annual returns that my funds are generating. but i skip the mortgage interest, valuer fee, legal fee, mrta.
of course i run the small risk of lhdn raising questions
1) Basically ask yourself is your FD interest rate higher
Then your borrowings interest then the bank?
Obviously it isn't or banks would be bankrupt loan sharks and this scenario never happens.
2nd scenario
2) Do you have any vehicle that can bring in higher interest per annum then the bank mortgage interest, yes? Then invest @ chunk of percentage in that and service the monthly installments.
3rd scenario
3) You answered one and your at a dead end... You answered your own question. Put 150k down and 50k for lawyer, stamping and furniture....
Quote
0.0495sec
1.74
7 queries
GZIP Disabled