Dear all,

Appreciate if you could advise.. I wanted to own my very first house, with my income and commitment below, how much price of property or loan that I can get from bank?

Some basic about me - 30 years old, live with parents, single not yet married (planning soon)

My gross salary is 4.8K + 300 Fuel Allowance

Commitment:
1) Car Loan - 660
2) PTPTN - 410
3) Health Insurance - 150
4) Mobile - 90
5) Mom - 100

I have saving less than 20K at the moment / EPF Account 2 - 18K

Any idea how much can I afford? and what type of house (Land, Condo etc) if you have any property suggestion that would be great too!

Thank you.

Ps : I live in Shah Alam with my parents, I work at PJ area.

This post has been edited by blurbur: Jun 15 2020, 02:40 PM

Must know the monthly maintenance for the house... bills, indahwater, cukai tanah, cukai pintu, fire insurance, etc.

I had my 1st house when around ur salary range... 480k house + papakasi Rm100k.... I buy landed... now quite ok after salary raise few years on...
*Edited on the house price..

This post has been edited by popopi: Jun 15 2020, 02:29 PM

It really depends on where are you located bro. I would advise to buy mid-cost apartment (ground floor), and stay for few years. When you have more stable income, then only look for landed. 5k salary might be enough at rural/suburbs, but in big cities like KL, PJ, Klang Valley, you may need 10k for landed house.

Papa so rich, can he become my papa too? Haha

Anyways, any idea what is the range of properties that I should be looking for?

Sorry forgot to mention, I live in Shah Alam with my parents, I work at PJ area.

Any idea what is the range of properties that I should be looking for?

LOL~ papa help is final time adee.. no more papakasi after that...

For me I looking for freehold... condo need to pay additional maintenance fee, same for guarded landed house.
up to your preference.

would suggest not go for anything above 400k. landed or high rise depends on your preference. but high rise has a monthly maintain cost so that will add up your commitment too. its not fun to have a 30 years monthly loan commitment if it takes up most of your salary, especially for own stay since you cant just sell it in urgent time.

rule of thumb (but don't follow religiously):

monthly loan repayment = 10-15% of your nett salary...

This post has been edited by lyc1982: Jun 15 2020, 02:44 PM

Every property can be sold at any time, .... price matters only.

you will pay alone or tgt with ur gf/wife

This post has been edited by cryheart: Jun 15 2020, 04:12 PM

I suggest go for RUMAWIP or affordable housing scheme.

When I was near 30, my pay around RM5k and bought a RUMAWIP in KL.

So definitely possible to do so depending on type of house. Afterall, first house right unless you prefer other than apartment.

As compared to TS, I do not have a car loan and PTPTN. I also did not travel at all to save up more than what you currently had. Bought one after 5 years; first job in audit (pay is LOW @ RM2.1K) for 2 years before jumping to second job.

Most probably by myself...

150k-200k

if you want to maximize, will be below 500k.
but i would suggest you to go rumahwip or rumah selangorku, to lower your commitment.

pmed you the property i have. you may consider it.

go for affordable housing scheme like rumahwip, rumah selangorku or aset kayamas project, wont be the best still acceptable

best to discuss with her

For your first house, I’ll suggest you to go for rumawip.

Based on your salary and a DSR ratio of 70%, you should be able to loan up to 300-400k. RUMAWIP starts at 300k so you can definitely afford one.

The only problem is you have to cough up at least 15% for down payment and legal fee, which is around 45k. Based on your saving is definitely not enough. You can probably ask your family for help.

Also based on your age you should have saved more for your future house. And you are staying with your family it should be quite easy to save? Not to mention you only give rm100 to your mom every month which i think should be more 🤔

First of all, you need to know your debt service ratio. (DSR)
According to the given information, here is your DSR

DSR = Commitment / Net Income

Commitment = Car Loan + PTPTN = 660 + 410 = 1070
Net Income = (4800 - 12% for KWSP & SOCSO) + 300 Allowance = 4524

Your current DSR before buying a new home is
DSR = 1070 / 4524 * 100% = 23.65%

Normally banks will accept the application up to 70% DSR, or to play safe, let us 60% as the benchmark.
60% DSR = 4524 * 60% = 2714
Which means that the monthly mortgage repayment that you are eligible is
2714 - 1070 = 1644

Layman term, base on the given info, you could choose to purchase a property priced at RM425, 000.
Base on 90% loan, your loan amount is RM 352,500
Loan Tenure is 35 years;
Estimate interest rate is 3.7% (This is very conservative interest rate that offers by major banks now)
Estimate monthly mortgage repayment RM 1625.50

It is very subjective to give you a suggestion on what type of property you should buy.

If you are the first-time homebuyer, you may take advantages on the government affordable home scheme like other suggested.

If you do not prefer to buy the government affordable home programs then you could either buy from new housing development from the developer or sub-sale property.

The advantages of buying new housing development from the developer are the majority of them offer low or zero down-payment package, free legal fees and so on. However, during the construction period, there is a progressive interest that you need to pay.

If you are buying a sub-sale property, I will suggest you prepare at least 15% of property price - 10% pay for down-payment while 5% pay for legal fees, stamp duty, valuation fees and so on.

Well, it is back to you.

As an agent focus in Shah Alam area, I would like to share with you that there are many options available to you.

Just spend your time on research and you will find your dream home soon. Cheers!!

Hey! Thank you very much for the calculations. Now I can see and plan better. Cheers man!

Thank you Sir for the advise. Will ensure to use it in making the decision. Cheers!