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 Need some advice on loan tenure

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TSiqlas
post Oct 13 2020, 10:47 PM, updated 6y ago

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Im planning to buy a rm 280k 3 bedroom 2 bathroom condo early of 2021.
I need some advice in term of which route to take in term of payment.
Let say im having around rm100k of cash/liquid asset.
1 low cost apartment with market value of around rm150k. Rental would be around rm 700 per month.
Below are some of the payment route that im thinking off:

1) pay 10% down + 30 year loan. Instalment are covered by renting out the apartment+ one of the room for the condominium.

2) pay 10% down + 10 year loan. Instalment are covered by renting out the apartment+ one of the room for the condominium+ topping up some of my money.

3) pay 10% down + 30 year loan. Sell the apartment + using my cash equivelant paying off more than what the installment actually needs.

4) is it worth to take a markup loan?

Im more incline towards finish off debt as soon as possible and use the net income to invest in etf such as stashaway personally.
Need some external opinion input in term of pros and cons so that i wont screw up this major purchase.

This post has been edited by iqlas: Oct 13 2020, 10:48 PM
CHIP CN
post Oct 13 2020, 11:02 PM

Tuned by CHIP CN
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Taruk down payment kaw2....
Zwean
post Oct 13 2020, 11:48 PM

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QUOTE(iqlas @ Oct 13 2020, 10:47 PM)
Im planning to buy a rm 280k 3 bedroom 2 bathroom condo early of 2021.
I need some advice in term of which route to take in term of payment.
Let say im having around rm100k of cash/liquid asset.
1  low cost apartment with market value of around rm150k. Rental would be around rm 700 per month.
Below are some of the payment  route that im thinking off:

1) pay 10% down + 30 year loan. Instalment are covered by renting out the apartment+ one of the room for the condominium.

2) pay 10% down + 10 year loan. Instalment are covered by renting out the apartment+ one of the room for the condominium+ topping up some of my money.

3) pay 10% down + 30 year loan. Sell the apartment + using my cash equivelant paying off more than what the installment actually needs.

4) is it worth to take a markup loan?

Im more incline towards finish off debt as soon as possible and use the net income to invest in etf such as stashaway personally.
Need some external opinion input in term of pros and cons so that i wont screw up this major purchase.
*
Take up as much loan as possible.

Cash is king.

This post has been edited by Zwean: Oct 13 2020, 11:58 PM
mini orchard
post Oct 14 2020, 06:15 AM

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QUOTE(iqlas @ Oct 13 2020, 10:47 PM)
Im planning to buy a rm 280k 3 bedroom 2 bathroom condo early of 2021.
I need some advice in term of which route to take in term of payment.
Let say im having around rm100k of cash/liquid asset.
1  low cost apartment with market value of around rm150k. Rental would be around rm 700 per month.
Below are some of the payment  route that im thinking off:

1) pay 10% down + 30 year loan. Instalment are covered by renting out the apartment+ one of the room for the condominium.

2) pay 10% down + 10 year loan. Instalment are covered by renting out the apartment+ one of the room for the condominium+ topping up some of my money.

3) pay 10% down + 30 year loan. Sell the apartment + using my cash equivelant paying off more than what the installment actually needs.

4) is it worth to take a markup loan?

Im more incline towards finish off debt as soon as possible and use the net income to invest in etf such as stashaway personally.
Need some external opinion input in term of pros and cons so that i wont screw up this major purchase.
*
Monthly rental EQUAL monthly loan installment ... that is the amount of loan required.

If you can beat the bank system, markup loan is not illegal.

If you are incline towards finish off debt earlier, shorten the loan tenure and not necessary the loan amount depending on your monthly cashflow.
a16791
post Oct 14 2020, 01:34 PM

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QUOTE(iqlas @ Oct 13 2020, 10:47 PM)
Im planning to buy a rm 280k 3 bedroom 2 bathroom condo early of 2021.
I need some advice in term of which route to take in term of payment.
Let say im having around rm100k of cash/liquid asset.
1  low cost apartment with market value of around rm150k. Rental would be around rm 700 per month.
Below are some of the payment  route that im thinking off:

1) pay 10% down + 30 year loan. Instalment are covered by renting out the apartment+ one of the room for the condominium.

2) pay 10% down + 10 year loan. Instalment are covered by renting out the apartment+ one of the room for the condominium+ topping up some of my money.

3) pay 10% down + 30 year loan. Sell the apartment + using my cash equivelant paying off more than what the installment actually needs.

4) is it worth to take a markup loan?

Im more incline towards finish off debt as soon as possible and use the net income to invest in etf such as stashaway personally.
Need some external opinion input in term of pros and cons so that i wont screw up this major purchase.
*
The apartment fully paid up ? If it's fully paid up than should refinance the apartment as the first step becos you are paying full tax on the Rm 8,400 rental income . Than second step only think how you plan to finance your 280k purchase . With Flexi loan you dont have to worry about whether to take 30 years or 10 years loan . Just take the maximum tenure you are Able to obtain .
mini orchard
post Oct 14 2020, 02:08 PM

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QUOTE(a16791 @ Oct 14 2020, 01:34 PM)
The apartment fully paid up ? If it's fully paid up than should refinance the apartment as the first step becos you are paying full tax on the Rm 8,400 rental income . Than second step only think how you plan to finance your 280k purchase . With Flexi loan you dont have to worry about whether to take 30 years or 10 years loan . Just take the maximum tenure you are Able to obtain .
*
??? Read below ..

QUOTE(iqlas @ Oct 13 2020, 10:47 PM)
Im planning to buy a rm 280k 3 bedroom 2 bathroom condo early of 2021.
I need some advice in term of which route to take in term of payment.
*
This post has been edited by mini orchard: Oct 14 2020, 02:09 PM
TSiqlas
post Oct 14 2020, 06:54 PM

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QUOTE(a16791 @ Oct 14 2020, 01:34 PM)
The apartment fully paid up ? If it's fully paid up than should refinance the apartment as the first step becos you are paying full tax on the Rm 8,400 rental income . Than second step only think how you plan to finance your 280k purchase . With Flexi loan you dont have to worry about whether to take 30 years or 10 years loan . Just take the maximum tenure you are Able to obtain .
*
Yup, the apartment is fully paid up. Thank you for your input
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