I & my 2 sisters contribute MYR 800 each into our joint bank account every month as we are planning to get a house @ MYR 300k once our savings have accumulated to MYR 90K which takes approximately 3 years to do so as we do not want to rush into buying a house & having trouble for repayment later should anyone of us get out of job unexpectantly .

Question is should we prolong our saving duration into 6 years then only consider buying a MYR 300K house ? Your opinions are much appreciated .

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This post has been edited by kok_hui: Nov 2 2007, 03:16 PM

Thanks Kok Hui . We have the thought of giving our parents the best , us sisters are still young & very close & understanding . We have been pondering whether to get a house together or seperately but still keep coming back to the conclusion that we need a bigger house for our parents & brothers & sisters .

if possible, buy it earlier... the longer you wait, the less value your money has... with the construction material increasing at 10-20%... 6 years later you won't even get a small condo with RM300k...

then again... location is a major factor... if you don't mind traveling, passing tolls, high petrol bills, you can always go for properties out of the city... these that mentioned are quite out... rawang, seremban, nilai... which i personally don't see the point...

getting a house together will potentially lead to problems in future because all of you will lead your own lives and have different lifestyles and commitments along the way...

heh , we are from Seremban . And regarding getting a house together , we would like to do the full repayment as soon as possible if things do work out eventually .

that's even better, i'm sure you can get a decent Semi-D with RM300K

well, if all 3 of you cooperate and dump in your bonuses for 5 years, most probably your loan is pretty much done by then

be careful of the lock-in periods of mortgage loans though... in general, these loans come with a 5 year lock-in period, if you do an early redemption, the bank will charge you a penalty... i think its 3% of the remaining loan balance...

Yeap , aiming for a Semi-D ..will only go for house hunting when we've saved enough . Need to do some calculation & tighen up our belts .

i recommend that you do some light research now as looking for a property is different from buying vegetables from the market

this way you have better options, keep track of the current and future developments around the area that you are interested in, also the price of the existing houses, what's the selling price now and a year later... then you can decide whether you want to get from developer or from secondary market...

simchi,

1) Keep on saving money.

2) Do research on where you want to live.

3) Keep a close watch on the selling price of the house.

4) Wait for a recession. There will be one within the next 6 years and housing price will collapse. Buy one when you find a good bargain at the place that you want to stay.

This is like shopping.

Dreamer

Dreamer101 , how could you predict there's a recession coming within the next 6 years ? Sorry for being a marketing noob . If there;s one coming in the way I guess I would save up more money and get a much lower , decent loan .

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This post has been edited by kok_hui: Nov 2 2007, 03:15 PM

i agree with dreamer on keep saving money n dump in as much cash as posible to buy house rather than take high loan..

2 n 3 are standard MUST do..

4. i m not good in analysing at wat is gonna happen next , but i oso has the feeling of recession in 5-10yrs time, it had happened in the past few decades , every 10-13 yrs cycle.... the last one tht hit us was 1997 , strong bull in early 1990s , look at our share market this few weeks...
just 2cents...

house first, car also can.

wat kinda post is this?

All,

1) Let me ask you a simple reverse question: what makes you think we WILL NOT have a recession in the next 6 years??

2) Malaysia will be a NET OIL IMPORTER in 2010 to 2012. So, no money for MEGA project.

3) Look around you. Can you see any grow or possibility of grow around you.

4) I smell a recession coming. It will happen probably after GE.

If a person has unlimited money, a person can do whatever they want. The 3 largest purchases in a person's life is car, house and higher education. Everything is negotiable. If you buy a house earlier by a few months but pay 30K to 50K extra, is it worth it?? On the other hand, you pay too much and find a bad house, you will be paying forever.

House is a very large purchase. Shop around and find the best deal.

Dreamer

one won't be able to predict recession...
just take it as a safety precaution as whenever there's a recession, there's an abnormal surge in the stock market, something similar to what's happening currently...
look at the Shanghai and Dow Jones' index... i guess it won't be so soon but like what Dreamer101 said, most probably it will happen in the next few years... who knows?

I think recession most probably will hit within few years. Yes, you cannot predict recession but statistic don't lies, so it will hit more or less in a cycle.
BTW as far as I remember, during recession time you will not get a lower rate as the BLR gets higher.
Currently BLR is 6.75% while in history the lowest was 6.00% so BLR will only goes up but not down.

My point of view
If Recession happen, Loan Rate go up.
House price will remain unless go for desperate seller.

It will only benefit to those cash rich buyer, which including investor.

All ,
Your inputs are very much appreciated . Guess what is essential now is to continue to save til a certain amount . Yeap , probably will look high & low for the almost perfect house soon . These take time

I've slightly diff opinion though :

Btw, if u r getting a fixed rate loan, get as max loan as possible. I believe in "opportunity-cost", plus cash is KING. U never know when u might need it

This post has been edited by Pai: Aug 28 2007, 01:53 PM