Hi everyone here...

I need the advice from all of you !

Just give a example... If i want to buy RM 165k new development house...The house will be finish on 2009..

U think that, how much on hand cash i need if i want to pay rm 10% ...

at least 16k++

my God... how do you even dare buy a house with this kind of knowledge

by the way how old are you? 10% of 165k = 16.5k

you might want to include another 5% (a bit on the high side) for loan docs and legal fees...

do yourself a favour and read more before attempting this...

There is a chance such a cheap hse will end up not being completed . . there have been cases where development cease and the buildings are left half completed . .

Even in prominent areas like Taman Tun Dr Ismail have probs like this . Tink twice b4 doing anything rash . =D

10% down = RM16.5k


Below are the amount of money that i paid during the time i bot my house. yours should be cheaper because my house is about 125k more expensive than yours. anyway, just for your reference.

S&P lawyer fee +stamp+etc = RM5k (some of the lawyers give discount but most do not. spend some time on this and u can save lots of money)

bank loan lawyer =RM4k (u can ask the bank to pay for this, depends on which bank u go for. as what i know, citibank and alliance does)

insurance for the house < RM1k/year (depends on the value of your house, not including the land)

then u need to spare out more than 20k for the furniture and others, not including renovation.

This post has been edited by lee0125: Sep 17 2007, 05:24 PM

Very good that you asked us.

-One-
What is it?: The 10% downpayment
How much?: 16.5K
When do I pay?: You pay in two parts. First part is when you place booking for the property (a few thousand usually) and the second part, upon signing of SPA.

-Two-
What is it?: SPA legal fees
How much?: Typically a few thousand (there's a formula, I don't have it)
When do I pay? Most of the developer absorb it for you. If not, you'll pay when you sign your SPA copy.

-Three-
What is it? Bank loan legal fees
How much? Typically a few thousand as well
When do I pay? Practically all banks will let you decide if you want to absorb this yourself or let the bank absorb for you. The difference is the bank will change you more interest if they absorb it for you.

-Four-
What is it? Montly bank installment (obvious)
How much? For your case, should be around RM750 (rough estimate) a month if you took a 30 year loan.
When do I pay? Every month

These 4 is what you need to make the house your home. After it's yours, you'll need to upkeep it and that'll include insurance, Gov assessments, etc.

if my on hand cash is rm 20k...is that alright for me to apply the loan?!

wat matters in loan application is ur income not cash in hand....

cash on hand plays a part but the main thing the bank would want to see is that you can pay back the loan with your monthly income... basic rule:
installment = 1/3 of salary

of course depends on the bank, some want to see gross income, some net income... check around...

jane98209,

Lee0125 have graciously list out all the expenses for you.

1) So, the bottom line is you need at least 30K to 40K to afford the house. Can you get that much by 2009?/

2) Beyond that, you need at least 6 months worth expense in savings so that you do not lose your house if you have any kind of emergency.

Dreamer

6 months expenses?!

okok....I understand on it...

15% of the purchase price and if got renovation then it will be 20% include renovation cost, shifting cost and etc etc.