no current installment/cash in hand, im still a first year uni student lol
just curious and wanted to know about how much commitment it usually takes to finance a house, so that next time when come out working life wont be so clueless and susah payah.

Very broadly speaking, to calculate conservatively:

Keep home loan instalment amount less than 1/3 of your gross salary, and keep total debts (including PTPTN, credit card, car etc) less than 50% of gross salary.

Minimise loan tenure and loan margin to reduce total interest paid to bank, while maintaining the debt ratio above.

A minimum 10% cash on hand is required (some new launches "waive" this by giving discount/rebate, but mind you that the high loan margin means long term interest payment can easily cost you more than that 10% in cash), especially for subsale homes.

However, bear in mind lifestyle costs also, and maintenance of home (electricity, repairs, maintenance fees, quit rent + assessment fees etc.).

There's a reason why people always push RUMAWIP/RSKU as first house purchase, because of the low upfront costs and maintenance, given Malaysia's low median salary. First homes are also rarely going to be your lifetime/final home (as job and lifestyle may cause you to move or require smaller/bigger space), so don't be too ambitious.

take property price 500k, installment + misc cost (tax, maintenance, electric water etc). There is a commitment of rm2500 monthly. so 5k salary should be ok provided u are thrifty enough (no car no children). i would suggest, buy where you invest, rent where u stay... so u will look for best suit property than can rent out/sell out instead of overspend on own stay home... from the rental income can enable for to buy more houses in future...

This post has been edited by Sakurako: Mar 1 2022, 01:03 PM

Good to get yourself ready, but meantime need to get yourself a good job/ career... often a career enable you a decent living but not luxury house, so do your own strategy. a tips: best don't buy a car once graduate unless necessary, if car is a must then buy the entry level car not vios lah, civic lah etc. u will understand once u have worked for 5 to 10 years later

with 2k house loan
I would say 6k nett salary with no other loans on hand

Bank loan guidelines are based on everything maximum.

If margin of financing is like 70%, shorter loan tenure and type of property, a lower salary threshold is not an issue. The bank will weigh the risk of % recovery b4 approving.

If borrower leaves all to the bank to take risk, chances of rejection is high.

That why some forumers mentioned they are able to get a loan with a lower salary.

Go the Economy Faculty within your university, check if the Economy Faculty of your university is offering any Personal Finance Elective Course, enroll into that class. They will give you the real process of how to do purchase your house from location selection & financing + things to take into considerations.

Prior to Covid, The Edge Property regularly conduct free seminars for public on many topics. All speakers are industry experts in their own rights.

Have lucky draw .... once was a free Axia, free makan in hotels and souvenirs .... past property magazines etc.

Now all zoom.... sad. Missed those days.

i bought undercon house with 570k loan, salary at 6.2k gross.

married with 1 kid, very hard to survive paying both rental & progressive interest,

Now new job 8k salary, more comfortable,

so i say 8k gross if u have family, 6k gross if single

This post has been edited by cruelfacex: Mar 1 2022, 05:26 PM

How long to reach 8k salary ?

Honestly, if you have 8k then, would you buy that property or a 'better' property ? Maybe bigger build-up ? Better view ? Higher floor ? Corner unit ? Or another location ?

This post has been edited by mini orchard: Mar 1 2022, 06:11 PM

just want to point out that while malaysian property generally remains out of reach for the low-mid class, rental rates are dirt cheap. makes far more sense to rent nowadays. go buy overseas if really want some brick and mortar in the portfolio...

So true. You can rent nicer condos at lower middle level rental.

Agree to this. Its basically 1/3 rule of thumb like the other forumer mentioned in previous posts

This post has been edited by hustlerism: Mar 1 2022, 07:54 PM

I do agree with 1/3 the nett salary for house mortgage. This is for comfortability in money spending. But honestly, how many percentage of people do follow that standard?

I myself will make it gross instead while ensuring that I do need to keep myself in check on not to purchase unnecessary stuff. And in 2-3 years time to achieve that nett salary instead, must achieve that goal. My rule of thumb is not perfect but to each their own

took about 1 year, decided to jump company for better salary as i cant cope with current salary, if i had 8k salary at that time maybe i bought type C 1300sqft(4bedroom) instead of type B 1000sqft (3 bedroom). Price difference is about 100k.

if i bought the bigger unit then maybe i still cannot survive with 8k.

Higher salary higher commitments.

Its a rat race.

Exactly.

Then have to work harder to reach 10k.

Is normal buyers decision because we cannot always afford to sell and buy again like a 10k asset and the next capital commitment will be higher and family expenses also increase.

This post has been edited by mini orchard: Mar 1 2022, 08:38 PM

Not everyone can buy properties overseas. And is not something that is listed in ebay ... click buy and charge to CC.

Dont have to compare overseas. If one is in JB, to buy a property in Penang is not simple.

If people stop buying or just rent only, how do one intend to liquidated the property even if is overseas. One cannot hug it to grave.

People buy for various reasons. High price and cheap rent should not be the reasons people stop buying as long the purchase is not a burden but manageable and the reason to buy is because of personal reasons rather than not to buy because rent is cheaper.

If every decision in life is financial, nobody would go for holidays. Everyone will stay home and watch Utube and eat popcorn.

This post has been edited by mini orchard: Mar 2 2022, 07:37 AM

If to buy for investment and rent out immediately.
For exact 2K loan, i would say 5K probably is good also.
Do take income tax deduction into account.

Buying New house (House/condo to be build) is more tricky, where we pay installment incrementally and getting nothing in return for 2-3 years.
Then you need to reserve a bit la

This post has been edited by taitianhin: Mar 1 2022, 10:05 PM

bought my first property when my basic salary was RM1.6k.
installment was RM688 monthly if i remember correctly.
the huge downpayment was combination of own saving plus soft loan from family.
super frugal. driving a motorcycle and property close to completion. immediately post completion move in saved on rental and also lease out the rooms.