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Household Thoughts on Buying First Property, Some advice for a young adult

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wilson1149
post Jul 1 2022, 10:45 AM

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QUOTE(Timmy Tan @ Jun 30 2022, 10:33 AM)
For your salary of RM3.5k nett, you will not be entitled for loan installment of RM2k. Max DSR I have seen for that salary range is 50%, which means max installment of RM1.75k and max loan of ~RM400k (assuming interest will normalise to 4%). Unlikely for you to be able to afford the 3 properties listed unless you can come out with a big down payment.

And don't buy property with the intention of staying in it 10 years down the road. A lot will happen to your life and you might not like that place anymore. If you overspent on this property and the renovation, you will most likely be subsidising your tenant for the foreseeable future.

If you intend to be in property investment for the long run, your first property is very very important. Get something affordable at a good location that can cover your installment or at the very least, the interest portion. Banks will recognise your rental income as an income, which means you can continue to buy more property once the first one is rented out. If you screw up your first one, you will be out of the game for a very long time.
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Max DSR can go up to 70% for bank approval.
But of course for healthy DSR should around 50%
wilson1149
post Jul 1 2022, 10:50 AM

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QUOTE(victorian @ Jun 29 2022, 07:38 PM)
Don’t waste your quota smile.gif

Many people want to buy second one also can’t
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Pros & cons

Quality of neighbour
Management
Resell value
Location
Very limited unit
victorian
post Jul 1 2022, 10:56 AM

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QUOTE(wilson1149 @ Jul 1 2022, 10:50 AM)
Pros & cons

Quality of neighbour
Management
Resell value
Location
Very limited unit
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Still, for first house it is the best choice.

Why play in the open market where you have to compete with so many sharks?
kens88`
post Jul 1 2022, 10:59 AM

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dont have to convince yourself or k/tards here.

Have to convince bank and loan officer
wilson1149
post Jul 1 2022, 11:01 AM

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QUOTE(victorian @ Jul 1 2022, 10:56 AM)
Still, for first house it is the best choice.

Why play in the open market where you have to compete with so many sharks?
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Less sharks edi as OPR naik 😆

Good timing now for those who want to buy first house.

This post has been edited by wilson1149: Jul 1 2022, 11:05 AM
Timmy Tan
post Jul 1 2022, 12:14 PM

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QUOTE(wilson1149 @ Jul 1 2022, 10:45 AM)
Max DSR can go up to 70% for bank approval.
But of course for healthy DSR should around 50%
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I believe DSR limit is dependent on your income and the bank. My current DSR can go up to 85% because I am earning >RM10k/month. When I was only earning RM5k, a few banks told me they can only accept up to 50% DSR, not sure whether it has changed now.
danielmckey
post Jul 1 2022, 12:21 PM

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Study your ability to buy house.
1. Can cover the long term loan without issue.
2. Check out your income can cover all the taxes, maintenance, etc.
3. You might need to Reno the new house.
Icehart
post Jul 1 2022, 12:33 PM

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How old are you TS? Your age may influence the buying decision due to loan criteria & migration laws.
TSfiffendell P
post Jul 1 2022, 03:11 PM

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QUOTE(Icehart @ Jul 1 2022, 12:33 PM)
How old are you TS? Your age may influence the buying decision due to loan criteria & migration laws.
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I'm 23. I agree with the other posters though, I'll focus on finding strategic locations for investment than own-stay since I might change my mind on where I want to stay in the longer run. Also, see if I can get a loan for them too.

Thanks again everyone, the conversation helped give me tons of perspective and insights on where else to look from. I'll close the thread to not steal commenting time from other topics.

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