I'm considering buying a house in the rm350k-450k range. A little background (financial) about myself

I have a house in KL (inherited) worth rm220-250k.
I have stock investments overseas of around rm150k (I used to work overseas for 8 years, invested when working there)
I have cash savings of around 40-50k

Currently, earn around rm11k but have no (never had) bank commitments - no credit card either. I still have my overseas credit card with the highest tier of credit score ( not sure if it's relevant here)

I used to hear banks prefer to give loans to those who can pay, the stronger the financials, the lower the risk lower the interest.

My objective is to reduce my monthly payments as much as possible. Currently renting in Kempas, JB (for work). I found the service apartments here at a reasonable price (in Kempas, not those danga bay - forest city projects)
My landlord wants to increase my rent by rm400 (from 1300 -> 1700). His excuse, he is on negative cash flow and MY-Singapore's border is now open.
So I thought why not just buy one, the units in these apartments are around the price I mentioned above. Even if I have to go back to KL one day, I can rent it out. Not looking to make a profit but at least those interest/maintenance if can be covered and a small% of the principle, just thinking long term.

So few questions.

1. though I have a house, am I still considered a first-time home buyer? or does it even matter or make any difference?
2. Having no credit history in Malaysia (other than PTPTN, but paid off), will this be a bottleneck for obtaining a lower interest rate or even a loan as a fact?
3. Considering the value of my assets is close to the possible loan amount, can it be used to obtain lower interest rates than what you normally would get?
4. In my current situation, would you have any other strategy to buy home/apply loan i.e get a credit card first?

Would like to know your thought and suggestions. Thank you.

If the house passed to u and registered under ur name u cant get 1st home

Yes no credit score means bank will offer u slightly higher rates

U can use collaterals as proof such as investments or FD to show bank u financially strong and nego abit

If can then get cc and spend 1st

1. No consider as first time buyer

2. Very minimal credit score.. getting CC might help.

3. Your financial looks good.... Like I said... Getting CC helps u...

Get a credit card and start spending with it and paying it on time. Do it for about 6 months, you should have an improved credit score.
You may also open an account with CTOS to track your credit score.

1.No longer first-time home buyer
2. Yes, it will affect, but still have to take into consideration of other factors and for the price of the property that you are gonna buy, this loan amount usually comes with higher rate as well
3. Not really, as mentioned in No.2, this is not a big amount for bank so the rate won't go too low or else they are not profiting, banks are not NGOs for sure
4. Getting a credit card will help but you will have to proceed for another 6 months at least, I thk FD pledge might be a better help if you need it faster, can engage with the bankers of the property that you wanna buy and seek for their advice, they are way more professional and will help you in every way to close the deal

Wish everything smooth for you to get the desired property

1. No longer 1st buyer

2. yes it may affect the rate.

3. you cna try declare to your bank your assets. its all about negotiating with the banker.

4. Aside from CC, some banks may suggest a gurantor, or park x amount of FD for X years.

you can try ask few bank, as diff bank, heck diff bank officer/ branch may do things differently.

This post has been edited by sijun: Apr 7 2023, 10:49 AM

Interesting take regarding the FD pledge, something I will look into.

First thing first. Your current RM11k income is IRAS or LHDN tax assessment? How many years?

Your CDP acc haves, has no bearing in MY loan assessment.

In-lieu of credit history, a fd placement in a local bank can make do. Meantime, just get a CC and maintain it.

If you are serious on this subsale, go ahead. Get in touch with a mortage office, get the valuation, submit your doc for assessment. Just be prepared, for a lower finance margin offer. Worst case, say 80%-70%

I don't think you need to pledge your inherited prop here.

Care to reply on 1st para above?

This post has been edited by jojolicia: Apr 7 2023, 05:56 PM

LHDN.
But when I worked overseas, I was paying tax there, all documents available. Just started working in Malaysia about a year now.

And why the lower margin offer? due to no credit record?

Surely you can furnish your past years oversea tax assessments and the coming lhdn (its apr) + Yr 2022 monthly camuran kwsp statement

Credit and depository history is a factor.

Take it this way. Why should bank leverage in one when one are reluctant to fork up a fraction on his/her own purchase. Where is the commitment in this?

Furthermore, its jb highrise subsale

Approach the loan officer to get a margin offer with your doc, to be sure

This post has been edited by jojolicia: Apr 8 2023, 11:25 AM

Apply for a free for life cc from local bank with low limit (for security) and spend a little each month

I know the jb highrise especially the danga bay, country garden and forest city are pretty bad.
But the one I live in Kempas, I find it very strategic - easy access to plus highway, center to all JB metros (JB, Skudai, Senai, Kulai, Pulai, Tebrau, Sutera) all within 15-20mins
tonnes of shops within walking distance or nearby. Working here I get to know locals don't prefer highrises...yet, therefore, the prices are quite reasonable.
All new landed projects are now minimum 600k, just like in KL/Sgor landed price would go out of hand at some point and people would start looking at highrises.

Not a real estate expert or anything, but living in KL through the 90s and beyond - I've observed how the housing price soared, and the demand between landed and highrises.