Update #1:
Thanks everyone for the feedback. This issue already resulted in multiple confrontations with my mom the past few days, so it is obvious that the house will continue to be a thorn so we decided to cut our losses and back away from the deal. Already obtained 2 other bank loan rejection letters. Now will just try to talk with the agent on how to proceed and see if we can get any amount of the money back.

Update #2:
Once again thanks to all members. I've finally received my deposit back in full. Decided to treat the banker and the agent to a "meal" of appreciation as well as a token even though they never mentioned it. Now I'm viewing two other houses in the same taman, one is quite old but cheap, the other is slightly renovated but slightly over budget
Wish me luck.

Update #3:
My wife and I now decided on another unit in the same taman. The price is 20k+ cheaper while being an end-lot unit. But requires a lot more work for us to be comfortable living in. Thanks for the advises in getting our deposit back as it is much needed now to renovate house up.

Original text:
So some background,
Me and my wife (both 26) have been looking around for a subsale freehold landed house for our own stay in Puchong Jaya for the past 6 months. We plan to set aside a small amount to fix if up then rent it out in the mean time for the next 3 - 5 years before having enough money to renovate it nice2 and moving in with my parents. Our budget is limited (700k) and we have looked at a few options since.

Most are either in front of T-junction (which we don't like) or in front of surau (which we definitely don't like, not to stroke any religious tension but it is just because we value privacy the most. We don't mind the sound of prayers, my old house used to be right beside a metal foundry. It's just we don't like people frequenting in front of us).

So after months of searching we found this place in Pusat Bandar Puchong , it is still in decent shape with both floors partly extended to the back. It is close to a T-junction but not directly in front so it is okay; we have to be realistic with our budget. In front of the house is an empty land so we love the privacy at that point. We both loved the house, the asking price was exactly 700k. We didn't give much thought and offered 695k. A 3% deposit was paid soon after with the confirmation contract signed.

So me being an excited new house owner, I spent the whole night afterwards researching the area. It was then I realised MBSJ shares development plans of lands, and to my shock the empty plot of land in front of the unit I just reserved has plans to build a surau. I called up Majlis Perancang MBSJ to double confirm, and it is all but confirmed, they are just waiting for the budget to build it. Even the Malay officer was cautioning me, asking if I'm okay with music everyday (which I don't mind) and parking issues + people (which I mind a lot).

I read my confirmation contract terms. Basically I can only get my deposit back if
1. Seller backs out
2. I cannot get 90% loan approval with minimum 2 loan rejection letters

Sadly as of writing, one bank approved my 90% loan, another gave a rejection. I am not sure what to do at this point, my parents are the ones that pay the downpayment while me and my wife will pay for the legal fees, stamp duties etc as well as fixing up the house. I told my parents I want to just burn the 3% deposit (21k) as I rather burn the money than headache worrying about the surau, then headache trying to sell it 6 years later and headache again looking for a same landed house in the same general area.

My calculations:
Purchase price = 695k
Downpayment 70k + all purchase fees 36k = 106k
Estimated fixing up cost = 40k
Loan repayment after 6 years = estimated 200k
Rental earnings after 6 years = estimated 110k
Total cost of ownership = 106k + 40k + 200k - 110k = 236k so let's round it to 240k

If decide to sell after 6 years
Puchong capital gain of 3.2% a year, hence selling price = 850k
Agent 3% fee = 25.5k
Principal sum on loan remaining after 6 years = 560k
Earning by selling = 260k

Nett earning after 6 years = 260k - 240k = 20k

But I also need to account for factors that my house will decrease in value once the surau is built. And my end goal is to own a 2 storey landed house with privacy in the same area of Puchong. So I'm quite sure I will lose relative value since I will definitely need to top up for the new house. I hate treating housing as an investment because it goes against my own moral code, I earn my money from my skills, stocks, side ventures, but it disgusts me to treat the essential need of shelter as an investment. But I understand that's the way of the world so I'll just suck this one up.

I expressed my desire to forfeit the deposit with my mom and pay her back ourselves, I calculated it will set me and my wife back for 6 months if putting into account the 3.2% annual house price increase, set us back a year at most. To me and my wife it is better than being committed to 6 years for a house we don't like anymore because of the surau planned, instead of money we both can save up in less than 6 months.

But my mom is saying to just think positive and we are too young to think that money comes so easily. What's done is done. Just treat it as saving money. But I told her I can use that money to invest instead but she's still coaxing me to think otherwise. Basically... I just want advice whether my way of thinking is correct? That I should stand firm to burn the deposit and treat it as lesson learned? Or listen to my mom and buy a house we don't like...

This post has been edited by holynoob: Mar 1 2024, 02:45 PM

How you found the house? agent?
earning calculation is not.. realistic? 20k after 6 years worth? ROI how many %
lastly you already have the answer to burn it. dont let asian parent ruin you life. think positive in front of reality?

This post has been edited by JungWoo: Sep 21 2023, 10:12 AM

if "just" surau, it wont have so many people + cars, should be ok. but if masjid / mosque then yes, friday noon 1230-2pm and everyday 7pm-9pm will be a lot of people + cars (friday noon will be extra bikes too).

the loan, u apply it personally or via the agent?

if personal, just show the rejected offer so can get back the deposit.
but if via agent, he/she will know there is another bank approved. try negotiate with agent for refund, at least wont burn 100%

The one that rejected I applied personally. The one that approved was through the agent

just show ur rejected offer and said u prefer the rejected bank and not prefer the approved 1. prefer coz salary credited there, rate is lower, etc.

but if the approved bank is ur credited salary bank, quite difficult

I'm not sure if I'm calculating it correctly. I'm just calculating by the cost I incurred over 6 years vs the gain I obtained after 6 years. 🫠 Earning 20k after 6 years is not worth it for me la with the headache that comes from renting and feeling bad about a monthly repayment for a house we don't like.

Found the agent on EdgeProp btw. Was just looking for houses online.

This post has been edited by holynoob: Sep 21 2023, 10:23 AM

I see, is that possible? I can just show two rejection letters even though I already have another bank by the agent approved it. And yeah, the one that rejected is my salary bank.

well, u can try

Oh to add on, I asked MBSJ. It will just be a surau. For context of the area, there is a masjid 1km away, and another surau completed just 600m away. There is another surau planned another 1km away.

Is it true surau won't have much traffic? It also depends on the association running the place? Some surau I see are super active with always lots of people. Like the one in Taman Merak, Puchong Jaya

This post has been edited by holynoob: Sep 21 2023, 10:28 AM

if it was me, living with a heart ache is hell. not worth 21K. try to get your refund, otherwise to hell with it. trust me you will get your money's worth in other ways. your health could be excellent, you and your wife may have an excellent relationship, you could have a perfectly healthy child....etc. dont dont dont live with a heart ache.... it can ruin your marriage or your health!

I stop reading at projected earning only 20k


Not seem the hassle also likely a lot of hidden cost or repairs that you may need to bear

I not sure if its possible to talk to the agent or owner to see if you burn the deposit but they might be kind enough to just cut 1 or 2 % .
It depends on them but worth trying as last resort.

If you are not set with the house then you should consider to forfeit the deposit.

Exactly, that's what I tried to reason with my mom. Me and my wife also went in full knowing it was never supposed to be an investment, it doesn't earn much both in rental or capital gain. We already set aside other money into stocks, FD and self-development.

We just want a nice tranquil place to stay when my parents retire to help raise our kids as both me and my wife work.

This post has been edited by holynoob: Sep 21 2023, 11:15 AM

sorry to hear about TS situation.

The deposits is to secure interests of all parties involved, so is a fair price to pay if you wish to withdraw..
you have solid reasoning to back out already.

IMHO, it is not worth to just burn the RM21k because of that reason, unless you can be very sure that you can find a same or better house and it will never hear any sound from Surau FOREVER. Take my old house in semenyih as example, for past six year I never hear the praying session yet since last year the Surau nearby has upgraded their sound system so it now has much bigger coverage, including our area. So what I mean is as long you stay in Malaysia, you can not avoid for this situation.

To me there might have alternative solution, like installing good quality of sound proof glasses. But to me I am just fine with it. Only hear it more frequent during fasting month. T

Surau or mosque, there are sure ppl coming around and parking wherever they want....albeit it only happened on Friday afternoon....if you can tahan it then i think is ok, since you & your spouse most likely wont be around during that time...

For your calculation, high chance that there wont be earnings, not even the 20k due to alot unforeseen fees, taxes, fixing etc etc, if your plans is to just proceed to buy, wait and see then sell it on 6th years then can just forget it and forfeit the deposit.

If your plans is to purchase it, rent out, after 6 years observe the situation, if satisfy with the surau then move in, and/or even u not satisfy with the surau, continue to rent it out treat it as investment and capital appreciation in future, then you can go ahead with it....but bare in mind for this investment its gonna be negative cash flows, you need to work harder to accumulates more saving for your next home & renovation etc etc.

Need to visit the main mosque to judge the volume of people.
However there will still be loudspeakers.
If you are not an early bird person I would just burn the 21k.

I used to have insomnia and a lot of bad habits because of trouble sleeping coz some idi0t is rambling essays of political rhetoric in Malay at 5am. The nearest source of noise is 1km away but sound travels far esp during a quiet morning.
After I moved to SG where it is peacefully quiet at 5am (no loudspeaker blaring issues) I have slept much better.

Try to negotiate a refund.. burn 1-2k as "inconvenience" rather than pulling your hair out.

This post has been edited by ceo684: Sep 21 2023, 11:08 AM

21k vs life time regret. you know the answer.

For me, the sound it is okay. I don't mind it at all, my current rental place in Penang is only 100m away from a mosque with big loudspeakers on top of a tower. And my grandparent's house is beside a metal foundry. But I don't mind it as it is 2 roads behind my house. I already mastered sleeping through even metal cutting noises, my wife also came from a place with a lot of traffic so we can sleep right through it.

I just don't like it right in front of me with all the people in front of my house that is all. We just want privacy without people peering into our house.

And in Selangor our Sultan actually decreed that surau and mosques can no longer blare ceramahs or talks on loudspeakers, can only blare prayers. Because it's the Sultan's decree the religious department actually takes it quite seriously. I already saw a few surau changed management or complied with the order after complaints these few years.

This post has been edited by holynoob: Sep 21 2023, 11:13 AM

Yea don’t go with sunk cost fallacy. Perhaps try to your best to get rejected for another loan or negotiate for the deposit back. Can always come up with some cock and bull story to appear more sympathetic - unplanned pregnancy etc.