Apr 24 2025, 06:58 AM
QUOTE(lurkingaround @ Apr 23 2025, 01:35 PM)
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To add, it's always wise for consumers to minimize bank borrowings, the latter of whom are like Ah Longs wrt profit margins, eg if can afford, buy the house in cash and if cannot afford to buy it cash, save more for the house deposit and borrow less, eg 30% deposit:70% loan or 40% deposit:60% loan, ie avoid 10% deposit:90% loan.
For the latter, once committed to the house loan and has already repaid the monthly instalments for a few years (= repaying mostly the interest portion), it is not wise to partially settle the house loan with extra cash, eg EPF withdrawal, annual bonuses, inheritance, etc, ... or to refinance the house loan to get some cash money when house prices have risen substantially. IOW, just continue repaying the house loan and not change anything = "Do not fix what ain't broken.".
....... Better use the extra cash as savings (= no need buy medical insurance) or for self-pampering.
There are people who think they are very smart by buying a first home with maximum bank loan and then a few years later upgrading to buy a bigger home by "trading" in their first home, eg after naik pangkat = salary increase.
....... Similarly for those buying new cars with maximum bank loan and changing to newer cars every 2 to 3 years by trading in.
These foolish people are contributing to the huge annual profits of banks, eg Public Bank's net profit in 2024 is RM7.1 billion.
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P S - For wise people, buying a home is often a once in a life time event. So they wisely wait to "buy the dip" when home prices are at the lower scale, esp during a regional or world recession which had happened in 1985, 1997, 2008, etc.
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To add, it's always wise for consumers to minimize bank borrowings, the latter of whom are like Ah Longs wrt profit margins, eg if can afford, buy the house in cash and if cannot afford to buy it cash, save more for the house deposit and borrow less, eg 30% deposit:70% loan or 40% deposit:60% loan, ie avoid 10% deposit:90% loan.
For the latter, once committed to the house loan and has already repaid the monthly instalments for a few years (= repaying mostly the interest portion), it is not wise to partially settle the house loan with extra cash, eg EPF withdrawal, annual bonuses, inheritance, etc, ... or to refinance the house loan to get some cash money when house prices have risen substantially. IOW, just continue repaying the house loan and not change anything = "Do not fix what ain't broken.".
....... Better use the extra cash as savings (= no need buy medical insurance) or for self-pampering.
There are people who think they are very smart by buying a first home with maximum bank loan and then a few years later upgrading to buy a bigger home by "trading" in their first home, eg after naik pangkat = salary increase.
....... Similarly for those buying new cars with maximum bank loan and changing to newer cars every 2 to 3 years by trading in.
These foolish people are contributing to the huge annual profits of banks, eg Public Bank's net profit in 2024 is RM7.1 billion.
.
.
P S - For wise people, buying a home is often a once in a life time event. So they wisely wait to "buy the dip" when home prices are at the lower scale, esp during a regional or world recession which had happened in 1985, 1997, 2008, etc.
.
QUOTE(AfraidIGotBan @ Apr 23 2025, 08:30 PM)
Chill bro, let me redo the reply into a more understandable format.
I might has emphasize on the note Sorhem, because that's what I've seen people always do. My motto is always like this.
If my max loan could let me purchase a 500k flat, I would put 250k to 300k flat as the target, which means I am more than capable enough to support myself in long run, instead of maximizing my loan just to afford something that will strech me to death.
And just like one of the Ktard response, the debate is obviously there. Family member that loan to me is losing their interest, and has no obligation to really loan to me. But his arguement is also correct, that
1. Those that could afford to pinjam is obviously a more well to do family.
2. The beauty of having a CCP partner is their sight on money value is different. They're more open to accept quick settle, less loan and interest involve, kind of solution, compared to the Malaysian's hutang maximus kalau mampui takyah bayar balik attitude.
3. Not everyone (In my case, as I takes my CCP side family as my family, not my entirely rotten AfraidKenaban bloodline) in as investor minded as those sudahlah poorfag, always dream win toto damacai, stingy and full of excuse, day day tmr bank kosong peeps.
Further emphasizing my situation, my pinjam is to establish a business overseas, as in Airbnbs when it was in its peak.
A very sohai math, I boughted a studio for 250+ k pounds here in London back then, and with the fixtures, it cost me 280k in total. My loan was 200k, with 5 years mortage. I'll take the interest aside, but that's a 40k bayar balik bank promise.
Back then, Airbnb has no regulation that max rent is 90 days, max ads tenure online is 180days shit, so I can put the studio out for 365days availability.
My room cost back then is 50quid for normal days, and 99quid for weekend, and when summer, it increases to set price of 149 per night, and 300pounds on bank holidays.
My gross is roughly 1500-2000 per month profit from that at low season, and can say that I am betting just to work things out. But well, fate change from there and my studio in demand, and I move on from cheapo whole studios to expensive studios.
agree on the above two posts.I might has emphasize on the note Sorhem, because that's what I've seen people always do. My motto is always like this.
If my max loan could let me purchase a 500k flat, I would put 250k to 300k flat as the target, which means I am more than capable enough to support myself in long run, instead of maximizing my loan just to afford something that will strech me to death.
And just like one of the Ktard response, the debate is obviously there. Family member that loan to me is losing their interest, and has no obligation to really loan to me. But his arguement is also correct, that
1. Those that could afford to pinjam is obviously a more well to do family.
2. The beauty of having a CCP partner is their sight on money value is different. They're more open to accept quick settle, less loan and interest involve, kind of solution, compared to the Malaysian's hutang maximus kalau mampui takyah bayar balik attitude.
3. Not everyone (In my case, as I takes my CCP side family as my family, not my entirely rotten AfraidKenaban bloodline) in as investor minded as those sudahlah poorfag, always dream win toto damacai, stingy and full of excuse, day day tmr bank kosong peeps.
Further emphasizing my situation, my pinjam is to establish a business overseas, as in Airbnbs when it was in its peak.
A very sohai math, I boughted a studio for 250+ k pounds here in London back then, and with the fixtures, it cost me 280k in total. My loan was 200k, with 5 years mortage. I'll take the interest aside, but that's a 40k bayar balik bank promise.
Back then, Airbnb has no regulation that max rent is 90 days, max ads tenure online is 180days shit, so I can put the studio out for 365days availability.
My room cost back then is 50quid for normal days, and 99quid for weekend, and when summer, it increases to set price of 149 per night, and 300pounds on bank holidays.
My gross is roughly 1500-2000 per month profit from that at low season, and can say that I am betting just to work things out. But well, fate change from there and my studio in demand, and I move on from cheapo whole studios to expensive studios.
that is why IF you cannot put 30% DP for your house, it means you CANNOT afford it. Worse are those who have 0% DP and feel so happy about it.
so if you want to buy a 500k house, make sure you have saved at least 150k for it.
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