difference driving a Benz owned by family given to them and earn to buy themselves is like heaven and hell

well, if freehold, that is a good bargain i assume.
23 many drive benz ? well, that time, i am just fresh graduated, perhaps younger generation is really financial wise...

also another things to ponder... do you think it matters buying a freehold/leasehold condo for own stay?

regardless, a condo won't be standing after 50 years anyway... you also might not be staying in the same place for 50 years... so why choose freehold over leasehold? to flip?

can sell at higher value ma..

edi,
dunno where you find many 23 yrs old driving 'ben c' but i'm definitely not one of them...hehe..

back to ur question...if you take RM50k and divide it over 30, means about RM1.6k extra per year and then means about RM1xx extra per month...just a rough calculation without factoring in the interest rate..

in my opinion, option 2 is the best bet la... 1 room apartment? susah leh... or if your budget is really really that tight, then buy option 1 first...if later become richer...then can sell and buy bigger condo...that way, u don't have to worry about your $$$ lor...

Seaview at butterworth? then what about option 1? where is the location/and condo?

how come i don see many age 23-25 benz OWNER in the benz club namelist ?

TS, r u rush into buying a place now? if not, try work for another 1-2yrs, then by tht time u will be able to get the 200K unit as ur d/payment is more n loan instalment will be the same + a bigger place for future planning.

just a example la... wat i mean is many of them at age 23 already rich liao.. not nessory must be benz, can be bmw,volvo, harrie, accrod,mefiro,camry etc etc......


ya..i also thinking that after work more year and maybe can save more... but at that time hosue price also keep increasing...

i nv can catch up the inflation...

This post has been edited by Edi8888: Nov 22 2007, 08:53 AM

gosh...nowadays many rich kids already ahh.....
I'm still driving a car with installment RM700 and my mortgage repayment is Rm1400 and total commitment already eats up to RM2100....
Gosh!....I'm nearing 30 and only manage to secure an own roof this year....wow!...I must be the type that is considered poor...

A word of advise; does one ever did their own calculation to see whether or not they can AFFORD?!.....or just force themselves to follow the trend?!...

I do see young kids with expensive cars and expensive houses....but I would dedicate 75% of that success to their families; i.e. their parents. Most would have parents to support them. At least I don't want to be group together with them.

I seriously need to save for many years to come out with the down payment of RM40k and still not affect my lifestyle. If say 5 years to save 40k; it's RM666.66 per month untouchable. 4 years is RM833.33 per month.
So I can't think of one that just graduated and work for 2-3 years can really afford a house without the help from family.

Just give it a thought on what I mentioned.

This post has been edited by b00n: Nov 22 2007, 09:39 AM

u don catch up / chase after things tht u can't afford, it has nothing to do with now or later , get what is right for ur budget now or later . and property price don always increase evry year , u can save more n buy at the right time later if u r not in urgent need for a roof.

driving expensive car doesn't represent the wealth tht a person has. they might be those ppl who r empty pocket every month end.

i guess you and i are considered poor in this era. i am a 31, and was still driving a second hand car which i bought 4 years ago and own 2 properties.

so, i think i will need to put more and more effort to buy a benz soon, which i guess i do not have the chance.

Yes, i agree is not easy to save up money for the downpayment especially nowadays which take into account higher inflation. Luckily, i worked abroad after my graduation, thus it gives me the chance to have a little estra cash for the properties downpayent and of coourse every month i need to pay about 3000 for those mortgages but i take it as a saving.

Regarding lease or freehold, yes indeed it make a huge different. it is not how many years u gonna live there, but it is the selling value at the end. an ordinary condo in kl with leasehold would come about 260k roughly, but a freehold would come to 380k.

we just share our view and some thin experiences here.

3000/m for property is alot of money ..... so u r not poor....

a 2nd hand c-class can get at <100K budget....

i m getting my 2nd property this month , for sale later..

same here... lucky i worked abroad... else i won't be able to pay downpayment as well... now i'm looking abroad again because it's really difficult to save money in Malaysia...


have to agree that leasehold prices will remain stagnant as the prop nears lease expiry...
selling value depends on how long you hold... most props prices will slow down after awhile, of course there are special cases...
leasehold have lower entry prices... i believe, as an investor, you'll most probably flip within 10 years where the gains are the most and move on to another prop of similar price range... so they will pick the prop with the lowest entry cost, comparing prop within the same vicinity...

3k per month for both your properties means that your purchase both of the properties close to 550k, u r definitely not poor, fren. 23 yr old driving his/her own mercedez or beamer (not daddy's) is a rare exception, and not the general rule.

Of course one should always go for FH as compared to LH, but then again, generally FH properties usually commands at least 25% more premium as compared to a LH peoperty within the same vicinity. Generally speaking, LH would give a better ROI for rental income, due to its lower entry cost.

---

Added on November 22, 2007, 7:39 pmwah YK, u oso in shoppin spree?

I suppose u plan to flip this one?

This post has been edited by Pai: Nov 22 2007, 07:39 PM

unless you are buying with Cash, If you are taking a LOAN it is pretty much the same or may be cost even more. Because you are paying interest on LOAN + sacrificing your FD interest. You wont get anywhere at all.

The first question is:

1. Do you need a house?
2. Are you staying with Parents?
3. Are you married?

If u dont need a house dont buy it.

This post has been edited by billytong: Nov 22 2007, 08:08 PM

Very seldom people use Cash to buy a house. If you can leverage, why do full payment? Interest rate is also low at the moment.

Buying a house is a big commitment. Make sure you know what is the objective of buying the house.

That is because seldom got ppl who is rich enough to part with the cash.
But if one has the power, why not?
Leverage is only usable when one wants to talk about investment. I.e. in this case, if the property is meant to be for investment; or if the cash in hand, one can maximise the profit to beat the interest charged upon the mortgage loan's interest.
Just a POV.

Interest rate is low now doesnt mean it will be low next yr. And I am NOT suggesting TS to buy cash.

as what boon said.
If you have the power to buy cash why not? sacrificing FD interest is much better than paying LOAN interest.

additionally, u can only leverage when you plan to resell the house as investment B4 you finish the LOAN. TS is buying to stay READ CAREFULLY. Unless he really need it I dont see a point to pay the bank.

this I disagree. One should always consider opportunity-cost prior committing to any form of long-term investment. Why worry about the 5% mortgage interest p/a when you could potentially buy Maybank or PBB shares for less than RM2 at the right opportunity & timing?

IMO, TS should go for flexi loans like Stancharts M1 or HSBC's Home loan to get maximum savings while having a pile of cash on stand by waiting for bigger and better investment pportunity. Borrowing a quote from Dreamer101 :

"Prepare for the worst, and pray for the best"

the r many uncertain factors also, but i think it is an opportunity worth grabbing, plan fast entry n fast exit b4 the economy turn down n more ppl r forced into renting house/room, then buy condo/aptment for to renting.

This is a good theory, and everyone should learn. I am using standard chartered bank MI mortgage as well, besides have to 10 per month for mantainance acc. bu good for long run and also spare cash.