my locations is at penang,
currently im thinking to buy a house, so far i see a condo quite nice, but the house is small, 670sqf and 1 bed room only, the price is 150k, do u guy think it worth?


currenty i have 2 choice in my mind,


1st: 670 sqf with 1 bed room only, price is rm150k

2nd: 1030sqf with 4 bed room, price is rm200k

i know it is better to get the bigger house....but the extra rm50k will cost me tigh evermonth....


i seek those people who already buy house can help me on some advice... base on your experince and maturity...



another one, im only 23 years old, so is it posible that i can have my loan for 40 years?



serious talk only

i think you're in a wrong thread...


but... ur 23.. still very young... but a house is for future... 1 bedroom will never be enough for a family. dun tell me u intend to buy another house after u have a family.

for a mere $50k increase for nearly double the house size, u do the calculation.

where should i post this thread? can mod plz move for me? thanks

Do your research first

1) Value of the property and neighbourhood. Are there any potential development in the area?
2) Is the property in demand? Good for rental?
3) Are there any schools/colleges/malls nearby? If there are, then it would be worth it.
4) single room house is good for single people or newly married couples. But for Rm150k for just one bedroom (single storey?) is not worth it, unless it is located in a hot property vicinity.
5) Condos/house can devaluate over time, make sure you know the market value and future developments in the area.
6) Freehold or leasehold?
7) Max loan you can get is 30years.
8) Would you want a full term fix blr or a normal loan with fixed blr at the first 5 years? The former makes your installment calculation fixed and need not worry (but higher interest rate), while the later is only steady for first 5 years and may shoot up depending on market values, but also allows you to dump as much money in as possible (and also to withdraw it) to clear off your principal ASAP.

My2 cents

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Added on November 20, 2007, 9:40 amIs it for rental or you plan to stay there?

This post has been edited by happy4ever: Nov 20 2007, 09:41 AM

1st: 670 sqf with 1 bed room only, price is rm150k

2nd: 1030sqf with 4 bed room, price is rm200k

u plan to buy the 1 bed room to stay for the rest of your life?
u still young, so long way to go...... buy bigger house la
another 50K get bigger house, ur salary i assume that will increase from year to year

shd move to property talk

stay there.... not for rental....


the condo have 330unit... that wat make me worry about... too many unit....i scare no meather how high class condo also will turn cheap after 10 year....

why izzit so expensive? even a 800-900sqf condo (with pool, gym etc) 3 bedrooms 2 bathroom in KL costs around RM160k (depends on which part, i mean cheras, last year price)....

if u want me to choose in between that 2, i'll choose the second. Because it got more space and rooms. 1 room will never enough i tell u...
I dun think there's 40 years loan, at most usually 30 years...
Have u calculate 10% downpayment + lawyer fees (200k hse could have fees above 5k) + renovations + furniture.

Btw, there's is a property forum..

Yea, try there. PM a mod to move this to there.

BTW, the condo also have a monthly maintenance payment.
Some as high as RM100 a month or more, and very limited parking lots.
Worse if you have visitors and their cars will clog up the road and kena saman.

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Added on November 20, 2007, 9:52 amAnd if you plan to rare pets like this in the future:

(is this a cavalier? like mimi!)
Go get a house. But look for a bigger but cheaper house.

See the classifieds la...if you are in luck, you may get a good deal if the owner is in a hurry to sell it out.

This post has been edited by happy4ever: Nov 20 2007, 09:53 AM

yes i find biggest headache is parking in apartment lots, first year ok , 2nd bearable, full occupancy that time sheesh outside also no parking ...

And have to PAY EXTRA for additional parking lots. Some apartments/condo need you to line up to buy these extra lots for a short period of few months, and on a first come first serve basis.

Good thing the apartment i'm staying has lots of land to park outside for free.

i heard got sum place have to pay like 10 - 15K for the lot that was originally allocated to the owner after XX years... or else theey sell to other ppl ... was in the papers

yea, i agree with the limited carpark.

where is the location specificaly? i know penang...

seaview condo...

thank you, i can see where is it...on mount pleasure....good view, very good for the eye

next question is where do you intend to work? around georgetown area? wat bout in next 4-5 years in georgetown also....
if you intend to work at bayan lepas...woho...trafic jamm.....and if you decide to rent it to the ang mo then it is another story.....

btw, seaview only cost 200k at tanjung bungah...very hard to believe also..better check the quality of the civil work....

and 200k of house and loan for 30years, the installment is about 1k per month...make sure you earn 3k first....!!good luck

no la...seaview at bw la....

i'm 25 and i was able to get 40 years but i rejected the bank's proposal, took 20 years with my wife instead...

so, that mean it is first property with 674 sqf is rm224 per sqf, which is quite expensive to me.
second property is rm 194 per sqf, which is cheaper theoritically compare with first type.

The question now is, how much mortgage loan u gonna get from the bank and duration ?

Lastly, u said the second house is 1040 sqf with 4 bedrooms, dont u think it is too small for the buildup concept for the room ? i believe two of the rooms can only place a single bed, but of course it still depends on the architectural design of the unit.

well, top to bottom, i believe too that both are leasehold in penang.

conclusion, i suggest u have a round talk with your family members since u are still pretty young.

Thanks

This post has been edited by a6meister: Nov 20 2007, 12:32 PM

nop...it is free hold........ i nv will consider leasehold...


also, 23 is not a young age, many of them already drive benz

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.

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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.

When u are in financially tight as what TS said or limited knowledge I would not recommend to buy share you are a risk of losing you capital.

This post has been edited by billytong: Nov 23 2007, 01:22 PM

same here, buddy

Love the convenience and feature, albeit paying slightly higher rates compared to normal loans. Liquid cashflow is extremely important, especially during times like this where opportunities are abundance.

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Added on November 23, 2007, 4:00 pmI see

Well, im pretty sure you've done your homework, so good luck in flippin' mate. Do update us the outcome if u dont mind

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Added on November 23, 2007, 4:02 pmSorry mate, I was under the impression that TS is cash rich ( after all the BMW & Merc talk ), hence recommended flexiloan for him.

Perhaps TS should go for the fixed 3 or 5 years loan, to minimze his risk should BLR goes up.

This post has been edited by Pai: Nov 23 2007, 04:02 PM

Pai,

like i said b4 i m looking for high risk high return for this coming years to boost up my capital b4 turning into stable steady return, this would be the lowest (among high risk) tht i can find (afford?)now. still, calculated risks are there coz we donno wats gonna happen next yr altho the developers said next few yrs r still good years for real estates....look at all the new projects in the newspapers , it is really crazy....

btw, anyone plan to attend the SMART Investment & International Property Expo 2007 in KL Convention Centre this sat-sun?
i hav registered but may not be able to attend.

hi brader..i think you should do more survey..
for instance..the condos' in gold coast..

1.Putra Place
2. GOld Coast Resort
3. Putra Marine

PP starting price 150k
GOld Coast starting Price 220k
Putra Marine starting price 300k
(buy before the condo is built)

after OC obtained

PP = 260k
GC=350k
PM=450-600k

you do the calculation..u pay 1 year before the condo is built..of course..risk is there..but..u get cheap..and u sell expensive..this is the best investment..

jz my 2 cents

Choosing which unit depends on what u want d hse for. I'll only choose d single R if its a stepping stone for a bigger unit in future without breakin too much sweat, or working n wan a own private place to call home.

Dun compare wit ur frens who r already spending on 'prestige' goods n its never too early to invest a property since d value will appreciate overtime especially in Pg which has among d fastest property growth in M'sia.

I'm only 25 n i just bought a hse at Prai area. No regrets.

This post has been edited by Deja Vu: Dec 11 2007, 04:33 PM