Hi guys, I am quite aware that I am aging, I have target myself in these 3-4 yrs time to get a house. I would like to know how should I start to save before getting a house? Budget will be RM 200k. Can you guys help me on this? I really appreciate it.

wrong section..... should go

http://forum.lowyat.net/index.php?act=SF&s=&f=154

can moderator move my topic to that respective section please?

you asking how to saving money to bought a house?

@patrickyeo21,
Save the way u've been saving; and start looking out for something u like in the property market

hmm ... what I am concern now is I am afraid I unable to make it on time when I reach my target, my expenses has been high due to :-

a) car loan & petrol
b) ptpn loan
c) laptop

I am staying outside alone and earning around 3k. My expenses has been greatly touched around RM 2.5k per month for miscelleanous stuff.

@patrickyeo21,
In that case, U should think of ways to save before u even think of getting a house.

ask you another question, what if I managed to save around RM 20 -25k, can it be right time for me to get a house ? Can I use my EPF as a house downpayment ?

@patrickyeo21,
Yes u may withdraw from your EPF to make that house purchase. To buy a house, u also need to consider the loan repayment to the bank. Having saved enough for the downpayment may not mean u can afford the house.

I believe at that time I reached, I managed to clear 1/2 of my loan(debts). Should be fine isnt it ?

Let's look at some basic fact here.

You earn 3K per month. That means at most you can only afford around $1300 (33% rule) per month of monthly payment. This is assuming that you have no any other loan. If someone can do some calculation, this probably translate into a loan of 100K to 150K.

So, I doubt you can afford a house of 200K at 3K per month. You need to earn a lot more.

Dreamer

apart of downpayment and all those legal and admin fee, you will need a fix repayment every month until you have paid what you have borrowed.

lets say you get a mortgage of rm200k, and repayment period is for 15-20 years, you will need to pay approx. rm1.7k every month. that means, you will need extra rm1.7k from your salary just for the repayment, and failure to pay that amount of money monthly will cause your house to be repossessed.

This post has been edited by youngkies: Jan 6 2008, 07:41 AM

youngkies,

There is a 33% rule on loan. So, to take a loan of RM1.7K, you need to earn 1.7K X 3 = Rm5.1K per month just to qualify for the loan. This is assuming that you have NO OTHER LOAN repayment outstanding. If you do, you need to earn a lot more.

So, it cannot be done with income of RM3k per month.

Dreamer

Get a cheaper house or get more income.

Dreamer, TS can always opt for longer loan tenure. A 200k house typically requires 180k loan, and current monthly repayment based on todays loan rate (5%) and 30 years is only RM966 per month.

Its a bit of a strecth, but do-able IMO.

@Dreamer,
Perhaps TS has something to mortage to the bank?

hmmm ... thanks for the advice, I would like to know whether it is valid if I am not the only one who involve, I would like to include my gf as well ... can this be done by 33% requirement ?

Than that would be combined income. Yes it can be done. But are you sure you're eventually going to marry your GF?.....Think hard before double commiting yourself.

What if im just giving an example of such scenario, I would like to know whether it is possible ?

how can "Laptop" a one time off purchase be up there in the first place.

Cut down you expenses by half and you can afford a RM150K apartment/house today.

Just curious, how much you spending now on rental?

yes, you can combine income with another person to qualify for higher loan sum.

It is good are you thinking and planning of getting a home. My advise is that you start going to Home Ownership Exhibitions and do ask questions about legal fees, loans, downpayment, etc. Usually, the Home Ownership Campaign organized by REHDA have an EPF booth (you can check amount too) counter and other Banks booth too. Go ask questions and the people there would be more than glad to assist you on home ownership.

Start saving today as mentioned by others, there are other fees involved in puchasing a house. You also got to consider furniture, kitchen cabinet, renovation, etc etc.

This post has been edited by Gen-X: Jan 6 2008, 09:00 PM