dear ppl,

I am thinking whether it is possible for me to buy a property that cost about not more than 150K? As a fresh graduate with a current salary scale of at most RM2500, is there any bank that offers 100% home loan or at least 90% home loan? Pls advice. Thanks

depends on whether you are buying from developer or second market...

if you're buying from developer, they will have some panel banks for you to choose from...you are on your own for 2nd market props...

with RM2.5k salary, i would say it's a yes for a prop below RM150k, good luck on selecting a location

correct me if I am wrong..but the bank will just offer 90% right?

not necessary... some banks do offer 100%, i've seen it in the papers... but that depends very much on location, developer, etc etc...

So, can i conclude that there won't be any bank that would offer me 100% loan for 2nd market properties? One more thing, i do have a car loan and i guess it will be taken into account as well right? Is there any possibilities of negotiating with banks on this? Btw, thanks for the advice Ken

when u r buying 2nd hand property , then 100% loan can be ARRANGED..... ur car loan will be taken into consideration for ur loan affordability.

90% or 100% MOF depends on the bank's policy and how strong is your documents.
Documents also consists of locality of development, which developer, amount of purchase besides the normal income docs, employment, credit information etc background.... of applicants.

For my case I was offered 80% MOF but I managed to secure a 90% MOF (initial intention) with providing some other concrete proofs of my ability to repay.

ej_italia,

So what?? Can you afford the monthly payment?? By breaking the 33% rule, you are NOT likely to survive financially if anything went wrong.

Dreamer

Yes Dreamer, you have a valid point. But i think, i can cut down my cost a do wat it takes to accomodate a home loan. There may be some other variable cost such as food and entertainment spending which i'm looking to cut. Anyway, IMHO, i may not be as experience as all you guys but i think sometimes we need to take risk and i believe this is the right time for me. I can't wait till i have my own family then only i start to take risk. Besides i don't see myself stucked in the same salary cap for too long. Btw, thanks for the advice

The choice is up to you, but do remember that you have to pay service charge as well and you must include it to your monthly expenditure. I've seen many people once they buy the apartment , have no money to pay service charge and then the condition of the apartment becomes worst and worst.
In the end the other people who are paying full service charge are the one subsidising these group of ppl.

good thinking, I wish I had the same thought when I was a fresh grad.

But I think 1st and foremeost, u need to be clear on your investment objective. Is this for your own stay or for investment?

is there a condo less than rm150k? or izzit an apartment they call it condo

Well, for long term view, it's definately for investment purpose. I'm looking at some new areas and i feel that new areas normally the supply > demand so probably i'll stay for a short while till the market is more saturated and at the same time i can slowly furnish the place and use it first hand and next time rent it out as furnished. My main concern here is i don't have the capital to start.


This post has been edited by ej_italia: Feb 20 2008, 10:25 PM

uh.....what kind of capital? The 1st 15% for deposit n legal fee's ?

Yeah, the 10% deposit....

mm..i plannign the same thingd as u..i am just work for almost a year salary is ard 2700...
wannted to buy an apartment ard 100k...i was aslo considering weter there is any bank tat is going to loan me ornot..i dun hav a car loan thou..
can the bank approve my application
ant advice from the master??
thanks..

ej_italia,

<<Well, for long term view, it's definately for investment purpose. >>

The HOUSE that you stay in is NOT AN INVESTMENT. You will LOSE MONEY for 90+% of time. Your selling price will not cover the renovation and furnishing cost that you will be doing for the house.

Dreamer

until u have the means to come out with the first 15%, u should be talking about investing.

should be enough for you cause the main thing is that u dont have car loan. That is what i found out recently

---

Added on February 24, 2008, 2:22 amactually i'm referring to non-landed properties, cause if we're talking bout landed properties, then it's definately impossible to cover especially with my range of salary. Anyway, you are right, the moment we stay, actualy we're losing money.

This post has been edited by ej_italia: Feb 24 2008, 02:22 AM

ej_italia,

1) My statement applies to non-landed property too.

2) If you only have 10% down payment,

A) That means you have NO savings/emergency fund. If you lose your job for a while, you lose your apartment.

B) You have NO MONEY for furnishing or any other related cost to move into an apartment.

3) You could buy the apartment but you may not have the money to keep it.

Dreamer