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

actually the apartment i am planning to buy is ard 98 k...i still considering weter the loan is going to b approve..
do u all think i shld pay the down payment first for the apartment or i make sure the bank approve my loan only i continue wit the down payment

--- deleted ---


This post has been edited by wodenus: Feb 24 2008, 10:55 PM

take it step by step, settle your car loan 1st, only crazy ppl want to finance house and car at the same time with the salary under 3k.

you have to think "WHAT IF". WHAT IF I am out of job? WHAT IF something happen to me that I have to stop working? WHAT IF I married two years later and need to alocate larfe sum of money to do this do that? WHAT IF Malaysia enter recession?

Hmm, this is too difficult fren, too much thinking will drive me crazy.. WHAT IF the BLR rate suddenly increases, WHAT IF the developer did a bad job with the porperty, WHAT IF tsunami hits again and floods my property, WHAT IF the terrorist suddenly hijacks Airasia's new A320, misses Petronas twin towers and hit my condo, WHAT IF my mother in law suddenly says she wants the new Saga ??? and the list goes on and on..... I think i'll just have at least 2/3 months of loan payment put aside just for emergency, whatever it is.

IMHO, you'd better see the banker and do a pre-approval for your financing qualification.
If you want some help, i'll be willing to give a hand(one hand only )

ej_italia,

It should be DIFFICULT.

Buying house/condo, car, and college education are the 3 largest purchases in a normal person's life. Do it WRONG and you will live to regret it for the REST of your life.

Is the REST of your life not something that you should spend some time thinking about??

<<I think i'll just have at least 2/3 months of loan payment put aside just for emergency, whatever it is.>>

It is OBVIOUS to everyone that you CANNOT AFFORD a house/condo now. And, if you buy the condo, you can LOSE IT easily since you do not have the SAVINGS to cover for ANY kind of emergency.

Dreamer

This post has been edited by dreamer101: Feb 25 2008, 10:15 PM

[quote=asciii,Feb 18 2008, 01:03 PM]
correct me if I am wrong..but the bank will just offer 90% right?

[/quote

You may even get 110%, largely depending on the following

1. Mark up the property purchase price
2. Strong documentation
3. Your dad is owner of the bank. (joking only)

To dreamer101

How much should i have in my bank if i'm planning to buy a 100k apartment?
Salary is in the range of 3k to 4k a month

F1meteor,

1) You need to have 3 to 6 months of savings after paying down payment and so on. So, that is about 12K to 24K.

2) Your monthly payment for ALL LOANS need to be less than 28% of your gross monthly income.

3) Others can tell you about S&P and so on.. I think that is another 3% to 6%

4) Renovation plus furnishing can run you another 10K to 30K.

5) Down payment?

Add all of them up.

I do not think anyone should buy 100K apartment. Landed property is much much better and it does nto cost that much.

Dreamer

couldn't agree more that landed is the way to go but where can one get 100k landed prop?

from my personal observation... no where in KL/Selangor...
unless you go to places like Bkt Beruntung, lots of cheap stuff there... factor in your petrol, toll and car maintenance... you'll end up paying more in the long run?

option 2 don't buy first and wait for prop price to increase, inflation eating into your savings, land to be more scarce?

buy or don't buy also cannot, huh?

I have to disagree as when it comes to property investment, LOCATION always comes 1st.

Any landed properties at the right location wont cost less than 100k.

Pai,

TS is buy the apartment to live. It is NOT an investment.

Dreamer

Dont think the TS mentioned its for own stay.

But kinda agree that for own stay, one would be better off buying landed. The problem is for 100k budget, its very hard for one to get good landed properties.

Pai,

<<The problem is for 100k budget, its very hard for one to get good landed properties.>>

If someone CANNOT AFFORD to buy something, just tell the person the truth. That is my philosophy since most people refuse to do that.

TS trying to tell him/her self that it is OKAY to overspend since it is an "INVESTMENT". This is a COMMON LIES in USA where many people find out TOO LATE. In USA, banks do not enforce the 33% rule in giving out housing loan. That is even worse.

Dreamer

This post has been edited by dreamer101: Mar 8 2008, 01:06 AM

buy N9 area ^^
is boomin over there.
and is worth it .

If I were in your shoes, I make sure the property is in a right location. So that it commands a good demand and rental rate. The 1st thing is to make sure the loan repayment is acceptable, and then find out the monthly service charge of the condo. So when you finally bought the condo, you can choose to stay in 1 room, and rented out the other room to partly cover your loan and service charge payment. This would be a good stratergy for non married single person. You reduce your loan payment by letting other people pay for you. Yeah buying a property with no money down is doable with some developer. Usually this occur with under construction property.

---

Added on March 12, 2008, 6:36 pmyeah i agree though you can buy property with no down payment, you still need capital. its the cost to furnish your home, spa, legal fees and stamping fees. that easily amounted to thousands of ringgit.

This post has been edited by max_cavalera: Mar 12 2008, 06:36 PM

Just tumpang this thread for a while. I am also thinking of buying a property for STAY at around this price in Klang Valley preferbly near to any LRT stations. Where would you recommend...I can go until Rm180K though.

There are some apartment for sale at Bkt Jalil, arena green, damai , vista komanwel etc.