hi all,

do you think it is a good time to buy a house (for living, not investment) at this point of time? concern on malaysia 2008 financial stability, estimate GDP 5.7-6%, msia construction material price increasing(steel etc.), US economy recession, and any other issues you might think of?
house info: asking price 390k, 22x80, 5rooms with auto gate alarm system, freehold located at Bandar Kinrara Nine. Completed on Jan2007,launching price 320k+.

pls share your thought
thanks

p/s:one of the concern is that if you are coming from puchong,u need to make U turn from TPM. i was told by the i&p sales person,the link access to bk5 or 6 golf club will only be build 5-7yrs later. anyone has better update?

This post has been edited by rayanne: Mar 31 2008, 01:55 PM

i got this from bank negara website.


Attached File(s)
 BLR_2007_table.pdf ( 39.6k ) Number of downloads: 194

The right time is when you can truly financially afford to own a house.

It had nothing to do with increase of raw materials, interest rates, etc...
It had everything to do with your own financial planning.
eg:
1) Do you have the down payment? 30% as the common rule.
2) Are you financially committed to repay the whole loan repayment tenor?
3) Are you ever going to survive in an emergency or "worst case" scenarios that might happen? (inclusive of BLR hike and recession)
4) How would you feel when the value of the house dropped? (thus to me, I would always stress that if it's a "home" than do not care whether or not it appreciate or depreciate as it's not investment!)

@boon,

30% d/p is a tad too much, no?

If it's a "home" than you wouldn't want to use "leverage" right?.....
You would want to pay off to incur lesser amount forked out towards interest portion....no?

Nowadays easily anyone can loan upto 80% or 90%.
some can't afford 30% as Downpayment.

Remember to keep some money for minor reno & furnishing.

Generally speaking, yes.

Not for me though. Im a big fan of leveraging as I like to have decent liquidity (if i could afford lah) at any point of my life to capitalize on any emerging opoortunities. If I had 30% cash to spare for my house, I'd get the typical 10% d/p on flexiloans then dump the extra 20% $$$$$ in the flexi account. Save on interest and at the same mantain healthy liquidity position.

i think what boon means is 10% for downpayment & another 20% for renovation lar..

as u knew m'sia house never consider completed house...ppl luv to renovate it..

True....but you would burden yourself and after calculating the amount of interest you're going to pay....wow!


Yes because your property is money generating. I'm talking from the perception of having it as a home.
Agreed with your method. I myself is doing that though I loan 90% for my home, I've parked quite a huge amount in my flexi loan. Plan to finish up everything in 10-15 years time although I dragged the tenor to the max to secure a lower installment (minimum cash flow in emergency times).


That too. But 30% is the conventional rule of thumb. Eventually if one cannot prepare that amount of money; he/she would burden himself/herself in repaying the loan and also like you mentioned....renovation and maintenance cost. In the case of emergency or economy downturn, servicing/maintaining/keeping the property might become a big burden.

Anyway, what I want to stress is on financial plans before committing themselves on whether or not to buy a property. Not depending on market situation since this is talking about the "right" time to buy a house.

This post has been edited by b00n: Mar 31 2008, 05:27 PM

Smart move

cody99,

You are MIXING with the WRONG CROWD. There are people that put up 30% to 60% on down payment according to survey done by "Personal Money" magazine.

Dreamer

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Added on March 31, 2008, 7:46 pmPai,

That is a SMART move and I did that. In general, at least make enough down payment to avoid MLTA/MRTA.

Dreamer

This post has been edited by dreamer101: Mar 31 2008, 07:46 PM

I think the market is at its peak now. Well, it's always at its peak You make your own decision and see if your decision making is right for you or not.

hmm thanks for the input. i got much more to learn before commiting a property.

i only have 10% for d/p. and extra money for minor renovation.
looking at the history of BLR chart i attached in post #2, if the trend goes accordingly then the BLR could be possible goes up .. no one can tell whether i afford or not by that time..hmm i learnt that extra money is very important then.

is there a loan package that without(or lower) interest pay if you have a certain amount of money put into the bank fix deposit account?what term does it call?

The BLR will go up, but not in the near future. It has to stay low for now to spur our economy further. People need to spend their money for the whole economy to tun. If interest rates go up further, ppl will stop spending & this will cause a slowdown.

Rayanne,

one more thing u need to check...

The asking price for the house is 390k compared during launched at RM 320++...

U need to check wat is the valuation of the house by bank..

Bear in mind, sometime the valuation is least than RM 390k..

So if the bank value the house at 370k, u need to fork out extra 20k on top of the 10% downpayment min RM37k..

so end out u need to pay RM 57k...

so better check b4 made any decision cos u said u only able to pay 10% donwpayment...

cheers

huh..so..
i will really look into this
tqvm!!

u sure about ? bank valuation is just a, to me a procedures, which they incure u about 150 for the charges. the final selling price is basically rely on the agree price between buyer and seller.

tpl66,

Bank only loan you up to the amount that they appraised. So, even if you pay more for the house, they will not loan you the amount.

Dreamer

it's really hard right now to say if property prices are only just starting their correction with more downside to come or is this just a pause from their sharp rises in the past 2 years and then will resume the uptrend soon.

but if you need a house to stay in, there is not really any sense to try timing the market. just buy something you can afford, but not overgear yourself and put yourself in a vulnerable position if this turn out to be a big downtrend.

Abarai, care to elaborate what do u meant by a "property correction"?

How many drop are you expecting from this correction?

well, last recession, house prices stayed stagnant in Subang/Damansara area, so I guess if there'll be a slowdown, prices will just stay stagant and not go down....but you never know.

if i can tell you that, i'll be rich!

seriously, i doubt anyone can give a precise answer to that, analyst or not. but property prices all over the world has been correcting in some degree over the past year. starting with the biggest bubbles like US and Britain, now working it's way to smaller one like HK and SG. Msia in a sense, is lucky, becoz we were rather latecomers to the property party, and that too in quite specific segments like the upper-middle and high-end side of things (KLCC area for eg). so common sense will tell you that if a particular property hasn't really risen much during the past few years, it is also unlikely to fall much even if there's a slowdown.

i've read in another forum that KLCC prices recently has stagnated and some ads has already appeared which puts prices per/sqft at less than that of say 1 month ago. however, it's still much higher that the launch prices, so these investors/speculators are not really selling at losses yet (unless they were suckered into buying at the absolute peak). that's why still too early to say if it's a clear correction yet.

property is just like other investments, sentiment driven. so if enough ppl think prices will fall further, ppl will hold back and it will likely become self fulfilling.

so, if you're looking at property as an investment, i think better wait and see. but if you're looking for a home, then don't bother timing the market, just find something you like but keep it affordable and keep your gearing in check.

"so, if you're looking at property as an investment, i think better wait and see. but if you're looking for a home, then don't bother timing the market, just find something you like but keep it affordable and keep your gearing in check."

totally agreed...

if you are coming from puchong keep right and turn right at the first fly over you see next to shell station on your right.
The road brings u to bandar kinrara 4,5 and at traffic light you can either go straight all the way round bk5 or turn left straight till the end then right turn at traffic light, that will bring you to golf course on your left.

thank u all for sharing,keep it up..

acidfreako,
BK9 is way at Caltex station.. no way to access yet even from that fly over at this point of time..

Dont buy, just buy gold enough.... LOL

Nothing is more seductive than gold pieces... Aye... Get Yall them Gold pieces... Argr.....

its all about location location and location!

tpl66,

this only applicable to under construction house or u de 1st owner of the house lar..

for 2nd hse, bank will evaluate it based on the market price & not the price in between u & ur seller..