I save some money but I'm not sure is now the right time for me to buy a house. So may I know when or how do u know u are ready?

When ur installment of all ur debt included the house is not exceeded thn 1/3 of ur income...
then that is the time......

Refer to property section or specifically this:
http://forum.lowyat.net/topic/656393

I believe I have enuf money to buy one but I'm not sure why am I getting one for.. u know what I mean. I guess it's time for money to work harder instead of parking on fd.

This post has been edited by choice: Apr 11 2008, 11:46 PM

You are ready when ...

1. you can buy your dream house by cash
2. someone borrow you more money to buy the house and you are comfortable with their terms on how much to pay back and in what time fashion.

and finally you are ready when you see one house you like it so much you don't really care about other things and you just want it right away, then you will have to buy it at premium

---

Added on April 11, 2008, 11:46 pmthat means you should not buy at all lor, keep in FD lor ...

This post has been edited by mtsen: Apr 11 2008, 11:46 PM

You are ready when...

1. You are ready for the commitment in terms of repayment or in other words u a stable ability (financially) to support the house
2. You are sure about the location of the house and the price (dont be hurry to buy a house) in terms of current value and future potential value trust me you dont wanna buy a house where is famous of gangsterism and sort
3. Make sure you know how to get the best deal from a house (new or 2nd hand)
4. You have a savings that should at least cover 6months of your current income after u buy,renovate and ch'ng ur house (in case of unfortunate case)

5. THE MOST IMPORTANT thing is that make sure u can support ur house expenditure especially those unpredictable ones



1. Even really rich Dato or Tan Sri also dont buy house with cash coz is plain stupid if u dont know why ask ppl
2. i totally dont get what u trying to say,

and finally if you dont care bout any other things and buy a house without much consideration u'll end up bankrupt or be in deep financial trouble

p.s wtf is premium?

when 50% of your total savings account equal to 25% downpayment of the property/house..

Choice,

I am assuming that you are buying a house to live. Do you know where you want to live to begin with?? If you do, you start scouting around the area and check the price and the environment.

Are you married?? If not, how do you know your future spouse (wife/husband) want to live in the same area?

In general, do not buy until you have married for a while.

Dreamer

how about for some one that decide not to marry for his whole life? :s

Who have this plan in miind?

ah_suknat,

Then, that is ONE reason not to buy a house. The person may live with the parent for his/her whole life.

Dreamer

How will you know? When the expected return from buying the house meets the opportunity cost of capital you have to put up to buy the house (i.e. relative to where else the money can be spent).

yo man why would a monk need a house?
well yeah you never really know when you are ready for a house..

@dreamer101,
I see no harm for TS (he said he has the $) to start investing in a property. From what I read, it doesn't look like he has intentions to shift into this new property - but should he decide that he wants to in future, he can

@choice,
I think if u come across something u think u like (and willing to live there) and have the $ to buy the property, I don't see Y u should hesitate. You could always sell or rent the property out and if u do decide to shift in at a later time, u could too!

If ur getting it purely for investment purposes, U should check the 2ndhand market as well as the rental market in the area too.

Unlike the rest here, my vote is to go for it - having said that, make sure u still have some cash at hand for emergency purposes

This post has been edited by tinkerbel: Apr 12 2008, 12:03 PM

Like I always stressed. You buy it for investment or for own stay i.e. home.
If it's for investment than more considerations needed to be put in.
If it's for own stay, than fine; because the philosophy is not to think of it as something that will help you generate income. So go for it when you think you have the money. Obviously considering you have the income to commit yourself to the monthly loan repayment.

tinkerbel,

I disagree. The factors that you use to buy investment property versus a place to live is different. You have to decide. I have seen enough people losing money on property because they did not made this decision ahead of time.

<<I see no harm for TS (he said he has the $) to start investing in a property.>>

This is a BIG investment. If you do not know enough to make the RIGHT decision, you will be paying this lost for the rest of your life. Study carefully before you make this kind of decision.

This is not like buying RM1K worth of UT or stock. The amount of money involve is a lot bigger.

Dreamer

This post has been edited by dreamer101: Apr 12 2008, 07:06 PM

[quote=tinkerbel,Apr 12 2008, 12:02 PM]

I see no harm for TS (he said he has the $) to start investing in a property. From what I read, it doesn't look like he has intentions to shift into this new property - but should he decide that he wants to in future, he can

- Just like thinkerbel said as for time being or within 5years I won't be moving in. I would like to invest property that I might be moving in the future.

[quote=dreamer101,Apr 12 2008, 07:05 PM]

This is not like buying RM1K worth of UT or stock. The amount of money involve is a lot bigger.

- Actually I quite regret after investing in UT.



I like studio apartment around town area. Also I think its got potential and will probably increase in value in the future.. So since its both what i like and have investment value.. i think its a good choice for me.

But the problem is my income not stable and I don't like the idea of borrowing money from family member. So I guess I need more than 70% before I can commit.

This post has been edited by choice: Apr 13 2008, 04:46 AM

@choice,
If ur income is not stable, U need to make sure u are going to be able to support the monthly loan instalments, or buy the property in cash or u might find urself in a sticky situation.

dreamer101 has a valid point about needs for moving in. If u intend to get a studio apartment and contemplating moving in 5 years later, that particular apartment might not be suitable for ur future needs; studio apartments are mainly catered for the 'yuppies' and not family. Though it might be cheap, I find the 2ndhand market for it rather small - same goes for a 1 bedroom apartment/condominium. It's easier to dispose off a 3 bedroom apartment as compared to a studio/1 bedroom/2 bedroom apartment [again, obviously price and location makes all the difference but U have a bigger net if u have 3 rooms as it is able to accommodate a family of more than just husband and wife]

I'd recently purchased a property - unlike the considerations dreamer101 stated, I have up to this point no idea what I'm going to do with it; I definitely have no idea of moving out on my own at the current moment but have left that option open. I can also opt to sell it off or rent it out when it's completed should I decide not to move in.

I think u r readyy to get your own roof when :

1. U've saved about 20% of the total purchase price and you salary today can afford the installments.

2. U've set an exit point

3. U've did your study and 100% convinced that u r buying not above market price and there's no other investment today can give u a better run for your $$$$$.

4. U like the place and u dont mind staying in it if s*it happens

I already save 60% of what I first planned. But with money I save I don't think I can get a good location. I guess I'm more into location than the size of the house.

This post has been edited by choice: Apr 13 2008, 05:48 PM