tinkerbel,

<<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.>>

You should also mention to TS that you have a lot of money and this property is your second or third property. This is not the same situation as the TS.

Look, I have a 82K 40' X 80' single storey Bungalow sitting vacant in rural Selangor. It is all paid for and I can afford to do nothing and just let the property sit for 10 to 20 years. I do not think this is something that many people can do.

My neighbor bought a house and has NO IDEA what he is going to do. Then, he could not rent or sell the other house. So, now, he move to the other house and rent out the house next to me. His rent is so low that he cannot cover his installment and he is paying installment for 2 houses now. Hopefully, he can survive.

He paid 250K for the house and spent 100K on renovation. One house in the same row had just sold for 190K. Another example of you will lose money when you sell the house that you lived in.

Dreamer

chief,

had the fella chosse to spent that 350k on a basic BU/TTDI DS 5-10 years ago, he would be sitting on a nice pile of $$$$$ today. Location is the key.

Its his ignorance that made him lose $$$$$, not the house itslef

@choice,
In that case U should look at the location U like and then check if there are any properties available in ur budget

Come to think of it I guess I only have 25% - 30% for the location I really want. I need to save more due to my income unstable. Thank you for all your advise.

@dreamer101,
I don't have a lot of $ and the S&P i'm about to sign for this property I booked last year is really my 1st property, not 2nd, 3rd or 4th.

Well, am sure the area u live in will give capital gains in years to come, just need to survive through it now - Ur neighbour must have thought about it before spending RM100k on reno works.

Pai,

1) You missed my point. He bought this house to live. It was the perfect location for him to live. So, he spent 100K renovating it.

2) The problem is the second house. He bought it to invest. But, it turned up to be a bad deal. He cannot sell or rent it. He could only rent out the first house.

3) I guess you have not heard story about people going bankrupt over the house in BU/TTDI during the last recession. House price do not go up in a straight line.

Dreamer

---

Added on April 14, 2008, 9:07 pmtinkerbel,

1) It is VERY SIMPLE. If you plan to live on this house for quite a while, you will spend fair amount of money on renovation. If not, you will not. Everyone know that 90+% of the time, you cannot recover the cost of renovation. So, if you plan to sell the house, you do not renovate or do minimal renovation.

2) From your previous postings, it looks like you will be moving into this house?? Am I wrong?

Dreamer


This post has been edited by dreamer101: Apr 14 2008, 09:07 PM

With the rising cost of materials, 100k will not go very far in renovation.

It boils down to what is the purpose of your house.

1) As a home for you and family
2) As investment property
3) Both of the above

If your choice is (3), then you have to forgo a little comfort in life, as renovation cost can rarely be recovered.

Personally, I make clear distinction between a home or investment property.

This post has been edited by Dyong: Apr 15 2008, 10:06 AM

seriously .. thinking of buying a house is big headache.. =))
* looking for shah alam nearby house

some people (so calle advisor/ relative) said that it better for u to look a house that can support your family till next 20 years .. it mean space... at the same time at a decent location and also at a same time close to your work place and also at the same time the buyer (me) wondering .. is there any house that fit all those requirement and at the same time.. fit the buyer (me) income??

for all that describe location in shah alam.. the only hint that i can get is Bukit jelutong/ denai alam (as they alway prescribe)... mmmmm ...are willing to dump all of your monthly income for a house??

at first i look for apartment.. but i don't think suite for that.. while my family always come from terengganu (both my in-law).. requirement for
1. space
2. parking lots
is important.. headache already with my current apartment.. security to tough even if u just want to drop ur "can't walk" mum inside the compound..


i thougt i'm ready..

why..
1. i got around 30k access cash available
2. i got company loan that can give me quite flexible monthly repayment max 250k for around 800 p/month and another 50k withh normal loan rate.. so my monthly repayment of 300k is around 1k (1/5 of combine salary)
3. paying rent around 700/month with ridiculous water bill (average of rm50/month for two + worst maintenance (it guthrie) + worst security)

now.. i don't know.. should i pursue my purchase for the house or not..

This post has been edited by ganz: Apr 15 2008, 10:18 AM

well, you already answered the question yourself. you shd save more than if it doesnt serve your goal

Huh? down payment for a 500K hse is just 50k(10%). 25% of the 50K is just ard 12.5k, 50% of 12.5k is just ard 6k(saving), so little only?

@Greybear,
I think he meant savings of about 25% equal to downpayment of house. That means, 25% on 500k = RM125k

This post has been edited by tinkerbel: May 22 2008, 09:36 PM

percentage is not the exact number... its depends on individuals..

what i meant on my previous post towards ts's question is .. make sure you have some savings left after put a huge upfront money for the house...

sorry for the confusion.. i would buy you girls drink but i can't.. haha

@KooHei,
Don't offer when U've no intentions of offering it It shows lack of class [no wonder people aren't impressed at the lil Kancil U drive around in ]

ok i assume i didn't saw that...

oh come on... usually people buy me drinks when they saw my kancil...

Tsk Tsk.. First, it was no class. Now it's no grammar !!

Wow 125K? tot of paying RM100k as downpayment only for the 500k hse, the remaining will be installed mthly d...

@GreyBear,
20% downpayment is considered high. Most people I hear takes up max 90%. I too am looking at putting 20% down and taking a 80% loan.

I can take a 75% loan but I'm keeping that 5% as a cushion. At least if I lose my job, I still have at least 6 months of reserve in the bank. Am also planning to go back to school so I might need to recalculate some cost due to RM0 income for 18 months *gulps*

you know when you got the right words on your brain but typed wrong... ok whatever, its the ssssssssskill

haha what's wrong with that..? the quicker to solve the home loans is good as far as i am concerned...

@KooHei,
Err.. and what ssssssssskill might that be?

property is the most illiquid asset i've come across.

for whatever reason(s) you choose to acquire the property for, be prepare to have your money stay invested within it for years.

with the exemption of 'property gain tax', although it encourages trading, unless there's a bubble, it's unlikely to keep the price appreciation going northward all the time.

if the capital that you've saved thus far can be safely put aside for some 5 years without having yourself worry a single twitch.. that's about time you're ready for this class of asset... welcome to the world of a property owner/trader.

by the way.. paper asset(e.g unit trust, stocks aren't necessary bad, you probably haven't invest enough in the knowledge of such asset class.. if you are going to adopt the same approach at acquiring a property, without adequate research/studying.. you'll find the same frustration you have had with unit trust with property as well)

... so, "caveat emptor" to you..