Dreamer,

3) We do have emergency fund that can lasts us for about 7-8 month minimum. I do think about the risk of recession often, that is why i dont purchase higher end property.

That's the reason i want to take longer loan tenure, so that i have some breathing space especially during the 1-2nd year of our marriage. Thank you for the tips about refinancing.I will bear that in mind.


Pai,

Yes, our combined income are more than 8k excluding bonuses. I just need the extra money for the wedding ceremony proposed to be held end of next year and some of the extra money saved will be channeled towards investing.



My plan is to get a loan that will allow me to pay the absolute minimum (no payment at all would be better) for the first year of the loan period and save the money for the ceremony. After that even with 1.5 commitment monthly, i think we can survive as we are saving around 3.5k monthly combined.

Regards

an easier solution is to get a cheaper house, say a condo or apartment. Makes a lot of sense considering u r a young couple, does not require that much space, and ultimately u can rent it out for monthly cashflow if u decided to upgrade.

exactly. my plan is to buy a 2nd hand condo tht i can take my own sweet time (1yr) to reno n deco then move in. at the same time scouting for new project tht will be delivered in 2-3yrs time , a landed for bigger family in 4-5yrs time. when i move, i can still rent or sell off the condo/aptment.

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Added on May 19, 2008, 11:17 pmbtw, marriage doesn't mean need big house, buying a smaller house means u can be sole loan applicant yet put ur gf name under the property.

This post has been edited by yewkhuay: May 19 2008, 11:17 PM

mark0411,

1) Your 7 to 8 months emergency fund include or exclude the house payment.

<<After that even with 1.5 commitment monthly, i think we can survive as we are saving around 3.5k monthly combined.>>

2) Is that 3.5K before or after house payment??

To survive financially, you need to save 10% to 15% of your gross income. In your case with combined income of 8K, that means RM800 to RM1,200 per month.

Dreamer

My Challenge to you is to survive on 1 pay cheque, either yours or yourwife's.
Then you will be on very good grounds

Hi Alliance Bank's Staff here....

Your salary + your fiances's salary (combine salary) for RM 313k loan is more than enuff...

Alliance Bank now is offering 1st and 2nd year lower fixed rates :-

1st-2nd year : 3.75% fixed
3rd-5th year : BLR-1.50%
Thereafter : BLR-1.80%

another options:-

Whole Tenure : BLR-2.05%

*The above rates still negotiatable , can fight for better rates base on customer particular.....

Whole Tenure : BLR-2.05%.... Zero Moving Cost? ^^

it's Non Zero Cost

rates still can negotiate =)

wow this is a damn killer rate!

many banks offer up to BLR-2.00 for 1-3 years only...now this is whole tenure....

I've decided not take up the house or loan after all. I think i'll just wait and see on what's going to develop over the next 12 months before deciding whether to buy 300k house or cheaper and smaller house.

So guys, what do you think will develop over the next say 12-18 months? Do see the house price increasing or decreasing?Do you think its a good idea to be put off the plan to buy a house for now?

The house price will increase drastically. If you're planning to buy a house, better do so now. I've been serving developers as a banker so I know their increment. Those developers that normally increase only 5k to 10k each phase for house around 300k (same house design and built up) will now increase 30k to 40k coming phase.

As for the bank rates, they're forever competing like mad so the rates are forever changing.

That's ridiculous. Are you saying that people who make less money need less money to live ? if I make say 2000, I will need 200-300 to survive. But if I get a new job that pays say 5000, suddenly I will need more to survive even though my expenses haven't changed ?

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Added on June 10, 2008, 10:46 pmAgreed. House prices always go up in the long term. The simple reason is that land is limited, and more houses are being built.


This post has been edited by wodenus: Jun 10 2008, 10:46 PM

don't buy any new projects now ... go for second hand .. 200k plus subsale condos near public transport like lrt. new projects now are expensive because of raw material prices so they are not worth it to buy. alot of developers are saving on material now so don't buy developer units now. or at least wait till end of the year. everyone is scared that china will start dumping all their raw resources after the olympics. wait til after june next year for a lot of other reasons. but for now look for subsale units and buy one next to public transpoirt like lrt so that next time when u move into another unit u will be able to rent it out easily. so what exactly are u looking for? have you thought about the areas u want to live in? where ur life is and where you work or where you think u like? by the way i'm an agent just sharing my thoughts and views with you.

I'm not talking about 5-10 years or even longer, i'm talking about the next 24 months


I'm looking for landed unit, the price range around 250k-330k, terrace 2 story. Area around sunway kayangan,alam suria,alam budiman, nusa rhu,bukit subang or putra heights.

313k loan with 4k salary, any bank should be able to give you that loan...bank now can give liability percentage of up to 70%, provided thats your only commitment. But ask yourself, can you afford that monthly payment with our current inflation + service charge + utilities bill.

wodenus,

Let me repeat ONE MORE TIME. To survive financially, a person need to SAVE 10% to 15% of their GROSS INCOME.

I am talking about HOW MUCH TO SAVE. I am NOT TALKING about how much you need to survive.

<<if I make say 2000, I will need 200-300 to survive. But if I get a new job that pays say 5000, suddenly I will need more to survive even though my expenses haven't changed ? >>

Let's take your example.

A) If you make 2000 per month, you need to SAVE at least $200 to $300 per month.

B) If you make 5000 per month, you need to SAVE at least $500 to $750 per month. If you do not CHANGE your life style, you will SAVE a lot more than 10% to 15% of your gross income.

Dreamer

there are alot of subsale terrace houses selling at between +5 to +20 percent of orignal pruchase price

and by the way just let u guys know.... it doesn't matter how much the developer raises the price for a project, at the end of the day it is the demand that defines market value. Right now demand is on a decline due to oversupply also middle income families are overly geared and plus the rise in cost of living, things look bleak for the property market.

dude just remember it is now a buyers market. You as the buyer is king. anyway go have a look around at the subsale market. Especially in putra heights alot of buyers are dumping property there. Fully renod link houses selling for +15% of their original purchase price. New suburbs aren't doing fantastically well. Since your buying to stay, stay within extablished areas and you will be fine. Unless your speculating, go for new high growth areas. just remeber the thumb rule of investment, higher risk higher return.

By the way right now is not the time to become commited. Again recession is already here right now it is a property market especially around the expensive areas. Not enough tenants, rental prices not enough to cover loans, buyers are not buying. New high-end properties especially in the klcc and mont kiara area is 80% investment purposed.

By the way from the choice of your areas are u malay? have u searched i property?

So when you say "to survive financially" you're not talking about how much you need to survive financially ? what other meaning of "survive" is there ? unless of course you're saying if people don't save that much they will drop dead

This post has been edited by wodenus: Jun 11 2008, 11:12 AM

My loan package:

1st year - 2.88 fixed
2nd year till 30th year - BLR - 2.00

Although I think now this is quite normal d. Some forum posters actually mentioned EON Bank with BLR - 2.2

Hi guys,

Talking bout alliance bank rates?
Im a mortgage sales executive from alliance bank.You guys heard it rite,alliance offering as low as BLR-2.40%.
For 300k and about the rates are as such 1-2years BLR-2.30%, 3-5 years BLR-2.05% and thereafter BLR-2.05%.
Interested and any further clarification please drop me your contact num or questions at veen_0809@yahoo.com.have a great day ahead.

parven
mortgage sales executive