here what al-rajhi bank offer..

whole tenure: BFR -1.70% (without free moving cost)
repayment period: up to 35years or age 65

[quote=dreamer101,May 18 2008, 11:46 PM]
mark0411,

1) If you are 26 years OLD, how can you get a 35 years loan?? I thought loan can only goes up to 55 years old aka retirement age. So, maybe a 29 years or 30 years loan.


The bank may be able to give you a loan. But, you better ask yourself a simple question, can you AFFORD the house?? Your financial situation is VERY TIGHT. If we hit recession or you lose your income for a few months up to a year, you may lose the house.

Dreamer

[/quote]
they have until 70 or 65 years old. This is what mortgages do...they choke you especially after retirement. But many fail to see that. I still see a 55 year old guy STRUGGLING to pay off his mortgages now with no steady job in hand.

[quote=mark0411,May 19 2008, 08:00 PM]
If i were to take a loan for 35 years just to get lower monthly installments and later refinance it to reduce the tenure and principal, will that be a good idea?

I'm not comfortable with the idea of paying 1500-1600 per month, i would rather pay between 1200-1300 instead until i could manage to get higher salary etc.

[/quote]

that is IF your salary raise. Think again what if BLR rise? Your monthly repayment increases. Can u take the extra monthly repayment?

Furthermore, I suspect this is a under construction package right? Money is released to the developer in a small amount which makes no significance if your interest is low.

Take example...
1st Quarter : developer issue letter to bank, indicating have completed 20% probably RM62000

your interest : 3% (example) so you are only paying RM62000 X 3% of it... and not RM310K X 3%.

By the time of completion, probably in a year or two... BLR could have raised... here's a history on how BLR have increased in 5 years time (click on spoiler)

http://forum.lowyat.net/index.php?showtopi...post&p=17816685


[quote=yewkhuay,May 19 2008, 11:15 PM]
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.

---

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.

[/quote]

buying condo has a very limited terms when it comes to renovation. Meaning to say, nothing major can be done. Plus have to pay maintenance and in case some lousy developer hire some lousy maintenance agency...

note that maintenance fee can be increased in the discretion of the developer

[quote=soitsuagain,May 22 2008, 10:44 PM]
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....

[/quote]
Of course is killer rate... coz they know BLR is increasing.

If BLR increases somewhere on August this year... probably to 7% and in future of 3 years ahead, it reached to 8%

BLR-2% = 6% back to square one

[quote=wodenus,Jun 10 2008, 10:44 PM]


[quote=dreamer101,Jun 11 2008, 04:35 AM]
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

[/quote]
bolded for better meaning

[quote=wodenus,Jun 11 2008, 11:11 AM]
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

[/quote]

yes, people who don't save much can drop dead especially when you are IN NEED of money and when you cannot work anymore (probably of old age or disabled) and by then you would regret why didn't you save earlier. There are a number of people falls into this category. Thus while you are able, save and spend wisely. Probably you may think enjoy myself first coz this is what i deserve... but think wisely on the future and also what risk do you have and what is the upcoming risk? unemployment? accident?

wodenus,

A) How likely for you to NEVER get sick or have ANY KIND of financial emergency for your WHOLE LIFE?? For example, you are FULLY EMPLOYED for your WHOLE LIFE and you NEVER out of job for any amount of time??

B) Do you mean that you will work until you die aka never retire?

10% to 15% is the MINIMAL buffer required for a person to survive those COMMON but uncontrollable FINANCIAL emergency.

That is the meaning of FINANCIAL SURVIVAL. Having enough to live and continue to live in spite of some FINANCIAL emergencies.

Just a simple example, if you spend ALL your money every month, what are you going to do when

A) Your car broke down and need a major repair.

B) Your washer or air-con died and you need a new one

Your regular 10% to 15% is needed to handle those COMMON Regular financial emergency without going into serious debt problem.

Dreamer

This post has been edited by dreamer101: Jun 18 2008, 11:28 AM