lol I agree I think it may be even worse then credit cards.

LOL! You meant, to have a car before a house, is a mistake ? I can't get you.
Or, person with salary RM2.5k can't qualify to buy either car or house ?

not sure if i'm in the relevant thread..was just wondering what about a 100k condo? It's fully furnished and all it needs is just some minor repair/maintenance work..

new owner is single, 25 and has a monthly income of 4k gross. what is the max repayment period eligible for this person? and roughly how much would the monthly installment be?

thank you

work_tgr,

1) Remember the 1/3 rule. It has NOTHING to do with whether you qualify for the loan. The question is can you AFFORD the car or house.

2) How long is the tenure of the car loan??

3) How much does the car costs??

4) Can you afford the car??

Remember, car loan is BASED on simple interest. So, if you take a 9 years loan, you will be paying a hell lot for the interest. And, by the time that you paid off the car, you NEED to buy a new one. So, how can you buy a house in the next 10 years??

How much is your PTPTN loan??

Numbers do not lie. After all those payments, you STILL need to save at least 10% to 15% of your salary. Or else, all it takes is a few months of unemployment to force you into financial disaster.

Earn more, spend less. and save.

Do not buy what you cannot afford.

Dreamer

Simple calculation:
List down Nett Income (Take Home Income)
than minus
1) Monthly fixed commitment (Car Loans, Insurance, etc...)
2) Estimated expenses (food, groceries, petrol, phone, etc...)
3) Other expenses that one can do away off (entertainment, etc...)

Get the balance of your income and recalculate if one gets the loan; how much is left.
Than with that balance, is there any SAVINGS?!

Than if one still thinks it's worthwhile, do another calculation which this time, estimate what would be the "future" expenses (renovations, furnitures, maintenance, etc) after acquiring the house to see whether or not one can truly survive.

Remember to predict "what if" situation. The most common one is jobless. What if I'm jobless for 3 months....can I still survive etc kind of scenarios.

There are many type of loan in the market. Max repayment that bank offer up to 40 years, when i was 23.
Say u borrow 90k for 40 years with interest of 6%. Monthly bout RM500.

Hope this answer your question.

Both.

Does a freshie really needs a 3 bedroom condo/apt for their own use? Dont think so. Renting a room is more efficient. I know some forumers here have 2 investment properties but CHOOSE to rent small rooms from others.

As for cars, many freshies who could "afford" the monthly installments, but conviniently forgotten that there are significant cost attached to a car. Fuel, parking, insurance, road-tax, maintenance, repairs, accident etc, all this requires $$$. I did a basic estimation when I was 25, and the cost to drive a Kelisa is approx RM900-RM1k per month. How much $$$ can you save when a big chunk of your salary goes to a depreciating liability?

However, its a diff ball game all together when you buy an investment property and rent it out to other.......

I am sure your down payment was small or the loan period was too short or bank interest was too high.
Btw, RM1k for just spending in car is really *ahemm* for freshie

Oh absolutely. What if you wake up tomorrow and find that you are blind, deaf and paraplegic ? what if you wake u and suddenly all your money is gone? what if you wake up and find that someone has stolen your identity? what if you wake up in another house, with another set of friends and family? all of that could happen.

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Added on January 7, 2009, 12:35 pm

Renting is more efficient, but not in terms of quality of life. Can't put your 250K 60" LCD in a rented room.


This post has been edited by wodenus: Jan 7 2009, 12:42 PM

excuse me..what is the different between "to buy a house" and "investment property" ?

im noob..and really wanna know.. thanks

I think, a house is a place to stay for your living and investment property is a place you bought for the purpose of earning money through resell with higher price or to let for the monthly rental.

oic..thanks..

If you ask me, I will tell you that a house is a liability whereas if it's a property meant for investment; than it's a different story.
Like I always advise although some might disagree with me, never treat a "home" as an investment as eventually it's a failed investment. Than again, it's only my opinion.

can you explain more about that?

coz im just about to buy a house and rent it.

Interesting. I know so little about business. Let say I own a Semi D. I only stay in one of the rooms, the rest of the room will be rented. House or investment property ?

It depends on how you treat the particular property.
If you intend to make money out of it, i.e. in this instances gaining rental income than treat it as investment.
So when it comes to that, one would need to do lots of calculations on profit and loss. Simple as that.

But if it's a house solely for own stay, one would usually splurge a lot in furnitures and renovations. Especially as time goes by. So isn't that a liability instead as you're not generating income from it.

Usually ppl would say property appreciate but a lot of time, many doesn't add in the inflations, all the furnitures/fixtures/renovations... expenses spent on the property for all those years. Yeah, the most they would remember is I spent xxx on renovation. So is it true that when one buys at 250k and sell at 350k 10 years from now; are they truly earning money? They might be, but is it worth it?

Dreamer,

I only have investments in M'sia. I do however have properties all over KV, and some stocks here and there.

I am NOT smart enough to invest in other parts of the world and I do not have the TIME to do that either.

Phoeni_142

When one earns less than 3k a month, a 250k LCD seeems faaaaaaaaaaaaar fetched.

thanks for your kind answer

250k lcd? you can definitely afford a house..no point renting...unless you rent a small cinema..

tumpang a bit...can calculate ah for me if i loan 200k..how much permonth ?

my fiance + me get around 3.5k....car loan 400...
can i get 200k loan ?

thx thx..