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 Home or Investment FIRST, Which one is better for newbie

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Pai
post Jan 11 2009, 06:04 PM

~ Billionaire in training ~
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3,318 posts

Joined: Dec 2004
From: 1Malaysia



QUOTE(moneybee @ Jan 11 2009, 04:29 PM)
Hello everyone.. I am lost .. Hope I can seek for some advice here  rclxub.gif

Here's my situation:

I am renting a condo unit in KL now and was planning to buy a 200k+ condo for investment & own stay purpose. Currently, what I do is rent the whole unit and pick a room for own stay, and the rest are rented out. No cash flow involve, in other words I'm staying for free. I found this method is quite OK and planned to do it for my own properties.

I have accumulate RM30k now, and start hunting properties around KL & PJ (if you have good units, please introduce to me, thank you notworthy.gif ). Now the problem has come. For some reason, my parent have to sell the house in my hometown and don't have a place to stay. I have 2 options in my mind now:

1.  Buy a unit and stay together with them.
2.  Buy a unit and rent out (looking for +ve cash flow), and rent them a unit in my hometown which probably cost you RM500 per unit.

But I am considering for future also, before marriage and after marriage... life is tough !  doh.gif Buy a new house and continue to rent out the properties or claim back the existing property and for own stay?

Here's my financial details:

Income:
1. Basic salary: RM3.5k (after EPF around 3 K) <-- bank loan is approve based on basic before EPF or after EPF?
2. Allowance: not stable, as I will always work in different country and the allowance is depend on the country. But once I assigned to overseas, min allowance would be around 6-7k
3. Fix allowance RM500

Expenses:
PTPTN: RM200+/month
Parent: RM700
Meal: RM400
Travel: RM100
HP bill: RM60
Others: RM100
I definitely want to buy a property but don't know which one is better for me in this situation. In short, Home first or Invest first ?
Kindly advice icon_question.gif  icon_question.gif

Thank you !!
*
moneybee, first of all, I respect your savvynesss and it seems to me that you understand how to play this "landlord" game. Here's what I would personally do :

1. Continue renting in the same place since u r technically staying for free today.
2. Buy a undervalued positve cashflow property perhaps at zero down and rent out everything to maximise profit.
3. Rent a place for you parents in your hometown, with as min cost as possible. (mebbe 300-400)

Good luck smile.gif


Pai
post Jan 15 2009, 09:41 AM

~ Billionaire in training ~
*******
Senior Member
3,318 posts

Joined: Dec 2004
From: 1Malaysia



QUOTE(moneybee @ Jan 13 2009, 11:39 PM)
About my current unit, the landlord is going to get back the house due to some of personal reason. I think around this area, I can have positive cash flow, but considering the condition and the year of the building, I might think twice (well, Im in Vista Angkasa, I think you know where it is).. of cos, I also consider for future stay or something.. I believe I and my family would not prefer here. This is making my head big ...  rclxub.gif
moneybee, I woudlnt go for Vista Angkasa if I were you unless its 20% below market value, simply bcoz the building is too old and teribly mantained. Hilpark is a better choice, makes sense investment-wise and own-use-wise.

300k loan is possible if your EA states your income as above RM60k........... wink.gif





 

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