Hello,
I need advice from the seniors for future planning.

My age is 26 this year,
I want to buy an apartment in the future (but not in the near future). As I know, rule of thumb, I need 10% down payment for an apartment.

I.e An apartment - RM 150K = RM 15K downpayment.

But can I put downpayment of RM 5K for an apartment at RM 150K?

Whats your opinion?

Please excuse me if I sound rather ridicule in my ideas.

This post has been edited by SleeplessEyes: Feb 25 2009, 07:51 PM

1. How much you earn per month?
2. with only 5k, you might not able to get loan as well

1. Total salary, less than RM 2K
2. . It means I have to save up till RM 10K.


This post has been edited by SleeplessEyes: Feb 25 2009, 07:59 PM

If u are Malays/Bumi/Govern servant then u mayb can try to apply 90-95% or even 100% depending on u qualification. Last few years got scheme where some people could even loan more then 100% which to let u buy house and provide u money to move in too. But in the end, the interest rate are sky high and long term..

This post has been edited by dRLurve: Feb 25 2009, 07:59 PM

Nope, I'm not one of them either that you've mentioned.

Wait......did you mention "Depending on your qualification"?
I thought they only look at how much is your salary?

This post has been edited by SleeplessEyes: Feb 25 2009, 08:01 PM

The qualification i means is ur education level and future earning rate potential. UOB is one of the example which taking education level as a factor to approve loan. The theory behind this is bcoz not matter how poor are u, as long as u are Degree holder, ur income will not less then certain amount or degree income standard. So in conclusion, if u are a Phd holder and working in govern sector, then they have no reason to reject u since ur income and earning potential are very stable and higher. Hope thats help u.

This post has been edited by dRLurve: Feb 25 2009, 08:10 PM

TS.

What is the reason for buying an apartment?
Investment or for own stay?

If for own stay, looking at your salary, I would recommend you re-consider purchasing another property. You would have problem servicing the mortgage later on.

If for investment, you could pay as low as 0% down payment.

I think it's getting worse and worse,the more I ask, DRLurve.
I understand what you mean.

I think I really better consider living in poorer countries such as Indonesia..

---

Added on February 25, 2009, 8:21 pmFor own stay.
Everyone in life, has to settle down one day together with their future wife, and this is one of them I am planning now.

At least I want something reasonable, I think if the bank doesn't approve the loan based on my salary for a RM 150K, you are probably right, I should go down, less than RM 100K, to a "Low-cost flat"

This post has been edited by SleeplessEyes: Feb 25 2009, 08:23 PM

Since u say this year u are 26 years old. i assume u just graduated. You still so young wat~~ All depend on urs mindset to success. At least it is a good start since u adi planning to settle down with a plan. Bravo~

If you have only RM5k in savings, you should not buy a property.

IMHO, you need minimum RM30k cash before you can buy a RM150k apartment.

1. IMHO - Absolutely not! U do not need 30K to buy a 150K apartment.

2. There are many methods to buy with 0% down or only 5% down.....just like what JasonHan mentioned.

3. When I first started with a 176K condo, I had less than 10K in my pocket.

4. Give u just one of many, many examples on how to put 0% or less than 10% down - u buy a place that cost 150K - but it's apraised at 180K. Your loan approved with 90% Margin is RM 162K. U are fully funded plus u have 12K extra. Difficult to find such deals? Of course. Is it worth it? Definitely.

By the way - please learn from other experienced investors. Do not just listen to the people that do things the conventional way - i.e. 10% down.

There are lots, lots, lots, lots more to learn.....I am still learning myself.

Good luck.

(Sorry if it's discussion is derailing abit)

Well, I have the aspire to success one day, no matter what qualifications I have. The mountain is there for me to climb. Now figuring it out how to reach the peak of the mountain.
My GF had already told me when she plans to get married.
Just fearful I would let her down halfway through the journey.

It's for his own stay, not for investment. Different criterias apply. And banks are now more reluctant to lend, and offer lower MOF.

1. I am in banking. Reluctant to lend - yes......Hard to get 90% MOF? it depends......Is it impossible??......certainly NOT. Maybe my 10 years in banking are not very relevant. Would u be so kind to elaborate the different criterias involved? I'm going to love your answer......Please do share.......I would love to learn more about your credit knowledge. Please do tell me about all the different scoring methodologies and risk policies too.

2. And so what if it's for his own stay? The whole point is that u don't have to take out 10% or more. Sheesh.

This post has been edited by Phoeni_142: Feb 25 2009, 09:00 PM

Well, i think it depends u r buying from subsales or buying from developer (under construction). There are pros and cons for both the above:

Subsales:
1) Need 10% downpayment (well some 5% at least if you can get 95% loan)..
2) Prepare extra $$ for SnP Legal Fee, Stamp duty.. Get a ZEC home loan package to save on Legal fee.
3) You might not need to do renovation or even no need to install kitchen cabinet, fans, lights n rewiring as the previous owner already install them..
4) You can move in in a short time.. It is safer as you get as what you see.

From Developer:
1) Entry price. Some developer onli require 1k or 3k for downpayment and give lots of discount. Some even no need downpayment as they give you 10% discount, only need to pay booking fee. For my 1st apartment, I only pay 5% and the developer give me 5% discount, so I loan 90%.
2) Now most developer give free SnP and Stamp duty Fee.
3) Get a ZEC loan package and you are already a house owner with minimal $$.
4) Cons, you might risk the developer do not finish ur unit and got abandon.
5) You have to wait for the development to finish before moving in.
6) Upon completion, you hav to chase them to fix the defects and spend some amount for renovation, fan, light, curtain, grill, kitchen cabinet, n re-wiring.

OR.. Plan 2,

Buy together with your wife and share the cost.. better chance to secure a loan with combine income..

Weight your priority and happy shopping

This post has been edited by eugene jk: Feb 25 2009, 09:00 PM

First, he needs to find a place that he and his future wife is happy to stay in. Could be near his parents. Could be near his workplace. Could be near a good school.

Getting a place way below a valuer's price is (or should be) lower on his list of priorities.

Why are you so worked up when someone disagrees with u?

Yes, yes, i know you are in banking. I believe u have posted it many times

Yea, saw this method before.. and its an alternative method for low downpayment.. However, it has to get thru the bank evaluator 1st before you can get your desired loan amount. You might apraised it RM 180k but the bank might only see it as RM 150k and only loan you RM135k.

I got a friend who even got worst case scenario. The market price of his apartment is RM150k but the bank evaluated it as only RM140k and only loan him RM126K. Banks are generous but they are cautious as well.

And why are u such a naysayer? Hmnnn.......interesting........never used emoticons like this before.

What constructive advice do u have to offer?

Erm.....U can't do that.......low on priorities.....blah blah blah

So - what concrete solution do u have to offer to his problem of not having enough money to have a downpayment?

I am not worked up over this......

I'm used to people like u. Not much substance, yet saying something for the sake of saying something. Go ahead and post smart alec replies. I bet it makes u feel good.

This post has been edited by Phoeni_142: Feb 25 2009, 09:13 PM

How confident r u that you could keep your job in the next 12 month?

I think that's a different issue that I will concern for my ownself.