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..

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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.

If you had read properly, my advice to him is to play safe. Be prudent.

For a guy who's probably much older than me, you are unable to debate rationally

You know what they say about arguing with idiots, and this is not Kopitiam. So I 'll stop replying to this thread. Peace.


Btw. SleeplessEyes, I am just a very small-time investor,. I own 3 properties ... so I know what I'm talking about. good luck.


This post has been edited by Spartacus 2.0: Feb 25 2009, 09:22 PM

Should always go for completed or nearly completed properties if possible. With this global economic crisis, I don't really trust those developers, big or small.

I think 5k not enough. (Know that you can withdraw money from your EPF account 2 for this?)
There will be all kinds of legal and stamping fees to pay.
Sometimes they free you legal fees, but you'll have to pay stamping fees.
So ask carefully.

Then somewhere down the road, legal fees for the strata title.
Every month, maintenance fee and sinking fund.
Every 1-2 years, maintenance office will try to get an increase.
Yearly/Bi-yearly quit rent for the DBKL/MPSJ or whatever.
Indah Water payment.

But anyway, don't give up easily.
Everyone has got to start somewhere.
Unless you have other 'abnormal' expenses.
If the bank approve your loan, then believe that you can do it.

I guess irrational debating is as bad as debating without much substance. You win bud Yes, u can't argue with yourself. I certainly won't argue with u too.

Peace.

Well, one can choose to pay 0% down for their own stay. Nothing wrong or right, just a matter of choice.


The problem with it is bad debt, debt that make you poor.

I would prefer to have good debt, debt that make me rich.

Its not a separate issue. Whats the point of buying a house now only to loose it 12 months later IF you lost your job and could not afford the installments?

Good point there, yea.. apartments requires to pay maintenance fee also.. For a decent RM150k apartment, the fee can be some where between RM80 to RM150 permonth.

Other expences can be insurance either MRTA or MLTA..

Bro Spartacus and Bro Phoeni_142,

1 is a investor (Spartacus) and another is a banker.

I was watching the fiery debate between the both of you. Both of you are trying to contribute the best answers to my problem.

There is no losers or winner in gaining the best answers. It's the answers that I appreciate the most, that matters.

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Added on February 25, 2009, 9:33 pmWell not to worry, I am not gonna buy it this month,this year or even next year.It's a future planning, my friend.
I was putting RM 5K as a minimum base line downpayment. I am also geared to have more for downpayment.
I'm a man, and I must plan for the future to settle down together with my future wife.

This post has been edited by SleeplessEyes: Feb 25 2009, 09:35 PM

Mr. Sleepless eyes,

Don't worry about it. Debates like this happen all the time. Those that know me well will know that I'm just frank with my words.

By the way.....I'm an investor first.....and a banker second. I have a number of properties (small time only lah) - But I do NOT know what I'm talking about sometimes.....That I have to humble enough to admit.

So, let's learn together.....There are many wise men here like Pai, JasonTOh, JasonHan - that are willing to give u constructive advice.....

Good luck mate.

im 20 years old this year and I planned to buy a apartment at wangsa maju area. probably at metroview or plaza prima setapak.

with the income range from 2300-3500 permonth, do u all think I can get the load easily by next year?

nowadays i know many investor using one method of paying their loan by renting out the apartment and then get the rental money every month and pay their loan. is it the smart way to invest?

pai had a legit question which you need to consider.
Or if you don't want to consider that, do you have any savings at all for starters?
Can you survive or not for the next 30 years after you get the loan?
It's either you survive or you suffer because of this commitment.
Honestly since you're in this section, I guess no sane guy would agree that RM5k is a sound downpayment; especially when you're buying it for own stay.

Those who knows my opinion would already knew that my opinion on buying property for own stay is to be considered a liability where money goes out and not inwards.

oh, then its a diff story. Then you should do what both phoeni and spartacus advised :

1. Buy a property using as low DP as possible. RM0 DP is possible if you can find the right deal.

2. Have some reserves in the bank, 30k is a starting point. Dont forget u need to pay legal fees, furnitures etc, and also u need some basic cash reserves, just in case.

I didnt have 30k when i bought my 1st property (more like 2k only) but I always had a backup plan to raise 30k, just incase.

Lastly, plan together with future wifey. Just bcoz u r a man doesnt mean u have to bare everything on your own. Leverage...............my fren

Hey Pai, sorry if I was abit harsh on you on your first posts. I was rather overly-concerned about the future.
But I really must and must thank you (and Phoeni_142 too) for the contributions.

I felt that your idea is rather suitable to my conditions. I will work on it for this one .

hi sleeplesseyes, i am just like you 26. i am getting married soon this june and just to share my experience that i recently just purchased an aparment, Initially i wanted to get loan 90% but end up approve only 80% of the loan amount. I think you should project more money for some unexpected incident, like bank might not approve your desired amount of loan and you need to top up the diffrences, also then some money for renovation if needed and household item plus furniture it is also costly (i know you can slowly add ). Having extra or surplus money is always the best bet imho. Dont just have money barely to cover the cost or else you will really be strugling.

This post has been edited by Eng_Tat: Feb 25 2009, 11:14 PM

I'm turning 26 this year and I never worry about buying properties. I'm curious...since you are not planning to buy anytime soon, why do you open a thread? The correct answer now might be not in the near future, all depending on the economy situation. Like now, the BLR rate is so low....so it is advisable to get as much loan as possible. But if maybe the BLR increase near future....this might not be the answer or the suitable solution. Just act according to the situation. Anyway, I know it is possible to get loan more than 100%. A lot of people have been doing this, and I assume, this Najib guy will come out wif some plan to help the property developer. Else, we can all wait to get bargain soon

Any chance u can share which property u bought? I hope its not somewhere where i intend to buy.

Pai has a legit point.

If you have only 5k savings you shouldn't be buying a property. It's rather risky and with the current economy climate, it's not advisable to commit on big purchases like a property.

I would say 30k would be the minimum, to be on a safe side.

Loan is easy but to keep it might not.


Metroview Condo priced around RM240K - RM280K.
Metroview Condo can rent out for RM1200.
Maintenance fee for Metroview Condo is RM160.

I had calculated that if I give downpayment of RM60k and loan RM200K for 40yrs.
It was around RM830 permonth + RM160 maintenace = RM995 per month


But after deduct your car installment, and other expenses such as water/eletricity/gas/streamyx/petrol/gf..
How much you have left ? My salary is around yours, and I cannot afford it if I doesnt rent the unit out.
Aftter all my expenses i left around RM300 only, excluding entertainment and emergency.

And worse come to worst, what if nobody rent your condo for a few months ?
How you gonna pay for your car insurance and cukai tanah for the next year ?

I opted to purchase RM200K house, and estimate renovate around RM30-RM50K.
Loan installment around RM600+ permonth, I can say it was quite comfortable.

However you are still young, 20 only, you might make RM5K next year.
FYI, Im already 24.5 years old.

Basket, all so young!

Hi sonic, the the apartment is in Bandar Seri Alam, Johor.

how long have u been doing this?

by the way, im still single and planned not to getting gf, no car yet, gas.... do u think i afford it?
rm200k property at wangsa maju, could be those desa setapak double storey house?

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Added on February 26, 2009, 8:30 amis it any prob? i din find any cuz we're still cuz only we must plan smtg like this. dont u wanna think all this when u reach 40 years old?

This post has been edited by saddient: Feb 26 2009, 08:30 AM

Nah, envy you guys starting so early.

I'm planning my budget for a new apartment/house/property for the next few years, otherwise I would had spend it on i.e a brand new car, a brand new laptop, etc. something interesting to have, but depreciative to own.

I open this thread is because I want to find answers that I cant find myself, and it's also useful for those which intends to purchase a property at this age too.

This post has been edited by SleeplessEyes: Feb 26 2009, 09:14 AM

Yup, your mindset is good and your age is just right. For anyone in the mid-20s, with adequate $$$$ in hand, its time to scout for property and acquire one, and wait 2-3 to get them finish construction, and walla.. a proud home-owner before they hit 30.



The main issue is $$$ to get the balls rolling, and $$$ in the future to KEEP the ball in "continuous motion".

I'll share a bit on my situation right here

I bought my first property at 20 y/o for my family. A 220k terrace house. High DP from my offshore work and low loan pymt monthly. That time got free S&P and legal fees. Bad move at that time coz it was for family stay and a big chunk of money went there.

Bought my 2nd property at 22 y/o. Didn't earn much from rental coz I stayed there as well. So I sold it off and earn some cash. Then struggled to save up some cash and buy a 2nd hand at 80k (I was 24), it's a 3 bedroom apartment. I stayed at the master room and rent out the rest. Both the rooms can cover the installment plus cover the maintenance

Basically what I was trying to say is, when you realized you cannot afford to buy a family house.. start getting a place where you can rent out some rooms to cover your monthly installment.

I did a mistake by buying a family house first. It's tough to save money while you're in such a big commitment. But to share or not to share, it's what you've gotta discuss with your future wifey.

Else, combine income?

you cant rent out a family home? by the way where's ur location? so cheap 80k property u got there... flat is it?

Erm, the first home is still for family. I moved out.

Well, I find your personal story quite admirable. Thanks for sharing.

Using your lingo, I made the same similar mistake as well. I was jaded and thought landed was and will always be the best....So, I bought a DSLH at that time, which was well above my budget.....The monthly outflows nearly killed mrs and myself.

Then, I went on to apartments and condo's - within my budget, and was fortunate to structure it in a +ve cash flow way.....

the only good thing that came out of this whole experience is that my DSLH has appreciated, and I use it as cash engine to refinance and cash out....to use the excess cash to buy other prop's.

I agree with u......in hindsight, I should have started with apartments, something within my budget.....Oh well, have to swallow salt and learn from my mistakes...

cheers.

This post has been edited by Phoeni_142: Feb 26 2009, 01:52 PM

Home as a piggy bank?

You guys were buying property so early . Currently we're only using 10% of our pay for house instalment (+rm100 for maintenance and another rm200+ for bills). Cant imagine paying 33%, since still hv student loans to settle

Why not?

In fact the appreciation of properties give better returns than Fixed Deposit and is the second safest investment in terms of Investment

Well that's why US homeowners are in such deep trouble right now - they withdrew too much from their home equity (to buy junks, compete with their neighbours etc) that when house value drop, their mortgage > house's worth.

On the other hand, I bet you know your money well not too spend on useless doodads

Not entirely true.
FD usually one keeps for short period of time, however properties tends to be kept for a more longer period of time unless we're talking about "flipping" techniques. Than again considering the amount of money one needs to put in for the upkeep of the property (if it's not rented out), one could have an illusion that it's profitable because haven't include the amount of money spent vs amount of money received back.

The problem with subprime is because everyone has the mentality that property prices would always appreciate. The banks sees little risk in it thus when the bubble pops - bye bye.

don't think so lo
mostly the bank won't approve ur loan

Reason?

True. And another thing is most people think that the price can either go up or worst case remain, not knowing that sometimes the developer might even sell at loss, if business still not doing good. I've seen a lot of this case,but probably I'm not staying in KL which is immune to this

I read your story with great

However, I do not think that you made a mistake by buying the 220k terrace house for your family. Not all of us are "lucky" enough to have rich parents, u r jjust doing your obligation as a good kid to your parents. I have nothing but respect

Plus, im betting your DS has appreciated now n you can always refinance to free up some equity for future opportunities, no?

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Added on February 26, 2009, 7:54 pmu shouldnt.

U should be prowd to see more yuppies today have balls to plan for their future instead of spend, spend, spend mentality

---

Added on February 26, 2009, 7:59 pmnot all the time. Like any investment, there are good and bad picks. And its never a good idea to "bet" on appreciation.

Go for high yielding properties, lower risk IMO

This post has been edited by Pai: Feb 26 2009, 07:59 PM

yea i strongly agree with it. This bubble is much bigger or in the sense, much worse, because too many players (homeowners) involved. Robert Kiyosaki teach too many people to do it. American just like us, see properties( houses) are the strongest investment., and it's a sure win investment.
will not depreciate in value. This subprime mortgage doesnt happen in Malaysia just because bank play safer (30% of your salary repayment) than those banks in america ( more than 100% value of your properties) . when the BLR in america rise a bit, no one able to afford to payback , then people lose confidence on property investment, no one buys = drop in property value. when you house price drop = you have to pay back.
when people unable to pay back bank..bank burst. government bails. even loweing the interest rate is no use anymore. because people already lose confidence.
This is same like the dot-coms bubble. But with more player, more money involves and therefore bigger hole ...

5K deposit to loan RM150k .....i dont think you are able to.
if few years ago and you're american ...lend you RM170k ....cos your properties will appriciate in value...lol

the story different now

Teach what?
To flip or to be rich or that people have choices.

buy and rent . use rental to pay off mortgage.
I didnt say it does not works.
many people follow. but kinda blindly and didnt think of consequences behind the risk. more to american, whom many treat it as "get rich quick scheme".

Yes, people have choices,they can choose not to buy and rent, not to flip, stay with the current job , save and die. They been told they can do other things, to have easier money. What choices will they make? Choose to follow the trend or not?

if you treat it as a business.. it involves a lot of effort and time. and many problem, tenant problem main concern.

yes, leverage . still it involves risk. And i'm not telling you guys not to do it. you can , but think a bit long term. you able to get loan, tenant, rental. that is short term. think 5 years , 10 years 20years.
every decades, is an economic cycle...will you still be with your job? or do you have a huge pile of money backup all your mortgage?
dont need rocket scientist to help you thinking... common sense involve.

be4 this downturn, credit crunch, everyone ( i dont deny myself) think is a sure win, until this crisis happens.
just like the history, goldrush, dotcom, now the property.

it involves risk and rewards. know your risk and situation.
i dont against it, cos my parent does the same, in a safely manner. I am going to do the same as well.

Thanks for you opinion.

Robert only educates me in general financial basics but warns that I would make mistake.
I had made my choice, if I make mistake, I would correct it and move on.

many possible reasons. No point I state all here - as we can't determine it online with accuracy.

why not u just submit in your details and profile to the bank first - ask them if u are eligible for the loan?

easiest way - and don't u think you'd rather trust the bankers than us? Your banker is in the best position to advise u here. cheers.

But a lot of times the "sales" oftenly promise the sky and moon. That is the kind of sales to avoid.
Anyway, I guess we've gave enough advice. It depends on TS to consider and think through his plan.
We're just a bunch of nosy ppl throwing all kinds of ideas and thoughts for him to analyse himself....

Btw, still stand firm on that minimal information provided by TS here; it's still not the time for him to venture out. Maybe get a lower end property like suggested by suiteng.

Yup, lower end properties might be good for a bachelor. But he said he wanna share with his future wifey, so, a middle range can be ok also. The thing is, with an income of less than 2k I guess the best you can do to get a loan is to combine your future wifey's income (which is not really recommended). Then, buy a property with at least 2 more rooms to rent out.

Home loan last for 30 years, are you sure your partner is the one you wanna marry or not

P/S: I'm currently not touching my family home so now I'm doing all the flipping using the place that I'm staying. So, I move a lot

i quite rarely see 1 room or 2 rooms houses/apartments...
either studios or 3 bedrooms ...

Yeah I do trust the bankers as the best position to advice based on what is my financial state and salary

Be careful which banker you're taking advise from.
Well got 1 here is an exception.

Seems like u guys had some fun... dang i sure missed out a lot of stuff


Sleepless,

to be frank, you can do that. but since i'm attached to a bank i cant tell you how to do it. (not here at least )

You can even make 0 down payment in some scenario.

but getting a house and loan is one thing, being financial and emotional ready to commit yourself is another. And i strongly suggest you consider your current financial status before making any decision.

It alot easier to get loan these day as long as you have documents and its justifiable (is there such word? ).

whats the apartment for actually? plan to move your family there? or renting it out?




This post has been edited by merce: Feb 27 2009, 11:56 PM

Even in Indonesia will cost you more 150K le for apartment in Jakarta..lol..

depend on the developer, some of the agent direct from the developer can make 95% loan.

I dont really care how much u earn . For taking a 140k loan from bank with 6-7% interest rate, your monthly payment is most probably about 1.1k every month.

Yes , you can cover ur monthly payment through rental of ur apartment. But if the rentee is delaying ur rental payment or stop rent from you or hard/no 1 want to rent, will u still able to afford to settle ur loan monthly payment with ur limited salary?

IF U CAN..Yes u definately can go and buy it because even no body rent for certain of time ,u still can stand for it

if the house prices is Rm150k..... i think some property developer allow 5% deposit, so u still need to pay Rm7500 as deposit..

so just saving more then can pay the down payment, but really have to think of can u pay the installment when it no body want to rent it.

Or just get your future wifey to work at a bank for better interest rates, lower monthly payments

FYI:
1)Loan Amount RM140k with 7% interest rate(Let say in BLR-2 package, BLR need to as high as 9%)30 years is bout RM931.42
2)Loan Amount RM140k with 3.55% interest rate(Let say in BLR-2 package,based on current BLR now(5.55%))30 years is bout RM632.58.

If sleepless wanna buy now with loan amount 140k, with this BLR-2 package ZMC. will need to pay bout RM632.58.
Bear in mind that, Instalment amount will change depending on thi BLR.
1)If BLR = 5.55(now), instalment = RM632.58
2)If BLR = 7, Instalment adjusted to RM751.55(may vary depending on ur outstanding loan amount)
3)If BLR = 9, Instalment adjusted to RM931.42(may vary depending on ur outstanding loan amount)

extra rm300++, u need to pay monthly if BLR up to that high. Just to let you to have some preparation and scenario.
Im 26 too. Lets gambateh together in this real world!


Saw someone mentioning metroview, i did know that the selling price up to as high as 280k now.
when i bought it last time, it cost me 172k only for each unit(i got myself 3 units). instalment about rm700++, rent out now at 1.3k. Its a nice location tho, but the workmanship of this condo is poor. dont worrry of the tenant, demand is still there. but even at the price of 250k, not advisable to buy, coz you cant put much to your pocket.

This post has been edited by hacker6280: Apr 10 2009, 06:21 PM

This has interestingly swerve from the TS's question, but it actually made it more ...interesting.

5k to get 150k prop is not impossible as many sifus here have proven time and again. Nevertheless I'd strongly encourage you to read up, discuss many times and have a guiding hand if possible to go through your first property. Sifus like Pai or Phoeni can probably look at a property and almost instantly know whether it's worth investing, and if yes, if it can be done for "free" This is from experience, and sometimes you will find new ways to do things which works well for you.

When I was young (they say young man no scared wan )..I bought 4 properties in a year, and 7 in 2 years. Being naive/greedy/agressive/eager, it was a really steep learning curve, and I don't wish it upon anyone. It was not a totally bad decision though, it's just that there are better ways to have sleepless nights. (Again, being so daring when young, those nights were not that frequent also la)

Anyway, long story short, now I'm having a short list of properties that I've studied and plonk my blood and sweat cash into, and along the way get much help and help others on new ways to do things. I learned that in property investments, it just squeeze so much brainjuice out of me, and from there many ideas, silly and not so, came about. All about passion, if not how do you think Phoeni and his Mrs. can drive around on weekends hunting for bargains?

If you are serious in investments, have something like mission statements. The objectives of diff ppl can be diff, to such extend 2 competent investors can look at the same condo and disagree on whether it's a good investment or not.

Anyway, I've digresses quite a bit too. Good luck TS.

meejawa

with the 4k salary(no commitment), can i get a 230k loan repayment in 30y?

wat about the epf? how many % can withdraw from account 2 for house d/p?

This post has been edited by jam_lennon: Apr 11 2009, 01:24 PM

Loan Amount $230,000
Annual Interest Rate 3.55%
Term Length (in Years) 30
Payment $1,039.23

You afford up to RM1600 monthly instalment now. you can loan this amount as below.

Loan Amount $350,000
Annual Interest Rate 3.55%
Term Length (in Years) 30
Payment $1,581.44

For the EPF, i dunno, coz im not working in Malaysia since after graduate, dunno anything about it XD

This post has been edited by hacker6280: Apr 11 2009, 01:59 PM

the economics of scale......looks like your networth is already up by at least 240k for this right call

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Added on April 11, 2009, 5:31 pmwah boss, u must be doing fairly well to be able to afford 7 props when you were young

This post has been edited by Pai: Apr 11 2009, 05:31 PM

woot, thanks for the info, however, i dun think i could get 1.6k, as 4k is my gross income, 3.4 is my nett income

if not wrong, we're not allow to have more than 1/3 of our nett income, dont we? 1.6 x 3 = 4.8 which quite a number become my nett income

Then should hav another new calculation which based on this 3.4k.
Your instalment rate cant exceed 40% of your salary, Most bank advise us to hav instalment up to 1/3 as benchmark not a base rule.
If you have other side income statement, much better, can strenghten your financial profile.
I got my first property at instalment more than 1/3 of my salary.

This post has been edited by hacker6280: Apr 11 2009, 06:51 PM

cheap cheap wan laa

same here.

ALtho not sure if banks has really tighten their lending policy since then

meejawa,

you made me think of getting another property. was cleaning out one of the houses my uncle asked me to jaga and it reminded me of how much i enjoy being a landlord . summore maybank just revised their monthly repayment installment and there are more cash in my pocket now (enough for teh tarik, mee goreng and kuih2 ). ah, good times

Pai, they did.

I was talking with UOB and found out their lending policy for apartment just went to 80%.
Luckily my banker got me 83% of the SAP price, or 100% of the seller asking price.

thats bcoz you have more than 1 prop, no?

First property nia.
No credit card, no loan.

Talk to my agent today, she said some of her client are not able to secure the loan.
Loan may be cheap but now more stringent.

my exact fear just a year ago

is that true ? In Penang, I can still get 90%. For uncompleted, I can even get 95%.

good for you. I mean think abt it, current times don't tell a bit on when and where the bottom is, so what to do?

New:
There are not many new launches, but those with reputable developers can afford to offer 0% interest during construction, and some even payment free for 12-24 months after VP. By then hopefully economy will pick up, but no one knows. This is the biggest risk. But reputable developers don't translate into good products at good locations. Eg, I'm not touching Sime's at all, but IGB, Mutiara Rini, Sunrise is ok.

Sub-sale:
This can be found in many places, but in prime location, the drop is not much except maybe in KLCC and Mont Kiara. Do you know MK10 is selling lower than developers' price now? That's why they are offering the MK11 (reputed to be the KLCC of MK) at 0% interest, and 2 years pay-nothing-scheme. Imagine the savings! This will be completed by Q4 2011. Is this a good investment? You make the call. Bangsar's prices surprisingly hold up pretty well, hard to find a killing there. KLCC aim now, accumulate bullets, and in 6 months' time, can start shooting.

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Added on April 12, 2009, 10:19 amPai,

Use some tactics. Remember loans don't show up in CCRIS/banks' database if you have not sign the loan offer letter. If maneuvered well, at the end of the day you will get much more than banks allow. (this is how I got the 7 props early on with RM4500 salary )

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Added on April 12, 2009, 10:20 amwith MRTA? I guess maybe due to freehold and limited land space, and not too much speculation in the past few years. LAunches also I think pick up only last year, unlike KLCC.

This post has been edited by meejawa: Apr 12 2009, 10:20 AM

90% is with MRTA. 95% is without MRTA.