Staying with Family
- As long as the price is within your budget
- Location (is it near school, highways, shopping mall)
- Environment, security, facilities
- House facing, feng shui, house number
- Staying within the same neighbourhood with other family members
For Investment
- Location, location, location
- Make calculations (don’t just based on your personal preference)
- Aim for rental returns
- Use Keep strategy or Flip Strategy
BE PREPARED WITH YOUR LOAN DOCUMENTATION
Step 1 :
Nett Income (After EPF, Socso, PCB & others) x 60% = Total Instalment
Step 2 :
Total Instalment – Current Instalment = Balance New Instalment
Step 3 :
Balance New Instalment x 200 = Loan Amount
Example:
David’s monthly income is RM5,000 (after deducting EPF, SOCSO, PCB & others)
Currently he is serving his car instalment, monthly RM800 and personal loan RM300
Total instalment = RM1100.
Calculation:
Debt repayment ability: RM5000 x 60% = RM3000
Amount of the new commitment: RM3000 – RM1100 = RM1900
Loan amount possible: RM1900 x 200 = RM380,000
So David can buy a new house whereby the instalment amount is about RM1900 per month. The amount that the bank can loan to him is about RM380,000.
Do not under-estimate the importance of having a professional consultant to assist you when getting a mortgage loan. A good mortgage consultant will help you to prepare your documents in order and submit to the right bank, all these will determine the percentage of success of your mortgage
OTHER COSTS
i. SPA related
ii. Loan related
iii. Valuation Report
iv. Water Deposit, Electricity Deposit, Maintenance Fee, Insurance (Fire, MRTA...)
NEW OR SECOND HAND?
New-Developer Sales (Pros):
Everything is new, contemporary design and environment, more trendy
Usually comes with furnishing, thus can save on renovation costs
Some developers offer rebates on stamp duty and other fees
New-Developer Sales (Cons):
Delayed move-in if the project is not completed yet
New area may be quieter
Rental returns not so positive
NEW OR SECOND HAND?
Second Hand House (Pros):
You can survey the environment and condition of the house at a glance, and able to gauge the rental returns, and move-in immediately.
Second Hand House (Cons):
Second hand houses are usually older, and have high maintenance and repair costs. The environment will also be different and lastly the fees incurred will be more expensive.