Bonde Zaidalifah: ARE YOU FINANCIALLY READY TO BUY A PROPERTY IN MALAYSIA

ARE YOU FINANCIALLY READY TO BUY A PROPERTY IN MALAYSIA

1:19 am

Assalamualaikum and hai all reader, information for those who want to buy a house below have information for you to make a reference.

Are you financially ready to buy a property in Malaysia



It is time for you to step into adulthood. There are many houses available for sale, such as houses for sale in Puchong. But buying a house in the in Malaysia is too expensive and you cannot afford it yet because it is way out of your budget, especially for millennials. At the same time, you are swarmed with the negative comments by people around you telling you various horror stories that you can ever imagine, e.g.: the debts that you got yourself into after getting your first property in Malaysia, the tedious procedure of buying a house in Malaysia and the commitments you get yourself into when you start buying a property in Malaysia and you are left with not enough money for yourself after paying for mortgage loan.

All these horror stories however, did not stop millennials nowadays from buying their very first property in Malaysia. Millennials should ask themselves a few questions before making a major decision of buying their very first own property in Malaysia. "Over even planning to build your own house later ini life."

1.   How much can I afford?
It is advisable to have an expenditure breakfown before deciding on buying a property. It is recommended by most financial experts that you must not allocate more than one-third of your income to pay for the housing loan. If you think you can spend an amount of RM500,000 in buying a condominium in Damansara North, having enough money to pay for your home loan and it would not cause any financial problem to you, then you can proceed to the next step.

After your expenditure breakdown, it is time to be realistic and ask yourself this question: How much can I afford to buy a property? Have a look at your income and set a budget. Know how much you can afford monthly when it comes to paying bank loan, not forgetting the upfront payment that you need to deal with when you purchase a property. Most financial institutions will look at your debt service ratio (DSR) before they decide on the loan amount that you get. The DSR is an indication of how much you can afford for your loan that you are applying after paying for personal loan, auto loan or home loans. In order to be qualified for a loan, your DSR should not exceed 60%, inclusive of repayments of loan that you are applying for.

Let us imagine a scenario:

Montly income
RM4,500

Car loan installment per month
RM800

Personal loan instalment per month

RM300
Total
RM1,100

Property price
RM500,000

Loan amount after 10% down payment

RM450,000
Loan tenure
30 years

Interest rate per annum
4.35%

Home loan instalment per month
RM2,240


Based on the table above, we will be able to calculate the DSR.

Total commitment per month = RM1,100 / RM2,240
                                                = RM3,340

Debt commitment per month = (RM3,340 / RM4,500) x 100%
                                                = 74%

That being said, the maximum loan amount that you are able to secure will be RM 325,000 and you are only able to afford properties that costs below RM360,000.

2.      The total upfront payment
Normally, down payment would be a 10% of your property’s price, but still, depending mainly on how much the bank is willing to loan you. That being said, if the bank if proving a loan of 90%, you will need to pay 10% of the down payment. If the bank is providing lesser loan, say 80% loan, you will then need to pay a 20% downpayment. Not forgeting other upfront payments that you will need to bear after paying for the down payment.

It is said that approximately 75% of people who plan to buy a property have not even saved enough amount for the downpayment itself. Whereas 68% of the millennials that bought their first property in the past two years have overspent their budget. It is said that most of them have overspent on legal fees, renovation costs, buying furniture and other miscellaneous fees such as processing fees, legal fees, stamp duty and home insurance that are unavoidable. That being said, there is only approximately 15% of them have a precise budget in their minds when it comes to budgeting.

3.      How can I increase my eligibility?
The easiest and most straightforward answer to this question is to increase your monthly income. Let us say your salary has been raised from RM4,500 to RM5,500, your DSR will then increase to a 74%, making it much possible to obtain a RM450,000 loan.

However, millennials would think getting a raise is not easy therefore being aligible to afford a house is hard. That is not always the case. Millennials could plan out their finances, set a budget and stick to it in order to achieve their goals. Having a budget and sticking to it is important as it prevents you from overspending on unnessecary things. It also prevents you from falling into a financial debt. Before you buy your first home, you should definitely reduce your credit facilities so your DSR would look good when you apply for a home loan, increasing your chances of securing one.

In conclusion, millennials nowadays should do their research and start planning ahead before buying a property. Most importantly, they should definitely set a practical budget and stick to it to prevent getting themselves into a financial debt in the future.





~ Bonde Senyum Riang ~

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19 TEGURAN MEMBINA

  1. Setuju dengan point2 tu. Banyak kena take into consideration before decide nak beli property especially total commitment per month tu.

    ReplyDelete
  2. walau gaji kami laki bini layan utk rumah harga mcm tu, tp kami ada komitment lain. So, masih ddk di rumah yg kecil je. Walau kecil tp ruah sendiri. Rasa ok juga

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  3. betul tu bonda..make sure kita pya kredit facilities tu takde yang pending ke..payment pun cantik..barulah boleh apply loan kan..rumah ni bukan ssh sgt nak beli..janji background financial ok..semua ok

    ReplyDelete
  4. ya betul calculation yg puan share kan nih.
    anyway trimas kerana berkongsi ilmu

    ReplyDelete
  5. Dalam pemebelian property ni memang kena fikir panjang dan buat kajian betul-betul dulu sebelum membeli kan, fuh.. sebab kalau tersilap cara maunya menanggung hutang yang tidak ikut kemampuan pulak nanti.. parah..huhu

    ReplyDelete
  6. Sharing yang bagus sangat bonda. Nak nak lagi untuk orang muda muda yang baru nak beli property ni. Kena ada ilmu kalau tak nak rugi dalam membeli property

    ReplyDelete
  7. I work for years only recently afford to buy my own house. Still waiting for house to complete next year. Seriously , its not easy to own property.

    ReplyDelete
  8. Beli property good aset. Memang dari segi financial kena sangat di timbang betul-betul. Property satu investment jangka masa panjang, dan bulanan kena bebetul kukuh dan mampu. Good tips Bonde 👍

    ReplyDelete
  9. Ena da beli rumah second. Hehe. Memang semua belajar sendiri. Procedure banyak,lagi2 komitment gaji kena cek.nampak best nak beli rumah. Tapi kena bijak merancang. Nanti planning nak beli rumah baru untuk standby pencen je. Senangla nak refer entry ni. Sgt membantu.

    ReplyDelete
  10. Banyan perkara yang perlu kita amik berat sebelum amik keputusan membeli. Aptah lagi melibatkan property yang harga dia sedia maklum mmg besar bajetnya

    ReplyDelete
  11. Bila masuk bab property kena pandai plan. Tak boleh nak ikut trend kawan-kawan. Lagipula masing-masing komitmen berbeza. Bank pula mana tengok cashflow yang tak bertulis mcm belanja makan, duit minyak apa semua. Kita sendiri kena buat financial planning.

    ReplyDelete
  12. Banyak kena buat sebelum nk beli hartanah nie. Sbb nya x semua layak miliki rumah. Baguslah info nie ya kak zaida. Boleh jadikan rujukan utk mereka yg nk beli rumah nanti

    ReplyDelete
  13. Bagus lah sharing ni bonde kita pun sebelum ni ada isu macam ni juga tak boleh lepas nak buat loan banyak bank untuk beli rumah sebab banyak komitmen lain tapi bila tengok sini baru tahu ok nice.... Thanks share..

    ReplyDelete
  14. betul, kalau nak beli rumah jangan ade hutang mana-mana..bukan sennag ya nak beli rumah kan..tapi cara macam ni la bantu kita selesaikan untuk byr rumah semua

    ReplyDelete
  15. Dari tahun ke tahun, harga rumah makin mahal sebenarnya. Tapi kita nak beli pun, tak mampu lagi sebab financial belum stable. Teringin sangat nak ada rumah sendiri sebenarnya.

    ReplyDelete
  16. Not ready yet! Yes, memang banyak aspek nak kena pertimbangkan sebelum beli property. Dari segi income and commitment nak kena betul-betul stabil. Sebab taknak la terlalu terpaksa ikat perut hanya sebab nak ada property. A lot of planning and managing the cashflow need to be done! :)

    ReplyDelete
  17. I don't even have life savings...I am trying to slowly build this up so that I can have savings enough for the house and even a wedding if God wills it. There's way too much things need to be paid these days.

    ReplyDelete
  18. Saya income tak seberapa takut nak beli rumah takut tak tertanggung

    Jemput blogwalking ke blog saya :)

    ReplyDelete

~Awak sportinglah....terima kasih bagi comment.
~sila tinggalkan link untuk Bonde balas kunjungan...
~Dari Bonde Senyum Riang


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