Property | Malaysia's Financial Blogger | Financial Freedom Ideas

Important Tips for First Time Home Buyers

sungai_petani_house

As I known, the main roadblock when buying house is cash. Before you looking for a housing loan, make sure that you handle your income and current expenses very well. This is the basic information that you should know you are get ready to buy your first home. Normally, I will consider the factors as below:

1. Down Payment

Normally, down payment of 10-20% will make you easier to qualify for a housing loan in today’s market. If you don’t have much money for your down payment then you still can find other program that does not require you to put down payment. But, you have to have good credit so later time you won’t have any financial crisis.

December 26th, 2009 | Leave a Comment

Earlier Retirement via Property Investment

Many of my friends who did not have higher education are all to be more adventurous and grab any golden opportunity to earn a higher income in a strong currency. Most of them went to working oversea as they think that the amount that earns working overseas in 1 year is almost equivalent to at least 3-5 years of working in Malaysia.

I hope one day I managed to accumulate extra income over RM10k per month to allow me to retire comfortably. I have promised myself that my goal is to retire debt free, which is before the age of 65. But now, I have changed my mind and set higher target, which must achieve it within the next 10 years by just property investment.

investment_property

Consider between the ROI and interest cost. Assume that you are investing in low medium cost apartment below RM100k in a good location:

November 2nd, 2009 | 3 Comments

Why Property Investment Better Than Fixed Deposit?

Do you think investment through property rental can guarantee you to earn higher return in the long run if compare to fixed deposit saving? Anyway, you should make a proper plan before buying any property for investment.

rental_property

Based on my understanding, if buying a house now, then for sure the price will go up. But, will you really earn? You need to know that some of the money have to be paid to bank interest first and also you might spend some money to renovate your house and other expenses like maintenance fees for the house.

How to Calculate Return On Investment for Property Rental?

Property Type: Apartment
Size: 650 square feet
Housing Price: RM 75,000
Down Payment: RM 7,500
Housing Loan Amount: RM 67,500
Loan Interest Rate: 5% (assumption)
Loan Tenure: 15 years (assumption)
Housing Loan Installment: RM 534 per month
Gross Rental: RM 600 per month
Other Expenses: Maintenance fees and renovation cost

Monthly Net Rental = Gross Rental - Loan Installment
= RM 600 - RM 534
= RM 66

Fixed Deposit vs Property Investment
Read More …

July 24th, 2009 | 16 Comments

Guidelines On Property Management

Property management is one of the fastest growing services in the building and property sector. If you are doing research on property, then you should realize that the cost of maintaining building is very high nowadays. The cost includes not only material cost but also cost of time. This is because we need time to do research, review options, oversee and sell the assets off.

It’s very often you hear that renting an apartment is just throwing money away, do you believe that? No matter what, make sure you do your part in keeping your units rented out all the while. This is not always easy, but this is a goal that you should set for yourself if you really want to success in future.

April 26th, 2009 | 1 Comment

Buying And Selling Property Procedures

After considering several places and you have decided to buy a house and the price is agreed by both parties, you will need to pay some earnest deposit (min 2%) for booking purpose. My advice, don’t pay the 10% straight, just in case you changed your mind later.

selling and buying property

After paying the earnest deposit, you will need to appoint your lawyer for the Sales & Purchase Agreement. It may take up to 2 weeks to prepare. Once the SPA is ready, you will need to make the balance 8% of the purchase price upon signing of SPA. (Assume your applied loan is 90%)

Besides, you must prepare some funds to pay the legal fees for S&P(Travelling, Stamping, Photocopying, Miscelllanous fees), which are relied on the purchase price of your property. Basically you should be able to estimate your lawyer fees based on the following:

snp legal fees

Note: This is payable to your lawyers to get the land title transferred to your name.

What To Do After Signing The Sales And Purchase Agreement?

November 19th, 2008 | 6 Comments

Why Buying Property Is Better Than Stock ?

Property is like the stock market; you have dozens of different classes. With property you have residential homes, hotels, commercial building, industry and etc.

Property investment

A bank will lend you money to buy a MYR 200,000 house, but the same bank will not lend you MYR 200,000 to buy shares. This is because property is an asset, which can be sold to pay off the loan. So, you no need to worry so much with the financial assistance if you really make decision to buy a property for investment.

As you can see, property market boom over coupled of years. With making money property, the rental income that gained should ideally be sufficient to cover the cost of financing and maintaining. With the steady increase in property price, property investment provides a safer way to grow your wealth.

November 7th, 2008 | 6 Comments

Penang Island House More Expensive?

What I notice something seriously is the Penang landed housing property is going up tremendously. Realizing the Penang land price expensive, it is normal scenario to maximize the profit by building either luxury condo, three stories houses or bungalows.

Penang Property

I have lived in Penang for more than 20 years and I do feel on the rising prices of landed properties in the Penang Island. It’s almost impossible for an average working class to own a landed property. Some going to above MYR600k and some could reach millions of ringgit. As a result, only the upper income group or foreigners can purchase these types of properties.

The building materials price keeps on rising due to fuel price hike and shortage of supply. This has brought huge impact on the construction cost. The developers face the challenges because if it is oversupply, then the prices may drop, or the units left unsold. So market forces will ensure that they cannot keep building higher end units.

September 11th, 2008 | 5 Comments