Talking about loan, just to put things into perspective, taking just a rm500k loan in msia you will pay about rm22k of interest a year. Can use it to buy a 2nd hand car every year! As a salary earner, just calculate how many months you need to work for the bank per year.
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Talking about loan, just to put things into perspective, taking just a rm500k loan in msia you will pay about rm22k of interest a year. Can use it to buy a 2nd hand car every year! As a salary earner, just calculate how many months you need to work for the bank per year.
that's right. It's a very big amount and hence that is why I am not bullish on rental property in Malaysia. Stick to singapore would be much better, die die also can rent out and cover most of your loan installment without having such high holding costs.
Another thing to remember also that in M'sia i noticed rental tend to FALL over time even for investment properties; the tenant pool tend to move onto newer properties and landlords need to lower rental to attract tenants. Add to that the possiblity of tenant QUALITY getting worse over time (when new rent to angmo, after a few years can only rent to locals, then later can only rent to undesirable foreigner), it could be that one's rental property is only good for 5-10 years. which is hardly good enough to cover the overall initial investment.
of course, this is coming from someone who doesn't fancy being a landlord.
Its also the same in SG.
If its a housing loan, the bank can only seize your property however, if its a personal loan (credit card debts incl.), they will seize the pledged collateral if there is one or sue to recover the $$.
But if you act as a guarantor, you'll be made to pay once the loan taker defaults and be sued if you can't.
I'm not surprised that many people actually don't read the details in loan agreement and do not know what to expect when the miss payment!
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Too much land and too few well paid transient workers in JB. Add to this, too much supply at this stage.
Exactly, and the Chinese developers indiscriminately reclaim and build. Where to find so many well off people to buy and live there? Even if they are able to sell to china people, they will not live there too. I still can't see the ecomonics behind so much building of houses and condo. They should do it modestly and slowly over time. trouble in the making.
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As mentioned, this practice differs from project to project. Even then there is no guarantee you will get "100%" financing with the 10-20% rebate/discount. There are still a number of rejected loans or loans below 80% and you then need to pay the difference. Having said that, I did enjoy a "100%" financing with KSL Residences. If they approved 70% I may just have to walk away.:p
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True, the road conditions can be quite bad. So drive with fear and reverence for you are treading on holey ground!
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Sigh...what to do...interest in JB is high, but SG property prices are beyond my reach...and I am certainly no cash buyer so have to bite the interest bullet lor.:o
It is fine if it is an informed decision. There are people who do not know the absolute dollar they are paying as interest and may get a shock when they see the numbers. 4.5% does look benign and give false sense of affordability.
I strongly recommends fellow singaporeans to download the free app Mortage Calculator to look at the amount of the interest paid over the loan period before deciding to sign on the dotted line of the loan agreement.
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Guilty as charged!:p
I also don't know what total interest amount I would be paying before I sign. But since already decided to buy and move over, then just do it lor, a boh bian decision.
Rental was an option but did not like feeling of giving away money just like that and prefer to own something.- Joined
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I am clearly aware of the high interest payable. Thats why i tried to get 20 years instead of 25 as proposed by bank. I also intend to pump cash into the flexi loan scheme which helps to reduce the interest.
Aware but not cash rich enough to avoid.
Aware but not cash rich enough to avoid.
I think most if cash rich will reduce mortgage amount or years. Few will leverage highly. Not our culture to do so.
Most important is u like ur property & it serves your needs follow by a stable job with some savings for rainy days.
I'm also on Flexi and i too intend to repay my loan faster either thru yearly lump sump or other various options.
10-20 years down the road hard to tell what's gonna happen. We might have Expired…
Cheers!
Most important is u like ur property & it serves your needs follow by a stable job with some savings for rainy days.
I'm also on Flexi and i too intend to repay my loan faster either thru yearly lump sump or other various options.
10-20 years down the road hard to tell what's gonna happen. We might have Expired…
Cheers!
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I think most if cash rich will reduce mortgage amount or years. Few will leverage highly. Not our culture to do so.
Most important is u like ur property & it serves your needs follow by a stable job with some savings for rainy days.
I'm also on Flexi and i too intend to repay my loan faster either thru yearly lump sump or other various options.
10-20 years down the road hard to tell what's gonna happen. We might have Expired…
Cheers!
That's the plan.. but whether can carry out is another question.
For MY loans, I would advise to still get a 25-30 year loan but to put more money in the flexible loan scheme, as and when you feel comfortable. Then, should you need to stretch the loan repayment again, you can still do so, rather than to fix a 15-20 year term.
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maybe I old school mindset. Always want to be free from mortgage loan asap.
Me too, I always try to take a smaller loan and repayable within a shorter possible so as to incur less interest paid out.
But all within means to service too, without too much undue stress.
Malaysia is easier than SG with the flexible loan scheme. In my opinion, there's a need to set aside a decent cash buffer to cater for emergencies (I prefer to set aside cash bal amounting to 1.5 yr of loan repayment).
It is actually quite dangerous to shorten the loan period too much, and in the process, expose yourself to the risk of repossession due to loan default. Far better to make use of MY flexible loan scheme to put your excess cash in the loan acct, with the flexibility of re-drawing from the flexi-acct should you need to.
In today's Straits Times, Forest City was in the news again. This time, they claim to have 'verbal approval' from Malaysia's Home Ministry for a newly built CIQ with direct access to Forest City. We should be hearing more official news soon....... V interesting indeed......
I will also happily agree since forest city is going to pay for everything, I just shake leg and see everything done nicely. The new road all the way to forest city itself will cost forest city at least rm 500mil. Hopefully it's worth it.
Medini can also ride on it and happily do a divert towards medini.
Not likely to be built without SG's approval and so far nothing from SG .
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