PART 2 One house per house­hold

> In­for­ma­tion for first-time and Gen-Y house buy­ers


WHILE last week we ex­plored ways and means the govern­ment, through the de­vel­op­ment of var­i­ous pro­grammes, has helped to ful­fil its “one house per house­hold” pledge, this week we highlight two more schemes to aid the first-time and Gen-Y house pur­chaser, plus mat­ters to mull over be­fore sign­ing the dot­ted line.

Adults nowa­days face many chal­lenges, es­pe­cially if they are just stepping out into the work­ing world and be­ing faced with daunt­ing de­ci­sions like pur­chas­ing their first ve­hi­cle or a place of their own. As a twenty-some­thing grad­u­ate liv­ing in Malaysia, Sheera re­lates to the heavy bur­den and ex­pec­ta­tions hav­ing to make ra­tio­nal and wise de­ci­sions. So how does a first-time loan ap­pli­cant make any ra­tio­nal or wise de­ci­sion, hav­ing not made one in th­ese ar­eas be­fore?

With that in mind, Sheera rec­om­mends one use Prop­erty Buy­ing for Gen-Y by Khalil Adis as a guide. In the book, the writer high­lights a lot of im­por­tant and cru­cial in­for­ma­tion, par­tic­u­larly help­ful for young and first-time prop­erty buy­ers. es­pe­cially for first-time and Gen-Y house buy­ers. Still, he ad­vises: “Be pa­tient and look for the right piece of prop­erty. Don’t rush. Think it through and look at all the im­por­tant as­pects.”

cit­i­zens up to the age of 35. * Sin­gle bor­rower’s gross in­come not ex­ceed­ing RM5,000 per month/joint bor­row­ers’ gross in­come not more than RM10,000 per month (Note: Joint bor­row­ers can only con­sist of hus­band and wife or sib­lings). * Prop­erty val­ued be­tween

RM100,000 and RM400,000. * Prop­erty must be owner

oc­cu­pied upon pur­chase. * In­stal­ment pay­ment via

monthly salary de­duc­tion. * Com­pul­sory fire in­surance/

taka­ful. * Fi­nanc­ing ten­ure not ex­ceed­ing 35 years, sub­ject to bor­rower’s age not ex­ceed­ing 65 years at the end of the fi­nanc­ing ten­ure. * Amor­tis­ing fa­cil­ity with no re

draw­able fea­tures. in­stal­ments are com­fort­able pro­vided one’s ca­reer is pretty much per­ma­nent or in­come is se­cure.

Terms and con­di­tions: * First-time house buyer. * For res­i­den­tial prop­er­ties rang­ing be­tween RM100,000 and RM500,000. * Malaysian cit­i­zen aged 40 and

be­low. * No max­i­mum in­come limit. * Sub­sidised le­gal and val­u­a­tion

fees up to RM6,000. * Fi­nanc­ing ten­ure up to 35 years or age 75, whichever is ear­lier. * Mar­gin of fi­nanc­ing up to 105% in­clu­sive of “mort­gage re­duc­ing term taka­ful” (MRTT). * For in­di­vid­ual and joint

ap­pli­cant. * Must be con­firmed em­ployee en­gaged with the same em­ployer for a min­i­mum of six months from the date of em­ploy­ment; and grad­u­ate (de­gree holder) OR at least three years’ work­ing ex­pe­ri­ence for none-de­gree holder. Terms and con­di­tions: * Malaysian cit­i­zens aged 21 and

above (no max­i­mum age). * First-time home buyer within

one house­hold fam­ily. * Earn­ing gross house­hold in­come of be­low RM10,000 a month (in­clud­ing all other in­come and al­lowances etc.). * Valid for prop­er­ties priced

RM500,000 or less. * The govern­ment/scheme helps first-time home buy­ers cover the 10% down­pay­ment or max­i­mum RM30,000, whichever is lower. Know where the govern­ment is spend­ing its money in. Such in­for­ma­tion will help you buy ahead be­fore the in­fra­struc­ture is com­pleted. After a fair bit of re­search you may won­der why some prop­er­ties are ex­trav­a­gantly tagged. The an­swer: the prime lo­ca­tion of most highly-priced prop­erty are built near busi­ness and en­ter­tain­ment hubs. Sim­i­larly, Adis shares that the best strat­egy is to buy an un­de­vel­oped area that has ex­ist­ing plans for var­i­ous eco­nomic driv­ers. As a re­sult, the value for your prop­erty will mul­ti­ply ten­fold once the area gains mo­men­tum.

To cre­ate wealth from prop­erty, Adis em­pha­sises the im­por­tance of check­ing if the town­ship will turn into a hive of ac­tiv­i­ties or a flop. The more in­dus­tries a par­tic­u­lar town­ship has, the higher the chance it has to at­tract work­ers, hence a com­mu­nity/ town­ship, that will di­rectly in­crease prop­erty value and the econ­omy in the area.

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