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.