NOTES FOR THE MIL­LEN­NIAL

The Sun (Malaysia) - - MEDIA & MARKETING -

While a com­mon pur­chase a mil­len­nial would first splurge on is a car, for trans­porta­tion when stepping into the work­ing world, buy­ing a house would most likely be the next sig­nif­i­cant pur­chase in a young per­son’s life, if not a wed­ding loan or, for the more en­ter­pris­ing, a busi­ness loan. As a mat­ter of fact, while buy­ing a car is con­sid­ered a li­a­bil­ity, buy­ing prop­erty can be­come an in­come-gen­er­at­ing as­set, pro­vided one knows how to make it churn prof­its.

In his book, Adis, who is a prop­erty con­sul­tant, au­thor, writer, speaker and an en­tre­pre­neur, high­lights a re­cent find­ing con­ducted by the Asian In­sti­tute of Finance (AIF). Ap­par­ently, 70% of Gen-Y are fac­ing money is­sues or are in bad debt. This is es­pe­cially so with the ris­ing costs of liv­ing, along with all the “ba­sic ne­ces­si­ties” needed when stepping into the em­ploy­ment sec­tor.

Says Adis: “The only way to beat in­fla­tion and cur­rency de­pre­ci­a­tion is to in­vest in prop­erty. If you do not ‘lock’ your­self with a prop­erty now, you will for­ever be at the mercy of in­fla­tion and ris­ing costs of liv­ing.”

But when does one even start to think about buy­ing his/her first prop­erty, es­pe­cially with prices con­tin­u­ously es­ca­lat­ing? While the idea of own­ing a prop­erty may sound like a far-fetched dream for many, Adis says help is aplenty

While last week we looked at the much talked about PR1MA, this week we look at My First Home Scheme, or Skim Rumah Per­ta­maku (SRP). The scheme an­nounced in the 2011 Bud­get al­lows young own­ers to ob­tain 100% fi­nanc­ing from mon­e­tary in­sti­tu­tions and banks via con­ven­tional and Is­lamic fi­nan­cial schemes.

Terms and con­di­tions: * 100% fi­nanc­ing (no

down­pay­ment re­quired). * Valid for res­i­den­tial prop­er­ties

in Malaysia only. * Ap­pli­ca­ble to Malaysian

Of­fered by the Malaysia Build­ing So­ci­ety Ber­had, a sub­sidiary of the Em­ploy­ees Prov­i­dent Fund (EPF), this scheme is ex­clu­sively for first­time house buy­ers. While the propo­si­tions are at­trac­tive, pay­ments still need to be made at the end of the day and in­ter­ests and terms/con­di­tions need to be met. With this, it is rec­om­mended that one re­view the schemes of­fered and com­mit to one where C] An­nounced in Bud­get 2016, this scheme aims to as­sist lower- and mid­dle-in­come earn­ers with house­hold in­comes of RM10,000 and be­low pur­chase their first home. Ideal for those try­ing to save up money to cover the down­pay­ment or first-time prop­erty buy­ers like mil­len­ni­als, who have just started off their ca­reers and are credit wor­thy or have a clean fi­nan­cial slate (no debts and not black listed).

Newspapers in English

Newspapers from Malaysia

© PressReader. All rights reserved.