Scenario 2
Scenario 2
Mark and Michelle , both in their late 20s , work in an executive position . Their joint take home salary is RM5,000 . Unlike John , this couple has a 2-year-old daughter . After renting a small apartment for the last couple of years , they decided that they should get a bigger place to raise their daughter comfortably .
The couple saves RM504 every month , despite having to fork out on groceries , car loan of RM600 , fuel and maintenance , phone bills , baby products , to name a few . The couple monitor their spending wisely and tries to save wherever they can .
Here is a rough breakdown on what it would cost to finance a RM550,000 , 3 bedrooms , 2 bathrooms , 1,000 plus sqft terraced house in Penampang today .
Property price
Down payment ( 10 %)
Maximum loan ( 90 %)
Tenure
RM550,000
RM55,000
RM495,000
35 years
Interest rate 4.35 % ( estimated )
MONTHLY INSTALMENT
RM2,296
The government introduced the Malaysia My First Home Scheme ; allowing first-time home buyers that earn less than RM5,000 a month to finance a house that costs up to RM500,000 . The scheme removes the need for a down payment but the result of which is simply a large loan amount with a weighty monthly repayment .
Even though the property market is hot right now , with developers offering exclusive packages and rebates , it doesn ’ t mean anyone – especially the younger generation , should jump into it before studying the market carefully . Without planning and precise calculation , you might fall in debt holes .
Before buying a property , ask yourself these 3 questions .
1 . Do you really need this house ? 2 . Do you have enough money for deposit and all other fees that might be incurred ? 3 . Can you manage to repay the bank for 35 years consecutively ?
Disclaimer : This article is intended for general awareness purposes only and should not amount to any form of advice . The calculations , information and data contained herein are mere examples and the writer accepts no liability for loss or damage suffered or incurred by anyone as a result of the reliance on this article .
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