TALKING POINTS /// 44
selling price minus down payment ). For a loan of this amount , with the current BLR and stretched across a maximum 35-year loan tenure , you may be paying back approximately RM1,500 per month .
Assuming you are able to come up with that RM30,000 down payment and RM10,000 fees , could you really afford RM1,500 a month ? That is 50 % of your take home salary . Think carefully . Drawing Board : - RM3,000 ( salary ) - RM700 ( car ) - RM1,500 ( housing loan )
This leaves you with RM800 at the end of every month . Some may feel that RM800 is enough as expenses for a single entity , but what about all the hidden costs that come with home purchase ?
• Assessment tax
• Breakdown expenses
• Utilities
• Maintenance / Security fees
• Renovations / interior furnishing
Yes , you would be burdened at the end of the day if you do consider purchasing this house . So , does that mean that someone earning RM3,000 per month would never be able to own a home ? No , that isn ’ t what I am trying to say . Instead , the smartest thing for anyone in this situation to do would be :
1 ) Wait till the time is right Hang on to your horses . There is nothing wrong with renting until you have saved up enough to compensate at least RM1,000 a month ( RM12,000 in total ) to help you with the extras mentioned above . Once you have saved up enough , you can be rest assured that you will not ( or will rarely be ) burdened with a hefty bill at the end of any month for the rest of the year .
The unforeseen extra expenses of home purchase could leave you with a monthly burden , if you are not ready .
2 ) Purchase a government-initiated property The Government has over the years introduced many initiatives that could
PROPERTY360DIGEST E-MAGAZINE ISSUE # 6