Dear new graduates / new employees..
Traditional mindset in Malaysia is to buy your first property for own stay!
NEVER ever make that stupid mistake!
Go and attend property seminars, that should be your first investment once you earn your income.
Then you will know your first, second, third property should be for investment.
Then only buy property for own stay.
Why?
Because if your first property is for own stay, it becomes a liability, not an asset.
Don't make the same mistake I did.
Coming back from Australia, parents say want to buy house for me, take joint loan with mum for family home worth RM400k.Monthly repayment [once a fortnight = RM1,700]
That time my salary is only RM1,800.
Although mum set aside money to pay the loan, in the banks eyes, I can no longer take new loan coz i hv exceeded the threshold.
By the time I shoft job to my last hated company, then transfer the full loan to company loan. and that time salary RM4k. Loan is now no longer in CCRIS system, but still appear in paycheck, showing loan deduction of RM2026 being more than 50% of take home pay. So no chance to invest again, til salary grow bigger..which by that time I was already dying to leave the hated company so much.
SO lesson learnt..
buy your first property, best to markup the S&P so you get 100%, then rent it out for positive cash flow.
then it will not affect your ability to take next loan for another investment property.
then buy second property, again if possible markup the S&P price, so you can get 100% loan again, then rent out for positive cash flow.
then, only consider buy property for investment. And don't be stupid to buy 1 bedroom apartment for yourself. Get a 3 or 4 bedroom house, rent out the rooms..and stay in 1 for yourself.
You become boss!
So you basically get to stay at the house for almost free.
If I live alone..this is what I would do. I would have added more rooms downstairs..so can rent out 3 or 4 rooms in the house.
Unfortunately I'm stuck with parents..so no freedom to do that.
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