Invest Property?

Thinking of investing in a property? Worried that you are not an expert?

Never did it before and therefore afraid to invest?

We all know that experts are not born, they have done a lot of good research and they have gained through their personal experiences.

Below are guides if the considerations before deciding of property investment : -


1. What’s your budget?

•  Think what you can afford by finding out : -
• How much ready cash you have to actually complete the purchase transaction?
• Downpayment
• Fees
• Other Charges
• Option you have to get the cash namely, EPF withdrawal
• Multiply the cash you have by 9 times to get the value that the property you can affor
• How much can you afford to pay every month as loan repayment?
• Based on your monthly income excluding commission, bonus and etc.
• Use 1/3 as the amount that you can afford for monthly loan repayments
• Most of the bank will use 1/3 of your pay as affordability calculation. Though some of the bank might use 50% or etc, it is advised that don’t get yourself in trouble by stretching your expenditure

2. Which property to choose?

• What is the purpose of purchase?
• Occupy, investment , capital gain or rental income
• Should buy smaller property in a prime area or larger property in off-prime area
• Should buy completed property of property under construction
• Should buy a landed property or apartment / condominium
• Tenure of property leasehold or freehold
• Should I buy now and upgrade later or just wait until you can afford buy your dream home

3. What do you do next?

• Start looking for your dream home
• Call owner or real estate agent, arrange for viewing
• If you like what you see, offer the best price
• If the price is agreed , you will usually be asked to complete a booking form and payment of deposit
• Subsequently arrange for Sale & Purchase Agreement as well as Loan application
• Property funding from EPF drawing & etc.

Above are most of the considerations that you need to think before deciding. Invest property at the right time and right place.