Enter the new ‘My First Home Scheme’, introduced by the government. Under the scheme, those below 35 with a monthly income of less than RM3,000 may sign up for 100 per cent housing loans repayable over 30 years. But can working Malaysians cope with that repayment schedule?
Blog reader KSL has churned out some figures and discovered what he says is the downside to the loans:
Let’s do simple maths here:
Monthly salary 3,000
Less: EPF (330)
Less: SOCSO (5)
Less: Income tax (51) – single status
Net take home pay 2,614
With RM2,614 a month, one will need to carefully budget to take care of the following fixed commitments:
1. Housing loan repayment. Present BLR is 6.30% (Update: adjusted to 6.60% p.a. in May 2011) but lets assume one is able to get a fixed loan at rate of 5.25% for entire 30 years, repayment per month for RM198,000 loan is RM1,093.
2. Cagamas 1st 10% financing. Assume 0% interest over 30 years, repayment per month is RM61.
3. Car loan. Assume a Proton Saga 1.3s RM38,000, 90% financing at 2.58% for 7 years, monthly repayment is RM480.
4. PTPTN loan assume RM10,000 for 10 years, monthly repayment is RM108.
5. Housing loan MRTA (mortgage reducing term assurance) assume borrower is 27 years old, premium is
Just the above five items, monthly commitment works out to
The balance would have to take care of the following expenses:
1. Daily meals
2. Petrol for the car
3. Astro
4. Mobile phone charges
5. Internet charges
6. Electricity bill
7. Water bill (first 20m3 free in Selangor – THANK YOU!)
8. Indah Water bill
9. Entertainment
10. Essential and non-essential shopping
11. General house maintenance and repairs
12. All the 6% government tax
Further, remember to set aside, if there’s anything left that is, for the following annual/half yearly expenses:
1. Assessment
2. Quit rent
3. Property insurance (fire)
4. Car road tax
5. Car insurance
6. Graduate’s professional association’s membership fee
Let’s not forget the following too upon purchasing a property:
1. Lawyer’s fees
2. Stamp duty on SPA
3. Bank loan fee and stamp duty
4. Valuer’s fee (if property is not new from developer) for bank loan
Is it scary enough? Think carefully before you commit.
What do you think of the above calculation? Is the ‘My First Home Scheme’ the answer to soaring property prices?
Amended from Source: http://www.tindakmalaysia.com/showthread.php/2403-My-First-Home-Scheme-100-Housing-Loan.
More info:
http://www.bernama.com/bernama/v5/newsbusiness.php?id=573206
http://findarticles.com/p/news-articles/new-straits-times/mi_8016/is_20110325/fixed-rates-home-scheme/ai_n57142382/
Use this home loan calculator to check for home loan in amortized table so not to be conned by financial agents.
ReplyDeleteVery good advice. I think people go crazy sometimes when picking out a house to buy. It's hard to go with the less is more approach but definitely a smarter thing to do.
ReplyDeleteIncredible points. Great arguments. Keep up the good spirit.
ReplyDeleteAlso visit my web page :: mrm.boemre.gov:8765
nice scheme by Malaysian Govt this will help those has low income.
ReplyDeleteHard money lenders
Many instant advance loan lenders don't require a great deal of documentation for approval payday uk if you need an automobile and still have bad credit, there is something you'll be able to
ReplyDeletedo either at your personal machine or within your area.
Your credit score could have an effect on your own rate, too http://bbadcreditloans.co.uk/ therefore, your credit standing cannot have
ReplyDeletenegative impact on the prospect of getting approval.
The other requirements are, you must be an UK citizen and holds a
ReplyDeletesound bank account associated with an UK bank online payday lender in the planet
of automobile financing, this implies deciding
on as many lenders as you might have time to affect.
my site > online payday lender
Tukka vaihteeksi kiharoilla ja ponnarilla - hyvin ovat pidennykset pysyneet thus far Payday loans no Bank account very bad credit seldom comes within the method of availing secured very poor credit loans.
ReplyDeleteIt is often a short-run loan that assists you receive quick cash as advance against your next payday everyday loans when you
ReplyDeleteimagine of greenbacks all that you feel is worry and stress.
With the aid of this financial service, the borrower
ReplyDeletewould avail guarantee-free fiscal backing as sigh of relief
guaranteed bad credit loans clean up finances first, then buy a
good but affordable new car as being a reward.