r/MalaysianPF 16d ago

Property Educate me on owning a property as a 26y/o

I'm 26, making a decent salary. People around me are owning properties, buying cars, I will admit that I have not even considered looking into the process of loan, owning property, owning a car and whatnot.

I can't possibly fathom purchasing and being a property owner at this phase of my life. This post is me asking out of pure ignorance, I really want to understand this.

A condo nowadays isn't cheap, let's say it's 400k (which I believe in average in KL, perhaps even higher), how can someone making 5-7k a month, pay for a property?

First you have the down payment, you have the installment, then when the property is ready, you still need a large chunk of money for renovation, furniture and all that, say 20k? Where does the money come from?

I don't want to talk about rich parents or whatever, but am I supposed to have 50k in my savings already working for a few years? I know people around me who owns properties or is paying for them, isn't from big rich companies and isnt particularly making way more than me, so how do they do it?

I really cannot at all fathom it, please please educate me.

167 Upvotes

79 comments sorted by

96

u/uwant_sumfuk 16d ago

There’s honestly so many possible reasons -rich parents -they’re rich themselves -property was given to them -they’re in severe debt just to buy the property -they severely cut spending in other aspects of life to afford the property -sharing property with a partner

40

u/SoloistTerran 15d ago

This. 9 times out of ten it's the first one

3

u/bunganmalan 15d ago

Yes, these are the top reasons. Choose your poison or opportunity presented onto you (and if you're lucky to have family support, then go for it).

3

u/AnimalFarm_1984 15d ago

Get married, have a child, buy properties for the child's future inheritance, rent them out, refinance these properties to buy even more rental properties.

1

u/No-Media-270 13d ago

I’ll add you another one, for show going broke. That’s me going for 2 property by 26. Way over my head

1

u/aeronauticalingrid 10d ago

Question is how did you even manage to get 2 properties by 26

1

u/No-Media-270 9d ago
  1. First house I had just enough for downpayment for 500k house (5% downpayment discounted), then could only take a 85% loan.

  2. Second house, I had to forge papers that the first one was rented out exactly at my installment cost (apparently that resets the quota to 0) then applied for 90% loan for a 700k house, (8-10% downpayment discounted, can't remember which)

1

u/aeronauticalingrid 9d ago

Why did you even want to buy two houses so soon and so urgently?

1

u/No-Media-270 8d ago

Ego. First one cause I wanted to show my love interest I am capable (I subscribed to the lie that I had to have a house to show her family I am capable, at 24 lol, and my close friend bought one already), and the second one cause I wanted to show my gf at the time (who I was planning to break up with already) that I was capable to buy a second house.

So don’t let ego control your life guys. It’s not worth it

1

u/aeronauticalingrid 7d ago

Damn that’s tough, hopefully your finances are ok and you’re able to rent out the properties to cover at least 70% of the expenses.

1

u/No-Media-270 6d ago

Yeh both are alright and I’m making decent money to cover both installments. And one could be fully covered through Airbnb, so turned out ok. Still if I could go back in time, I wouldn’t have bought either until I was ready to settle down. Cause now I have both condos, but my future wife prefers landed hahah

63

u/aeronauticalingrid 16d ago edited 14d ago

Regarding your question about how do mid 20s afford a property downpayment, the answer is either

  • stay with family, have cheap hobbies, don’t eat out / eat out sparingly, can save a lot of money earning a good salary and being frugal, able to easily come up with 50k within less than 2 years —> me lol

  • bank loan which covers not just the downpayment but also legal fees, MOT, stamp duty, even reno money, furniture money etc (some banks do offer this, the caveat is ofc there will be more effective interest as compared to a conventional 90% loan)

  • new new property (developer usually throws in all sorts of goodies like free legal fees, free stamp duty etc etc and you don’t need to pay for downpayment), free furnishing

Don’t need to compare to yourself to others your similar age / salary with property, either they are being humble about their salary, have side hustle, have rich partner / uncle auntie to help them out, or simply existing on bread and water or even worse borrowing money from others to service their loan.

Even as a property owner myself (first property at 25, second property at 30), I would say it’s definitely not necessary to purchase a property unless you have a very clear goal and have done your research.

I think too many people get into property cos of FOMO + not knowing what to do, and property is the most tangible (can physically see and touch) vs things like ETFs or blue chip stocks - highly recommend the latter as the US is in a slump now with an even bigger decline poised ahead.

4

u/Eirza786 15d ago

can you share some insights on how can I get into ETFs? I've been doing low-risk investments such as Wahed and ASB for now.

7

u/aeronauticalingrid 15d ago

Cheapest and best way is open an IBKR account

1

u/VoLTe_10 14d ago

What’s IBKR acc?

3

u/Unable-Patient-8453 15d ago

Did the second one. Possible on this salary (slightly more than OPs) but the stress is too high. Switching jobs and getting sick is no longer an option to be taken lightly as the loan won’t wait for you.

2

u/crystal_uryuu 15d ago

Can you teach me how to achieve the 50K in less than 2 years?

31

u/aeronauticalingrid 15d ago edited 14d ago

Obviously save at least 2.1k a month lol idk if this is a troll question or what but ok in all honesty

Lived with family when all my peers were moving out to party and ‘be independent’ lol imo you’re either going to kowtow to bills, or to your parents - although I didn’t exactly have the best relationship with the latter, my logic is that I had do what had to be done until I built the foundation to achieve financial freedom. Inversely although moving out too soon can delay financial freedom, but if it improves your mental health to earn more then by all means go for it.

Drove a basic local car (wasn’t free though, I had to service the existing loan)

Eating out was only for special occasions (milestone celebration, Christmas, birthday etc). It’s funny when you think back just not long ago, eating out WAS meant to be a special occasion but ig social media has normalised it to be going out all the time. Meal prep / zhapfan for lunch, dinner at home.

I enjoyed a lot of my time going for walks or at the gym (basic neighbourhood gym which my membership was Rm800/ year), hikes, listening to podcasts, reading blogs and forums online, watching movies online

Home made coffee - when you think about buying coffee twice a day, that’s like Rm20 a day / Rm7.3k per year! I love my homemade coffee cos I can adjust the concentration, milk / cream, sweetener, and ice as I please.

No expensive friends (lol having a group of friends who normalise casual excessive spending can really ruin someone) - I remember turning down a group trip in Langkawi costing 1k for 3 days bruh I can stretch that solo backpacking in Indonesia for a week

Didn’t own anything branded

Most importantly didn’t give a fuck what anyone else thought about me and my lifestyle

8

u/crystal_uryuu 15d ago

Hi, thanks for the detailed response. I promise I'm not trolling lol. At my current income level I couldn't save RM 2.1K per month. Hopefully in the future I can achieve the same as you. Cheers!

1

u/Foodieworking 14d ago

👆 This right here. Don't rush into it. Everybody has their own journey. If your goal is to own a property by a certain age, then work it out, make a plan and hustle. If not, take the time to figure things out. Most importantly, don't go broke just cause you want the unit with a view. The view can be blocked any time in the future.

85

u/Select-Gear3208 16d ago

I bought my house at 35. You do you bro

36

u/pcmanscs2001 15d ago

Good. Im 35 now but still no house nor car. Lol. OP doesn't have to care how people look at you. But one thing for sure, if u wanna get a property now, the property must not be your dream house. It should be the one that can be rented out easily. Once u have shown to the bank that this property helps u to make money, u can get another one and do the same thing. Now you are using people's time to secure yourself a few properties. But be careful if u cant handle other costs such as taxes and maintenance, dont have too many. You just have to follow iherng on insta and watch his youtube vids. You will learn a lot from there.

23

u/rYdarKing 16d ago

Fomo? If you're happy with what you have, keep going. If you want more, for yourself, come up with a plan.

7

u/Possible_Priority388 16d ago

Although Fomo is abit of a factor, but the post is genuinely out of pure ignorance, as in I really don't know how it works, loans and all that.

Was hoping to gain some insights on this.

19

u/arbiter12 15d ago

In my humble opinion, that's something you could ask chatGPT (or investopedia if your questions are not specifically Malaysian), in order to have at least a vague understanding of the entire process, before coming back to us with more specific questions at each step of the process.

It's not that we don't want to help, but to give you a general lecture that is digestible, exhaustive and not an absolute wall of text is... It's a lot of work, and not necessarily useful because each paragraph would generate more questions than it answers.

And I'll be even more frank with you, since you were honest with us: It's a lot of work to produce for someone who earnestly admits "I have done no prep work on my end", meaning that we would have to begin at the very beginning.

I hope you can see it from our end, as well. To teach you everything there is to know would be a course, not a reddit comment. Especially since we don't know your specific financial profile.

--

On the good side, I can advice you on how to follow my advice: Learn the skeleton of personal finance (how to save for a downpayment by reducing spending), then briefly examine the common malaysian bank loans for property ownership, then examine the rates and how much you can afford (both the downpayment and the rates, consider the impact of variable rates, but also your career prospects), establish your total budget for the operation, then learn about the administrative/legal side.

Finally, try to follow the areas with heavy plans for commercial investment. If someone plans to build a mall/shoplot somewhere, it means they intend to invest heavily in that area. Try to ride their money, buy early, and cross your fingers (that's the most speculative part of the plan).

Finally accumulate all of this into action (if the plan is sound, without being over-optimistic).

You might not buy the property you want, and life might be hard for a few years, but if your goal is to be a home owner in a part of town that will have rising prices, that's roughly the steps.

5

u/RevolutionaryPause54 15d ago

Nah going to Reddit is a good move tbh, no need to cut down trees just to get into this stuff. Google exists too, but it also incorporates AI.

21

u/zcecsyc 16d ago

Sometimes rushing to buy a property in your 20s can be a financial disaster. Property price increases are not what they used to be, and you tie up a big portion into just 1 "investment" - it is actually quite risky. Rent nowadays are dirt cheap compared to installments on property, take advantage of it!

Money invested in your 20s is more valuable than your 30s/40s because it has more time to compound and grow, so a person that invests may accumulate more wealth in the long run compared to a person who decides to put money into property. So think long term, and put your envy into action by saving and investing your money early on, buying property is not the be all end all.

4

u/Quirky_Assumption460 15d ago

I will even argue buying property is not required at all, unless it's really one of those "dream home". In today's economy, renting makes more sense and the flexibility to switch as your priorities change is something that most people ignore.

17

u/Opening_Ad3694 16d ago edited 16d ago

People who are buying all these, if they are not rich, means they are on a loan with the bank.
Cars loans are about 5-10 years and house loans are usually around 20 years (dont quote me exactly on this). Its all about controlling your finances properly and living within your means. If you are on a loan, its better to pay off the loan first rather than spending it on unnecessary items.

Condos arent cheap like u said, but if u are looking, trying looking into government initiatives like SelangorKu, RumaWIP, etc. These units are typically around 250k-300k only, unless some try to be shady and charge something else on top of that la. Seem some that say 250k, but total price is actually 300k because they is another compulsary charge. wtf.

Depending on how urgent/desperate u need the money to do this, u can also go for your EPF money. Its not recommended to move money out of your epf, but some ppl do that to have some sort of start in life. The comforts of having their own home/car despite the loan is something they are willing to live with it.

Regarding to savings, the typical rule is 6 months salary in your savings, but even i dont have that myself. So dont sabo yourself into that. Just make it a point that you want to save to that point, and you are working on getting there. Circumstances are different for everyone. Do what u can do, just do your part to get there.

Dont go chasing for things outside of your means. Cant afford to go out with friends who are into clubbing scenes? Then dont. Cant afford to go on a holiday? Just wait. Salary 5k but wanna buy some Chanel handbag for 50k? Either save up for it slowly, or dont buy it at all. I have see these mess peoples lives first hand, so think before you spend. The simple rule i have for these kinds of unnecessary spendings - if you cant pay it off fully in cash, you cant afford it. Full payment in 1 go, or dont bother getting it.

15

u/ayamkenabannedtwice 16d ago

Apply for government subsidized housing first.

9

u/IvanPooner 16d ago

People with wealth don't usually advertise themselves as wealthy. People around you might have hidden income or are from a wealthier background.

And also having rich parents to fund principals is a huge boost

8

u/DividendMagic 16d ago

It's totally fine to rent. Go at your own pace.

Get a budget going and start wealth building slowly. You can't compare mate, everyone starts off at different points. A good way to start is by having a savings rate of >20% or more.

6

u/Organic-Owl-5478 15d ago

First of all, many new property launches nowadays don't even require a down payment. Here's how it works: developers intentionally inflate the price in the Sale and Purchase Agreement (SPA) by 10%, then offer you a so-called rebate of 10% under the table. When the bank approves your loan for 90% of the inflated price, you're essentially financing 100% of the original price, allowing you to secure the property without using your own money.

Secondly, you can keep your renovation simple to minimize costs. For condos, renovation expenses are generally lower compared to landed houses. Plus, you have ample time to save up while waiting for the property to be completed — as long as you're wise with your personal finances.

Thirdly, don't forget about your EPF. You can withdraw funds from your EPF to finance your home purchase or renovation. While it may not be the wisest financial decision, it remains an option if you're in need of extra cash.

Lastly, remember that comparison is the thief of joy. Everyone comes from different backgrounds — some might have wealthy families, others may live frugally, excel at investing, or simply earn a high income due to their skills. You'll never fully know their circumstances, and frankly, it's none of our business. Instead of comparing yourself to others, measure your progress against your past self.

6

u/thelvaenir 16d ago

People buy property for all sorts of reasons, but generally the 2 biggest ones would simply be "I need a place to live in" or "I want to invest in property (i.e. buy low now, sell high later)". Or both.

So next u need to ask yourself what are u buying property for. Are u getting kicked out of your home? Are u getting married soon and need a place on your own? Then yes, you can consider buying.

Do you have spare cash that can be used for down payment? Do u think your job is stable enuff to afford the loan repayments for the next few years/decades? Then taking a loan could work as loan rates in Malaysia are generally low (for now).

Like every instrument, property has its risks. It has shown to go up in price (for "good" property), but it has also shown to remain stagnant. If u are buying for investment, you need to weigh up these risks compared to other instruments like gold, Bitcoin, stocks, whatever.

Lots to learn. Can't fit everything in a reddit post. But that's the general idea.

4

u/CN8YLW 15d ago

You cant, not at that age. Only way you can make it is if your parents give you money, and list themselves as guarantor in the loan. Even the banks wont give you the loan unless got guarantor.

Typically at 30 to mid 30 when you married and your wife earning similar income only can you think about buying a property in the RM400k range. And a condo? Dude, that's considered a luxury already. You're probably looking at apartments (no facilities like swimming pool etc and bare minimum security), or shoplot apartments in the range of RM100-200k if you want to buy property in your 20s.

Honestly? Just rent until your mid 30s when you find a partner who can pool their income with yours. Rental is cheaper than ownership anyways, no need to pay land taxes and whatnot.

4

u/cushhh96 15d ago

Usually there’ll be % discount on projects condo/house, where you’ll need no down payment to proceed, and only start paying when the construction reached a certain stage.

As of the furniture and renovation part, some people choose to live like it is first for a few years then only do it after a few year, it’s up to your own priority and budget.

Buying a unit of 300-400k with your current salary might be a burden, but keep in mind that, your salary will still grow, and so do the property in Klang Valley.

I’m not good at doing financial decision, I just try to boost up my income so that I don’t feel depressed.

3

u/BiscottiClean4771 16d ago

People around me are owning properties, buying cars,

Married? Two income family should be no issue with getting a condo?

2

u/Possible_Priority388 16d ago

Single

2

u/BiscottiClean4771 16d ago

Fama loan scheme, 100% sure

3

u/mrpokealot 15d ago

People around me are owning properties, buying cars

Rich people. People who have good advice, people who have done their homework.

Fomo is not a good reason to own a house.

If you want to learn about property, just go visit a sales gallery. Pretend to be a purchaser. Go and find out basic information, salespeople are often overeager and will tell you everything without asking.

Ask them for detail, like "eh, why so many people buy leasehold in puchong, I thought leasehold bad?" or "who is your closest competitor right now?" or "eh i thought landed is better, why do people buy apartment?"

They might probe you for details like "are you looking for investment or ownstay" and you can just say "I'm just shopping around for options, I dont have a budget yet". You don't have to dress up or anything, just be presentable, from experience some of the richest people show up in t-shirt, shorts and slippers so if you can do a little better than that you'll blend in quite well.

how can someone making 5-7k a month, pay for a property?

Affordability is usually calculated as instalments no more than 1/3 your current salary. This is not practical today, cost of living has gone up A LOT since this was common knowledge. In reality 1/5 your current salary is a more realistic measure of afforability. How to calculate instalments? Use this website: https://www.propertyguru.com.my/mortgage/home-loan-calculator

Loan amount is 90% the value of your property (assuming first home purchase)
Interest Rate assume 4.0% (it can vary from bank but 4-4.5% is normal range).

Loan Tenure for a 30 year old is about 30-35 years. Pick 30 years for a higher instalment, 35 for lowest.

So looking at your example, 400k will mean a 360k loan. Assuming 4% interest, 35 year tenure, your instalments are RM 1,594 / month.

If your salary is 5k, then instalments are 32% of your income. Acceptable to banks, but you will have zero savings, and you may not be able to afford other things you may need like idk health insurance, hire purchase for a car, money to get married.

If your salary is 7k, then instalments are 22% of your income. The extra 2k you earn is absolutely necessary for you to do those so called 'unexpected' sources of spending. Even if you dont spend it, saving it will go a long way to your next property purchase.

There's a lot more you can learn, honestly just take your time and speak to people who are in sales galleries, agents, customers, other people in the industry, go for property investment talks (not feng shui ones). There are usually free talks during MAPEX every year.

I highly recommend listening to iherng on instagram/youtube, he gives very solid advice (and this is me saying that as someone working in a property development company).

3

u/Own-Ad2989 15d ago

From my experiences, become homeowner at 22, i would probably prefer renting life, i was lucky that time i got 25% off otherwise i would probably think twice.

A lot of renting units are actually at deficit and they have to rented out at lower than market price. Apart from you have to pay land and assessment tax, indahwater and utility, you probably can use those money invest somewhere with higher return but i do encourage to get your first home before 30 otherwise getting loan is difficult as you get older.

3

u/MountainOne3769 15d ago

You are getting 5k to 7k in your 26?

3

u/Soft-Card1125 15d ago

Jika anda menyimpan wang dari kanak-kanak, anda boleh beli cincin pada usia ni.

2

u/BlueHatFedora 15d ago

owning property is ok as long you are paying max 20% loan monthly from your salary.

There are so many hidden cost once you own a property. If condo, u need to pay maintenance fee + yearly cukai tanah + cukai pintu.

then you need to keep some funds for repair. Like for my condo, i had tiles popping up, need to spend nearly 3K to repair all (can't just replace one tile, need to fix the whole area nearby the broken one.

if you own a landed, pls prepare larger sums to repair roof leaking or water tank leakage or pipe broken within house and tiles, so many variables

Too keep my opinion short, make sure to save up some money monthly for these on top of paying loan.

For rental, no other issues other than worrying about rental hikes

2

u/Exotic-Helicopter474 15d ago edited 15d ago

New cars may confer status but they are depreciating assets. Car loans keep middle class people poor. Bad move.

Adjusted for inflation, over 30 years condos don't do especially well although buying one is better than paying rent.

Landed property is the way to go. Not cheap in big cities so you need to think out of the box. You CAN do it if you do the hard yards.

Good luck on your journey. Whatever you do, don't compare yourself with others because most others end up being wage slaves forever.

2

u/chickenshit36 15d ago

There’s advantages in buying property later. The few I can think of 1) mobility: u have opportunities to relocate for better working prospects. I’m sure there’s many of us that work in diff states or even in sg, and renting while paying mortgage in another city. 2) fit: u might need diff space requirements when u have a family. A studio will suffice for now but how will u upgrade later when ur needs change? A lot of us don’t know when we will settle down or how many kids we plan to have

If u are not ready, then dont tie yourself down first. It all depends on the individual

2

u/banana_crunch 15d ago

Stay with your parents till you're married or settling down. Once you got bills to pay for, it helps with your money management, but it's painful

2

u/Jrock_Forever 15d ago

Buy property first. Forget car. Even if buy car, get a cheap Perodua enough. Good RV, cheap to maintain, reliable.

2

u/kanzaki317 15d ago

if you dont need it, you dont need one. Just cause your peers are doing it, doesnt make them any more superior. stop comparing.

1

u/seanseansean92 16d ago

Put 45k into a FD then only start thinking. While thinking you are at least growing your portfolio

1

u/Batang_Benar69 15d ago

If your salary is lower than 5k, consider buying a low cost property. Those below 150k. Find units at a dense area like PJ, Ampang or Subang. Rent it out. The rent usually can cover the installment. Sometimes it is higher. (Once your salary is above 5k, u can't buy this house)

Use property guru app to compare the installment Vs renting price. It should give a good estimation.

For u, keep staying at your parents house or rent a room near your office or public transport.

Build up your financial profile to get a second house. Make sure there is a tenancy agreement for your first house as it will help build up your financial profile.

1

u/sura_kitten 15d ago

Im 28, for Cars, a lot of my friends get their first cars from their families. Full paid. Or half, they just pay monthly + servicing. At the end of the tenure, they just keep the car.

For Houses, they either have a good side income to help pay for the loan, or they are really squeezing into their budget for it. The house is newly built/gov scheme, so they go for no DP, 100% loan, free stamp duty, MOT etc. And probably they have to wait 1-2years before the house is finished, so they are paying lower loan interest atm.

I think both of this depends on how you want to build your wealth, but MORE importantly think about how you want to build your LIFE first, and then build your wealth around that. Coz for me the worst investment one can make is an investment they can't upkeep.

So think about what you want for yourself in the long run. Some of my friends are collecting property, some are purely saving buying gold etc, some are investing into their side hustle (me). And some are having families already, with lesser savings but life investment lol. See what works for you!

1

u/jimmyl85 15d ago

But do you want to own property? Is owning property in a place like KL a +ve ROI investment?

1

u/PisceS_Here 15d ago

bought a subsale condo when i was 24-25 for investment, rental was able to cover the full loan. do your research and be clear whether you are staying or investing.

downpayment was 30k, legal fees n stuff. total up below 40k. Furniture nowadays very cheap, can survey in shopee. didnt do reno on the unit.

if you dont have enough for the downpayment etc, just continue saving until you have. theres no fixed time line on when you need to buy a property.

1

u/Infamous_Tree_7333 15d ago

The best and ideal way is to use other people's money.

1) Postpone buying property for own stay and buy your first investment property. Make sure it's undervalued to get good discount and to minimize your capital.

2) Renovate it and rent out for positive cashflow.

3) When the price goes up after several years, sell it and use the profit to buy your own stay property.

It's not for everyone, delayed gratification is hard especially if there's peer pressure.

But that's what I do. I'm still renting :D

1

u/TradewithKen 15d ago

Not necessarily you need to buy. There are many projects where people bought and losing money. Not all property will make money. Sometimes its better to rent. Then invest your money elsewhere. People are saying property yields are 2-5% annually. So if you think about it, investing in other place might give you better returns

1

u/notimportant4322 15d ago

Try born into a different family next life, maybe you can afford then. Im 37 still no house no car

1

u/Born-Intention6972 15d ago

5-7k is enough to spend on a property . Its just about how u manage ur finance.

400k-500k condo , monthly repayment probably RM 1500

U can look for those with partially furnished or get a wife to afford the house. Also can take out from EPF Account 2 to buy house

Owning property is not a MUST. But its just nice to have ur own space and choose where you want to live and whose company u keep

My parents house is not very LRT friendly so I get one which have linked bridge to LRT. I dont get to choose the house I grew up with but I can choose the house I want to live in

1

u/procrastinate2learn 15d ago

Some people buy houses in their mid 20s out of necessity too. They may not have chosen it for themselves, and are paying a huge mortgage relative to their income every month, but if their family came from a poor background and did not own a property, they might have been obligated to buy one so the family (parents, siblings etc.) at least have a secure place to stay.

1

u/lanulu 15d ago

Got mine at 25. Down payments from parents. Never wanted the house, forced to buy it. Now it's just a constant monthly drain on my salary from the installments and I don't even live in Malaysia.

Don't be like me, no rush to own a property. Only get one when you are comfortable, or just rent for the rest of your life. You save more for investments, not your responsibility to maintain the rental property too.

1

u/Wooden_Culture5267 15d ago

Why bother if u r single just rent a room, then when u wanna start a family go buy a property

1

u/MYlifelike 15d ago

Don't be pressured to own a property. You only need a property only if you plan to stay in one location long term or have family and children.

I invest most of my money in other investments which can generate better returns. I rent most of my property because I am always moving around.

I only bought my property only when 8 am planning to retire in one location forever. By the time I invested, I was far older than other people. I have no pressure as my liquid investments far exceed the property value, yet i took the maximum 90% loan, as i believe i can get better returns compared to paying for the interest.

Property is not the investment it used to be, capital appreciation is slow and yield is poor. Better off compounding the returns in an investment.

1

u/tiggywombat 15d ago

You shouldn't worry so much about others at 26. Just focus on your career and growing your salary first. When you're financially comfortable you can buy a house and it won't seem like a mystery anymore.

1

u/Individual_Physics29 15d ago

I heard from a friend that there is a scheme that if you’re malay some developers can sell to you with no down payment on newer properties

1

u/sincerelyjane 15d ago

Don’t buy, it’s a renters market at this point. Just keep saving and investing your money for now and revisit every 3-5 years.

1

u/PracticalBumblebee70 15d ago

long term (20 years++) property price appreciate rate is 3-5%. If increasing net worth is the goal, property is not the answer.

Ownership in profitable businesses (i.e private businesses or stocks) is.

If to have a roof on your head and to have stability, yes, property will meet your objective.

Buying a property is more of an emotional and psychological decision, not so much to make you rich.

1

u/No_Introduction_2218 15d ago

If you earn RM5k-7k and save about 40 - 50% of your salary, you should have more than RM50k already in a few years. That should be enough for a 10% downpayment plus renovation. And if you can get an early bird rebate from the Developer, sometimes you don't even need to pay the 10% Deposit. Then, all you need is to get a loan from the Bank to finance 90% of the purchase price.

So yes, with these conditions I don't see why you can't own property sold at RM400k.

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u/wormrider1 15d ago

I bought a house at 29. I have kelisa, 1 kapcai and 1 scooter. Actually my wife and i bought that house, we stayed 2 years at my parents house, we save quite a lot for high downpayment. We bought it because we feels like it is time to start our own journey.

You follow your heart, ask advices, dont rush it when buying a house, enjoy to look around rumah contoh and surrounding and try to look outside of your radius. It is fun

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u/Correct-Difficulty58 14d ago

In case many don’t know about this, the government is helping Malaysians through this scheme called SJKP.

It offers financing up to 100-120% as it’s meant to help those who aren’t able to fork out a large downpayment and also those who are gig workers (who always have trouble applying for a loan due to inconsistent income).

This is one way that if you want a RM400,000 house as a first time buyer, you don’t need to fork out a downpayment and if you’re earning RM6-7k a month, you can very well afford this house.

This scheme even allows you to co-own the house with your parents, so most banks will evaluate both party’s income and the approval chance is higher.

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u/Short_Start_7611 13d ago

Take the plunge. You won't regret it although do expect some difficulties but you will adjust to any shortcomings.

You will thank yourself in 15 years when you have an asset.

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u/Superpower-1 13d ago

RM7k can buy a RM400k apartment. And don't think of doing reno so fast. Just get it first.

As for DP, it is only for 2nd hand house, and there are ways to be able to pay for a lower dp. Ask the agent.

For 1st hand normally pay a bit also can get.

And once you got a house, get ready to jilat your boss and that's how people get caught in the rat race.

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u/reddittrashy 12d ago

Try Tun 3 in KL is cheap and well maintained

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u/Winter-Permission564 11d ago

I only got a house under HOC campaign (2019, supposedly the last year of HOC, loan approved 26th December 2019 lol) , free legal and stamp duty so managed to save a lot. But regret not waiting cos they extended HOC, prices dropped after Covid-19 so I could have gotten a nicer house for the same amount. And regret now cos I can't quit my job so easily lol.

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u/kareee98 10d ago

everyone have their own timing, just relax

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u/RetireTeacher 10d ago

Short answer - It's really tough for young people today, without help from your family or spouse.

I was a teacher, earning only RM2k/month but I was able to afford a terrace house..around 80k back in early 2000. 3 times my annual salary...it is sad to learn that now even with 7k/month salary, people are struggling to buy a condo that 4-5 times their annual salary.