I got flu in recent days.I think that could be A(H1N1) because the virus was so easily to break my strong immune system.On the other hand,I still have to search for a property.I had visited 2 properties in the past weeks.None of them were satisfying me.Any one has a property to sell?My budget is RM120,000.I prefer the apartments located at Taman Sri Sentosa,off Jalan Klang Lama.
Keep searching…and I hope I could recover as soon as possible.No one like flu!!!
The source from Bank Negara,the central bank of Malaysia says that the banking license to Industrial & Commercial Bank of China is processing currently and it could be done before November 10,2009.Why is that date?Chinese Chairman Hu Jintao will have his official visit to Malaysia from November 10-11,2009.
Many observers think that Malaysian government will offer the license for banking service to the related parties,however,they want to get more strategic investments and financial supports from China to push the local economical growth from the recent recession.
Simplified it,China has money and is always looking for some opportunities to make investments.On the other hands,Malaysia is lack of money and is always looking for some chance to attract more foreign investments.That’s why they are going to make a deal.I can see that more and more business and cultural activities is going to hold between two countries.But I can’t see that Malaysian government gives any extra benefits to the Chinese.For example,I’m going to have marriage with my fiancée who is Malaysian Chinese and after the marriage,we decide to stay in Malaysia for some years.Thus,we need to buy a property to stay.
According to the law,foreigners are only able to buy a property valued more than RM250,000 in KL and Selangor and there’s no exemption to a foreign spouse of a Malaysian.I understand this clause protects the low-mid income citizens as foreign investors may push up the property prices if no restrictions here.But in my case,the property could be only under my fiancée’s name if the preferable property is under RM250,000 and nothing protects me.
Malaysian government still needs to be a bit smarter to welcome more foreign investments.
In these days I take some time on considering of renting or buying a property and now I initially form a picture in my mind.Let’s say I’m going to either rent or buy the same condominium valued at RM130,000 currently.In my area,most of these apartments have 3 bedrooms and 2 bathroom.It will be big enough for a 2-people family to stay in.
Buy
If the owner is willing to sell it at the market price RM130,000,I need to pay more than this amount because I have to process the Sales and Purchases Agreement,Transfer of the title,legal fees and then Stamp Duty which may be up to RM6,000.In Malaysia,we have to pay at least 10% down payment.In this case,that means at least RM13,000.So I have to prepare RM19,000(RM13,000+RM6,000) of cash at first.According to current bank loan policy,the rate of Home loan is around BLR-2%.After some calculation,I could get the monthly installment for the following 20 years is RM680-RM700.Of course,the more I pay on the down payment,the less I pay for the installments.
After 20 years,I own the property worth RM130,000 theoretically and only need to pay monthly maintenance fee.
Rental
As I know the rental fee of that kind of apartments is RM500-600.So I just pick up the higher one RM600 because the rental fee should be raised possibly every 5 years.Well,it is RM100 lower than the monthly installment.However,the total money I spend on rental in 20 years will be RM144,000(RM600*12*20) and I leave nothing after all.The worse thing is I must keep on rent a place to stay.(Be noted that the rental fee at that time may be raised to another high.)
To sum up,I prefer to buy a property instead of rental as rental is just like putting money into a bottomless hole.How do you think?