Can you afford a 2nd house?
A friend of mine told me that he's planning to get a 2nd condo, for investment. When i heard about this i was kind of shocked!! He just bought himself a condo, he's not earning a lot every month, he's got a family to support, car installment, house installments and etc and yet he can still afford a 2nd condo?? wow.. amazing... for me, i'm already half dead, don't even have extra money to spend!!
The only difference is, he's now renting out his unit where else i'm currently staying at my own unit. Oh yes, that's why!! you see, he's currently staying in hostel, and his family is in hometown, staying with his parents, so the unit he bought, he rented out. The monthly rental is more than enough to pay for the housing loan, enough to pay the maintenance fees as well, so basically he no need to pay for anything, except for the assessments ...
No wonder he can afford a 2nd unit la...got ppl pay the house loan for him!! Down payment? get from EPF la, but of cos still need to pay a few thousand for some legal fees and etc..and of cos there's still a risk, WHAT IF your 2nd unit not able to rent out?
so.. wanna invest? hehe..
The only difference is, he's now renting out his unit where else i'm currently staying at my own unit. Oh yes, that's why!! you see, he's currently staying in hostel, and his family is in hometown, staying with his parents, so the unit he bought, he rented out. The monthly rental is more than enough to pay for the housing loan, enough to pay the maintenance fees as well, so basically he no need to pay for anything, except for the assessments ...
No wonder he can afford a 2nd unit la...got ppl pay the house loan for him!! Down payment? get from EPF la, but of cos still need to pay a few thousand for some legal fees and etc..and of cos there's still a risk, WHAT IF your 2nd unit not able to rent out?
so.. wanna invest? hehe..
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3 comments:
TO BE HONOURS, HSE INVESTMENT IS NOT A GOOD INVESTMENT AT THIS MOMENT!! I BOUGHT 3 HSE IN MY LIFE, THE 1ST 2 HSE ALL RUGI$$,NOT BECAUSE ON THE SELLING PRICE, IS THE BANK INTEREST AND LEGAL FEES ETC. DO U KNOW IF U PAY MONTHLY INSTALLMENT OF RM1000, 90% IS BANK%, 10% IS CAPITAL REPAYMENT. IF 5 YRS LATER, UR LOAN BALANCE STILL OWE THAT MUCH BUT TOTAL U ALDY PAY SO MUCH..BASICALLY, IF U SELL THE HSE AT 15-20% UP OF THE ORIGINAL PRICE, U JUST GET BACK UR DOWN PAYMENT ONLY. BELIEVE OR NOT?? DON'T LET THE BANKER, PROPERTY AGT BLIND U!!
hmm, probably keep it until the house finished loan only sell? hehe.. i see a lot of ppl buy houses to rent out to ppl, as long as got ppl rent their house, they noneed to worry about paying the housing loan, and after 20 -30 yrs later, it's their house!!
The price of money is just so insane these days. I mean... you end up paying for years only to pay the interest! Then as the interest rates change you end up paying more for something that cost you a set price.
In any event I was looking about South Africa for a place to rent and came across(www.justletting.co.za) an interesting site. Just rentals! So I had a good look about and realized that at those rentals, surely there is still money to be made in real estate? Just how to get that foot in the door is the real question!
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