Will Budget 2017 help you purchase a property?
In Malaysia today the need for property stays solid despite the fact that residential property prices continue to increase. However, according to statistics from Bank Negara, it reveals that applications for real estate financings declined during the initial eight months of 2015 & 2016.
Does this shows that the Rakyat wants to purchase a home yet do not having enough cash? High property rates coupled with the increasing expense of living have raised the demand for affordable housing.
It seems the general public’s cry for the government to play closer focus on housing plan is followed. However, exactly how reliable are these measures? Does it aid with your plan to discover a house for yourself and also your family?
Would you think about purchasing a house within the next year? Exactly what would you instead see from the federal government? Inevitably, is the federal government doing enough to attend to the issue of real estate price?
STAMP duty exemption, stamp duty increase, new PR1MA end-financing scheme, grant for registered Residents Associations, civil servants’ housing loan, urban houses for young tenants and more PPA1M, PPR and PMR.
Can you afford to pay the monthly instalment?
Lacking the ‘trade-up mentality’
Young adults should not buy property if they are going to be in debt over the down payment alone by borrowing from various sources simultaneously, like using credit cards, taking up personal loans and borrowing from parents.
“Borrowing money seems to be not difficult any more for them. They’re not afraid of repaying even though they can’t afford it.
The market started climbing in 2016. In 2017, we’ll see serious interest and 2018 can be the next property high.
Buying property with a boyfriend or girlfriend
Skyrocketing property prices over the past few years have also prompted unmarried couples to buy real estate together in a desperate bid to get a foot on the property ladder, despite the potential risks should their relationship sour.
“If you waited for anything, you still wouldn’t be able to afford it. Inflation on property was moving much faster than anyone’s salary could grow.
The risk of a couple breaking up was far outweighed by the risk of not affording to purchase and own property, which is why most people don’t even buy with their girlfriends or boyfriends, and instead form investment clubs with their friends,” she added.
Living on credit
- Do not carry credit card balances where possible. If you have used your credit card for a large amount; repay the amount before using your card again. Similarly, do not use a credit card with a transferred balance until you have paid off the transferred amount.
- Automate savings at the beginning of each month.
- Do not take out loans unless you are sure you will be able to meet your collective repayments with ease.
- Some amount of debt is necessary. Few of us have the money to pay for cars and houses with cash. But even when applying for necessary credit; ensure that you will be able to pay your instalments as planned.
Getting out of bad debt (and staying that way) is not impossible and with a few choice changes, you will be on top of your financial game.