Monday, October 29, 2018

How to count your worth to get your home loans

Assalamualaikum.

Hello =)


Do you know how much are you worth? In terms of loan value to the bank. This question usually arises to those who are in the bank to obtain loan to buy their house like Bukit OUG condominium. Let’s talk about your debt service ratio (DSR), the calculation which banks use to determine your capacity taking loans versus the amount of money you make on monthly basis.

DSR may differ from bank to bank but bank these days have the most common calculation to calculate and that is :-

Debt service ratio or Debt / Income = or <0.7

The amount of loan instalments paid (for old and new loans) is called debt, calculated on monthly basis and income is one’s nett monthly income (after deduct EPF, Socso and taxes). The total debt (including new loan instalments) divided by total nett monthly income should not exceed 0.7 or (70%).

Many people think the rule of thumb is that monthly loan instalments repayments should not be more than 1 out of 3 of your gross monthly household income. The old practice of calculating front end ratio of debt / income as <0.3 to assess a person’s ability to take a loan. Additionally, the front end ratio, bank uses a back end ratio to calculate new loan instalments which is new debt/income <0.4. For simplicity purposes, many banks nowadays use total ratio (old + new debt) / income < 0.7.

Let’s give you a scenario for better understanding.

Chester has a job as IT manager and has a fixed salary of RM5,300 (after deducting EPF, SOCSO and tax). He just got married and plans to buy a house that’s worth RM400,000. Currently, he is paying RM1,300 for his car loan and his credit card bills that are averaging at RM3,000 per month.

Here comes the main question: can he afford to buy his property? How much loans can he take? Let’s all start calculating his debt service ratio.

His current debt commitment is as follows:
Car loan = RM1,300 per month
Outstanding credit card amount = RM3,000
Banks take a 5% outstanding credit card amounts, to be minimum monthly payments, as such,
Credit card (minimum) instalments = RM3,000 x 0.05 = RM150
His total monthly debt = RM1,300 + RM150 = RM1,450

Now, if you would like to know the maximum housing loan Chester can afford, then here’s what you will need to do:

[debt + (maximum new loan instalments)] / income = 0.7

Maximum new loan instalments = (0.7 x income) – debt
                                                                 = (0.7 x RM5,300) – RM1,450
                                                                 = RM2,260 per month
Assuming Chester only allows to take a 30 year loan at 6% interest rate, an instalment of RM2,260 can allow Chester to take a loan of RM376,950.

As such, if Chester first residential property, he can afford to buy a house his Bukit OUG condominium worth RM400,000 with a 10% down payment and a loan of RM360,000.

Here’s another scenario:

Lionel is a successful engineer and he has invested into several projects. He wished to buy a newly completed SoHo unit at an early bird price, RM400,000. Here’s his portfolio:

Income:
Nett drawn salary = RM8,790
               
Current Debt:
Monthly car loan = RM1,500
Outstanding Credit Card = RM4,000 (Bank takes 5% month = RM200)

Property Portfolio:
Lionel invested into two developer projects, obtain 90% loans with 30 years’ financing at 6% interest per annum. His monthly instalments are as follow:

Property A valued at RM350,000 = RM1,889
Property B valued at RM600,000 = RM3,238

Lionel’s DSR = debt payments/income = (RM1,500 + 200 + 1,889 + 3,238) / 8,790 = 0.78

Lionel’s DSR exceeding 0.7, the maximum value that has been set by most banks to allow him to take loan. Lionel cannot take up any more loans until he paid off his debts or increases his income.


In summary, the key to optimize your property investment is your ability to leverage and obtain more properties.  As for the above scenarios, it is just for illustration purposes. Ultimately, the DSR and other policies that are in place right now differ from bank to bank and also subject to government and Bank Negara ruling every now and then. In order to get better clarity of how it works and optimizing your property investment portfolio, do consult your banker for updated advice and make your own decisions. 



Friday, October 5, 2018

Encore Melaka, Tarikan Terbaru Di Melaka

Assalamualaikum.

Hello =)

Last week fiza dan keluarga ke Melaka untuk hadir ke majlis Konvokesyen adik fiza. Tak lama pun kami kat sana, kira macam short vacay je lah sebab dah lama tak berjalan dengan keluarga kan. Alang-alang dah ada urusan tu, kami habiskan masa sebaiknya berjalan dan cari tempat makan yang sedap-sedap sekitar Melaka tu. 

Ohh, pasal konvo tu, adik fiza yang di haa yang konvo tu .


Wida. Dulu dia blogger jugak, tapi lepas dia sambung study, blog pun terkubur dah. 

Oke,berbalik kepada short vacay fiza dan keluarga ni, ada la dua tiga tempat yang sempat kami jejakkan kaki tapi yang paling fiza suka ialah di Encore Melaka . Kenapa disini? Sebab tempat dia lawa giler untuk berfoto weyh! Serius, kalau korang kaki bergambar , memang wajib datang tempat ni. Bila dalam gambar, rasa macam kat luar negara pulak, ecehh. HAHA. 


Encore Melaka ni terletak di Kota Syahbandar. Kalau nak masuk dalam teater tu kena bayar la, tapi kalau setakat nak bergambar kat luar , free je. Oh ya, Encore Melaka ni sebuah teater ya. Lebih tepat, teater paling besar di Asia Tenggara dan persembahan teater yang di tayangkan ialah berkisar tentang sejarah dan budaya Melaka. Kalau korang berkesempatan, boleh la menonton teater kat dalam tu. Masa fiza datang ni, ramai pelancong asing yang datang menonton. Meriah. 


Noah mengamuk tak nak bagi kerjasama dah time ni. Berpeluh dah dia, mana tak nya, masa fiza pegi matahari tengah terpacak kat kepala. HAHA panas cenggg . Tapi demi nak bergambar , kami harung jugak. Noah kejap je kat sini, lepas tu tokmi dia ambik bawa ke surau. Surau dia besar sangat dan selesa dan sejuk!


Dah Noah tak nak bergambar, bagi can kat mama dan papa dah bercanda di tengah panas terik ni ya sayang. Husband pun kejap je boleh tahan, peluh meleleh. So korang, kalau tak nak panas sangat, datang la petang sikit. Fiza datang time ni sebab taknak orang ramai sangat. Kalau petang makin ramai orang bergambar kat sini. Memang Encore Melaka ni dah jadi salah satu tempat tarikan untuk bergambar sejak viral kat twitter hari tu. Fiza tahu tempat ni pun dari twiderrr

Throw that cap to the sky because that`s the limit to how high you can go now :)


Banyak gambar kami kat sini, gambar lebih kurang je semua beza posing je. Haha. Satu lagi, kalau nak bergambar kat sini better pakai pakaian colour dark atau dengan kata lainnya jangan pakai baju warna putih. Nanti tenggelam pulak dalam gambar sebab tempat ni dah memang putih.
Fiza ni bab ambik gambar so so je, korang kalau hebat ambik gambar, mesti lagi cantik hasilnya! Nanti kalau datang ke Melaka, jangan lupa snap gambar cantik-cantik kat sini ya! :)

Untuk yang berminat nak tengok teater di Encore Melaka ni boleh refer harga tiket di sini
https://encore-melaka.com/ticketing/ atau hubungi +606 270 7700 (Customer Service). Lokasi dia korang waze je ENCORE MELAKA, comfirm jumpa.