19 Dec 2006 | Comments |
Money Saving Tips |
Comments feed
Buy House before Car
Refer to my previous post about the cheapest consumer debt: Mortgage - The Cheapest Debt , it is wise to keep the mortgage as our only debt.
Most people hesitate whether to buy a new car first or a house? Let’s see the pro and con:
| Car | House |
| Maintenance, petrol, servicing cost about RM300-500/month | Maintenance, electricity, water bill, assessment cost about RM200/month |
| Most likely Depreciate in value | Most likely Appreciate in Value |
| Loan: Hire Purchase Agreement Only a little bit discount if we want to pay advanced installment Higher interest charge |
Loan: Mortgage Advanced payment will settle on the principle loan Daily rest Lower interest charge |
We can buy the house first, then serve the installment for a few years. After we build up more equity in the mortgage, we can refinance the house to higher loan amount. The extra cash we get can be used to buy our dream car.
« Utilize the Books Tax Relief | Are Unit Trusts Lousy Investment? »
Add New Comment
Thanks. Your comment is awaiting approval by a moderator.
Do you already have an account? Log in and claim this comment.
Add New Comment
Trackbacks
(Trackback URL)