Are you a homeowner now? I hope you are.
If not, I would like you to study this lesson thoroughly. One of the best financial decision I made was to buy our first home as soon as I could.

Property value appreciates at least in tandem with the inflation rate. Let’s assume a conservative capital appreciation of 3% per year, coupled with the rental yield of another 3%. Your property can provide a steady 6%.

Moreover, you can use very high leverage up to 9 times – pay 10% down payment and borrow 90% through a mortgage. Meanwhile, the interest rate is low, around 4%. So it is a good idea to own your house as soon as you can.

In this training, I show you the top financial consideration for the first-time homebuyer. Make sure you go through the MADTR in details.

Work alongside my example. By the end of the training, you will be able to estimate quite accurately:

  • What is your comfort level of DSR?
  • What is your current DSR?
  • How much mortgage can you qualify?
  • What’s the property price that you can afford comfortably?
  • How much cash do you need to prepare?

Discover the following the training:
– How much capital is required for home hunter?
– What are the recurring expenses you need to cater for after owning a home?
– How much is required for the transaction cost?
– How to determine your specific “affordability”?
– How to calculate how much mortgage you can take up?
– What’s the magic formula to own a home without stress?

 

Assignment

Post in the comment below: What is the property price that you can afford comfortably?


KCLau
KCLau

Financial educator, author and trainer

    20 replies to "Top Financial Considerations for First-time Homebuyers"

    • MOfrust

      Hi KCLau, will there be anymore webinars in MP3 format?

      • KCLau

        HI MOfrust, I stop producing the mp3 format because of not much demand. But do let me know if you consume the mp3 format a let. If yes, I will put it back on.

        • MOfrust

          Yes please 🙂 it allows me to maximize my time while driving to work

    • Ng Shu Onn

      Hi KC, is medical insurance is consider under 60% DSR as well?

      • KCLau

        Insurance is not loan. So it is not counted.

    • Soon Huei Wong

      Hi KCLau,

      Can I get the excel file from the video?

      Thanks

      • KCLau

        It is a Google Spreadsheet. The sharing link is already embedded below the video. For Premium Webinar Members, please login on the right sidebar to reveal the download link.

    • Soon Huei Wong

      Hi KC,

      Video not available to see.

    • Soon Huei Wong

      Hi KC,

      Ops… The video is fine now. Sorry.

      • KCLau

        No worries. I’m glad that it is working for you.

    • LOK CHEE CONG

      Hi KC, there are two things I would like to ask according to the video:
      Assume:
      net income = RM1000
      DSR 60% = RM600

      1. In the video you suggest to use maximum 30% DSR to pay for mortgage,
      the 30% DSR you mean is 30% of net income (RM1000x30%=RM300) or
      30% of DSR (RM600x30%= RM180)?

      2. In the spreadsheet provided, the accumulated saving after 5 years (D12 in google spreadsheet), is that roughly the amount used to cover all the down payment + recurring fee+ transaction cost + renovation? Because when I calculate, I feel that amount is not enough to cover all unless we exclude the renovation fee.

      Thanks KC.

      • KCLau

        1. The maximum just 30% of net income for your own home installment. If more than that, it will be stressful.

        2. The figure in D12 is roughly 25% of the property value.
        10% – down payment
        5% – transaction cost
        10% – for renovation.
        Is it adequate?

        • LOK CHEE CONG

          Thanks KC for your help. I think I will know when I have the ability to buy my first property haha!

    • Chee Keong Yong

      RM600k

    • Li Sing Khor

      Hi KC,

      May I understand what is the 3% rental return mean? Is it mean a 3%*home value money return we can get annually once we bought a new property? Sorry if I ask a stupid question 😛

      • KCLau

        Hi Li Sing, the rental return is referring to the property being rented out, and tenant pays rental to stay in the property.
        3% rental yield means that if the property market value is RM100k, the total rental collected over a year is RM3000.

    • Ying Hui Yong

      Hi KC
      If current property on hand is rented out, will rental be included as part of income or to increase DSR in bank’s calculation?

      • KCLau

        You can show the bankers your latest stamp tenancy, to include your rental income in the DSR calculation.

    • Justyn

      Thanks KC! Excellent webinar for people looking to buy their first property.

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