Salam guys, many of you requested to learn the story of this couple. Some background about them :
– Husband is a manager works in Ara, wife is a doctor works in Ampang. No children yet, early thirties.
– Household income approx RM9,000 gross
– They bought 2 properties :
1. Semi D at RM630k ( bought before they attend Sarjana Hartanah) that was completed this year, now
2. Undercon soho unit in Cyberjaya (also bought before they attended Sarjana Hartanah.
– They are currently renting a place in Ampang for approx RM1200 per month.
– Husband thinks they should continue renting at RM1200 per month rather than staying in the Semi D which cost them RM3100 per month in installment. His logic was the more they can save, the more they have to invest.
– WIfe prefer to stay the semi-D since its now and also thinking about family expansion.
If you have followed my FB you’ll know that being a cheapo, I prefer to live cheaply and continue investing instead.
Naturally I would have sided the husband who is also my Sarjana Hartanah student.
But in this case I recommended for them to move to the semi-D instead despite its costing them over RM3000 per month.
The logic behind this suggestion :
a. To sell the Semi-D today means they’ll have to sell at below market with current market conditions. They would be better of selling this unit in 18 to 24 months.
b. If they choose to rent out the semi-D today, the rent rate will be poor and most likely can be rented out for around RM1500 only. That means they have to top up RM1600 per month for someone else to stay there.
c. If they rent out the semi-D and continue renting in Ampang, it will cost them RM2800 per month. ( Rm1600 for negative cashflow on semi-D, and RM1200 to pay rental on the apartment ).
d. It will also cost them alot of money to make the house partly furnished and no guarantee that the unit will be well taken care of by student tenants.
e. I also though them how they can minimize their monthly commitments by aprox 20% on the semi-D so the cost to stay in the semi-D now will be cheaper versus renting..
f. IN terms of loan, they are still eligible for min 2 more properties at 90% whether they stay or not in the semi-D.
g. And should they sell the place in 24 months, its worth significantly more when you are already staying there. Owner-occupier deals often commands a better premium versus investor unit.