SUITABLE CAREER CYCLE TO BUY PROPERTY IN MALAYSIA ENVIRONMENT

The question of whether a person is ready to buy a property often rose for the younger generation nowadays. Most of the people are of the opinion that you should buy property only when you have a career. Before they can afford to buy a property for own stay, they will consider renting it first. However, what is being defined as having a career has different interpretation depending on each person’s perspective. Here are some analyses on how most people would define the right time in their career to buy a property.

What Cycle of Your Career Would is The Best to Buy Property?

1). When You’re in Stable Employment – It is definitely not a good idea to start buying property when you’re a fresh graduate. You have to ensure that you have a stable and long term income before committing to buy property, as it does require heavy financial commitment. Your housing loan will also be approved easily, as you can prove that you have a stable monthly income. If you’re running a new business, make sure you pass the break-even stage before considering any other investments or purchases.

2). When Your Monthly Commitment Do Not Exceed Two Third Of Your Income – Financial experts suggest that your total loan repayments monthly should not exceed two third of your earnings. This means that if you are having a housing loan, car loan, credit cards and/or personal loans, you should have an income of at least three times their combined amount. Your income can come from your salary, business profits, rental of current properties, investment returns and so on. In other words, your debt service ratio should not exceed 66% of your income, and banks usually cap the DSR at 65-70% for most loans. This is important to prevent over-leveraging, where you take on too many loans you can’t service, putting yourself at risk of financial difficulty.

In essence, it’s a wise decision to start buying your property young and not wait too long, especially when you are buying for own stay. As long as you have a stable and independent income, this is the time to start thinking about owning your own piece of property.

The Malaysian marketplace appears to be still seeing a bearish outlook in the upcoming years or so. Therefore, it’s a perfect time to buy property now, in this climate, in order to find properties that are worth their value, and are still within your budget. You can also consider property investments instead of saving in fixed deposits.