My cousin brother told me that he took out a 30-year home loan last year to purchase a condo unit in the capital city. His home costs him MYR330,000 and he had to pay 10% deposit, which is MYR30,000.
I didn't ask him how much interest rate is but he said that now, and for the rest of the loan period, he has to pay his finance company MYR1300 per month. Since my cousin earns about MYR5000 per month, MYR1300 is just a fraction of his paycheck.
But I think that 30-year period is too lengthy. Who could tell what would happen five or ten years down the road? Heck, we can't even tell what happens tomorrow. How would we know if we would still command a salary as high as this? Of course, ideally, as we work longer and have more experience, we would earn more and more but I know of some friends who lost their homes because they could no longer service their housing loans due to illness or loss of job.
I think that when that happens, it's pretty tragic. We buy a house because we want permanency but when we lose it, all our hard work would go down the drain.
I didn't ask him how much interest rate is but he said that now, and for the rest of the loan period, he has to pay his finance company MYR1300 per month. Since my cousin earns about MYR5000 per month, MYR1300 is just a fraction of his paycheck.
But I think that 30-year period is too lengthy. Who could tell what would happen five or ten years down the road? Heck, we can't even tell what happens tomorrow. How would we know if we would still command a salary as high as this? Of course, ideally, as we work longer and have more experience, we would earn more and more but I know of some friends who lost their homes because they could no longer service their housing loans due to illness or loss of job.
I think that when that happens, it's pretty tragic. We buy a house because we want permanency but when we lose it, all our hard work would go down the drain.
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