Asked by Anonymous
Hi Property Experts, I'm looking to buy a property within this year and is having dilemma between landed vs condominium.
Background:
I'm from Penang and is 30 years old. My gross salary is ~RM13K. I'm still single but is looking to get married this year with my partner who is earning RM5-6k. Both of us are salaried and not on commission basis. The home will be for both of us as well as my parent.
Selection:
I'm currently having a dilemma if I should target a luxury condominium (prime location, commercial title) in the range of RM1.1M versus a 30-year old terrace (estimated also around RM900-RM1M) which is also located at a strategic location.
Landed Analysis: While I fancy the idea of owning a landed property in Penang island, a 30-year old terrace will set me back another RM200-RM300K for renovation. My concern in spending so much on a old-terrace is I might not be able to resale them 10+ years later.
Condominium Analysis: My option is limited for condominium as I'm trying to look for one which offers at least 3 car park. I found one going RM1M, but it's a commercial title. Also, I'm worry about the resale value of condominium in subsale market, especially when the property will be priced in the RM1M range.
Question:
Given you have the ability to take a RM1M loan and RM300k additional budget for renovation + legal paperwork, will you choose to purchase a condominium or old terrace, assuming we plan to stay there for at least 10 years?
PS: There's an option to take joint-loan with my partner to purchase better and newer terrace property in Penang Island, but this might set us back RM6K a month, and this is slightly higher than the 33% mortgage-loan to income ratio. We are also planning to have kids in the next 2-3 years. Should we buy better property, it might be the final home and I will not consider to change home for the next 20 years.
Sorry for the long-winded question. Hopefully you will be able to help.
#AskGuruSean
Background:
I'm from Penang and is 30 years old. My gross salary is ~RM13K. I'm still single but is looking to get married this year with my partner who is earning RM5-6k. Both of us are salaried and not on commission basis. The home will be for both of us as well as my parent.
Selection:
I'm currently having a dilemma if I should target a luxury condominium (prime location, commercial title) in the range of RM1.1M versus a 30-year old terrace (estimated also around RM900-RM1M) which is also located at a strategic location.
Landed Analysis: While I fancy the idea of owning a landed property in Penang island, a 30-year old terrace will set me back another RM200-RM300K for renovation. My concern in spending so much on a old-terrace is I might not be able to resale them 10+ years later.
Condominium Analysis: My option is limited for condominium as I'm trying to look for one which offers at least 3 car park. I found one going RM1M, but it's a commercial title. Also, I'm worry about the resale value of condominium in subsale market, especially when the property will be priced in the RM1M range.
Question:
Given you have the ability to take a RM1M loan and RM300k additional budget for renovation + legal paperwork, will you choose to purchase a condominium or old terrace, assuming we plan to stay there for at least 10 years?
PS: There's an option to take joint-loan with my partner to purchase better and newer terrace property in Penang Island, but this might set us back RM6K a month, and this is slightly higher than the 33% mortgage-loan to income ratio. We are also planning to have kids in the next 2-3 years. Should we buy better property, it might be the final home and I will not consider to change home for the next 20 years.
Sorry for the long-winded question. Hopefully you will be able to help.
#AskGuruSean
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