Last week, my wife ask me to look at some property nearest my house. She’s very excited to buy house. After doing survey, the house price is more than RM200,000. Honestly, I could afford it if I’m using my housing government loan or using my wife loan. She want to use MyDeposit scheme for the deposit term,
The house is very strategic and valuable but I’m not really interested. Why ? I don’t think that we need another house for living. I will support her if she buy less expensive house that could generated passive money. For example,she could buy a second hand house at her village which could cost below RM100,000.
The house is small , around 20′ x 45′ but it is comfortable to rent or make it as a homestay. If the house is below RM100,000 the average monthly payment is around RM600-RM700 for 30 years old. If it could rent around RM800 per month it could help for monthly payment. If it use as homestay, then it could generate more income.
If using the house as a homestay, it could generate around RM150 per day and if it could occupied for 8 day than it could generat income RM1,200 per month. This could help to finish the loan early and after that the money could become passive income. If not, we just can sell it to get full settlement and some profit. The property will increase and very hard to down.
As my wife survey via telephone, the next project price will increase about 10% eventhough the project still on planning phase. It is hard to heard as I think many middle and lower income won’t buy the property and it just become asset for those who are wealthy or have strategy to invest in property investment.
Other than that reason, I’m not really interested to buy a luxury or big house now. The maintenance of the house will bigger and I don’t think that we’ve reason to transfer from this small house.Our house located at strategic area and not too crowd. The community also good and helpful.
If we need to transfer than we need to begin almost everything. We’re still in time to get stable family. I don’t want our budget will increase for housing. Maybe I will finish my car loan in next 2 years but there’s other planning to do. One of my plan is to develop ‘Rental Housing System’ which could be live in next year.
It need money as my aim is high for the system. After that, if I’m succes in the project, maybe I’ll rethink again about luxury house but for now, it is comfortable for this tiny house.
Other than that, I don’t think that big house is really needed. In this time, we just have 3 person in family so this house is enough. Maybe we will rethink in 5 years. In my idea, if possible I want to buy my neighbour house. The house is rent and the owner have his house. Maybe I could offer him to buy the next house and do some renovation.
Okay, that’s all today. Do you have reason to buy luxury house? Just sharing with us.