Hi. I'm to enroll in college in Iskandar JB and will study there for three years.

And I suddenly thinking of making my first baby step into real estate investment.

My idea is simple; buying a small house and get some friends from my college to live with me (they have to pay the rent, of course)and then pass it to my juniors, super juniors and so on..

It will be damn hard to persuade anyone I know to make loan and buy a house for me as I am from a poor background. So, will it be possible for me as a student with no secure income to get loan and buy a property (I have RM 2+K in my saving and will get RM 750 each month from my sponsor)

Let say I manage to persuade my dad to make the loan for me (which is very unlikely to happen knowing my mum will strictly oppose this idea) does anyone here think that it is a bad idea and why????

Dear Muzhaffar,

Some of the things to consider when making a loan is this:
1) You normally need to make a downpayment on a property first. Banks will not loan the full sum. At most 90/10.
2) You need a regular source of income in order to show banks that you are credit-worthy. As a rule of thumb, up to 1/3 of your income can be allocated to service your loans.

Here's a suggestion. Spend some time reading up on property investment before dabbling into it. The more you know, the better you can make your own decisions. Good luck.

The bank does not care how much you have in your saving. The bank only needs to know your source of income, and whether it is able to sustain as what Miyuki has mentioned, 1/3 of your income. Since you do not have a secure income, you might need to joint-income with somebody whom has a consistent flow of monthly pay. Most importantly now is that you need to make sure you have at least 10% downpayment for the property. Balance 90% can be financed by the bank only on first property purchase. If you are a bumi, buying a new property is more favorable with its Bumi Discount. If I am not mistaken, Iskandar Region gives 15% discounts to bumi. You might not worry on the downpayment. Or if you are buying outside Iskandar region, you enjoy at least 7% discount on new properties only. So, no need for so much downpayment. Unless if you are buying sub-sales, you need to ensure you have the funds for 10%d/pymnt,SPA legal fees,MOT & loan agreement legal fees. Buy a property when you are young is good, at least you hedge your funds against inflation, but you must ensure you are able to service the monthly repayments/commitments.

You can read more about loans and financing in Malaysia here

VERY interesting and informative indeed!

Kudos to Mr. Chun and Simon Says!

Thank you very much Miyuki Hatsune and Chin Kim Keong..it really teach me a lot..i'll do some more research, do extra reading and take consideration of what you guys have said..

cheers