Malaysia Money Matters

I created a simulator based on price, loan paydown, market value, profit on sale (including RPGT) and compared against using the same cash outlay into FD or investments. Running the 2 investment options against each other, while property wins in the long run, the returns actually flatten out over a long period of time because a cash investment (e.g. even at the safest asset class which is FD) gives an ever growing rate of return while a property's value growth slows after 8 to 9 years! That explains why mortgage portfolios price their rates on an 8-year longevity. Here is the final result of the simulation with the RPGT in place means that while you are better off holding in FD for 5 years, your maximum return is within the 7-9 year window before the property value growth begins to flatten: So you would break even at year 5 and have to hold for a few more years - up to 10 or 11 if you want to cash out more but that's up to you. update: Some anonymous reader ...

It's a Malaysian dream to own a property - our culture is not geared towards renting long-term. Renting is considered something you do either as a student / newly working / a temporary solution if you're prone to being transferred - but in the long run, conventional wisdom is to bite the bullet and buy at least ONE property for your permanent residence. So the conundrum lies in the wherewithal for the deposit and attendant costs. To some, the need is urgent and saving up takes too long - so what are your options? The fastest but most expensive: Credit Card cash advance - that baby will hit you with an 18% p.a. interest rate the moment the cash comes out of the ATM. Do Not Use This Method. Please. Even though it pays my salary. The slightly less fast, also kinda expensive but sort-of bearable: Personal Loan - you can take a bigger amount, take a longer time to pay it off and you have that lump sum to help secure the property you want to buy. Only use this method ...