Is this a good time to invest in real estate? Or is it better to wait for the economy to recover?
The auction market refers to completed properties being auctioned off by licensed auctioneers. They are typically offered at reserve prices below market value. Here are two ways to calculate the maximum price of a property an individual can afford based on their current financial position.This is a ballpark figure of the amount of initial capital outlay needed to buy a property and make it lettable to potential tenants.
Start by listing out all debt repayments – say, RM1,200 for a car loan and RM300 in student loans – amounting to RM1,500. Calculate the current DSR by comparing RM1,500 with monthly income, say RM7,500, which is 20%.To keep the DSR at 40%, the maximum loan eligibility for a property= x monthly income x the Rule of 200= x RM7,500 x 200=20% x RM7,500 x 200=RM300,000.
To be extra conservative about it, one can choose the lower of the two price points. Or, one can go with properties priced between RM300,000 and RM400,000.3. Stick with the familiar