This moth i am so lucky that my good property blogger and investor friend, haruki wants to share her experience in buying her first property to us.
Actually for me, she is 'taiko 2nd hand furniture' because she is very good in looking for and 'borong'ing 2nd hand furniture and appliances to be setup in her investment house for rent.
enjoy her story ya and do visit her blog for more of her experince.
Profile:
Nickname: Haruki
Gender: Female
Marital Status : Married
Age on the first purchase: mid 20s
Year on first purchase : 1999
Website: http://propertydance.blogspot.com/
what is your first property?Where is it located?
SD Tiara apartment located at Bandar Sri Damansara
Is it for own stay or for investment?
It was for our own stay, as J and I were getting married in 2 years' time.
When we bought it was a newly launched project.
Have u studied on property investment before the purchase? How?
No, never. It was just because at that time Bandar Sri Damansara (BSD) was a booming new development. Every time Land & General (the developer) launched anything, it created long queues and properties were quickly snapped up. Even for this apartment, I had to queue for it with my mother. There wasn't even a showroom. Luckily they provided chairs and a canopy outside their sales office.
what makes you decide to buy it? can u tell me the stories behind?
In 1998 my dad passed away. He left RM10,000 to me from his EPF. After his death, my whole family went topsy turvy, we have no property of our own and we were renting a house. My mom's brother (my uncle), bought a house in BSD earlier and thought that BSD was a very nice place to stay. My mom was always a believer that owning your house is better than renting. So when they launched this apartment in 1999, my mom encouraged me to buy with the start up capital from my dad's EPF.
Did you encounter any problems or difficulties for the purchase? What and how it resolved?
At that time I was just a trainee salesperson with a very low salary. I had problems getting a loan. Can you imagine I just went ahead, paid the booking fee and downpayment without even worrying that I may not be able to obtain a loan? At the end, J, my husband (then boyfriend) had to act as guarantor, his salary being slightly higher than mine.
Is it your dream house? Why?
No, it was just what we could afford at that time.
My dream house, I still can't decide between: a bungalow / semi-d with a garden, with a patio that I can put an outdoor wooden table and chairs, a micro-hifi for music, under a cool ceiling fan.
Or a high-rise condo with a breathtaking view, cool wind and quiet surroundings.
After the purchase, what's next?
By the time the apartment was completed it was 3 years down the road in 2002. We had already got married and even had my baby boy, and we "tumpang" at my mom's house. (By that time my mom also bought her property so that the whole family did not have to rent anymore.) Now, our priorities changed when we have a kid. Childcare support and being close to family were very important. So we decided to buy another apartment that is close to my mom, and we rented out the SD Tiara apartment. And we never thought about property investments again until years later, when my brother bought "Property Jewels" by Renesial Leong.
What is your advice to all property virgins and home buyers out there?
We got a couple to rent our apartment for a slightly lower rent than all the other units asking price at that time. Because we wanted to rent out quickly. But that was negative cashflow for us, every month "rugi" about RM200 (including the service charge). But we thought that was ok, the tenant was subsidizing the bank loan for us. Well, if that has only been for the first year, it would have been ok. But we just let the tenant go on renting for the next 7 years, without increasing the rent. And we never renewed the tenancy agreement after the first year. I think I was lucky in a way because the couple were very good paymasters, and that was why we never "kacau" them.
But I would like to advice all readers out there, always renew the tenancy agreement, and try to increase the rent reasonably with the renewals. Don't be like us, never agree to a negative cashflow.
Anything else to add-up?
If you want to start property investments, start by picking up a good local property investment book. It would have helped me avoid my mistakes.
Profile:
Nickname: Haruki
Gender: Female
Marital Status : Married
Age on the first purchase: mid 20s
Year on first purchase : 1999
Website: http://propertydance.blogspot.com/
what is your first property?Where is it located?
SD Tiara apartment located at Bandar Sri Damansara
Is it for own stay or for investment?
It was for our own stay, as J and I were getting married in 2 years' time.
When we bought it was a newly launched project.
Have u studied on property investment before the purchase? How?
No, never. It was just because at that time Bandar Sri Damansara (BSD) was a booming new development. Every time Land & General (the developer) launched anything, it created long queues and properties were quickly snapped up. Even for this apartment, I had to queue for it with my mother. There wasn't even a showroom. Luckily they provided chairs and a canopy outside their sales office.
what makes you decide to buy it? can u tell me the stories behind?
In 1998 my dad passed away. He left RM10,000 to me from his EPF. After his death, my whole family went topsy turvy, we have no property of our own and we were renting a house. My mom's brother (my uncle), bought a house in BSD earlier and thought that BSD was a very nice place to stay. My mom was always a believer that owning your house is better than renting. So when they launched this apartment in 1999, my mom encouraged me to buy with the start up capital from my dad's EPF.
Did you encounter any problems or difficulties for the purchase? What and how it resolved?
At that time I was just a trainee salesperson with a very low salary. I had problems getting a loan. Can you imagine I just went ahead, paid the booking fee and downpayment without even worrying that I may not be able to obtain a loan? At the end, J, my husband (then boyfriend) had to act as guarantor, his salary being slightly higher than mine.
Is it your dream house? Why?
No, it was just what we could afford at that time.
My dream house, I still can't decide between: a bungalow / semi-d with a garden, with a patio that I can put an outdoor wooden table and chairs, a micro-hifi for music, under a cool ceiling fan.
Or a high-rise condo with a breathtaking view, cool wind and quiet surroundings.
After the purchase, what's next?
By the time the apartment was completed it was 3 years down the road in 2002. We had already got married and even had my baby boy, and we "tumpang" at my mom's house. (By that time my mom also bought her property so that the whole family did not have to rent anymore.) Now, our priorities changed when we have a kid. Childcare support and being close to family were very important. So we decided to buy another apartment that is close to my mom, and we rented out the SD Tiara apartment. And we never thought about property investments again until years later, when my brother bought "Property Jewels" by Renesial Leong.
What is your advice to all property virgins and home buyers out there?
We got a couple to rent our apartment for a slightly lower rent than all the other units asking price at that time. Because we wanted to rent out quickly. But that was negative cashflow for us, every month "rugi" about RM200 (including the service charge). But we thought that was ok, the tenant was subsidizing the bank loan for us. Well, if that has only been for the first year, it would have been ok. But we just let the tenant go on renting for the next 7 years, without increasing the rent. And we never renewed the tenancy agreement after the first year. I think I was lucky in a way because the couple were very good paymasters, and that was why we never "kacau" them.
But I would like to advice all readers out there, always renew the tenancy agreement, and try to increase the rent reasonably with the renewals. Don't be like us, never agree to a negative cashflow.
Anything else to add-up?
If you want to start property investments, start by picking up a good local property investment book. It would have helped me avoid my mistakes.
5 ulasan:
Happy Chinese New Year, Haruki.
May your life blessed with happiness, prosperous and blessings.
Thanks for sharing Haruki.. Gong Xi Fa Chai :)
very interesting story... good luck 4 ur future investment...
Dear Eun-yong, thanks for the chance to share this feature story.
Ojah & Wakif, thanks for the encouragement.
Happy holidays to you too.
woho. property best. tq for sharing you property virginity story.
beli umah lagi nnti
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