Things to know before refinancing your property
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- Опубліковано 29 вер 2024
- Refinancing is one of the best facilities that financial institution provides, where it allows investors to leverage and raise capital for further investments.
Important things to note would be this facility can only work for you if your income is sufficient and both your CCRIS & CTOS are clear. Please be informed also that refinancing will require certain fees such as administration fees, professional fees, stamping fees, lawyer fees, as well as insurance of either MRTA or MLTA.
Once you understand this technique, it's only a matter of time before you can embark further into the real estate investment journey!!
Thanks for video my request XD
Thanks for asking as well. Hope I've addressed your queries=)
My ccris and ctos are all clean, no loan, no credit cards, no nothing. Lol
Well since you're capable in making investment into your full time job, why don't you consult a tax consultant to resolve your issue?
@@iherng its not that, reason mainly bcos i work oversea. Too clean is an issue, banks afraid to give loan. Anyway, i may have good news tho 🤣
Hi, why did you change the tenure of your home loan from 15 years to longer period? Isn't it better to settle the loan sooner and not waste money going towards the interest? Please advise. Thank you.
I want to ease up my cashflow so I can buy more. My goal is not to settle the loans, but to borrow more=)
Thanks for watching Shamala!!
Thanks a lot for your reply. Its been easy to understand and educational. Hope to see a video on how to reduce home loan tenure as it currently maxed until I am 70 but would like to settle my housing loan before I retire let's say by 55.
Trust Sean to have a video on this ! Just searched “iherng refinance” because I wanted to check whether that’s feasible in Malaysia , when in SG it’s very common. Thank you Sean!!!
Appreciate for having that trust hahahaha. Thanks for watching Yun Ting!!
Who say this is boring? good info!
Thanks for watching bro!!
Is the cash out taxable?
Nope. It's not income.
Did you mean pulling out 170k? 450 minus 280 is 170
Oops.. Sorry... Mental maths not accurate hahhaa. Thanks for pointing it out=)
@@iherng no worries.. I was surprised no one highlighted lol
Hey iHerng, what do you think about fixed interest home loans compared to floating rate interest loans? I always think fixed interest loans give me peace of mind on paying back the same amount of instalment every month. However, I would like to hear your take on this. Thanks for reading!
Fixed interest tend to be higher as the principle I have is 'banks never lose... ever!'
Plus even if your loan is 'flexi', the adjustment is always marginal. Plus your installment will reduce across the years anyway, so it's gonna change irregardless.
Therefore, it doesn't really matter but I took flexi and semi flexi... *for the convenience of taking cash out.
i think one flaw about refinance that consumer not aware if the first 10 yr where yr loan is paid 90% of it (in general) goes to pay off the interest, meaning your capital loan actually reduce very little and that give most profit to the bank, so when u extend another longer loan installment, the pain goes again, that next 10 yrs it will reduce very slow the capital loan causing endless debt to settle. unless u can assured with rising and consistent rental (in term of investment idea)
so for some fully paid house, another strategy is downsize the house say a terrace worth 700k to a smaller 400k condo, so this 300k which give 6%pa (as in epf) interest which is 1500 to give u free monthly cash to use and to pay the maintenance of condo presuming none for yr terrace house earlier.
and heading to the even older age, u can cash out further from property but renting a small room in condo or stay with yr relative/fren with small rental and sell off the condo, say worth 600k, which give another 3k monthly interest, to pay yr room rental and when u died, u have no property left, and only some cash to inherit to next of kin...
Hi Sean, thank you for all the videos you have posted, as they are very entertaining and informative. However, there are a few questions that I would like to ask, if you do not mind?
I understand roughly the idea of cash-out refinancing, as a downpayment for next property etc etc. After calling the banker, I was told the amount I took out have to be paid back, as a 10-year loan. Is it the same through out the banks in Malaysia? In addition, they claimed that they do not need to go through the usual process of getting people to evaluate your property, and no stamping needed?Thanks!
I think the confusion is on the different financial products available in the market. Different vendors (banks) provide different products (refinancing package).. but most of us are ignorant about the cost of refinancing which includes stamping fees, valuation fees, insurance fees...
But great question PewPew:)
Ur finger dude, baru lepas undi ka? 😂
I think so. Not too sure about the date of posting this already hahaha.
Thanks for watching Pui Yin=)
Dope content
Thanks.
You're most welcomed! Thanks for watching:)
👍🏻
Sean, is it advisable to refinance if the property value dropped?
Hi Roshan, it depends what the purpose of refinancing. As refinancing only covers 75-80% of the value, it means you can only get RM 800k if the value is RM 1 mil.
Anyway, thanks for watching!
iherng sorry Sean I dont quite understand. I plan to refinance to reduce the monthly installment if thats possible. But the property value has dropped last I checked. Purchased at 400k but its now 300k+