Thursday, February 11, 2010

My Houses My Loans

Buying a house is an investment or a burden? This is a question I always asked myself. I do hope that this is an investment of course.

I brought an apartment and it is rented out now. But the market price of the house is lower than the purchased price. This probably because my wrong judgment of location selection when I brought this apartment. Besides, there are many developments among that area. This is not a burden to me of course but I will only consider this as an investment until I can sell it at fair price. The disappointed part is, it seems like this will not be happened within the next ten years or even longer period. *sigh*

My second house is a landed property which I am staying it now. This is really a big burden to me. :P Why I say so? This is because the house is still under financing.

The loan package I first signed for this house was follow the market BLR rate. I feel uncomfortable with it because I am under employment. I only having fixed income and I don't have much savings to dump in the housing loan account to reduce my loan interest. Besides, I just afraid the BLR rate will increase anytime. Due to these reasons, I took the Mortgage Refinancing scheme which offered fixed rate. But unfortunately few years later after I signed the scheme, my fixed rate is higher then the current BLR rate.

Shall I regret for my decision made? I am not actually. I am lucky as I have some savings and I manage to withdrawn my monies from my EPF account to cover part of the loan. I will do it again few years later so that I can shorten the loan period. The most importance is I will be no worry and I am safe if the government increase the BLR rate. This will happened anytime. Don't you think so?


Cosmetic Surgery said...

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Mia said...

As i see it, a house is a necessity, and as soon as it yours the better.