Thanks to your challenging experience, I never understood the differences between CTOS and CCRIS

That was the text message I received this morning when I was talking to one of my friends which who has been praying for me and alongside with me ever since I started this house hunting journey in preparation to receive my parents over to stay with me in the capital.

And this is something I have realized, many young Malaysians who have been so used to hire purchase might not even realise how crucial it is to always maintain a small footing and always work towards financial freedom especially when you come to a certain season of life; such as realizing your parents are not super humans, they will eventually grow old and need our help in return.

To be honest since at young age, I was equally a fool like the young people in this era; I never thought of saving and investing a place of my own as I realized that it feels like a bondage (imagine you are bound for 35 years in housing loan) and I always wanted to see the world.

Which in one part of my life, I did.

 
I often used the scripture extracted by Jesus saying,

"Do not store up for yourselves treasures on earth, where moths and vermin destroy, and where thieves break in and steal….
 
...as my mantra that I should not heed in investing anything substantial on earth and just give whatever I can afford to give and spend off whatever I have to spend; but that is not the Gospel.

It is to teach us not to be so material / human consuming to the point we destroy our true self, killed by greed, jealousy, covetousness etc.

(That’s totally another post, let’s not sway it off)

Although Jesus taught us not to be shallow (material) minded, but in the book of Proverbs (by the wise king Solomon) did state that one should think ahead; while a (short sighted) fool doesn’t, and even brags about it (with consumer goods)!
derived from Proverbs 13:16

Like it or not, while we invest what we have in the mind of heaven, we ought not to make a fool of ourselves by over spending without wisdom.

It is all about what the intention you do with your spending.

 
After battling for months when the LORD specifically say, “buy” , I finally come to conclude that while it is not the wisest move to take on a heavy housing loan, but it is at the same time teaching me to make every move with intent.
I didn’t want to get a place simply to just enjoy my life. This place I have is for my parents ease and being able to be closer to me and it too can also be a place where God dwells.

So there I go, writing up a cheque after SO MANY YEARS that I almost forgotten how to write one, stepping out by faith that this is going to be more than just a roof above my head.

I am truly grateful that with the help of many people, including friends here in Steemit, I was able to pay off 25% of my CTOS bad debt, and also putting down such a huge sum and taking on such a huge challenge.
But that, should be in another #gratefulvibes story to tell.

And since I am in the topic of buying a house, let me just share with all who has no experience in purchasing a sub-sale house (which means you are not buying when it is first launched) what you need to expect and what you need to be sure in your financial capabilities.

1. It is never just 10% (or 20% for commercial land)

Often times when you hear about getting a home in Malaysia, many people always think about the 10% down payment. It is actually more than 10% that you have to set aside, because there are hidden fees like legal fees and stamp duty

Stamp duty can range between 1 – 2% of your actual house purchase price.

Lawyer fees can go up to MYR 6,000 depending on your house price as well.

2. You don’t just pay bank the amount that you borrow.

Unlike credit cards, if you settle your payment before your bill arrives, you practically have 0% interest on what you have spent.

However, any hire purchase, like house and cars, you will pretty much need to pay back AT LEAST 4% extra interest rate every month, not 4-5% of the total amount.

(Which means buy the time you settle your loan, you are paying double to triple of its original price)

3. Purchasing a house now requires at least MLTA (Mortgage Level Term Assurance) to cover your housing loan in case of any mishaps

No one will know the future, unless you are buying off by cash you will have to include this assurance so that you will not burden your family members (or even the bank) when anything happens to you.

That is above your monthly installment repayment from your housing loan.

Important: The older you apply for a housing loan, the more expensive your monthly insurance coverage will be.

4. Never depend on your Employment Provision Fund (KWSP) as down payment of your house.

Although it is true that you can use part of your Employment Provision Fund savings for things like purchasing a house, paying medical bills (of your parents or yourself) or continuing your studies; know that you must settle your bill first before you can apply for a withdrawal.

5. Certain Insurance package could allow you to get a soft loan for emergency use.

Although this is a really neat trick, however you must remember it takes at least 7 working days to process, depending on which Insurance agency you purchase from and what policy you are holding.

6. You must pay your lawyer first before you can sign your Sales and Purchase Agreement Contract.

For Sub-sales, the lawyers are the ones who will be drafting out the Sales and Purchase Agreement for the current owner to the new buyer; so you have no choice but to pay your lawyer first before everything else can move forward.

So to be able to buy the house you must get ready

[10% deposit] + [2% Stamp duty] + [approximately 6K lawyer fees] + [insurance] of your current house price.
So when you want to buy a house, always remember to think ahead, save aside. Even if you are not going to purchase it one day, it will be very useful for other emergency use.

Something that I feel irresponsible of the marketing sector these days is that they overly encourage young people through advertisements to spend all your pay for something luxurious. I recently saw a local advertisement exactly enticing that about “pay day”

I know I have been quite long winded and overly informative ever since I embarked this journey to acquire a place of my own, but these little new discoveries, though can be quite a heart attack for me here and there, could help someone to maybe think twice before spending off their hard earned wages for something they want , not they need.

Last but not least, STEEM ON!

Because of Steemit and its timing volatile market, I could still use some of what I have earned to cover some extra cost that I have.

Of course, we cannot rely 100% of it as bread and butter, but an extension of wisdom in financial planning.