Are We Ready For A Housing Loan?

Done some calculation to find out whether we are financially fit (wise?) to take up a housing loan.

The BLR is 6.6. Shopping around, the bank can offer BLR -2.2% to -2.4% if the house is more than 70% completed. Otherwise, first year is -2.5%, second and third year is -3.45%, following year is -2.4%.

Assuming taking up a loan of RM500K for 15 years, the monthly installment is RM3800. It should be less than 50% of your income. After faithfully pay for 15 years, the interest that you have served comes to 38% of  principal. Which means you would have paid RM700K for the house. If the tenure is 20years, the interest comes to 55%, and 30 years would be 85%.

Back to 15 tenure years, from RM500K to RM700K, if the price of the house inflates at more than 2.4% p.a., and assuming you did not do any renovation or maintenance to the house, you are gaining if someone pays you for more than RM700K.

However, like what I have mentioned earlier, for our situation now, there are short term goals to be fulfilled before we come to this kind of investment which is quite risky for us. Since both of us are already more than 50 y.o., and two children are yet to complete their higher education, we should hold on while looking for other investment tools.