Possible or Impossible: Can millennials own a property? – Nation

Possible or Impossible: Can millennials own a property? - Nation

Though millennials these days might not have it that easy with their student loan repayment looming or the high cost of city living bearing down on them, the answer to the question is yes, it is possible.

Looking at their average income after graduating, many might not consider owning a property top of their priority list.

Obviously, this will take some time before truly achieving and purchasing your very first own home, but who is to say it is too early to start planning now? If you are a millennial and you want to own a property someday, these are some tips you should follow.

Start your financial planning early

It is never too early for financial planning as it is one of the smartest things to do. This allows you to estimate how much you can spend and save every month in order for you to make your first home purchase or investment in the future. The easiest way would be to track your spending with an application and also always be on the lookout for the best deals when purchasing your necessities to get that extra discount. On a side note, be sure to really commit to the drawn-out plan or else the results would not bear fruit.

Learn about the fluidity of the housing market

Before even thinking about buying a house, you need to know what exactly you’re dealing with. The housing market is known to be quite volatile. By the time you’re ready to make a purchase, the market landscape may have changed, making it either easier or more difficult for you to own a property. With an understanding of how fluid the housing market is, you will be more prepared when actually purchasing one.

Check the mortgage pre-qualifier

Another word that would come up often when purchasing a property is “mortgage” as you will need to check the mortgage amount and also learn how to improve your debt service ratio (DSR).

Learning how to calculate your DSR is extremely important because it gives you the price range of properties that you can actually afford at the moment. Without knowing your DSR, your chances of getting an approved loan becomes much slimmer. One of the obvious ways to improve your DSR is to increase your income but in some cases that is not always possible. Hence, you will need to be creative when budgeting your income to achieve your future goals.

When trying to purchase a property, financial institutions will look at your DSR to determine how much exactly you will be eligible to borrow. Your DSR is actually the proportion of your income that is spent on debt repayments like an auto loan, personal loan or even home loans. Using the remaining available income, they will then see if you are capable of affording the loan you are looking to apply for. Meanwhile, some banks also determine it by using your gross or net income. When calculating your DSR, it is better to calculate it using your net income as an assumption that the banks would use it too.

Hunt for a property within your budget

Lastly, it goes without saying that you should only buy something that you can afford. You might want to consider hunting for properties outside the city if the city area is not within your budget at the moment. Luckily for you, there is another solution to owning a property that is also in the city centre.

Residensi Platinum Teratai units are freehold, to be completed in 2019.

With Residensi Platinum Teratai launching soon in Platinum Lake City, Setapak, Kuala Lumpur, this residential tower consists of two blocks, both 29 floors high. Comprising a total of 800 freehold units for sale, each unit is 86sqm with three bedrooms and two bathrooms with a price tag starting from an affordable RM381,000*. (*T&C apply)

Strategically located in KL, it is only 7.7km from Suria KLCC and a mere 9km away from the Bukit Bintang area, which is a shopping haven for many. Additionally, with direct access to major highways like Duta Ulu-Kelang Expressway (DUKE) and Middle Ring Road 2 (MRR2) alongside other major roads, it is also close to many shopping centres like Setapak Central Mall and Melawati Mall. Besides, there are also hospitals nearby for medical and emergency purposes and light rail transit (LRT) stations to ease your transportation woes.

Whether you are a home owner or an investor who is looking for an immediate move-in property, Residensi Platinum Teratai is definitely a bargain purchase and it is also an opportunity for you to save more (no need to pay the bank loan interest) as it is for immediate occupancy.

■ For more information, visit the show unit at Residensi Platinum Teratai Sales Gallery @ PV21, Jalan Genting Kelang, Setapak, Kuala Lumpur from Monday to Sunday, 10am to 5pm daily or alternatively call 03-4141 8899.



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