Owning property is a dream come true, yet the process to achieve this dream is filled with challenges and tough obstacles. Borrowing from a bank can result in a debt cumulation of near 20-40 years. What if something occurs to the owner of the house? What would happen? Is there a preventive coverage to protect the owner’s loved ones?

Mortgage insurance is an important aspect when dealing with an unprecedented turn of events. It helps to protect your home and your loved ones in the face of unfortunate circumstances. However, this is not to be confused with home insurance. As mortgage insurance protects the benefactor and family, home insurance deals with the protection of the home itself. These two are completely separate terms and meanings. This two-part article will explain the contents of mortgage insurance and home insurance.

In layman terms, mortgage insurance ensures that in the event the individual is unavailable to repay the debts, the insurance company will help the individual to repay the debts. Like conventional insurance, the individual must buy an insurance policy and pay a monthly premium. In the timely event the individual passes away while the policy is in effect, the insurance company pays the mortgage.

Beneficiaries or closest to kin can live in debt-free without much worry. It can also occur in the event of a tragic accident that makes one disabled, or total permanent disability (TPD). In Malaysia, there are two types of common mortgage insurance available, which are the Mortgage Reducing Term Assurance (MRTA) and Mortgage Level Term Assurance (MLTA).

MORTGAGE REDUCING TERM ASSURANCE (MRTA)

Mortgage Reducing Term Assurance (MRTA) is a life insurance plan that serves purely to pay off the outstanding mortgage balance to the financial institution in the event of death or TPD.  It functions also as a form of protection for the bank in cases where the individual is unable to further service the loan. Individuals have to pay a huge lump sum premium for an MRTA plan, which is usually offered by property agents. The sum insured decreases over time according to the loan tenure, meaning that coverage slowly reduces in line with the total loan until the end of your mortgage. The amount paid usually covers the home loan borrowed from the bank.

For example, Sami Valloh purchases a property of RM300,000 and the bank loans a total of RM270,000 over a tenure of 30 years. Sami takes an MRTA policy for 30 years, which is paid a one-off for RM12,000.  Sammi repays RM20,280 annually (monthly RM1,690) as agreed to pay off the loan with 6% of the bank’s interest rate. After 15 years, there is RM100,00 outstanding balance. Sammi suddenly dies/gets paralysed and is unable to pay. The MRTA covers whatever amount is outstanding on the mortgage balance at the point the insured is unable to pay the mortgage or part of it.

Hence, the bank is the beneficiary of the MRTA policies, whereas, family members do not get any amount. MRTA will also get affected by base rate (BR). Since banks can adjust their BR rates, MRTA coverage will be affected if below the loan amount. If the property purchase has full loan amount and coverage, MRTA is not likely to be affected. Another fun fact about MRTA is that it is actually transferable in some cases (with complicated time-consuming paperwork), but if the property bought is worth far more than the current property, it is more advisable to buy a new policy. MRTA is most suitable for individuals with sufficient standalone life and medical insurance, and also not financially dependent on anyone.

MORTGAGE LEVEL TERM ASSURANCE (MLTA)

Although similar concept to MRTA, Mortgage Level Term Assurance (MLTA) functions differently, where not only does it pay off the outstanding mortgage balance, but also entitles the individual’s family get some financial payout in the event of the individual’s death or TPD. Anyone can be the beneficiary for the MLTA, making it transferable.

This works as a life insurance as well, offering both protection and cash benefits. In fact, one can even pay more premium to expand it to cover Critical Illnesses (CI) as their insurance policy. This flexibility with protection allows adjustable value at anytime you desire. The premium can be spread throughout the mortgage term, allowing periodic payment instead of a one-off payment.

Unlike the MRTA, the protection for MLTA does not diminish over time, as it ensures constant sum assured basis. MLTA is most suitable for individuals with families and those that are financially dependent on the individual as the source of income. The downside for an MLTA is that it is highly expensive, costing 10x more than an MRTA for basic coverages.

VERDICTS?

As both MRTA and MLTA have their own respective qualities, there have both their pros and cons. It is up to the individual on whether they are able to afford it, the necessity, and also the benefits that entail it. Many banks offer amazing policies, however, do more research and consult your financial planner for a better recommendation.

credit : http://blog.bumbung.co

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Selling  your property?

Property investment is one of the safest investment vehicles around, and the business of buying, renting and selling properties can be very lucrative. However not every property is a good buy, and a big part of what makes the property a good buy or not comes down to its location.

But first of all is the planning of the property buying budget, before the most important criteria of choosing the location. This guide will teach its readers how to find properties in great locations and then how to apply for a property loan.

An easy way to find homes in the best areas of town within budget is with a detailed Advanced Search function on online property platforms, that enable property hunters to specify exactly what type of home they want. Fulfilling this criteria in property hunting are just some of the available pages available in PropertyGuru.

• Residential Subsale
• Pre/soft Launch Residential Properties
• Commercial
• Residential Rental Properties
• Commercial Rental Properties

Residential – New Development

When it comes to buying developer properties, buyers will usually be able to find new developments catering to all walks of lives in prime or soon to boom locations. Buyers should however have a set of criteria to consider when buying a property either for their own use or investment.

– Location: The location of the properties should always be chosen for its potential in capital appreciation. With this, if the family or investor wishes to sell or upgrade their home in future, they will be able to offset the amount needed to be paid for the new home with their current property.

– Education institutions: The property should be close to preschools, primary schools and secondary schools. This will be for the convenience of school going children.

– Safety: The safety of the area in which the property is bought should be very carefully selected. After all, nobody wishes for their home to be broken into every other month or to be a victim of snatch theft outside their own homes.

– Proximity to workplace and amenities: Living close to your workplace always helps in alleviating the stress of travelling to work daily, and having a shopping mall or park close to home also helps with leisure activities.

– Accessibility: Being able to live close to highways or major roads is a major advantage as the purchaser will be able to get around town easily.

– Size: The size of the home will be a major factor depending on the size of the family. For example, a couple with 2 children may be able to live in an 560 sq ft apartment with only 2 bedrooms – but it will not be a very comfortable experience.

– Facilities: The facilities of a neighbourhood will also play an important role. A major requirement of a home nowadays is its safety, hence gated and guarded neighbourhoods are becoming very popular. If considering purchasing a high rise, a good facility to have would be a nursery or daycare centre for those with small children. This way, there will be no need to find a caretaker for the children when the adults are working.

Residential – Subsale

The requirements of purchasing a subsale home is more or less the same as when purchasing a developer unit. There is however a very big difference when purchasing a subsale property as opposed to a developer unit, as per below:

– Age: The age of the development is a very important factor. After all, the older the development is, the more maintenance and money it will require to upkeep.

Commercial Properties

While the criteria for purchasing a new or subsale residential home may be roughly the same, the criteria for purchasing commercial properties differ slightly.

– Location: In terms of the location, it still needs to be selected carefully for its potential in capital appreciation in case the purchaser wishes to upgrade their property in future. However instead of being close to schools, a commercial property will need to be located close to highways for easy accessibility. This is especially important for logistics companies and companies that require frequent stock deliveries. If the business depends on high traffic, the location should also be surrounded by large catchments of residents.

– Accessibility: Aside from being close to highways, a commercial development should also have convenient access to public transportation for the convenience of its workers.

– Safety: The safety of the area in which the commercial property is bought should also be very carefully considered. This is because commercial properties usually have merchandise that are much more valuable. A piece of small machinery could cost up to RM30,000 at the very least, and being robbed at knife point is also a risk in more dangerous areas.

– Proximity to population catchment: Being located close to the major population or being surrounded by offices is important as these will be a business’s biggest clientele.

– Size: The size of the commercial development will depend highly on the business that is going to be run there. For example, a logistics company with much stock will require a huge store room to store their wares. A simple clothes boutique will however not require that much space.

To ensure that you get the best property, make several appointments and view as many properties as you can until you are satisfied. Below is a checklist for you to check when visiting a new property.

• Is the property freehold or leasehold?
• If it is a strata titled property, how much are the maintenance fees?
• How many parking lots does your unit come with?
• What is this area like? Your agent will likely know much more about the area than you do unless you grew up in the area.
• Are there any upcoming changes in the neighbourhood? This is especially important if there are empty plots of land nearby.

Below are some additional items for subsale property buyers to look out for:

• Are there are defects in the unit? Ensure you check for structural cracks, leaking roof, missing roof tiles and so forth. These repairs can cost up to tens of thousands of Ringgit, which should be offset from the selling price.
• Are there any items that need to be replaced or repaired soon?
• Why is the owner selling?

And for buyers looking at property for rental, they should ask the below questions.

• What kind of rental can the property fetch?
• What can or can’t the property be used for? Some residential properties, especially high rises, have strict rules on renting the property out.

source : http://www.propertyguru.com.my

Memiliki rumah adalah hasrat semua individu. Penat lelah bekerja selama ini ada hasilnya. Balik kerja, tengok rumah bayar bulan-bulan akhirnya jadi milik kita. Bukan selamanya jadi penyewa. Bayar bulan-bulan bukan jadi milik kita pun akhirnya.

Membuat pinjaman perumahan daripada pihak bank ada yang mudah lulus, tidak lupa juga, ada yang sukar lulus. Tak hairan ada juga kes yang tak pernah-pernah lulus.

Jadi kenapakah perkara ni berlaku? Semakin tahun, bank akan lebih ketat. Antara sebab pihak bank tolak pemohonan kita adalah;

1. Kekuatan Kewangan

Bank akan memberi pinjaman perumahan pada mereka yang mampu dari segi kewangan. Pastikan tiap bulan ada lagi simpanan. Jangan tinggal berbelas ringgit je akhir bulan. Ansuran PTPTN pun tak mampu nak bayar, mana mungkin bank akan luluskan pinjaman perumahan. Tabiat menyimpan pun penting.

2. Rekod CCRIS

Mempunyai rekod pembayaran balik pinjaman tak begitu cun. Tak berdisiplin untuk membayar balik pinjaman yang telah dibuat. Rekod ini boleh disemak di Bank Negara Malaysia ataupun secara atas talian di www.creditbureau.com.my.

3. CTOS

Cuba semak rekod CTOS. Biasanya mereka tak sedar mereka kena CTOS disebabkan jadi penjamin. Ada juga yang menjual kereta pada kawan, dan suruh kawan sambung bayar. Kawan tu tak bayar. Nama dia kena disenarai hitam.

4. Profail Individu

Tidak mempunyai dokumentasi yang lengkap. Pegawai bank menguruskan pinjaman perumahan mungkin ada 40-50 permohonan perlu disemak. Jadi kalau dokumen tak lengkap, amat menyusahkan pegawai itu. Senaraikan maklumat peribadi, pendidikan, tempat kerja, pengalaman kerja, nombor telefon pejabat, surat pengesahan kerja dan sebagainya dengan lengkap.

5. Pekerjaan

Dengan ekonomi tidak menentu, amat penting bank menyemak di manakah kita bekerja. Pengalaman kerja dan tempoh bekerja. Jika bekerja di sektor kerajaan atau syarikat besar mungkin tidak ada masalah. Kestabilan tempat kerja kita juga diutamakan.

6. Profail Kewangan

Senaraikan dengan lengkap:

• Pendapatan (gaji, elaun, pendapatan sampingan)
• Komitmen/hutang (pembiayaan peribadi/kereta/kad kredit/ koperasi/dan lain-lain)
• Pelaburan (ASB/emas/perak/ unit amanah/saham dan lain-lain)
• Simpanan (bank/tabung/tabung haji/KWSP/dan lain-lain)
• Cukai/zakat
• Sedia bukti dokumentasi pendapatan/pelaburan/simpanan

Jika perkara ni kita buat sambil lewa sahaja, kemungkinan permohonan kita ditolak.

7. Lokasi

Kebanyakan pinjaman perumahan ditolak kerana rumah tersebut berada di pedalaman atau tempat terpencil. Kurang mendapat permintaan. Bank juga akan menolak pinjaman perumahan daripada pemaju disenarai hitam oleh kementerian dan agensi berkaitan.

8. Skor Kredit

Skor kredit berdasarkan analisis/tahap pembayaran balik kita berdasarkan rekod CCRIS. Ia menunjukkan kita bijak menguruskan wang. Antara dinilai, rekod CCRIS, kad kredit lebih had penggunaan, corak pembayaran balik, bilangan kad kredit dan sebagainya.

Aku bukan arif sangat tentang prosedur bank, tapi sering bertanya pada kenalan yang kerja di institusi kewangan dan membaca pengalaman orang supaya menjadi pengajaran pada aku di masa hadapan.

Jika kita gagal mendapatkan pinjaman perumahan di bank, cuba lagi bank lain. Banyak lagi bank. Tiap bank punyai SOP mereka tersendiri.

Akhir kata, berkawan dahulu dengan kawan kau siang malam bercerita pasal vape, bercerita pasal novel cinta, lepak kedai kopi mahal tu, bila sudah masuk 30 tahun baru cari kawan kerja bank ataupun kawan dalam bidang hartanah ni ya!

Harap pegawai bank pernah uruskan pembiayaan pinjaman perumahan boleh tambah lagi sebab permohonan pinjaman perumahan ditolak. Boleh dijadikan panduan pada anak muda di masa akan datang. Terima kasih.

CREDIT/SOURCE : http://www.majalahniaga.com/