First home? Buy Leasehold.

Why do I say so? I give you three reasons.  Affordability. Availability.  Actually.  Huh? Actually?? Haha….  Affordability is because when you compare around,  leasehold properties are almost always cheaper.  Sometimes up to 15% cheaper.  If you are buying your first property, buy something lower than what you can afford.  It helps in your mortgage payments so that you still have savings when you want to upgrade in the near future. Remember, just because you can afford a RM500,000 mortgage, why not get a RM350,000 one while the savings you save to get ready for another smaller property to rent out?
Availability.  In a lot of places, leasehold is the status. In fact one major reason why it is leasehold is because the state owns the land and does not want to sell it thus they lease it and you buy it. One example Kelana Jaya.  I love this area because it is between Damansara and Puchong and every amenity you can think of is nearby.  There are also a lot of Leasehold properties in Damansara. Think of it this way, there are reasons why the land is still leasehold. And for any state government to take back one whole block of 500 units of condo with potentially 2,000 votes in the election? Are you sure?
Lastly,  Actually. Actually this is your first home.  Long ago people stay in their homes forever.  Today nearly no one does that.  Changing jobs,  family upgrade,  getting married and many more reasons. Soon, in the future, if you have just one home until the day you die, something ay not be right with you. Perhaps you just did not know what’s happening to the world.  Thus buy and enjoy the stay.  Too much considerations will kill you.
written on 14th dec 2013.
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