1. Buying Your First Home
As the housing price dilates at a pace more rapid than the average Malaysian income, purchasing your first home can be extra nerve wracking as compared to few decades ago. After searching through our home loan comparison tool, you finally found a home loan that suits you. However, the entry cost remains to be hefty!
The solution can be simple, you should start looking at lower end properties to begin with. There are still residential properties that can be purchased below RM250, 000. It may not be all glitz and glamour on your first home, but the compounding effects of property ownership can be rewarding.
You should also consider purchasing your first home under the PR1MA scheme. The houses under these schemes are sold below market value so it will bring you substantial savings. However, do note that most of the houses under PR1MA scheme are still in planning stages and there is a 10 years holding period on these houses.
Owning a PR1MA unit will also be a test of luck because allocations will be based on balloting. Learn more about the scheme, and more, in our guide to Malaysia's various affordable housing programmes Part One as well as Part Two.
2. Buying Your First Car
Malaysia is ranked 2nd for most expensive car prices. This goes without saying that coupling a car with your low purchasing power really puts a strain on buying a new set of wheels.
While you may have heard advices to opt for public transportation, that option may not be realistic for you. So a smart move to incur lower cost is purchasing used cars instead of new cars. Let the first car owner absorb the depreciation (much higher in early years) for you. Another plus point of purchasing a used car is the reducing the gap of your purchase price and resale price should you sell the car later on. Just make sure to compare and get a car with the best possible condition.
3. Credit Card Misuse
Owning a credit card can be a huge convenience but also a huge problem at the same time. Little to no spending discipline can result in excess credit card bill debt and bad credit ratings. It would be tricky to apply for home loan in the future.
Instead, stop being a victim and capitalise on promotions and perks offered by banks to your advantage. The amount of value you stand to earn is substantial. Using your credit cards at the right time can be beneficial but only if you abide by the repayment time frame. You can take advantage of the grace periods given by credit cards. For more ways to save money using credit cards you may refer here.
4. PTPTN Repayments
You may be indebted to study loans right after graduation. If you are a local student on the PTPTN loan, here are some things to consider:
- Make regular repayments. Paying below the amount stated in the repayment letter, is still preferable to not paying anything at all as it can help keep your CCRIS records clean. Budget 2015 also offers 20% rebates for lump sum payments. That is massive savings. Do capitalize on this if possible.
- If you are not going settle your loan in full, higher FD returns can yield more than enough to cover for the interest paid for PTPTN, so you might want to repay slowly in smaller amounts just enough to prevent you from getting blacklisted.
- Learn more about The Real Consequences Of Not Paying Back Your PTPTN Loan.
5. Debt Repayment Management
When you have several debt commitments to handle, figuring the most efficient way of settlement can be a hassle. Here are some resources for your consideration.
- Should you clear off your debt when interest rate is higher than inflation rate or vice versa?
- Should you consolidate all your liabilities or loans?
Additionally, it would be wiser to settle your debts as quickly as possible if the interest rate on the loan is higher than the Fixed Deposit yield rates if not, then probably best to lengthen your repayment.
While these are common problems among young working adults, other factors could play a role in this too. Seeking consultation from financial advisors can be a wise choice if you continually find yourself in this struggle. Ultimately, having good personal budgetary discipline and effective debt settlement allocations can go a long way. So do cultivate good habits and practices and things might not be too bad after all.