Will the increased BLR rate affect badly on the ROI (profit) of your real estate investing? I don’t think so. At least, I will say the situation is still manageable (especially for those who have mortgage package at BLR – x.xx% ). Therefore, please think twice before you decide to stop investing now due to the increment. Let’s do some calculation for comparison:
Mortgage Package A (Before BLR increased, BLR = 5.55%)
- BLR – 2.4% (as offered before by Sime Darby, SP Setia, and other property developers in Malaysia)
- Housing Loan Amount = RM300,000
- Housing Loan Interest Rate = 3.15%
- Housing Loan Tenure = 30 years
- Monthly Installment = RM1,288.23
Mortgage Package B (After BLR increased, BLR = 5.80%)
- BLR – 2.4%
- Housing Loan Amount = RM300,000
- Housing Loan Interest Rate = 3.40%
- Housing Loan Tenure = 30 years
- Monthly Installment = RM1,329.40
Difference = RM41.17/month or RM494.04/year. The extra money you have to pay for your housing loan doesn’t hurt you that bad, aren’t?
{ 5 comments… read them below or add one }
I’m not going to stop. I’m just about to start. My first property investment is a link house at Denai Alam. Buying price about RM350k with BLR-2.3%. Guess what, as of now the price of the newly launch link house is at RM520k. Very good gain.
congratulation!
you’ve got the point, slight BLR increase pinch loan payer a little for those who took 30 years. If it was shorter tenure.. . ouchhh… the money can be used for children fees, car maintenance, etc…
try using my formula to calculate your above monthly installment repayment. answer do not match yours!
your formula?