LOANS …. SELF-EMPLOYED …. TALAM … TAMAN PUNCAK JALIL

The post that I am about to write is to serve as guide (especially to self-employed) interested in getting home financing for property in TAMAN PUNCAK JALIL, developed (and abandoned) by TALAM.

Property price for a double storey link house 20’ X 70’ in Taman Puncak Jalil can go as low as RM 170,000 through a bank auction. Such prices can be very attractive to those looking for a landed property on a tight budget (like us!).

Now, what are there to know about Taman Puncak Jalil?

First, it is a leasehold property, 99 years.
Secondly, not all individual titles have been issued despite handover in 2004. Individual titles are currently issued in stages and expected to complete by year 2009. Note with caution.
Thirdly, workmanship (earlier phases) is questionable.

FOUND YOUR DREAM HOME!

So, before paying your earnest deposit to the agent, do ask if :-

Individual titles have been issued for the particular property? If not, insist that your lawyer to act as a stakeholder for the part of the 10% deposit, until, confirmation from MAXISEGAR on master title is made available.
Meaning, pay agent earnest deposit – 2% or 3%. Remaining 8% or 7% to be made payable to your lawyer, and they will then pay to the vendor once confirmation is obtained.
This would avoid hassle of getting back your money in the event that MAXISEGAR is not able to confirm!
PLEASE READ THE BOOKING FORM BEFORE SIGNING OR PAYING.

NOW, FINANCING

Mention the name TALAM to any foreign banks, they would (almost) immediately say “SORRY”.
That does not leave you with much choice eh?

Therefore, when sourcing for a home loan, remember to tell the banks that it is a TALAM project – Taman Puncak Jalil and property's individual title status. If the banks are willing to finance, then forward the relevant docs, if not, then save your copies for other worthwhile banks.

For Taman Puncak Jalil property financing, RHB and Bank Islam Malaysia Berhad are the more willing banks. (If you need recommendation, do send me an email…)
Other banks like Alliance & Ambank are only willing to finance provided individual title has been issued. Speaking of Ambank, I was rather upset with the Ambank guy, who was a show-off, no action. Just needed to get this off my chest! Still pissed.

Self-employed, how do you convinced the bank that you can repay?

First, start a savings or current account with a bank (preferably the bank that you wish to secure a loan)

Secondly, deposit all your sales and takings into the savings or current account on a consistent basis (daily, weekly, all cheques transactions). You can withdraw later, but it is important to show sufficient deposits in the account.

If you can, please do your income tax return! Form B!!!

Banks would normally look into the past six months’ current account transactions, emphasizing on the credit (deposit) side. Average of the credit (deposit) per month are then multiplied by 20% (in my opinion, a very prudent profit margin figure) = that would equal your monthly income.

Example, you have deposited a total of RM 10,000 sales every month for six months, therefore average deposit (credit) is RM 60,000/6 mths = RM 10,000/mth
Estimated monthly income = RM 10,000 x 20% = RM 2,000
That's how banks evaluate self-employed's income.

So, you can be smarter and work around their method of evaluation and if you can, produce some sort of financial statements (Profit & Loss, Balance Sheet) as supporting. YES, Income Tax Return - FORM B can be very useful too!

Lastly, rule of the thumb, your monthly instalments should not exceed 1/3 of your gross income after deducting your other fixed loan like housing loan, car loan, personal loan, study loan and etc. Yes, you can hide, but banks are all linked, they are still able to check via their system. Oh ya, be nice to the bank officer!