Moving forward, due to the pandemic that will definitely decrease the jobs available in the market, we will see the increase of freelancers like Influencers, YouTubers, Online Businesses, Entrepreneurs or any work that is self created in Malaysia. The demographic of this group of people will largely consist of millennials that would not bow down in defeat towards the coming recession.
Register a Business
Firstly you will need to register a business either sole proprietorship, business wholly owned by a single individual using personal name as per identity card or trade name or partnership (Sdn Bhd) Business owned by two or more individuals but not exceeding 20 persons. Identity card name can’t be used as business name. The reason being, it is necessary to register the business for more than 2 years in order to secure a housing loan. If buying with cash; please ensure that your income tax Is declared accordingly as the tax officers may pay you a visit anytime! The cost to register a trade name is RM 60, personal name is RM 30 and an additional service fee for the registration in the SSM branch is RM 5. Click HERE to go to Suruhanjaya Syarikat Malaysia (SSM) for further information. When you are setting up a Sdn Bhd (unless you’re SoImJenn level, please don’t), the rough cost yearly is between RM 2000 to RM 3000. If you wish to know more, click HERE for a quote from Indah Secretarial KL Sdn Bhd.
Keep all Financial Records for Income Tax
As a beginner in planning your first house purchase as a self employed, declaration of your income tax is a must whether you are planning to buy it with a mortgage or cash. For normal earners (yearly income below RM 120,000) we don’t have to go for partnership; registering a sole proprietorship will do. Please click HERE to read RinggitPlus on what you can save for your personal income tax. In most cases, receipts you keep will fade off, so it is to your best interest to photostat/scan every single one of them and keep it in a file and always send a digital copy to yourself through email . If you are earning more than RM 120,000 , you are not eligible to buy a Residensi Wilayah (unless you are married with less than RM 180,000 yearly household income). For your information, when submitting the required 3 months bank payslips, if your statement shows that the credit in any of the months submitted is more than RM 10,000 (not the average of 3 months), your success rate in getting the approval for a RUMAWIP project is little to none.
Researching on the Project
It is often too late if you discover your desired project when it is already out in the market. Developers need to have the APDL, both a sales permit and housing development license, as prescribed in the Housing Development (Control and Licensing) Act 1966 (Act 118) before advertising the project. Is good to do a Google research in order to get to know all real estate agents who specialize in these types of housing segments or maybe just click HERE to be inform via WhatsApp over any future launch of your desire location, in order to stay ahead.
Researching on the Project
The demand for RUMAWIP is always high; at times the booking fee can be a little demanding like RM 15,000 but not all the time. You probably need to prepare for that or more in case you need to pay for the lawyer fees and etc. Secondly CCRIS, it is best keep good (payment made on time for existing loan), with an existing borrowing such as a credit card (PTPTN best not included in this) is definitely a plus. The Central Credit Reference Information System (CCRIS) is a system created by Bank Negara Malaysia’s (BNM) Credit Bureau to provide standardised credit reports on a potential borrower
This is important especially in cases where the Developer may require a CCRIS check before accepting the booking, or to secure a housing loan. Self Employed have little to no chance of applying for My First Home Scheme. Yes you need to prepare the 10% downpayment!
My First Home Scheme
There are several criteria that applicants must meet to be eligible for the My First Home Scheme:
- Must be a first-time buyer
- Must be a Malaysian citizen
- Available for salaried worker or self-employed individuals
- Allows single or joint applicants
- Joint applicants must be immediate family members
- Gross monthly income:
- Up to RM5,000 – Single/joint applicant(s)
- More than RM5,000 and not more than RM10,000 – Joint applicants (subject to maximum gross monthly income of RM5,000 per applicant)
- No record of impaired financing (i.e. failure to repay loans) within the past 12 months
(This is is also subject to Bank approval, if your salary is above RM 5,000 please advise to inform your real estate agent for his advise (only experience agents qualify to advise) in order to secure 110% loan amount)
By failing to prepare, you are preparing to fail.