Answer: For individuals aged 35 and below with a net salary of RM 2600 (after deducting EPF & SOCSO) and no debt or credit card usage, purchasing a RUMAWIP (now known as Residensi Wilayah Keluarga Malaysia) unit is possible if their debt service ratio (DSR) is below 60% (For RHB ONLY 65%). This falls within the DSR requirement of the My First Home Scheme, which offers 110% financing for first-time homebuyers. However, approval is still subject to the bank’s assessment.
This article aims to assist first-time homebuyers in making an informed decision regarding the purchase of a Residensi Wilayah Keluarga Malaysia (RWKM) unit, formerly known as RUMAWIP. Rather than focusing on the minimum salary required to buy a RUMAWIP, it emphasizes the importance of maintaining an acceptable debt service ratio (DSR) to qualify for a RUMAWIP purchase.
Debt Service Ratio (DSR) & My First Home Scheme:
Many RUMAWIP buyers opt for the My First Home Scheme, which provides 110% financing from banks for first-time homebuyers. For example, if Mr. Saiful, aged 35, earns a net income of RM 2,600 and intends to buy a RM 300,000 RWKM unit, his DSR based on a 35-year loan with a 4.55% interest rate would be around 55% (approximately RM 1,429.07 monthly, excluding MRTA/MLTA financing). Given that the maximum DSR limit is typically 60%, Mr. Saiful has a high chance of loan approval. However, after taking possession of the unit, he would have to pay RM 1,429 or more per month, leaving him with RM 1,171 for other expenses (unless his income increases). On average, maintenance fees for a small RUMAWIP unit measuring 800 sqft amount to RM 200. Consequently, Mr. Saiful would have approximately RM 971 left for electricity, water bills, transportation costs, and food expenses. In this scenario, proceeding with the purchase of a RUMAWIP unit may pose financial challenges. Therefore, the question to ask is “Should I buy a RUMAWIP?” rather than “What is the DSR required to buy a RUMAWIP?”.
Mortgage Payment & Renting Out Rooms:
Renting out a RUMAWIP unit is legally permitted, even within the first ten years after the Sales and Purchase Agreement is stamped. If Mr. Saiful is single, he can consider renting out the two rooms to help cover some of his mortgage payments. Similarly, if a female buyer, such as Ms. Lim, earns the same salary as Mr. Saiful, she can also rent out the two rooms to offset some of the mortgage costs. However, finding suitable tenants may be more challenging for female RUMAWIP owners due to factors such as parking availability, gender preferences, race, and location considerations.
RUMAWIP as an Investment: Gender & Rental Market:
Investing in a RUMAWIP unit for rental purposes requires careful consideration. Market dynamics, location, and individual preferences play significant roles in determining rental income potential. Factors such as the number of parking spaces, target tenants (e.g., families with single-car ownership, dating couples, single male or female tenants), proximity to public transportation, and market demand influence the viability of renting out a RUMAWIP unit.
It is crucial to evaluate various factors before deciding to buy a RUMAWIP unit. Factors such as income stability, personal needs, location preferences, and job opportunities should be taken into account. Renting before buying may be a viable option for some individuals. While owning a property may seem advantageous compared to paying rent, it is essential to consider the specific circumstances and conduct a thorough evaluation. It is worth noting that some previously completed RUMAWIP units are available for auction on platforms like iProperty, indicating potential challenges in affordability and loan repayment for certain individuals.
Owning a RUMAWIP unit is generally considered affordable for many Malaysians, especially with the availability of various job opportunities. Individuals engaged in jobs such as food deliveries and Grab driving can often manage their RUMAWIP mortgage payments. However, it is crucial to avoid excessive debt and prioritize financial stability, as sudden income loss can impact the ability to secure housing loans. With RUMAWIP units typically priced at around RM 300,000 and offering comprehensive condo facilities, they present a value deal for those seeking a residence. It is advisable to be cautious when considering cheaper RUMAWIP units priced at RM 230,000, as they may have potential building defects.
In conclusion, buying a RUMAWIP unit should be a well-researched decision that takes into account various factors. Potential buyers must conduct thorough research, considering their income, job stability, personal needs, location preferences, interior design requirements, backup plans, and the availability of parking spaces. It is recommended to consult with experienced agents from rumawip.com.my and stay updated on the latest RUMAWIP projects through channels like the RUMAWIP UPDATE telegram channel. Ultimately, the decision to purchase a RUMAWIP unit should not solely revolve around the minimum salary requirement, but rather the individual’s specific circumstances and overall suitability for Residensi Wilayah ownership.