Useful tips on property and more

Nuggets of wisdom: Goh speaking on ‘Mortgage Insurance, Should I Buy?’ at the Star Property Fair 2015 in Queensbay Mall, Penang.

THERE must not be missing corners in a residential property, says Master Mak Foo Wengg.

In his talk on ‘New Century Properties With I-Ching’, Mak said the four corners of a house represented a specific family member.

“Any missing corner will bring bad luck to the household.

“For example, if a corner is missing in the Northwest, there will be a missing father in the family.

“If there is a missing Southwest corner, the mother will pass away early,” he said at the Star Property Fair 2015 held in Queensbay Mall, Penang .

He said if there was a missing Eastern corner, the couple would not be able to conceive any boy.

“This is because the Eastern corner represents the eldest son, while the Southeastern corner represents the eldest daughter.

“A missing Southeastern corner will mean no daughter for the couple,” he said.

VIVO Capital chief executive officer and IQI Holdings financial education vice-president Alexander Woo in his talk ‘The Mindset of a Savvy Investor’ gave an informative talk on the right time to invest in real estate.

“The right time is when you find a good deal.

“When the market is not so good and when it is a buyer’s market, there is a higher chance to find a good deal.

“Do not buy a property just because your cousin or friend bought a property and profited. If the deal is not good, just say no,” he told the audience on Saturday.

Woo said it was not a matter of when a person should buy a property, but it was a matter of how many deals come his way.

“It is subjected to one’s readiness. When you get a deal, you may need to have cash upfront and may need financing,” he said.

Meanwhile, mortgage insurance specialist Elane Goh who gave a talk on ‘Mortgage Insurance, Should I Buy?’ said it was important to buy mortgage insurance as it would protect the house owner and family members.

“If they are not covered, there is no one paying for the bank loan in the event of death, so the house will be reclaimed by the bank and auctioned off,” she said.

“The Malaysia Life Insurance Association statistics show that only 56% of home loan borrowers have mortgage insurance but there is still 44% who are not covered,” she added.

When asked if the Mortgage Level Term Assurance (MLTA) or Mortgage Reducing Term Assurance (MRTA) is better, Goh said it depends on what the individual wants.

“If the loan tenure is below 10 years, in my point of view, it is okay to take up an MRTA because the fluctuation of Base Rate (BR) in 10 years will not be very big but it will be hard to gauge the fluctuation of BR over 20 to 30 years.

“This is why those with loan tenures of over 10 years are encouraged to take an MLTA instead because in the event of a BR increase, the outstanding loan can still be covered.

“The MLTA’s benefit is that it has a level coverage.

“Another benefit is that the premium can be redrawn or refun-dable, and the money from the premium can be used to pay the housing loan to cut short the tenure,” she said.

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