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I mentioned in Sep20 that I'm interested to purchase another property for investment. I'm not just simply talking only, it's for real.

I thought I will not invest in another property again after my last purchase in 2012 but now the HOC announced in Jun20 has encouraged me to look for one.

The main reason is the removal of the 70% financing cap for a third home loan during the HOC period.

I've been out of property investment for quite a long time, and I'm not up-to-date regarding recent projects and price trend. 

After doing some research and attending some webinars about property investment, finally I made a decision to purchase a unit in Klang Valley.

However, one day before I was supposed to place my booking, I realized that I'm NOT entitled to 90% loan for a third residential property!

It seems like this 90% loan "offer" only applies to development projects launched before Jun20... I didn't read this from any news report...

So, it's a much bigger decision to make: to proceed with the booking or to give up.

If I can get 90% loan, I don't need to sell my shares in stock market to pay for the down payment.

If I can only get 70%, I have to sell quite a big portion of my shares to settle the 30%. My stock portfolio value will be like going back to the beginning of 2020 and this will significantly affect my plan to grow my stock portfolio value.

Furthermore, stock market is widely expected to do well in this "recovery year of 2021". 

The most important factor that gives me a hope to return to property investment is the removal of 70% loan cap, but now it's no more there.

I don't bother to look at property if there is no 90% loan for me in the first place.

Should I continue to buy the property which might "damage" my stock market investment plan?

From investing point of view, it's certainly not wise to take out so much cash to purchase a property. It does not make sense doing this.

We can put this cash in the stock market which might generate better return in a much shorter period of time.

Nevertheless, finally I still decided to go ahead with my booking.

The main reason is that I like this project so much that I'm even planning for own stay in the future if there is a chance. 

The second reason is that I think this project is undervalued and has a high chance for good capital gain in the next 5-10 years. It's like an opportunity in a lifetime which is only available during this Covid19 pandemic.

The third reason is the HOC which can save me almost 10%, together with low interest environment, free stamp duties & legal fees, even though there is no 90% loan margin for me.

It's really a big decision and hopefully I won't regret it in the future.


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