Property cashout is literally the ultimate cheat code for young couples who want to tie the knot but are stressing out about wedding costs. If you are a complete newbie to property investment, grab a cup of coffee and get comfortable. Today, I am going to teach you a massive secret. Imagine this scenario: You […]
Property cashout is literally the ultimate cheat code for young couples who want to tie the knot but are stressing out about wedding costs. If you are a complete newbie to property investment, grab a cup of coffee and get comfortable. Today, I am going to teach you a massive secret.
Imagine this scenario: You want to get married. You want a beautiful wedding, but you do not want to empty your bank account, wait five years to save up, or take out a suffocating personal loan.
What if I told you that by buying a house, you could get a huge chunk of cash, legally to cover your entire wedding? Yes, you heard that right. Buy a house, get married, and let the property pay for it.
Sounds like a dream? It is actually a very real property investment strategy. Let’s dive deep into how you can use this to your advantage.
Let’s be real for a second. Weddings are expensive. Whenever the topic of marriage comes up, young couples immediately start sweating about the budget. You have to think about the dowry (hantaran), the catering, the bridal dais (pelamin), the hall rental, the outfits, the photographer, and so much more.
Nowadays, a standard, nothing-too-crazy wedding can easily cost between RM20,000 to RM40,000. And what do most people do when they don’t have that kind of money sitting in their savings account? They take the easy but incredibly dangerous route: a personal loan.
Applying for a personal loan for a wedding is probably the biggest financial mistake you can make as a fresh, young couple. You are starting your new life together burdened by high-interest debt for a one-day event. The food will be eaten, the makeup will be washed off, but that monthly bank deduction will haunt you for the next 7 to 10 years.
This is exactly where our hero strategy comes into play. Instead of taking on bad debt, you are going to take on good debt. You are going to acquire an asset.
So, how does a property cashout strategy actually work? As a property investment expert teaching newbies, I always try to break things down so even a five-year-old could understand.
When property developers want to clear out their unsold, completed units (completed projects), they often throw in massive discounts or rebates. Let’s say a developer has a few units left in a brand-new condominium, and they are desperate to sell them to close their accounts. They might offer a crazy rebate, sometimes up to 20% or even 30%.
Here is the magic trick. You apply for a housing loan based on the original market value of the house, not the discounted price. When the bank approves your 90% or 100% loan, they disburse the full loan amount to the developer. The developer then takes the actual discounted price of the house and refunds the excess money directly into your bank account as cash.
This excess cash is your property cashout. And the best part? It can range anywhere from RM30,000 to over a six-figure sum, depending on the property’s price and the rebate offered. Boom! You just found your wedding fund without touching your monthly salary.
I know math can be boring, but stick with me here. I promise this is the fun kind of math—the kind that puts money in your pocket. Let’s look at a super simple example of a property cashback deal.
Imagine you find a completed condo unit in a mature, high-demand area.
When the legal paperwork is done and the keys are handed over, the bank will release RM450,000. The developer only needs RM400,000 to cover the net price of the house. So, what happens to that remaining RM50,000?
It goes straight into your bank account. Yes, cold, hard cash.
And before you ask – yes, this is 100% legal. The guidelines for property financing are strictly monitored by Bank Negara Malaysia (BNM), which allows loan structures based on the property’s market value assessed by certified valuers. With RM50,000 in your hands, your wedding costs are fully covered!
Some people always ask me, “But FAR Academy, aren’t you still borrowing from the bank? Debt is debt, right?”
Wrong, my friend! The way you borrow money determines whether you are financially smart or financially struggling. Let’s compare a traditional personal loan with a property cashback loan.
Now, I need to put on my serious teacher hat for a minute. Earning a massive property cashback is NOT a free pass to go crazy. This is not an excuse to rent a luxury car for your wedding entrance or buy ridiculous amounts of jewelry.
The main goal of this strategy is smart financial management. If you receive RM60,000 in cashout, here is the chill, expert-approved way to allocate that budget:
This is the real secret sauce of the strategy. After you have allocated money for the wedding and the renovation, your next mission is to turn that house into a cash-generating machine. Why? Because you want someone else to pay your bank installment!
There are a few ways you can rent out the property to maximize your returns:
Let’s do some quick math. Imagine your monthly bank installment is RM1,400. You renovate the house, furnish it nicely, and rent out the rooms for a total of RM1,800 a month.
Not only did you get a free wedding, but your tenants are paying off your massive asset, and you are pocketing an extra RM400 every single month.
As chill as this sounds, property investment is not a game you can play blindly. There are some strict rules you must follow if you want this property cashback strategy to work perfectly.
1. Keep Your CCRIS and CTOS Squeaky Clean Your credit score is your resume to the bank. You cannot have any missed payments on your credit cards, car loans, or student loans (PTPTN). The bank needs to see that you are a highly disciplined borrower. If your record is messy, clean it up! Check out CTOS to review your current credit health.
2. Master Your Debt Service Ratio (DSR) Your DSR is the calculation banks use to see if you can afford the monthly installment. Your net salary (or combined joint income) must be strong enough to support the new loan. To dive deeper into this, make sure you check out our internal guide on Understanding DSR for Property Investment right here at FAR Academy.
3. Location is Everything DO NOT buy a property cashback unit in a ghost town! It does not matter if the developer is offering a huge rebate; if there are no humans who want to live there, you will have no tenants. Always choose properties near public transport like LRT/MRT, universities, or business hubs.
Alright, newbies, let’s wrap this up into an easy, actionable plan. If you are planning to tie the knot soon, here is what you need to do:
Once the wedding is over and the honeymoon phase settles down, you will realize the true power of what you just accomplished. You are not just a married couple; you are now property investors.
This shift in mindset is crucial. Many people buy a house just to live in, but buying an investment property as your first home is a legendary wealth-building hack. Let’s talk about the next five years. As the area around your condo matures, the value of your property will likely increase. This is called capital appreciation.
In five to seven years, your RM500,000 property might be worth RM600,000. You could choose to sell it, pocket the RM100,000 profit, and use that money to upgrade to a bigger family home. Or, you could keep renting it out, using the positive cash flow to pay for your future child’s education fund. Property investment isn’t about being greedy; it is about giving yourself choices and freedom.
Property cashback is more than just a trick to get a free wedding; it is a gateway into the world of real estate investment. By using this strategy, you are transforming what would normally be a huge financial burden into a stepping stone for long-term wealth creation.
While your friends might be stressing out about how to pay off their personal loans after their honeymoon, you and your partner will be chilling, enjoying married life, and watching your tenant pay off your newly acquired property.
You do not need to be a millionaire to start investing in property. You just need the right knowledge, a bit of discipline, and the courage to take action. Thank you for hanging out with me today at Articles FAR Academy! Stay chill, keep learning, and I’ll see you in our next property masterclass.
Yes, it is completely legal. It simply involves securing a bank loan based on the official market value of a property, while purchasing it at a discounted price from the developer. As long as the valuation is done by a certified valuer, everything is above board.
If you cannot find a tenant, you must pay the monthly mortgage installment using your own salary. This is why FAR Academy always preaches the importance of location. Only buy properties in high-demand areas to minimize the risk of a vacant unit.
Absolutely! A joint loan is a very common strategy for young couples. By combining both of your salaries, you lower your overall Debt Service Ratio (DSR), making it much easier to get the loan approved.
Not necessarily. Because the developer is giving a high rebate, the 10% downpayment is usually absorbed into the discount. Some developers only require a booking fee of a few hundred ringgit!
Taking a home loan will increase your total debt commitments. However, if your first property has a solid tenancy agreement showing consistent rental income, banks will often recognize that rental income, which helps improve your DSR for your next purchase! You can read our guide on How to Survive Your First Year of Property Investment to learn more.
