Buying a new property is not a walk in the park. There are many steps to take and procedures to follow. That is why we have real estate agents; they advice us, guide us, help us find new homes and sometimes help us make huge life – changing financial decisions.
Their job helps us find new homes we love, and in this article those same people are going to give some important advice when it comes to buying a house. Here are 10 important house buying tips from real estate agents in Malaysia.
1. Evaluate your Budget
Before you start looking for your new property, you have to stop and figure out your budget. If this is your first property (residential) then banks will usually grant you a loan, which will cover 90% of the property price. All you will have to do is supply 10% of the property price as down-payment.
Bear in mind that you will also need to keep money aside for stamp duty and other legal charges.
Interest rates may also change in time, so be aware of that and don’t calculate monthly loan instalments that goes above your income.
2. Choose a good location
Before you engage an agent, you should decide on where you want to buy your property. The more precise you can be the better. For example, if you are buying based on your job then look for a house close to your workplace with access to transport and good communication infrastructure.
3. Research
When it comes to something as important as property, everyone needs to be on the same level. You need to be able to filter information and know what is relevant to you.
Find out what you can about the property you want and the area it is in. Seek advice from reputable property agents, buyers, sellers and property investors. Don’t make a decision based only on market rumours. Remember that once you are armed with the right knowledge, you can make an informed decision.
4. Timing
Property values rise and fall with time. The value is influenced by a number of factors such as supply and demand and the economy. Again the best thing to do would be to ask for advice from a reputable agent. They always keep their eyes and ears on the market and so will be able to advise you on whether you should wait or buy a particular property as soon as possible.
5. View the property
Once you have found a property you like, be sure to inspect the place yourself. That way you can assess the properties physical condition, find out if there are any repairs needed, and see what the surrounding area is like. Again we recommend viewing the property with someone experienced in property buying and investments, such as a qualified agent.
6. Evaluate your long term plans
Buying a new property is a big step to take. You should be clear on why you are getting it. Do you plan to make this your permanent home? Do you plan to rent it out? Is this an investment? Do you plan to sell this property in the future? Be sure to answer these questions and the others that may come up before you make your decision on buying a property.
7. Check your credit report
When you are ready to get a property and ready to get a home loan, be sure to check your credit history. Your credit history will affect your loan qualification status, how much you can borrow and the interest rate a bank may charge on a home loan. It isn’t that hard to get your credit report and once you have it you can go through it and make a plan of action from there.
8. Compare home loans
One of the most important aspects to look at is the interest rate. Different banks offer different interest rates for home loans, some lower or higher than others. Also, different banks offer different types of home loans such as term or flexi loans. Term loans tend to be a higher rate but offer fixed interest rates. The rates of flexi loans however, may fluctuate depending on the Bank Negara Malaysia’s Base Lending Rate at the time. Find out and compare what kind of offers different banks have in terms of home loans and choose one that fits you best.
9. Engage with a lawyer
As we said before, dealing in properties involves many steps. Once you have settled on a property you like, you should start looking for a lawyer to help you with the legal processes involved. You will need a lawyer to draft the sale and purchase agreement (SPA) and the loan agreement and get them signed. Find a lawyer you can trust; one who has your best interest in the forefront of their minds.
10. Don’t rush
Property is often a waiting game that needs patience and understanding to do right. There are lot of processes and steps involved with the business, so do not rush it. Any mistake made could incur heavy costs in the long run, costs which can be easily circumvented as long as you perform the steps properly and in due course. Take your time with your property, it will have a big impact on your life and deserves to be done right.
This article is simply a guide to help you avoid stress and problems which might occur during your property dealings. As long as you use your own good sense, and perform your due diligence, you can come out on top and enjoy your new home.
Are you looking for the right property for you? We want to hear from you, send us a message at hello@iqiglobal.com or call us at 012-299-6155 or 03-7450-6655.
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