Buying a home is a huge decision that seems very intimidating to many people especially when they’ve discovered just how many steps that goes into the whole buying process. However, owning property might be the largest investment one can make in their life.
With that being said, in this article we’ll be discussing the aspects that you need to know before proceeding to buy a property in Malaysia.
1. Do your research
First and foremost, research is the most important thing that you need to do before jumping into the real estate market. By doing research, you’ll understand the different types of homes and land types available as well as the type of home loans and lending guidelines that are available.
Be sure to do your due diligence before purchasing a property to ensure that it ticks all the boxes that you’re looking for such as the price of the property, location, accessibility to the public transportation system and major highways, facilities along with amenities.
2. Consider your budget carefully
Purchasing a house could be one of the biggest financial decisions anyone has to make in their lives. This is why you must evaluate all aspects that go into buying a property which includes the monthly repayment which could go on for the next 15 to 30 years plus the lifestyle changes one has to make to be able to afford a property.
Many financial experts usually suggest that your monthly loan instalments should not go over one-third of your household income. If you are working with a tight budget, you might still be able to find the home that you are dreaming of.
3. Search for your property
What it is that you’re looking for in a home? Are you dreaming of living in a condominium, apartment, terrace house, or bungalow? Find out what property type that you’re excited to live in but don’t forget to also figure out the advantages and disadvantages for each property type.
It is important to first narrow down the areas you are interested in and also the budget range that you are willing to spend. Subsequently, you can then determine the number of bedrooms and bathrooms, built-up sizes, amenities as well as the age of the property.
4. Choose a strategic location
Choosing a strategic location to buy a home is probably the toughest decision a person has to make. You might be wondering where the best place to call home is. Well, it is advisable to choose densely populated areas in the city because these areas will likely have more facilities or infrastructure to cater to the population such as medical centres, educational institutions, shopping malls, and recreation parks.
As there are many developments located in the city centre, it also signals a good sign for investors keen in buying a property for investment. There’s a high chance that these properties will get a much higher return.
5. Employ a real estate agent
Before you start on your home purchasing journey, you should enlist in the services of a property agent to smooth the entire transaction process. By engaging with an experienced property agent, it comes with many perks such as they can help you apply for a mortgage, finding the perfect home for you, managing negotiations and ultimately protecting your interests.
These property agents must be knowledgeable of the location that you’re interested in so that they can recommend the best possible property that fits with your lifestyle and is within your budget.
6. Be prepared for the down payment and additional fees
Usually, for first-time homebuyers, they would have to set aside 10% of the property’s purchase price as down payment whereas the remaining amount will be financed by the bank. If the property you desire is priced at RM300, 000 then you should prepare RM30, 000 in cash to pay upfront.
Other than the down payment, you should also take into account other additional costs such as legal fees, stamp duty, agent’s commission fees, house valuation fees, and also insurance.
Are you dreaming of owning your own home but you have no clue on where to start? Let one of our property agents assist you in finding the perfect home for you.