Here are 12 invaluable home buying tips from real estate agents in Malaysia. This is the first part.
1) Choose a strategic location
Before you even engage a real estate agent, decide on the location you want to buy, down to the residential area. Here’s how you decide. If you are planning to buy for your own occupation, choose a location that is near your work place with convenient access to transportation and communication infrastructures.
Next, narrow down your options by setting a budget. In Malaysia, first time home buyers usually qualify for a 90% margin of finance mortgage loan, but you will still need at least 20% to 30% of the property price in cash for down payment (10%) and at least 10% for legal fees, stamp duty and other loan document charges.
– Lim Ah Leck, Registered estate agent, Tiram Realty
2) Aim for landed property
First time buyers should always consider landed properties first, be it a single-storey terrace or double-storey linked, even a bungalow (if your finances allow), instead of an apartment or condominium. Though the prices for landed properties can be much higher than a high-rise residential unit, it comes with the benefit of individual title for each unit, which is available immediately.
On the other hand, the strata title for an apartment or a condominium is usually delayed and this can also cause a delay in getting financing for your property. Having the individual title ready when you purchase a landed property can expedite your home loan approval procedure.
– Michael Thiruchelvam Sebastian, Principal, M. S. Properties
3) Enjoy flexibility with your home loan
Most first-time buyers complain that they can’t afford a property, especially in the urban areas like the Klang Valley. Here are three reasons you may be able to afford a home:
a. If you are young, you have the advantage of stretching your home loan to a maximum of 35 years. This means lower monthly repayment, making your dream more affordable.
b. For first time buyer of a residential property, the margin of finance is normally 90%, making the initial down payment more affordable at 10% of the property price.
c. Get a flexible mortgage scheme, so you can repay the loan and work on bringing down your outstanding balance in the shortest time possible.
If you still find property prices out of your reach, consider eliminating car instalment from your expenditure, as it made up a substantial amount of spending for most individual. Consider working for a company that provides transportation, or take public transport.
– KL See, Director, Metro Homes Group
4) Only buy a home you can afford
A home is a big ticket item, sometimes the biggest ticket item a person will purchase in his or her lifetime. Buyers who proceed solely based on their emotions often get rejected for a housing loan. At this point, he or she would have already paid the non-refundable deposit.
Avoid the heartache by determining the amount of loan you can get from the bank before deciding on a property to buy. Don’t let this little, nevertheless important step of home buying, ruin your entire dream home hunting experience!
– William Yap, General manager, ERA Network (KL) Sdn Bhd
5) Do your homework
When it comes to buying a home, almost everyone wants to share their two cents with you. The trick is to not listen blindly and filter the information accordingly.
Only seek advice from experts, such as reliable and reputable property agents and other buyers or sellers in the area of your interest. Avoid making your home-buying decisions based solely on market rumours and unproven trends without first doing your own due diligence. Research is of the utmost importance when buying a property.
Once you have done your research on the type of property and location, bear in mind that there are hidden costs, such as strata title, legal fees and stamp duties that will arise and can be quite costly. Therefore, if you wish to purchase your property early, start saving early.
– Dr Lee Ville, Director, New Bob Realty
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6) Start small and aim big later
Buying a house is your first step to building your financial net worth. However, before you look for one, it is worth doing some research on the type of property and location that match your financial capability. It is a long term commitment; it makes sense to start small as a first-time buyer before moving to bigger and more luxurious properties. With interest rates speculated to increase in the coming years, it is always good to look for fixed interest rate loan to avoid any financial turmoil that may result in a spike in your monthly repayment.
– Ho Kah Wai (Alex), Principal, Actfast Properties
*Iris Lee, iMoney