If you are a buying a house for the very first time, well, congratulations! You are about to embark on a very exciting journey. But first, there are a few things that you should consider before proceeding with your purchase:
One of the most fundamental things to do is perhaps having sufficient money for the deposit of your new home. This would normally cost about 10% of the purchase price. Other costs would include legal fees, stamp duty, monthly repayments and as a new homeowner, you will also have to consider the costs of renovation, furnishing and maintenance. It is also extremely vital to know your loan rates as this will prepare you for your future payments.
Freehold entitles you to the land and the building on it, while a leasehold means you only have a lease from the freeholder. They can range from 30 years to as long as 99 years. Once the lease expires, the right to property reverts to the freeholder. Freehold is obviously a better choice, so be sure keep this on your checklist when surveying.
Location plays a big role when purchasing your property. Whether you prefer an urban or suburban lifestyle, it is always useful to inspect the area before making your purchase. Besides, if you have children, you might want a neighborhood environment where there are parks and schools. Consider also other amenities such as schools, golf courses or shopping malls as these may help to increase the value of your property over time.
Getting professional help can work wonders! Before you purchase your house, it is advisable to get an experienced house agent to look for the most suitable property for you. A home inspector would be very helpful to ensure that the property comes in a satisfying condition to prevent from any unpleasant surprises as well as helping to save a huge sum of money in the future. Always, always seek help from a lawyer if it concerns your rights, both present and future, as legal documents can be overwhelming!
When exactly is the right time to buy a property? The value of a property varies from time to time, so common sense would tell us that it is best to invest when the property values are low. It is also an advantage to look out for government schemes for new homeowners. Do your research and do not rush! Here is a useful link where you can get more information in regards to the Malaysia My First Home scheme (Skim Rumah Pertamaku) for low income earners (<RM 5000): http://www.starproperty.my/index.php/articles/investment/malaysia-my-first-home-scheme-skim-rumah-pertamaku/
Last but not least, find a place where you will enjoy staying for the next few years. It can be both nerve-wrecking and exciting at the same time but the aforementioned 5 points may help to ease your burden. Good luck!
Advise: Spend no more than 20% of your income on your monthly installment!
