Buying a house can be quite a daunting
experience especially for first timer. This article will guide you through the
checklist that you need to know before buying a house in Malaysia. With so many
schemes available for first time home buyers, such as the Skim
Rumah Pertamaku, buying a home is less stressful and more
affordable, especially for young working adults. There is also a complete
guide to the basics of applying for a housing loan for
you to refer if you wish to understand more on the process of applying for a housing
loan.
1. Invest in yourself
First of all, you should invest in
yourself by educating yourself more on the property knowledge in Malaysia.
Spend your free time to meet up with the property experts, investors and
homebuyers to learn some knowledge from them.
2.
Average prices of houses
Next, you will need to do a survey to find
out the average property prices in Malaysia. The houses in Kuala Lumpur is the
most expensive with an average price of approximately RM500,000.
3.
Expenditure breakdown
In addition, you will also need have the breakdown
of expenditure. You need to plan a budget and manage your
finance. It is recommended that you do not allocated more than ⅓ of your
monthly income to pay for the home loan.
4.
Types of home
Next, you will need to decide on which type
of house you prefer: apartment, condominium,
terrace house, detached house, semi- detached house, townhouse and so on. With
no many types of houses available for you to choose from, you need to decide which
type of home suits your budget and needs the most.
5.
Downpayment
After deciding which house you would like
to purchase, it comes the down payment. Typically, you will need to pay a 10%
of the property’s price as the down payment, if you manage to secure a 90% bank
loan. Hence, you will need to ask yourself whether you have enough cash to pay
for the down payment.
6.
Affordability
After that, you need to have a financial
plan to determine if you
can afford to buy a house. There are expenses that you need to take
into account, such as your spending habits, down payment, monthly mortgage
payment, savings and so on. You need to make sure you can afford to buy a house
before you make a huge commitment of buying a property.
7.
Home loan and interest rates
Next, you will need to check for interest
rates offered by different banks. The interest rates offered by the bank is
determined by Base Lending Rate (BLR) that is set by the Bank Negara Malaysia
(BNM). However, different banks will have different interest rates as well. Do
your research on the interest rates offered by different banks.
8.
First time homebuyer schemes
You can also check out the first time
homebuyer schemes, such as the 1 Malaysia Housing Programme (PR1MA) and My
First Home Scheme. Do check out the criteria to see if you are an eligible
applicant for the scheme.
9.
Real estate agent
After checking out the homebuyer schemes,
you can now engage an expert or a real estate agent. List down your criteria of
home that you are looking out for, such as the type of home, location, size,
land tenure, loan tenure and your estimated budget. With their expertise, it
will not take them a long time to come back with good news for you.
10.
Offer
After you found the right house for
yourself, it is time to make an offer that is agreeable among both the seller
and you. Once you have reached an agreeable purchase price, you need to sign
the standard documents and make a payment of 2% earnest deposit.
11.
Bank loan
After the signing, you need to find out
the different housing loans offered by different banks. Apply for a housing
loan that best suits you.
12.
Lower monthly installment
If you wish to lower down your monthly
mortgage payment, you could always do so by paying a bigger sum of down
payment, apply for a bank loan with the lowest interest rates and opt for a
longer period for your housing loan.
13.
Additional costs
Moreover, you will also have to take the
additional costs into account. Other than the 10% down payment that you need to
pay, there are also the renovation fees, legal fees, stamp duty and a 6% of
government service tax that you need to pay for the real estate agent fees.
14.
Seal the deal
After all the signing of documents and
loan application, it is time you contact the seller to get your keys to your
new house.
15.
Renovation
Once you get your keys, it is time to plan
for renovation. Engage with your interior designers and contractors to tell
them your desired floor plan and designs that you prefer.
16.
Move in
Lastly, pack your things and move into
your new house. Arrange for a housewarming and invite your family and friends
over to your new house.
In conclusion, the procedures of buying a home on your own is not difficult as long as you plan ahead and
stay within your budget. Remember to always be realistic as you
