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Buying your first home can be as scary as stepping out of an airplane and free falling 10,000 feet into the unknown. It’s really tempting to grab the first place within your budget, continue to rent or stay with your parents. To help you to understand the process, we’ll examine what goes on before, during and after the property buying process.
Download Now: Property Buyers Guide [Free Access]
Before Buying
Do Your Homework
Before you do anything else, spend some time talking to experts, investors and fellow homebuyers. You’ll be surprised how much insight they’ll be able to give you. Don’t stop there though. Read up on the housing market in Malaysia or attend road shows. Find out the average house prices where you live. All this might seem like a hassle now, but you’ll be thankful you did it later.
Make a list
The options for a first-time home owner can be mind-boggling but making a list will bring some clarity. It doesn’t have to be very realistic yet. We’ll get to that later. Think about what kind of home best suites your needs: a traditional single-family home, a duplex, a townhouse or a condo? Include basic desires that you can’t compromise on. It can be big things like the neighbourhood or little things like the bathroom tiles. Since you’re quite possibly making the biggest purchase of your life, you deserve to have it fit both your needs and wants as closely it can.
Consider how deep your savings is
Now it’s time to get realistic and scrutinize your financial situation. First-time home buyers in Malaysia need to fork out 5 – 15% of the property price in cold hard cash for the down payment. There are also other costs such as legal fees, 6% government service tax to be charged on the real estate agent’s commission, stamp duty, and so on.
Find out how much you can borrow
Next, find out how much of home loan you qualify for by calling up some bank officers or visiting a branch near you. The standard in Malaysia is 90% of the property price but it also depends on the type of property and your credibility.
Understand how much you can actually afford
Just because you qualify for a loan that gets you a Balinese style villa in Ara Damansara, doesn’t mean you can afford the monthly payments. Avoid being “house poor” – a common mistake made by first-time home buyers. They have the house of their dreams, but no money left for clothes, petrol, entertainment, holidays and even food. Most financial experts recommend that you allocate no more than one-third of your total income to pay off your home loan. Remember that owning a home is more than the monthly loan payments though. There are other fees like maintenance fees, insurance, quit rent, assessment, utilities and so on.
Engage a real estate agent
You’ve done well on your own so far and now it’s time to get external help. Shop around for a good real estate agent. They can really help to make the whole process less stressful for you. Other than navigating the negotiations and paperwork, they can protect you from any problems you might face during the process. Most agents receive a commission, paid from the seller’s proceeds.
During Buying
Find the right home
It’s time to put your background work into action. Use all the options available to you including your real estate agent, online listings and driving around looking for for-sale signs. As a first-time home buyer, look for property that you can add value to so that it increases your equity and helps you up the property ladder.
Get to know your financing options and secure it
Bank loans are not the only way to finance your property. Find out if you qualify for My First Home Scheme, 1Malaysia Housing Programme (PR1MA) or MyDeposit Scheme. Search for the lowest interest rates and best packages and finalise the application.
Do a home inspection
To your untrained eye, your potential new home may appear flawless but it’s always safer to get a professional to inspect the quality, safety and overall state of the place. The last thing you want is to move in and get hit with a lot of unexpected repairs.
Make an offer
Your real estate agent will help you negotiate the offer price and terms & conditions with the seller. Once you reach an agreement with the seller, you’ll have to sign a Letter of Offer or Offer to Purchase document and pay the 2% earnest deposit.
Engage a lawyer and close the deal or move on
If the house inspection didn’t turn up anything serious and you reach an agreement with the seller, it’s time to close the deal. This basically means you need to engage a lawyer to prepare all the legal documents and you’ll have to sign a ton of paperwork within a very short time – usually within 2 weeks of signing the Letter of Offer or Offer to Purchase. Please note if you are a foreigner buying Malaysian property there are extra regulations and documents to you to provide.
After Buying
Perform regular maintenance
Just like a car, your house also needs regular maintenance. This allows problems to be fixed when they are small, manageable and cost less.
Keep saving
Expect unexpected expenses when you own a house – like installing a new aircon or fixing a leak in the roof. Start an emergency fund for your home so that you won’t be caught off-guard when these costs inevitably happen.
Ignore the housing market
The only time the value of your house matters is when you want to sell it. Being able to choose when you sell your home, rather than being forced to sell it due to financial crisis or job transfer, is what will determine how big your profit from your investment will be.
Don’t expect your home to fund your retirement
Owning a home can be a source of wealth but it will not necessarily fund your life after retirement. Continue to save the maximum you can in your retirement savings account every year.
Once you are equipped with the right information, the process of buying your first home won’t seem so daunting. You will be able to manage it with much more confidence and soon even share your knowledge with other newbies.
Conclusion
In conclusion, the First-timer’s Guide to Buying a Home in Malaysia offers invaluable insights and practical tips to navigate the often-intimidating process of purchasing your first home. From understanding the legalities and financial considerations to choosing the right location and property type, this guide empowers you with the knowledge to make informed decisions.
Remember, buying a home in Malaysia is not just a financial investment but a step towards realising your dream of homeownership. With careful planning, a clear understanding of the process, and a bit of patience, you can smoothly transition from a prospective buyer to a proud homeowner in Malaysia. Embrace this journey with confidence, knowing that every step brings you closer to the keys of your new home.
Stay tuned with the realestatemy.com/blog for more up-to-date tips and guides for real estate marketing professionals.
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In today’s real estate market it can often be frustrating to be a first-time homebuyers to find their dream home, especially if they are not prepared. If you’re a first-time homebuyer on the hunt for your dream home, you’re embarking on one of life’s most exciting journeys! The key to navigating this adventure is a mix of careful planning and keeping an open mind. Start by really nailing down what you need in a home versus what you want.
Create a list of non-negotiables, whether it’s the number of bedrooms, location, or proximity to work or schools. Next, dive into the financial side of things – get pre-approved for a mortgage to understand your budget, and remember, it’s not just about the purchase price; consider other costs like property taxes, insurance, and maintenance. Don’t hesitate to lean on the expertise of real estate professionals; they can offer invaluable insights and help you uncover hidden gems. Keep in mind that the perfect home might not tick every single box on your wish list, but it will feel right. So, keep your eyes peeled, stay patient, and soon enough, you’ll find a place that feels less like a house and more like a home.
Download Now: Property Buyers Guide [Free Access]
How First Home Buyers Can Find Their Dream Home
Here we highlight some steps that first-time homebuyers can take to help keep their excitement of buying a home throughout the whole property buying process.
- Get Pre-Approved Home Loan ASAP
One way to show you are serious about buying your dream home is to get pre-qualified or pre-approved for a home loan before starting to view properties. Even if you are in a market that is not as competitive, understanding your property buying budget will give you the confidence of knowing whether or not your dream home is attainable. This will also help you narrow your search criteria based on your actual budget and won’t leave you upset if the property you view, and love, ends up being outside your property budget!
- Know the Difference Between What You Need Vs What you Want
Do you really need that double sink in the kitchen to be happy with your home decision? Would 2 car parks be a convenience or a necessity? Could the baby room of your dreams be a future renovation project instead of a deal or no deal right now?
Before you start your viewings, list all the features of a home you would like and then qualify them as ‘needs’ vs ‘wants’. This will help keep you focused on what’s most important to you.
- Research and Choose The Right Neighbourhood You Want Buy In
Every neighbourhood has its own advantages. Before you commit to a property based solely on the building itself, we suggest driving around the area. Make sure that the area meets your needs for “amenities, commute, school district, etc. and then spend a weekend exploring before you make any decisions.
- Pick a Property Style You Love and Stick to It
Evaluate your family’s needs and settle on a style of home that would best serve yours and your family’s needs. Just because you’ve narrowed your search to a postcode, doesn’t mean that you need to view every listing in that postcode.
- Document Your Home Viewings
Once you start to view properties, the features of each individual property will start to mix together. We suggest keeping your phone camera ready to document what you love and don’t like about each property you visit. Making notes on a sheet as you tour the property will also help you remember what the photos mean, or what you were feeling while viewing the home.
In Summary
And there you have it, first home buyers – your journey to finding your dream home might seem daunting at first, but it’s also filled with possibilities and excitement. Remember, it’s all about striking the right balance between your desires and practical realities. Do your homework, from understanding your financial limits to exploring different neighbourhoods. Don’t rush the process; take the time to visit multiple properties and really picture yourself living there.
And always keep in mind, your first home doesn’t have to be your forever home – it’s a stepping stone to your future. So, embrace each viewing, each decision, and each piece of paperwork as part of a thrilling chapter in your life. Before you know it, you’ll be stepping through the door of a home that not only meets your needs but also feels unmistakably yours. Happy house hunting – your dream home is out there waiting for you!
Stay tuned with the realestatemy.com/blog for more up-to-date tips and guides for real estate marketing professionals.
The post How First Home Buyers Can Find Their Dream Home appeared first on RealestateMY.
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