Are you planning to buy a property in Malaysia? Buying a house can be quite a daunting
experience especially for first timer. This article will guide you through things you wish you knew
before buying a property in Malaysia. There is also complete
guide to the basics of applying for a housing loan for you
to refer to online, 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.
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 do not want to
get yourself into a financial burden after getting a home.
