For most of us, the very first goal are to buy a car after own some hard-earned income. After that, the next target or aim are to own our very first property or house.
Below are some steps or guideline for first time property buyer. Buyer are encourage to do a checklist for it and look for possible steps that may face when buy your first property.
INVEST IN YOURSELF FIRST
Take a little time to meet and learn from experts, fellow investors and home buyers.
KNOW AVERAGE PRICES
House prices in Kuala Lumpur are the costliest in Malaysia with an average price of RM497,535.
BREAKDOWN OF EXPENDITURE
Most financial experts recommend that you allocate no more than one-third of your total income to pay off your home loan.
DETERMINE THE TYPE OF HOME
What shall it be? Condominium, apartment, terrace house, semi-detached house or bungalow?
DO YOU HAVE ENOUGH FOR DOWN PAYMENT?
For your first home, you need to put a down payment of 10% of your intended property’s price.
HOW MUCH CAN YOU AFFORD?
Take a hard look at what you are spending your money on and decide on a budget.
HOME LOAN INTEREST RATES
The interest that banks charge will be determined by the Base Lending Rate (BLR) set by Bank Negara Malaysia (BNM).
LOOK INTO FIRST-TIME HOMEBUYER SCHEMES
Check if you fit the criteria for My First Home Scheme or 1Malaysia Housing Programme (PR1MA).
ENGAGE A REAL ESTATE AGENT
Tell them your requirements such as preferred locations, home type, unit size, loan tenure, land tenure and estimated budget.
MAKE AN OFFER
You’ve found it! Once you and the seller have agreed on a purchase price, you will need to sign a standard document and pay the 2% earnest deposit.
GET A BANK LOAN
Research the current packages and go for one that best suits your repayment profile. Visit your selected bank and apply for a housing loan.
3 WAYS TO LOWER YOUR MONTHLY INSTALLMENT
📌 Place a bigger down payment.
📌 Search for the lowest interest rate and packages.
📌 Request for a longer loan period.
Apart from the down payment of 10%, there are 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.
CLOSING THE DEAL
Once all the paperwork has been completed properly by your lawyer, you can make arrangements with the seller to get the keys to the property.
RENOVATE & CLEAN-UP
Meet your contractors and interior designer, and submit your renovation plans.
Pack up your stuff, move in and begin planning for a housewarming party!
Hopefully the information above are helpful for those wish to buy their first property. Good luck.