After years of financial planning, you are ready to own your first home! This is definitely an an exciting thing to celebrate!
Wait a minute, why are you frowning? “I am clueless on where to start.”
Sounds familiar? To the first-time home buyers out there, you are not alone. With the many steps that come along with the home purchase, it can be overwhelming to us sometimes. That is why we have prepared the following tips for you! It can make your life much easier when you are purchasing your new home.
Plan your budget carefully
Ensure you have good financial health
Allocate a sufficient amount of money for the down payment and monthly installments
Upfront Costs consists of down payment, stamp duty on SPA, stamp duty on loanagreement, real estate agent fees, mortgage insurance
Audit your finance
Have an emergency saving account
The saving account should have at least 3-6 months of living expenses
Keep your saving in a safe vehicle that brings returns so that you can keep up withinflation
Select a property
Make full use of all options available in finding your ideal home in the market
For example, getting help from a real estate agent, looking for listings online, or drivingaround neighborhoods that draw your interest
Take your future plans into consideration when selecting your first home, for example, if you are thinking of starting a family, you may need a bigger space ora house with more rooms
Make sure the house fits your lifestyle
For example, if you are a family-oriented person, you may want a home that is closeto your parents
Make a list of lifestyle priorities and factor them into your buying decision
Conduct research on the neighborhood
Experience the neighborhood yourself
A walk in the area of different timing will give you a lot of insights
Talk to people who live there
If you have friends or family members who live in the area, ask them what they like
and dislike about living in the area
You will be able to get a lot of related information through a conversation with currentor former residents
Hire a real estate agent
A real estate agent will help you find a house that meets your needs and within your price range
The agent will view the houses together with you and guide you throughout the purchase journey
They help you in negotiating for the best price after you have chosen a house to buy
A well-experienced real estate agent will help you to handle potential issues that you may face throughout the process
Hire a property agent with a REN tag to avoid yourself being cheated by illegal property agents
Get a loan
Get preapproved for a loan before choosing a house
The loan categories offered in Malaysia are divided into three types
They are term, semi-flexi and flexi loans
Term loans have a fixed repayment schedule
Semi-flexi loans allow you to pay extra money in a particular period to lower theamount of interest charged
For flexi loans, the installment amount is automatically deducted every month.
Get assistance from housing schemes available
List Of Affordable Housing Schemes In Malaysia
Housing Schemes
Description
Eligibility
My First Home Scheme
Financing up to 110%
● First time home buyer only ● Malaysian only
Perumahan Rakyat 1 Malaysia
Financing up to 110%
● Monthly household income between RM2,500 and RM15,000
BSN MyHome
Financing up to 100%
● Minimum income of RM1,000 per month
Home Ownership Campaign (HOC)
Up to full stamp duty exemption
● Residential properties only ● Malaysian only
Perumahan Penjawat Awam Malaysia
Affordable housing scheme
● For civil servants only
7. Sign Sales Purchase Agreement (SPA), Loan Agreement, and Memorandum of Transfer (MoT)
SPA is a legal document which sets out the full terms and conditions of your purchase
Get a lawyer involved in the first place as some developers may offer a free SPAdrafting service as a perk, but remember that the lawyer in question is ultimately working with the best interests of the developer in mind
Loan agreement is a legal document which sets out the full terms and conditions of your home loan
Although the agreement is largely influenced by standard procedures from the bank, it is still a good idea to have your lawyer take a look over it before yu sign
MoT is a legal document that transfers ownership in the case of properties with either a Strate Title or an Individual Title
For a stratified propert as part of a larger development, you will need to sign a Deed of Assignent instead, which conveys ownership of property that is still under a Master Title
Conclusion
Ready to buy your first home? We are here to help! Enquire us today, our team of experienced consultants will attend to your questions. Here at Hectarworld, we strive to provide you with a hassle-free journey in your home purchase process.
Provide us with your details and our agent will be in touch with you soon!