Buying Home

Things Every First-Time Homebuyer Needs To Know

by SewaBeli.my

1. Know your budget

You need to have a good understanding of the amount of money you have access to, before investing in a piece of property. Check your savings and cash flow, and consult your bank to find out how much you can borrow, especially if you have limited cash flow.

2. Miscellaneous Charges

Many homebuyers do not anticipate the additional fees involved when buying a house in Malaysia aside from the 10% down payment. The rule of thumb is to set aside another 10% of the property purchase price to pay for the lawyer fees, stamp duties, Sale and Purchase Agreement (SPA) fees, and property valuation fees.

3. Inspect Before You Buy

Hire a professional to inspect the property thoroughly before you sign any purchase agreement. This can save you a lot in terms of repairs in the future. Be sure to check the property for structural damage, broken fixtures, parasites and pests such as termites.

4. Property Location

A key when considering property location is the mid-to-long-term view regarding how the area is expected to evolve over the investment period. For example, today’s peaceful open land at the back of a residential building could someday become a noisy manufacturing facility, diminishing its value. Thoroughly review the ownership and intended usage of the immediate areas where you plan to invest.

5. Find Practical Properties

Select practical properties that people will want to rent. A unit with a luxurious interior may look fantastic, but it may be an unnecessary cost, because renters are often simply looking for a practical place to live. Also, the more luxurious a property, the more expensive it is to maintain. 

6. Valuation of the Property

Commonly used property valuation methods include:

• Sales comparison approach: recent comparable sales of properties with similar characteristics—most common and suitable for both new and old properties
• Cost approach: the cost of the land and construction, minus depreciation— suitable for new construction
• Income approach: based on expected cash inflows—suitable for rentals