Are you looking to own a new home in Malaysia? Or you don’t know where to start? Do your research before buying a home
Find out about home buying first because you need to do some research to understand the basics of residential real estate in Malaysia. You need to understand what it is like to buy a house, for a living or an investment. To obtain your first house, you do not need to buy a big one right away.
You can find listings of real estate such as Subsale, auctions, and units under construction to obtain from registered real estate agents or auctions, Facebook and social media sites.
Therefore, it’s essential to know the guideline before you buy a house in Malaysia. So, what you need to know before purchasing a property from a property developer in Malaysia?
Here are the tips you need to follow to buy a new launch property in Malaysia.
1. Choose the Right Location
The location has always been an important deciding factor when it comes to buying a property. You can find an affordable house near your working place if you want to find a home. Also, you should choose a location near the school to allow you to send children to school more easily.
Same goes to buying the factory in Johor Bahru for your own business, location is the main factor that you should consider in order to maximize the cost-benefit.
You should choose a convenient location. If you want to find a house for investment, you should find a location near the highways and public transport. If the house is closer to the city centre, the house can be rented at a higher rate. Therefore, you can get a higher chance to get a higher return from your property investment with the developments going on in the city centre.
2. Work Out On Your Budget Planning
The most important is you should buy a home within your budget so that you can avoid a budget shortfall in the process of purchasing a home. There’s no point in diving into a home search without first knowing how much budget you have to buy a property.
You need to know what is the “real” cost of affordable housing in Malaysia. If you are a fresh graduates, no worries, nowadays the government are launching many first home buyers scheme for those who would like to purchase their dream house at an affordable price.
Moreover, you have to take into consideration your down payment needs in your overall financing. Usually, you have to pay for 10% of the total cost of the property as a down payment.
You have to consider insurance, property taxes, utilities, maintenance and repair costs. If you are a first time home buyer in Malaysia, remember to also take into account additional charges such as stamp duty and other miscellaneous legal fees.
3. Developer’s Reputation is the Most Important
If you are looking for a brand-new property launch in Cheras, it will likely mean that you will be buying an under-construction project. Therefore, you may get an early-bird price, or you do not need to pay stamp duty, legal fees, and low transaction costs.
However, you have to know that buying a property that under-construction signifies a higher risk because there is no guarantee of quality. Consequently, you have to consider the property developer’s reputation. You can ask the previous buyers or read the reviews and recommendations of buying property.
A little advice for you, go with a public listed property developer or developers who have proven housing projects for bringing high-quality development. Or, you can check the company profile and financial information of the developer that you are considered.
For instance, you can have a look at MahSing Share price and movement to get the latest updates if you have the thoughts to buy their property.
4. Select Your Home Loan
A person from a working society can’t buy a house with only cash. Therefore you need the loan given by a bank, mortgage company or other financial institutions. Choosing the right home mortgage loan in Malaysia is very important as it can decide whether you can own your property or not.
You have to check your credit score and maintain a good credit record as you have paid your credit card loan or other loans on time. Moreover, you have to prepare a complete and detailed financial document to the bank for application.
Since there are many packages provided by the bank, mortgage company or other financial institutions, therefore, you have to learn how to compare offers. For example, even if the loan has the same interest rate, but might be differences in the points and fees that make one offer more worth than another.