How To Own A House In Malaysia?
There are many properties for sale in Malaysia such as properties in Penang or properties in Kuala Lumpur. Buying a house can be quite a daunting experience especially for first timer. This article will guide you through the checklist that you need to know before buying a house in Malaysia. There is also a complete guide to the basics of applying for a housing loan for you to refer 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.
16 - Move in
Lastly, pack your things and move into your new house. Arrange for a housewarming and invite your family and friends over to your new house.
In conclusion, the procedures of buying a home on your own is not diffuclt 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.