It is almost impossible to be too prepared to make your biggest purchase ever. Of course, we are talking about the decision to purchase a home. If you are considering joining the league of successful new homebuyers, here are a few tips that you should consider adding to your arsenal.
Deciding How Important Buying is to You
Although it is a matter of more than how much you have in the bank, right now, purchasing property in Malaysia is cheaper than renting. There is no definite wrong or right answer when it comes to renting versus buying your own dwelling. After all, everyone has his or her requirements. However, becoming a residential owner does offer you a set of benefits, as well as headaches, but so does renting. You might have to carefully consider the advantages and disadvantages depending on your current or future situation, as suggested by Life Hacker.
Work with Your Current Income
A raise is not always guaranteed and your career can also change in the future. If you are basing the size of the house you are about to purchase on your future income, get ready to deal with rising debts as you race to keep up with payments. In the end, being too optimistic about your future salary may leave you worse off than if you had used your current salary figures.
Beware of Quick Fix Residential Properties
A fixer-upper building allows you to purchase a residential building in that neighborhood that you would probably be in a position to afford, as long as you are willing to invest time and money in renovations. The renovations can be done as a DIY job for you and your family or by professionals. However, such an investment can quickly end up becoming a money sink hole. If you are willing to put in the finances and energy required for such a house, make sure that you get a proper inspection before committing yourself to the deal. Also, be prepared to take on the responsibilities of working on your new residence
Save for the Down Payment
One of the best ways to get smaller, better rate mortgage payments is by putting down a significant amount of money as down payment, which is around 20 percent of the asking price. Start saving as soon as you are nursing the idea of buying a dwelling, and do not forget to also take into consideration other related costs including taxes and fees.
Be on the Lookout for Deal Breakers
Apart from having a checklist of the things you would like your new home to have, you also need to include a few more deal breakers. Some of the potential deal breakers include:
- A building in areas that have a high risk of flooding
- A number of sewer and plumbing issues
- A residence that is within a constrictive local zoning region when it comes to improvements
- Electrical systems that require a major overhaul
Besides that, as you walk around, look past the attractive colors and fixtures and look for sure signs of trouble like cracks running along the walls or water stains where there should be none.
Know the Buying Process
When you are finally ready to purchase a home, one of the first things you should pay particular attention to is how the sale and purchase process of houses works in Malaysia, as described in the Malaysian Bar website. There is a lot to know, but once you are confident with the basic steps, it does become easier. Even as you read up and research on the buying process, there are several important things you should keep in mind, including:
- Do not think of your primary place of dwelling as an investment.
- Do not purchase if you do not intend to stay in it.
- Have your own agent, if possible. Do not trust that the buyer’s agent is offering the correct information.
- Do not get emotionally tied to the process. Be prepared to walk away if something does not feel right or if the house does not meet your criteria.
Learn More About Your Prospective Acquisition
When you have found a house that you can see yourself living in, you will want to find out as much as you can about it before you put down the deposit. Have your agent confirm the length of time the building has been on the market. If it has been on the market for months and with no offers made, it could be overpriced or not doing so well because of a particularly slow market. Ask if it is possible to get copies of the previous owners’ utility, tax and insurance bills, so you understand the true worth of moving into that specific house. Search for previous records on sales to find out how much it cost, and the length of time the previous owners lived in it. These records will offer you invaluable insights about the history of the property.
The Right Property for You
When you look for a house for sale in KL on PropertyGuru Malaysia, do not make the mistake of just picking the first house you see. The house you choose to purchase should fit into your five-year vision that you have for yourself. It is not a wise decision to spend money and time on something that you will quickly outgrow in a few years. Instead, purchase property that not only fits your current lifestyle and stage of life, but will also work well for you as you get older. One of the biggest mistakes first-time homeowners made in recent years is purchasing a house as an investment, and not as a place they can live and grow old in.
The next thing is to ask yourself how often you will be at home. If you travel a lot or work long hours, a large residence that requires lots of maintenance will not be your cup of tea. A 3-bedroomed house with a yard may be within your range, but who will take care of it? On the other hand, an apartment requires minimal upkeep.
The home you purchase should comfortably accommodate your current and intended household. However, this does not give you the leeway to purchase a bigger structure that you cannot possibly afford. Instead, take into consideration a few issues like:
- If you are single and one day hoping to settle down. That one-bedroom will probably not be enough in the future.
- A newly married couple planning to have kids may require something bigger than a two-bedroom unit, especially if one of the rooms will be converted into an office.
- Childless couples planning to stay that way should consider purchasing property with a guest room.
- Families with pets will find it uncomfortable to live in an apartment in a high-rise building; they can, instead, look for a single-family unit.
- For the retiree purchasing a first home or who feel that they might not be among the active senior categories, a property out in the suburbs may be a better option compared to a multistory property with lots of steps.
The Final Word
When you are looking for a new place to live in, it may feel like you are being pressed into making an offer you are interested in right away. Take your time, relax, and shop around, since this is a major purchase that is likely to impact your future. Remember: shop around for mortgages, too, including homeowner insurance covers. When you finally find your dream home, you can still make an offer even if it is already under negotiation with another party.