In Malaysia, several spots like Johor, Selangor, Kuala Lumpur and Penang really have a huge market for the house. The house price increases every year. But in several places, we will see a little drop of the house price. For the first time house buyer like me, I would like to share my experience on buying the new house for the first time. After successfully buying a house, I noticed I had made several mistakes when signing the paper (home loan agreement).
What do I wrong? Not really wrong, but make some mistake in several parts of buying the new house. When you’re gonna buy the new house, firstly you must consult with the House Seller or House Developer to target your dream home. They will ask you your budget to buy the house and what monthly home payment you able to compromise.
Guidelines For First Time Home Buyer
If you target to buying the house in the price range below than RM150K, the developer will show you several houses that suit for our need. We must do the site viewing to know more about the design, location, market price, safety, and so on. After you agree with the house that you choose. The developer will ask for 3-6 month payslip, KWSP, bank statement, IC and so on. They will make calculation base on bank guideline to see whether you are the feasible candidate to buying the new house base on your monthly salary.
Below I will point out the several tips for first-time house buyers base on my experience. Buying the right property is a must to do. The missing step that you take, will cost you more money after sign the housing agreement.
- Do the site viewing
- Have at least 10% money for down-payment
- Ready for lawyer agreement service charge
- Complete all the document needed for developer, bank, and lawyer
- Target your house loan agreement (15, 20, 30, 40 years) – encourage to low tenancy of years loan
- New house not used house
- The house price must be below market value (important for investment)
- Target future plan whether house for self, renting, home-stay, selling or others
- Rent price vs monthly installment (positive or negative) for cash flow
- Safety and misc like police, fire station, post office, hospital, shop-lot and so on
After ready and understand all the point I list there, you able to see why first-time house buyer needs to be more careful when buying the new house. For the house, the first-time buyer, do check all several things and not making the panic decision is important to ensure we make the right choice for our future. Happy buying the new house.