Home ownership is a crucial decision, especially for first-time buyers. It involves many procedures that you should understand thoroughly to ensure your journey is exciting rather than daunting!
If you’re ready to buy a house, you’ll need to consider various factors to determine affordability. Establishing criteria for your dream home and neighborhood could mean finding the perfect fit—or avoiding costly mistakes.
The first factor is price. What can you afford to spend on a property? Your lender’s preapproval letter will state the maximum loan amount you qualify for. Factor in your down payment and monthly mortgage payments, alongside recurring debts and household expenses (like daycare, groceries, utilities, tuition, etc.). Also, set aside savings for home maintenance and repairs.
As a homebuyer, prioritise properties with easy access to essential facilities such as hospitals, schools, public transport, banks, grocery stores, and other important locations.
Many aspire to property ownership without adjusting their lifestyle to afford their dream house. It’s crucial to be realistic and identify your needs and wants—must-haves versus nice-to-haves—before making a purchase, while still managing social activities and other financial commitments.
As for down payments, ensure you have at least 10% upfront. Additionally, consider other costs like legal fees, real estate agent commissions, and stamp duty. Most banks in Malaysia offer loans covering approximately 90% of a property’s price for your first two residential purchases.
The second condition is home type. Single-family homes typically involve higher upfront costs and maintenance responsibilities compared to condos or townhomes. While condos and townhomes are usually smaller and less costly, they may have higher monthly fees for shared amenities, services, and maintenance.
Choose a property that meets your individual and family needs in terms of size, room layout, exterior features, driveway size, car porch dimensions, and privacy level.
While there are still details to finalise—such as securing your loan and deciding whether to consult an independent mortgage advisor—it’s time for the enjoyable part!
Start your property search online. Explore available listings and compile a list of preferred areas and bookmarked properties that align with your criteria. Consider all factors and consolidate your research — don’t get swayed by family or friends who tell you unsubstantiated trends or rumours about property trends.
Good luck on your journey to becoming a homeowner!