There are a lot of things that can happen when you’re looking to purchase your first home and sadly, even after all the research that you’ve done, you’re bound to say, “Alamak, I wish I knew this sooner!”
Some of them can actually be quite common too. To make it easier for you, we’ve put together a simple guide to help identify and find a solution to these mistakes…
1. NOT researching the background of the developer
Most Malaysians only take note of the price, design, location, and payment plans of the house. However, forgetting about looking into the background of the developer is SUPER dangerous. If your developer suddenly goes bankrupt or lari, then you won’t even HAVE a house you know!
Ample research! Here are a couple of things that you should definitely look out for:
- A strong and reputable management team
- The quality of their houses – are there common wear and tear, or defects after occupancy? For example, placement of downpipes (it should not be close to anything wooden) as well as noticeable cracks in structure. These and a few other things like the finish of the paint or even the plumbing would be good indicators.
- What sort of reputation the property developer has built up – are they reliable?
2. Not considering options outside of the city area when you’re looking at location
Source: WORLD OF BUZZ
Of course, most of us would think that the city is the best location to purchase a new house but we don’t always consider the impact of it on our lifestyle and mental well-being.
Do you really want to constantly be stuck in traffic jams? Is it really worth paying that much more? That’s why it pays (literally) to really keep your location options open and not settle for the closest (or most convenient) one.
- Look for places with major infrastructure and highways that will help you link you to where you need to go
- Take a proper look at locations that are away from the city area – narrow it down to a certain amount of km to make it more exact
- There are plenty of township options that come complete with great facilities like public transportation and malls nearby
- Ensure that the developer is planning to enhance the infrastructure of the area.
3. Buying a pocket development versus township
If you’re not too sure what the difference is, a pocket development is one whereby the developer only builds up the house itself. In the case of a township, the developer would not just provide the house but also other facilities like a clubhouse, a park and usually some retail outlets nearby too.
It is best to really consider some of the advantages that a township would have over a pocket development. Some things that you would want to look at are:
- The potential capacity for the township to grow. So that, within the community you will have access to malls and other things pretty easily
- You should also take your time to understand the gated guarded concept, as it would give you an extra layer of security.
4. Buying a house just because it’s affordable
Most Malaysians would opt to buy a cheaper house, mainly for the convenience and affordability but NOT consider the long term impact of their purchase.
However, in the end, this could end up affecting you in the long run and might even end up costing you more money than you realise. If a deal is too good, ASK WHY is the price this low?
Make sure you consider all of these extra factors when you’re looking at the long term benefits of purchasing your first house:
- Environment (landscape) – Would the area offer enough trees and other facilities like a park to give you a more peaceful lifestyle?
- Security – Is it a gated community or would the developer provide an alternative security plan?
- Layout and structure – This is especially important if you’re a young couple. Don’t just consider smaller landed properties if you know that you will be looking at expanding your family in the future. There should be sufficient space for your family to grow.
5. Struggling to dig down for that 10% down payment for the house which will affect your cash flow
It is the ultimate dream for many Malaysians to be able to afford their first home but the effort and commitment it takes to get that 10% down payment is something else entirely.
With many of us still living pay cheque to pay cheque, anything that affects our cash flow can lead to disaster.
- Keep looking into as many options as possible – nowadays a lot of developers offer great rebates that won’t require you to pay the full 10% down payment, so be wary of making those assumptions
- You should maintain an emergency fund that’s enough to cover about six months of living expenses
- Consider different repayment plans that can help minimise your cash flow and increase your savings. Yes, it is possible!
- Compare bank loans between different banks carefully to find out what the best one is for you. Some key things to look out for are interest rates, how long the repayment plan will take and how your finances will be affected
- If you really need to, you can take out a certain percentage of your savings from your EPF 2 account. How much you can take out would depend on how you’re purchasing it (individually or with a partner) and if you’ll be taking a loan.
Well, there’s definitely a lot of options available in terms of financing your first home but here’s a useful one that you’ll definitely want to add to your list!
You don’t have to worry about that 10% down payment with the #OnlyEcoWorld Help2Own campaign!
Thanks to EcoWorld, all you have to do is pay a mere 5% for your down payment, get a 70% loan from the bank and they will help you sort out the rest.
Sounds great, right? Watch this video to see what we’re talking about.
If you’re ready to take the next step in your journey as a home buyer, click here to find out more!
Klang Is A Red Zone But School Sessions Will Carry On, Says Education Dept
The Selangor State Education Department (JPNS) says that school sessions in Klang will still continue as usual even though the...
Police Arrest OKU Man With Pink Tag At A Supermarket In Melaka
Police have arrested a man with hearing disabilities who was wearing a pink tag. The man was arrested at a...
Kitchen Helper From Huckleberry Damansara Heights Tests Positive For Covid-19
Huckleberry Damansara Heights just reported that one of their own kitchen helpers tested positive for Covid-19. In a statement put...
PM: Interstate Travel Between East Malaysia To Semenanjung Temporarily Banned
It looks like Malaysia isn’t going into lockdown yet, but if they consider it, they’ll let us know earlier, at...
Health DG: Third Death Case Today Is 1-year-old Baby From Semporna, Sabah
Malaysia recorded an all-time high in the number of Covid-19 cases today, 691 positive cases with 688 local transmissions and...