We feel you, sis! Buying a home is a BIG achievement in life, many of us are often pressured to get one without being ready for it. If you’re in this dilemma 🤔, unsure if you should buy a home now, try asking yourself these questions first.
What are you buying the house for?
If you are buying a house because your mom said, “Aunty Jade’s son bought a bungalow already, why are you still staying here?” then don’t buy. Just rent. Renting allows you to save your hard-earned monies and yourself from your mom’s savagery. 😏 *of course the better option would be to suck it up and keep living at home* 😌
There should only be two reasons to purchase a property: for your own stay or for investment. If it is for your own stay, then your family needs should come first.
Does it give you space, privacy and comfort you are looking for? 😌
Is it a neighbourhood you’d be happy to stay in? 👨👩👧👦
How far is the nearest the kedai serbaneka for you to get your snacks from? 🛒
These should be the focus rather than whether the property will appreciate in the future or not. 📈
If you’re investing in this property, get a strategic location near to amenities and preferably to key areas. Study the hood and see what is the potential property value growth. After all, you are tryna get money from this, kan?
Have you done proper research on the property?
Budget aside, there are other important things you gotta pay attention to when you wanna purchase a house. Land Title is one of them. For example, if you’re Chinese, you cannot buy any Malay Reserved properties nor Bumi Lot. Some people prefer buying freehold than leasehold properties because they get to own it FOREVER.
You would also want to know the market value of the houses around the area and if there is any major development taking place because this will affect the popularity of your property. Higher property popularity = more rental yield.
“Eh, if I don’t know these things then how la?
In that case, lek luuuu. Take time to carefully read and digest all the information. Don’t buy it if you’re not ready.
Can you get a loan?
Unless you’re a business mogul who can afford to buy a property you like in cash, you’ll have to apply for a loan. The bank is like Santa Claus 🎅 . Before approving your loan, they’ll check your credit score first. If your credit score is high, this means you’ve been very responsible with your money. In return, they’ll reward your good habits by lending you some of theirs 👍🏻. So sweet…
In contrast, should you’ve been naughty with your spending, like always paying your CC bills late 💳, then susah sikit lah to get a green light.
That’s why you gotta make sure that your credit score is flawless. You can check this by downloading CCRIS and CTOS reports. 📄
Are you down to pay the down payment?
True, you can get 100% financing for a certain first-home housing scheme, but what if you can’t? Usually, a potential homeowner has to prep at least 10% of the property’s price. So if you’re looking at that sleek condo in Wangsa Maju that costs RM700K, then you will have to put aside around RM70K for the down payment. That’s the cost of a car, you know? *gulps*
Got extra money or not after the down payment?
We ask because there’s more than what meets the eye 👁👄👁. Not to scare you but, there’s also stamp duties, legal fees, land tax and bank processing fees, to name a few. Then, if you want to stay in the house or tryna appeal to people to rent it, you’ve gotta furnished too. You really gotta think this through.
Becoming a homeowner is a massive commitment. That’s why it’s only smart to hunt for one when you are financially and mentally ready! In the meantime, save your money and plan your budget wisely. Download our app today! Let us be the Alfred to your Batman.
P/S: The Ministry of Finance has just approved an extension of duty stamp exemption under the HOC campaign until 31st December 2021. You should certainly check it out if you’re looking to save some extra cash!