Avoid These 5 Mistakes When Buying Your Property in Malaysia
Buying a property is a big decision, and it's essential to get it right. It can often be an emotional process, yet it is important to keep your head clear and make rational decisions because even the most diligent homebuyer can make mistakes when purchasing a property.
So before you pursue this exciting journey, here are 5 mistakes to avoid when buying your next home.
1.0 Forgetting hidden costs
Buying a property is not just about the downpayment and monthly mortgage payment. You should take into account some other costs such as MOT (Memorandum of Transfer), legal fee, stamp duty, and disbursement fee.
While selected fees may already be included as part of the package for buying new property developments just like this investment, it is essential to check with the property agent in detail and factor those in when considering how much you can afford to spend on the home you want.
2.0 Forgetting to factor in other costs of homeownership
Aside from the ‘hidden costs’ and the monthly mortgage payment of buying a property, there are still many other expenses associated with owning a home. For example, property management maintenance fees when purchasing a condo or townhouse that are not associated with the monthly mortgage payment can really add up over time.
You will also need money for maintenance, renovations, repairs, and improvements down the line. These can include things like painting or replacing flooring or appliances. Also, do not forget the annual fees for owning a property like Property Assessment Tax (Cukai Taksiran) and Quit Rent (Land Tax; Cukai Tanah). If you require further assistance on this, you can find out more with us.
To manage these expenses more effectively, keeping a record of these will help you in the long run so you can better manage and track them.
3.0 Focusing on the wrong things
When house hunting for a new home, it's easy to get caught up in things like square footage and the number of bedrooms instead of looking at more important factors like location and condition. A good example would be considering the property management in charge of strata property and the neighborhood's culture (which many buyers tend to overlook).
You should consider factors like, will the property be appropriately maintained, or will the security make me feel safe? With these considerations in mind, the service quality of the property management company in charge can make your living experience in the condo or townhouse a dream or a nightmare.
So before finalising your decision, it will be a good idea to prepare a list of the factors that matter most to you and stick with it.
4.0 Taking the first mortgage offered to you
It's tempting to accept whatever terms the bank offers to simplify the process and get things moving quickly, which is true but not necessarily a good idea. So before signing on the dotted line, take some time to apply for multiple loans. Remember, different banks offer different rates. So, not only will this help ensure that you get the best possible rate, but it will also allow you to compare different lenders' rates and fees.
5.0 Not working with a property agent
It is highly beneficial to be engaging a property agent when buying a house in Malaysia, either for your own stay or property investment, especially if you are looking to buy a new property development. We can guess what comes to your mind will probably be along the lines of
“Why not just buy from the developer? They are the ‘original source’ of this development after all.”
While that is true, you may miss out on a few things by not working with a property agent.
Firstly, working with a property agent can help save you time and stress. This is because property agents often have multiple property portfolios on hand. Hence, they will be able to evaluate and propose the best available options for you, just like our industry partners here. As a result, you can get the best deals and avoid overpaying for your home.
Real estate agents are trained professionals in property with a broader perspective and a better understanding of the overall property market in the area you are looking for (this is what it means to be ‘property area specialists').
Conclusion
The above points will help you clear some common pitfalls when purchasing a home. If you go into a purchase blindly, you're setting yourself up for significant problems.
We want to assist you in making better-informed decisions. The property market is volatile, and the values are often changing. So do due diligence, and have a realistic expectation of what you should be getting for your money. And if you are not sure how to, ask us!
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