Do some research on the property market. Try to do your own research or if you do have an extra time to spare, you can meet and learn from experts, fellow investors and homebuyers about the current condition of the market and average price of the houses. Try to search for any housing schemes that’s eligible for you. There are a lot of housing schemes that can save a lot of your money offered by the Government such as MyTransit and PR1MA. You need to visit their official website to check whether you fit the criteria. Now, it is the prime time to decide whether you'll hire a real estate agent, if you haven't already. While you're under no obligation to do so, there are several potential benefits to working with one. First of all, an agent can provide access to more home options than you'll likely find yourself, as well as set up viewing appointments. Since home-buying can be an emotional process, an agent can also act as a mediator between you and the seller.
Budgeting, Capability & Planning
Your next step in the home-buying process is to determine your budget that fit you financially. Most financial experts recommend that you allocate no more than one-third of your total income to pay off your home loan and the mortgage payments generally not exceed 28% of your monthly gross income. Next, determine the type of home that suit you. For this step, you need to look into your lifestyle and the commitments that you have. For the younger home buyers, you should prefer a condominium or an apartment that offered a large choice of facilities within your residential area. For those that have a family, you should opt for landed houses such as terrace house, semi-detached house or bungalow. For your first home, you need to put a down payment of 10% of your intended property's price as in Malaysia, most banks would offer up to 90% of the property's price (margin of financing) for your first two residential properties. Apart from the down payment of 10%, there are other costs such as legal fees, 6% government service tax to be charged on the real estate agent's commission, stamp duty, and so on. So, do not overlook these matters to avoid any problem in acquiring the home.
The interest that banks charge will be determined by the Base Lending Rate (BLR) set by Bank Negara Malaysia (BNM). So, get yourself familiar with the calculation before applying for any financial loan.
Now, you already found a house that grab your attention! Once you and the seller have agreed on a purchase price, you will need to sign a standard document and pay the 2% earnest deposit.
Review the Contract
Now, the seller accepted your offer - congratulations! But before you sign on the dotted line, you should make sure to review the contract thoroughly and understand every single clause.Pay special attention to contingencies in the contract, which spell out situations when you can back out of the sale to help protect yourself in case something goes wrong. For instance, such scenarios can include if you discover that the home has serious physical defects or if your bank reject the financing loan
Make an Offer
Research the current packages and go for one that best suits your repayment profile. Visit your selected bank and apply for a housing loan.
Closing the Deal
Once all the paperwork has been completed properly by your lawyer, you can make arrangements with the seller to get the keys to the property. You're entitled to a walk-through to confirm that nothing has changed since the inspection. After that, make sure you have all the money required for the closing wired into the correct account.
Renovate & Clean-Up
Now you’re the new homeowner. If you decided to renovate your new house, meet your contractors and interior designer, and submit your renovation plans according to your chosen concept. A good and proper renovation will increase the house value if you decide to sell your property in the future. So, don’t mess up this step or else you’ll suffer losses.
Welcome to New House !
Finally, it is the time that you are waiting for. You can now enjoy your life in your new house with ease of mind.