There are many schemes available out there to help the nation to afford a house, such as PR1MA, RUMAWIP and so on. Buying your first own property to be called home is another milestone achieved in your life. Whether it is for investment purpose or own stay, most people are still confused with the steps of buying a new houseand which insurance to choose from: MRTA or MLTA. Therefore, this article aims to guide you through the procedures and steps in buying new house in Malaysia and save you from unnecessary troubles.
A. Planning ahead Try narrowing down your options and figure out your budget to see how much you can afford to pay before making such big decision. Also, you will need to decide on: (i) Location Location is an important factor as it makes a huge impact in your daily life. Firstly, you will need to decide if the property is for investment purpose of own stay. As for own stay, you may prefer to stay out of the jam and busy city and prefer a quieter place whereas if it is for investment purpose, you will need to know your target audience. (ii) Education institutions This is also one of the important criteria that you should take into consideration, whether or not the property is for investment or own stay. If the property is for own stay and you have children, this will save you from the daily road congestion. If it is for investment purpose, the more education institutions will then attract more potential renters (students). B. Do your preparation After planning, you need to start with your preparation. Break down the costs that you need to deal with if you were to buy a new house in Malaysia. These will include: (i) Type of Loan Decide which kind of loan that you would opt for as there are a different kinds of mortgage loans for you to choose from when you buy a house in Malaysia: Standard Home Loan, Flexi Home Loan or Islamic Home Loan. (ii) Downpayment After deciding on which house to buy in Malaysia, here comes the down payment. Usually, a property’s down payment will be fixed at 10%, depending on how much bank loan you have secured. In other words, if the bank is providing you with a 90% loan, you will then only need to pay a 10% downpayment. (iii) Stamp Duty on Memorandum of Transfer The Memorandum of Transfer (MOT) fees will be the final fees to be paid by home buyers upon the completion of development. These fees are for the ownership transfer of property to the home buyer, also known as the rightful owner, and will only start to be transferred around 6 months after the development’s completion. However, do note that there are other costs that need to be taken into consideration as well when you purchase a property, such as:
In conclusion, the procedures of buying a home on your own is not diffuclt as long as you plan ahead and stay within your budget. Remember to always be realistic as you do not want to get yourself into a financial burden after getting a home.
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