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Determine Your Requirements
Whether you look for
property online or through an estate agent, having a precise idea of
your requirements will greatly assist in finding your dream home.
The main criteria are:
1) budget
2) location
3) type of property
4) property size
Budget
Your initial budget is the amount of money you are prepared to spend
to acquire your property.
Your budget should include:
1) Down payment: the proportion of the purchase price not covered by
financing (banks will typically lend 80-90% of the purchase price)
2) Legal fees: 1% for the first RM100,000, 0.5% for the next
RM4,900,000
3) Property stamp duty: 1% for the first RM100,000, 2% for the next
RM400,000
4) Loan agreement stamp duty: 0.5% of loan amount transfer
5) Disbursement fees include fees for registration of charge, land
search and bankruptcy search (RM300–700 in Wilayah Persekutuan and
Selangor)
6) Processing fee: one-time fee charged by the financial institution
for loan processing (RM50-1,000)
You will also need to think about ongoing costs following acquisition
of the property, such as financing costs. As a guide your monthly
commitments on paying installments for your house, car and other
payments should not exceed 1/3 of your gross monthly household income.
The Base Rate (BR) and Base Lending Rate (BLR) is currently 6.60%
(most banks offer a small discount to BLR). The length of a loan can
range anytime up to 30 years.
For latest information on BLR & BR, see
http://br.my/
Location
Location is critical to your decision so get to know the area properly
before buying. You may consider renting for a few months before buying
in a new area. The following considerations will affect your choice of
location:
1) proximity and access to work
2) proximity and access to schools
3) amenities including shopping, leisure, religious facilities, parks
4) safety
5) prestige
Type of Property
The main distinction is between landed and non-landed property. Landed
properties include detached, semi-detached, and link houses.
Non-landed include condominium units and flats. Apart from your
personal preference it is worth bearing in mind that landed properties
tend to appreciate more than non-landed properties while non-landed
properties tend to give higher rental returns. You should also
consider whether you want a basic home which you may want to renovate
yourself, an already-renovated home or a new home. You will also need
to consider whether you want a freehold or leasehold property.
Freehold properties tend to appreciate more and are easier to sell,
but if you wish to stay in your property for many years you may prefer
a leasehold property as you will be getting a better house for the
same money.
Property Size
Make a checklist of your requirements:
1) land area
2) built up area
3) number of bedrooms (do you require a bedroom on the ground floor?)
4) number of bathrooms
5) reception rooms
6) size of kitchen |
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