There is so many thing in our life we need to do a little research and survey before we can decide what we want. Especially if we are about to buy a house, its the biggest decision in life because we have to carried the commitment (monthly installment) for lifetime. So, do not simply do it and keep on doing some research. Here is my little guidance after what i have been through since last month (February 2017)
For example. we want to buy a house, either new one or from a new owner,
First of all,
Look for property/home
1. Location of the house, Distant from the downtown, and work place, hospital and etc.
2. House Price: is it worth to buy? Is it financially affordable?
3. Interior of the house, does it need further renovation this include lamp and wiring, curtain and railing, sink and cabinet, toilet, fix any leak from the ceiling, mosaic, in order to move in. if yes, we need to estimate the cost to add on to the house price.
4. We need to change the lock of every door for safety purpose and get to know to the neighbourhood.
Loan home from bank or any government subsidized loan (in this case it is the lowest rate from bank)
1. Research on the amount that is about to be loan and approve, mostly just able to approve 90% of loan and 10% is from the buyer or purchaser.
2. Compared the interest rate from the bank, of cause usually we will choose the lowest rate of bank.
3. Try to find out for the lock-in period, which means a person can't do the full settlement in the period usually 3-5 years.
4. Try to find out what kind of imbursement and charges that we need to pay. (such as stamp duty etc)
5. Don't overloan from what you need, this will burden you just for that extra cash.
6. For government loan, try to get all the document needed prepared and approval from the head of department, in case the house was a second hand, try to get the document from owner as well to proceed the processing of the loan.
Next step is to do research on
1. Lawyer firm (usually agent of real estate and bank will appoint a lawyer firm but better to do some research) for both S&P and loan agreement legal fee. For additional information, any purchasing of property may have to submit a form to LHDN to report for possible tax. Search for the best lawyer firm of the current location to get the best service out of the local. :) Usually the type of house that developed by developers are property with master title. Don't give the wrong information (but this will be taken care by the agent realty estate)
2. Insurance:
a) Home insurance: try to do some survey and research on at least 3 best insurance policy every known. try to find out how is the coverage of the insurance and any probation period for claiming. usually after 6 month from the insurance date.
b) Life insurance: usually bank will provide the loan together with the insurance to protect the buyer.
3. For preparation of this both expenses try to have cash in hand approximately RM10k to ease the prossess of the legal fee.
Most of all try to take times for every little decision you will be making because it will affect you for life time financially in this case. :)
A little updates, don't forget to prepare some money for cukai pintu, management fee.. This two additional expenses may burdenful if financially not prepared..
