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 house in Malaysia, or a home. In addition, there are also many schemes available for home buyers such as RUMAWIP, Skim Rumah Pertamaku ,and so on.
This article aims to guide you through the procedures and steps in buying new house in Malaysia and save you from unnecessary troubles.
- Planning ahead
First of all, be clear of what you want and stay within your budget. 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.
(ii) Safety
This will be the main concern of property buyers regardless of the purpose of property buying, be it for investment purpose or own stay. You will not want to stay in an area where crimes are largely committed.
- 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) Property Price
Based on your planning above, you will need to start with checking out of the property price after the above considerations. Location of property will decide the property price. Properties in a prime area such as Kuala Lumpur City Centre will always be on the higher price range as compared to those not in the city.
(ii) 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
- Islamic Home Loan
(iii) 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.
(iv) Sale and Purchase Agreement Fees
Next, the Sale and Purchase Agreement Fees (S&P). This is an important document with the blueprint of the property and it is charged accordingly to specific price tier that is based on the price of property the buyer buys.
(v) 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.
Lastly, the signing of documents. After your planning and preparing sessions, buyers will then proceed to the signing of Letter of Offer, follwed by the signing of the Sales & Purchase Agreement. Lastly, the signing of Loan Agreement.
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.
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