How To Buy A New House in Malaysia: 5 Simple Steps!

Due to the current economic climate, purchasing any property in Malaysia could be considered a dangerous decision. However, it is a rewarding sensation to be looking for high prospective earnings on your investment and the legal room to develop a home that is genuinely your own from the ground up.

As a prudent investor, you should follow basic recommendations to ensure that you get the greatest price possible whenever you acquire property. Here, i complied 5 steps to teach you how to select the perfect parcel of property in Malaysia.

1. Familiarise yourself with the market

Your family and acquaintances may be well-informed about the Malaysian property market that might helps you a lot when you purchasing a property. However, before venturing into unfamiliar territory, you should get firsthand understanding of the real estate industry. Ideally, you should be familiar with the fundamentals of Malaysian residential property, such as the numerous property kinds and land tenures accessible, the many forms of home loans and lending criteria, and the traits of a reputable developer.

2. Know your budget 

As you get more familiar with the property market, the following step is to determine your property affordability level. The majority of financial experts recommend that your monthly payments do not surpass one-third of your income. Assuming you have a total joint income of RM6,000 (if you've a spouse), your monthly instalment on your first property must not exceed RM2,000.

You'll also want to organise your funds. Make sure you're current on your bill payments, as well as any other loans you may have, like as a vehicle loan or a student loan (PTPTN). If you are on fixed pay, you will also require a least of three months' salary slips, and a minimum of six months' salary slips if you are on fixed plus commission pay. Visit the guide for first-time homebuyers applicants in Malaysia for a complete list of required documents.

3. Research neighborhoods for best fit

Is there public transportation nearby? Is it within your budget? 

Many people who intend to move to a new neighbourhood don't conduct enough homework, which puts them in awkward situations. Perhaps the neighbourhood is more posh than anticipated, and the properties there are significantly more expensive than those in the other 20-30 minute away neighbourhood.

Don't choose a neighbourhood solely because it has a desired and trendy address.  For example, buying a Kuala Lumpur properties is very convient to you to travel around due to the public tansportation. But the pace of life of kuala lumpur is relatively faster than other areas. Make sure it will fit your lifestyle.

4. Home Inspection

Usually, purchase offers are conditional on a house inspection of the property to look for indicators of structural problems or items that need to be repaired. Your real estate agent will normally assist you in scheduling this inspection within a few days of the seller accepting your offer. If the inspection reveals serious material damage, this contingency protects you by allowing you to renegotiate or withdraw your offer without penalty.

A report on the findings of the house inspector will be sent to both you and the seller. You can next determine whether or not you wish to ask the seller to make any repairs to the property before closing. You will have a walk-through of the house before the sale closes, giving you the opportunity to ensure that any agreed-upon repairs have been completed.

5.  Ready Paperwork, closing the sale

Purchasing a home, as you might expect, entails a significant amount of paperwork. Your lender will hire a title company to handle all of the paperwork and ensure that the seller is the legal owner of the property you're purchasing.

You will sign all of the papers necessary to complete the transaction, including your loan documents, during closing. After the paperwork is submitted to the lender, it usually takes several days for your loan to be funded. You're ready to move into the new house once the cheque is handed to the seller!