Tips: Buying a Property

Buying a property anywhere can be a risky business, but with the right steps taken, you can turn your property into a good investment, or simply making you a proud owner of your value-for-money property.

Here are some tips on how you can make sure the property you purchase will be worth every penny: -

1. Preparing a Checklist

• Type of property
  First of all, you must know what kind of property you wish to buy. Is it a terrace house? Apartment? Condominium? Bungalow? Or a shop lot? There are four types of properties a foreigner can buy in Malaysia – apartments, land, landed residential properties or commercial shop-offices.
• Size of property
  You should determine how many bedrooms and bathrooms you want in that residential property, or how big is the space you want in the property for commercial purposes.
• Use of property
  Is this property intended for your own use as a residency or office, or is it used as an investment? You must be certain of your “wants” and “needs” before you buy a property, so that you will be able to get the right property you desire.
• Location
  Where do you want this property to be located at? Should it be near various amenities and facilities for convenience sake or is it better if it is located far away from the urbanised areas to have a little peace and quiet home?
• Budget
  Now this is a very important aspect to look out for when you are buying property. You need to make sure you have the appropriate budget in order to buy your dream property. Therefore, it is crucial that you separate the “wants” from the “needs” carefully before making a final decision. If your budget is not quite there yet and you can afford to wait a little longer so you can save more money first, then be patient so that you can buy a property that is truly satisfying. There is no point in rushing when you want to buy a property because you would not want to regret spending a huge amount of money on something unworthy.
• Leasehold or Freehold?
  Although some buyers do not mind, there are those who prefer to purchase a property with freehold as they want to completely own the property by themselves and know that they can safely pass it on to the next generation.

2. Getting Advice from the Experts

• Trustworthy real estate agents
  When your checklist is set, it is now time to get help from the experts. It is important to find trustworthy agents who will sincerely help you along the way without bailing on you after making his/her commission. Consult your family, relatives or friends who have had good experience with a particular agent. Word-of-mouth can be a powerful tool.
• Financial consultation
  Here is an area where more research is needed to find out which financial institution is offering the best deals on mortgage loans or lower interest rate. A thorough financial planning will prevent you from being indebted in the future.

3. Background Check

• Site visit
  It is advisable for you to drop by the property site to check out the area yourself. You need to see it with your own eyes so that there will not be much regrets on the location should any complications arise in the future. It will be even better if you can have a look at an open unit for an up-close view of your property.
• Established developers
  Make sure you check out the history and background of the property’s developer in order to have security that the property is/will be well-developed. You can also avoid unwanted issues or arguments with an irresponsible developer.
• Credit check
  Ensure that you yourself have a good credit history and record so that you will not be denied loan when the financial institution runs a credit check on you. Settle all your old debts before building up more new ones.

4. The Overall Process

• General knowledge
  Equip yourself with the general information of how the whole purchasing process is as many first-time buyers will have difficulties in having a smooth deal because they do not know so much about the procedure. Do not get yourself frustrated unnecessarily.
• Documentation
  Get your paperwork done and do not gather your documents at the eleventh hour, before you finalise the purchase.
• Payment
  Always make sure there are no hidden costs before making your down payment. Some buyers get tricked into paying extra money when buying the property because they are unaware of such hidden costs.

Hopefully, the tips above can prepare you to be a better buyer. The bottom line is, do not wait until the last minute to buy a property because it would be sold at a much higher price, especially if the property is in the final phase of development or already fully developed. Always compare notes with other parties as more good opinion can help you decide better.