Assalamualaikum fellas. 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
sales and purchase agreement and steps of buying a new house in
Malaysia. Buying your own property may seem easy but when it comes to
going through the procedures of buying a home, you then realize that you
have missed out on many steps and wished you know the steps earlier so
you could avoid the unnecessary troubles. With so many properties for
sale recently, such as properties in Cyberjaya, there are things you need to understand before buying a property in Malaysia and it will definitely save you from unnecessary troubles.
A. Before
1. Budget
You will need to plan your budget ahead. Set a realistic budget and stick to it to prevent yourself from getting into financial debt. You could always work out on your affordability by using the loan calculator available. As a general rule of thumb, your monthly mortgage repayment should not be more than your monthly salary.
2. Location
Location plays an important role in deciding where you should be buying your property. Properties located in different locations have different prices as well. You might want to look for a location where it is easily accessible via major highways and the public transportations available such as trains and buses. The convenience is an important factor as well as you would definitely want to stay in an area where food and amenities such as education institutions, playground, library and so on are easily found. A clean environment and well planned township are definitely a bonus too.
3. Developer
Choosing a reputable and trustworthy developer when it comes to buying a property is important. Make sure you choose the right developer who can promise good quality property and manage to complete the development on time. Do your research beforehand and ask around before you decide on which property to buy.
4. Product
Make a list of features that you must have when it comes to purchasing a property. It will help you to narrow down your options. There are things that you should not compromise if you are planning to stay for a long period in the property you intend to buy.
5. Environment
Look for property that is located in a large township instead of a property that is located at an isolated estate. In addition, larger township would mean more amenities for you. Also, do avoid buying a property that is next to industrial areas.
B. During
1. Land tenure
Check for the property title carefully to see if the property has a freehold title or a leasehold title. Most premium properties come with a freehold title. If the property that you are interested in has a leasehold title, you will need to check how many years the title are left with. That being said, the shorted the leasehold period, the lower the value for the property. Do bear in mind that properties with leasehold title will need the consent from state authorities for any transfer process, which can be really troublesome.
2. Orientation
You will need to check the direction of the property. A unit that faces the North, East or South is better than a unit that faces the West as it will be hotter in the afternoon.
3. Specifications
Do check on the specifications of the unit material such as the floor, ceiling, wall, windows, doors and so on as you definitely do not want to buy a unit with bad quality. Furthermore, the type of material used will greatly affect the safety as well.
4. Level
You could also decide on whether you would like to stay on a higher floor or a lower floor. Staying in a higher floor will definitely give you a better view and ventilation as compared to staying in a lower floor. Furthermore, staying in a lower floor will give a higher risk of flooding.
5. Agreement
The sale and purchase agreement for incomplete units that are purchased by the developers is standard and usually executed by the government. As for other secondary properties, the agreement is executed by either party, depending on the negotiations done between both parties.
C. After
1. Payment schedule
After purchasing, you will need to start paying for the mortgage monthly installment. Do make sure you make payment on time to avoid getting charged for late payment.
2. Other payment
There are also other charges that you will need to pay for, such as the quit rent and assessment fees. Miscellaneous fee such as rubbish collection, sewage cleaning, grass cutting (landed property), maintenance and management fees (condominium or apartment) and so on.
3. Completion date + Delivery of Vacant Possession
The developer has 24 months (landed property) and 36 months (condominium and apartment) from the date of Sales and Purchase Agreement to provide vacant possession with electricity supply and water supply. Should the developer failed to provide you with both electricity and water supply, you are allowed to claim for 10% of purchase price per year from the developer.
In addition, the developer must deliver a vacant possession at the soonest possible once the architect has issued the Certificate of Practical Completion.
4. Defects rectification
If you found any defects in the unit after you move in, do submit a list of defects to the developers within one and a half year, starting from the date of vacant possession. The developer will then have 30 days to rectify the listed defects. If in any event where the developer fails to rectify the problems, you could engage with someone to rectify the problem and have the costs charged directly to the developer prior to 14 days notice to the developer.
In conclusion, the process of buying a property in Malaysia is not that difficult after all. It might be tedious but if you have done your research and homework beforehand, it should not be a big issue. Most importantly, you should stick to your budget and only purchase a property within your mean where you can afford.
YatieOwner
