Buying first house in Sabah probably is the biggest decision you make today, congratulations! As a first time home buyer, things can be overwhelmed.
We are worried about making wrong decisions and getting nagged by our father / mother / husband / wife / children for the rest of our lives.
Fret not. The following are the essential things you need to consider before buying a house.
At the end of the day, buying a house can be a massive once-in-a-lifetime decision for many of us.
Choosing the right location is an important process. It determines your priorities and turns your dream home into reality. Most of the people will look around at the neighborhood that they are familiar with.
Do not buy a property in an area where you have never been to or heard about it! Moreover, you should analyze these key factors to help you decide between a good location or a bad one:
- Geographic location
- Low crime area
- Nearby amenities
- Traffic jam status
2. Understand your affordability
Then, you need to know how much loan you can afford each month. And be prepared before applying for a loan from a bank.
Landed vs high rise; new project vs second hand property; and the property’s size and location will definitely affect the price of the property.
It is recommended that monthly housing loans should be paid in installments and should not exceed one-third of the total household income. In this way, the family burden will not be too great.
3. Check credit score
Before buying a house, there is an important step, which is to use the Central Credit Reference Information (CCRIS) and Credit Alert Service (CTOS) reports to check your credit score.
Credit scoring is a scoring system used by lenders to help you determine whether you are eligible for a specific credit card, loan, mortgage or service.
4. Down payment
Down payment is the first money you need to pay when you buy a house. First-time buyers usually need to pay a 10% down payment.
However, most developers nowadays are offering all sorts of promotional packages such as Rebates, Zero Down, Cash Back and even fully furnished units! Other balances will be financed by mortgages.
The margin for financing may vary depending on the financial reputation of the buyer.
5. Extra cost
In addition to the down payment required, there are other costs involved in purchasing a house, including legal fees, stamp duty, SPA agreements, and sometimes evaluation fees.
It is worth mentioning that some banks or developers will provide legal and SPA fees to attract buyers.
6. Get the estimated average price of a preferred location
Buyers should have a budget at this time and have chosen a geographic location for their dream home.
The next step is to check the current average market value of these houses, or the median price for the specific neighborhood if it is a new project. You may check out brickz.my for the transacted value of a property. Bear in mind that not all data are updated.
7. Start looking for a dream home
Finding a dream home is not a simple matter. It is to find a house that is satisfactory in price and meets your own standards.
Based on your budget, you should have decided if you want to buy a landed property or high rise; a new project or second hand property. The buyer can query the information through the Internet, or browse showhouse.my to find new projects in Sabah!
8. Find a suitable real estate agent
Getting a suitable real estate agent in the home buying process is definitely a plus point, it’s free anyway. They should provide professional advice which helps you to find the right property (not the property that they want to sell to you).
When choosing a real estate agent, remember to do some background research on them to ensure that they are qualified and have a pass to avoid being cheated.
Sorry to say that, not all real estate agents are ethical. You should always pray for wisdom and never ever believe everything they said to you. For instance:
- 80% sold out.
- Guaranteed future value.
- 8-10% rental yield.
Therefore, you should look for an agent who will tell you the truth and correct information about buying first house in Sabah, let us know if you need a recommendation.
9. Get a home loan
Choosing a home loan is a long-term decision that will affect the finances of home buyers, and it needs to be chosen wisely. When choosing a home loan, please pay attention to the following points:
-Loan type: Islamic or traditional housing financing
-Interest rate: basic or floating loan
-Term of loan
10. Seal the deal
The last step in buying first house in Sabah is to wait for the loan to be approved. After the loan is approved, the lawyer will ask you to sign all documents and legal documents.
Before signing, be sure to read the documents and agreement carefully. If you have any questions, please seek appropriate legal explanations and suggestions.