Basic Guidelines to buy a property
Buying a property process is very lengthy and unfamiliar to the layman, especially first-time buyers, it is best to do a thorough research before embarking on a maiden property-buying journey.
1. Determine your budget
The first thing you need to do is to take into consideration all the costs involved and determone how much you can afford.
The first thing you need to do is to take into consideration all the costs involved and determone how much you can afford.
2. Loan Eligibility
Talk to your bank, give them all the necessary documents and let them process your application. They will normally be able to tell you how much loan you will qualify for. Once you know this, work backwards to determine the price range of the property you can comfortably afford.
Talk to your bank, give them all the necessary documents and let them process your application. They will normally be able to tell you how much loan you will qualify for. Once you know this, work backwards to determine the price range of the property you can comfortably afford.
3. Earnest Deposit
If you are buying a property from the secondary market, you will need to pay an initial deposit of two or three per cent of the purchase price as the earnest deposit. This is usually payable once negotiations are complete and the estate agent issues you an offer letter.
If you are buying a property from the secondary market, you will need to pay an initial deposit of two or three per cent of the purchase price as the earnest deposit. This is usually payable once negotiations are complete and the estate agent issues you an offer letter.
4. Solicitors'fee
Once this is done, your solicitors will commence with the paperwork to draw up the sale and purchase agreement (SPA). You will also need to engage with a solicitor from the bank's panel to prepare your loan documentation. So remember, there will be two sets of solicitors'fee that you need to pay.
Once this is done, your solicitors will commence with the paperwork to draw up the sale and purchase agreement (SPA). You will also need to engage with a solicitor from the bank's panel to prepare your loan documentation. So remember, there will be two sets of solicitors'fee that you need to pay.
5. Balance Deposit
Once the paperwork is complete and the SPA signed, you will have to pay the balance deposits of the 10% purchase price. You should be ready to pay this money within two or three weeks of signing the offer letter.
Once the paperwork is complete and the SPA signed, you will have to pay the balance deposits of the 10% purchase price. You should be ready to pay this money within two or three weeks of signing the offer letter.
6. Balance Purchasing Price
This is usually payable when the sale is completed and the title is registered in your name. This can take anything from three months to a year, depending on the statutory approval required. Once this is completed, you will need to pay the balance 90% of the purchase price. Depending on your loan amount, you will have to top up to make the difference between your loan amount and 90% of the purchase price.
This is usually payable when the sale is completed and the title is registered in your name. This can take anything from three months to a year, depending on the statutory approval required. Once this is completed, you will need to pay the balance 90% of the purchase price. Depending on your loan amount, you will have to top up to make the difference between your loan amount and 90% of the purchase price.
7. Stamp Duty
In Malaysia, it is always the purchaser who pays the stamp duty. This sum will need to be deposited with your solicitors before the completion of the purchase. Stamp duty will also need to be paid for the loan agreement.
In Malaysia, it is always the purchaser who pays the stamp duty. This sum will need to be deposited with your solicitors before the completion of the purchase. Stamp duty will also need to be paid for the loan agreement.
8. Valuation
The bank will require a registered valuer to conduct a valuation of your property and submit a valuation report. This cost will also have to be borne by the purchaser.
9. Real estate agent's fee
This fee is usually paid by the vendor, unless you contracted the agent to act on your behalf to conduct the sale. In that instance, the agent's fee will have to be borne by you.
10. Mortage reducing term assurance (MRTA)
It is always a good idea to purchase adequate MRTA for your property purchase. This will ensure that your family does not lose the property if they are unable to pay the mortgage in the event something untoward happens to you.
11. Other fees
Several other costs will also be needed to be taken into account such as registration fee for the transfer, search fee, adjudication fee, etc. There may also be various disbursement charges that you will need to bear.
12. Renovation costs
There is every chance that the property you purchased will need some renovations and repairs before you can occupy it. Remember, conducting major renovations to your property after you have moved in is the most arduous and difficult task.
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