Purchasing a property may not be as complicated as some make it out to be if you have a checklist of important things that need to be given attention. Here are five things you must know about buying a property:
Research the property
Your unique needs and lifestyle must be carefully considered to find the best residential property for you. It should also fit in with your budget.
For those who are looking for a property to invest, you must
have a clear investment goal in mind.
For those who are looking for a property to invest, you must
have a clear investment goal in mind.
Based on those determining factors, you can create the picture of the ideal property. The description would include size, type, location and price. This information is essential for you or your agent to narrow down the search for the right property.
Finding the right agent/developer
If you choose to work with a property agent to find the right property for you, make sure you conduct a background check on the agent or the company providing this service. Hiring an experienced agent or using the services of a company with a reliable reputation will save you from disappointments or complications in future dealings.
The same criterion applies when you want to buy a property from a developer. Make sure the developer has a good track record. You don’t want to end up having a project delayed or worst still abandoned when the developer goes bankrupt.
Financing with Employee Provident Fund
In Malaysia, citizens or permanent residents under 55 years old can use their Employee Provident Fund (EPF) to finance the purchase of a residential property. The money can be withdrawn from Account 2. It is applicable for purchase of any residential property or shop lot with a residential unit. This money can be also used to settle the difference between the price of purchase and loan amount. For more details on this funding option, visit KWSP’s website.
Getting a loan
In addition to the EPF, you would also need to secure a mortgage loan to finance your property. Most financial institutions offer up to 90% of financing and 35 years of loan tenor. There are many loan packages offering different interest rates, monthly instalments and other benefits. Compare several options to get the best deal for your needs.
Legal Procedures
There are many legal aspects involved in buying a property. Hence, you would need to find a reputable lawyer with expertise in this area to help you finalise your purchase. Once you and the seller have agreed on the property price, you will need to sign the Letter of Offer and pay a 2% deposit. Then, your lawyer will draft the sale and purchase agreement (SPA) and loan agreement.
The legal fees are calculated based on the value of the property. You would also need to factor in the stamp duty for the SPA into the cost of purchase. All payments can be paid by loan or cash and must be done within the date stipulated in the SPA.
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Disclaimer: The information is provided for general information only. PropertyGuru International (Malaysia) Sdn Bhd makes no representations or warranties in relation to the information, including but not limited to any representation or warranty as to the fitness for any particular purpose of the information to the fullest extent permitted by law. While every effort has been made to ensure that the information provided in this article is accurate, reliable, and complete as of the time of writing, the information provided in this article should not be relied upon to make any financial, investment, real estate or legal decisions. Additionally, the information should not substitute advice from a trained professional who can take into account your personal facts and circumstances, and we accept no liability if you use the information to form decisions.