by Anders Ong

Buying a house was always one of the biggest commitment or decision a person will made in their life, unless they are filthy rich. It is also the biggest and maybe the scariest for some as it could be tied up to 35 years to a person with 35 years of mortgage repayment which mean less entertainment and less money to spend on other things. But the first property people bought is always based on the following facts, which can be either good or bad for the future:-

1) Full Emotions

First home is always like first love, we buy because we love what we see or what we believe is right without any proper survey and research then we get stuck unless we are lucky and bought the right property accidentally.

2) No Financial Planning

We failed to plan when the house is price RM1,000,000.00 and our income is only RM3,000.00 to RM5,000.00 but we placed booking anyway without pre approval. It’s either our loan rejected or the loan approve and suffocated with repayment later.

3) Great Procrastination

This is one of the reason why people cannot afford to buy a home. People wait and hope for the price to decrease but the chances is very slim. Property price most of the time will appreciate or stagnant in good area.

4) No Research

“So my friend is buying this property, maybe I should buy as well and maybe what the sales person saying is correct.” Buying without knowing the market value is what get most newcomers stuck with their overpriced property years later.

5) Buying Wrong Property

So many types of property at the market now, from SOHO, SOLO, SOFO to SOVO suites. Once the assessment and quit rent receipt is here make sure do not get shocked and take it as planned.

6) No Cost Estimation

Yes, we calculated the legal fees for sales and purchase agreement, the legal fees for loan agreement, the mortgage repayment monthly, the booking fees needed, the balance down payment needed and the bank interest rate. But forgotten the recurring maintenance fees monthly or even the stamping for title transfer and other hidden cost.

7) Managing Ourselves

Saving cost by repair and maintaining the property ourselves is great is we have the capabilities. But, if we are not used to repair and maintenance it will take a chunk of our time.

8) Choose Mortgage by Interest Rates (%)

Most buyer choose mortgage loan based on the popularity of bank and lower interest rates. But, be worry as some low interest rates are only during the initial first few years and aren’t as flexible as you want. Choose the plan that suits you instead.

Anders Ong – Young Property Investor, Writer and Enthusiast of Real Estate.