What to consider before move the first step to own your first property? There are so many worries are concerned for first property. Especially for property dummies, they worry the project can’t be completed and be abandoned halfway of construction? Worry the home loan installment burden is too heavy? Worry wrong location is decided? Worry poor quality of property? Worry the decision to buy the property is a mistake?
Things to be Considered for Property Dummies Buy the First Property Right
- Investment Strategy
To be clear on your purpose to buy the first property
- Buy for Own Stay only
- Buy for Investment only
- Buy for Own Stay and/or Investment
Suggestion by Horlic Lim:First property is a low risk deal/investment because “First Property can be either used to Attack or Defend” attack = sell the property if good capital appreciation, or rent it out if good rental market during good market; defend = use for own stay if neither good capital appreciation nor rental rates during bad market
To be clear on your affordability and qualification to get a home loan from bank
Basic guideline of how much you can borrow money from bank for home loan:
Monthly installment should not more than 1/3 of your monthly income after deducted others commitment like car loan, personal loan and etc.
Suggestion by Horlic Lim: Don’t waste time on those properties which are priced out of your budget. Because that might cause you go for higher price property and further heavier your burden as human being. Nobody doesn’t like better thing. Get the FREE Online Consultant’s Advice for Home Loans and Compare all the home loans in Malaysia.
3. Investment strategy
Your investment strategy is affecting which type of property you should buy. Example: Landed property (like single storey / double story link house, Semi-D, Bungalow) or high-rise property (like apartment and condominium). Study and understand all the investment strategy.
- Cash Flow
- Capital Appreciation
- Holding for Long-Term, Mid-Term, or Short-Term
- Buy to Keep
- Buy to Sell
Suggestion by Horlic Lim: A unique investment strategy should be custom made especially just for yourself to suit your own personal financial status, earning power, cash holding power, financial commitment, and etc.
Bear in mind, it’s just too important to select a good property from a good reputation developer, especially for those developers with proven past track record. This is mainly to minimize the risk such as abandon project, quality issues and etc.
Suggestion by Horlic Lim: Look into the project launched by Top 10 Property Developer in Malaysia ranked by The Edge if possible. If really keen to buy a new property which is developed by bad reputation developer, then I prefer to pay higher price for sub-sales after completion of the project rather than take the unforeseen high risk.
Search from internet. There are more than enough information can be found via internet regarding hot spots property for investment in Malaysia. Go Google about Malaysia Property Investment Guru like Ho Chin Soon, Azizi Ali, Milan Doshi. They did highlighted many good locations and property hot spots either for investment or own stay.
Suggestion by Horlic Lim: Google the hot spots for property investment and go for an actual site visit. Survey the surrounding. Sense and feel the environment surrounding. Ask yourself, will I enjoying staying at a place like this? Bear in mind, over commitment as described and designed either in the brochure or by those irresponsible property sales agents is always not reflecting the real picture as actual site.
Move your first step to own your first property if you have all the answers in your mind for consideration stated on above. Ohya, write in down to have clearer picture rather than just put into your mind! Happy investing!