Everything has lined up perfectly – all that financial planning and saving up has now allowed you to be in a position to buy what will soon be your home sweet home.
Here, we take you through this step-by-step guide to buying property in Malaysia.
How to Buy a Home in Malaysia
Step 1: List Your Needs and Wants
You’re probably excited to start the whole process, but make sure you have the answers to the necessary questions. Are you set on the location, number of rooms and bathrooms, and your budget?
Making a list of your needs and wants for the house you want to buy will help you narrow down your choices. Just remember to focus on your needs, as your wants are just a bonus.
Step 2: Review property listings online
It’s time to house-hunt, and there are two fast and simple ways you can go about it. The first is by going the do-it-yourself (DIY) approach. Visit a property listing website like Ohmyhome, where you can browse through home listings that are filtered to your preferences. . House hunting online provides you with the option to view property in advance through photos and videos. Get all the details regarding location, rooms, fixtures, and furnishings in just a few minutes. This way, you’ll only be physically viewing places that you’re sure of, so no time is wasted.
The other option is to engage our trusted agent service. Carefully selected for you depending on your property needs, our agent will assist you throughout the entire process and deal with the necessary paperwork while still keeping you informed.
Look at listings online so that you have a clearer picture of the home you’re looking for, and this way you’ll be able to convey the message to the agent.After all, there’s nothing wrong with getting professional help when it comes to major life-changing decisions.
Once you’ve narrowed down the number of houses you would like to see, do a walk-through of the place. This is so that you’ll be able to make a clear-minded decision that you can be confident with. If you are unable to visit the property in person, you can ask an Ohmyhome agent about a video tour.
Step 3: Prepare the deposit and other expenses
Once you find your dream property, put in an offer. Make sure that you are ready with the deposit so that you can give it to the seller as soon as they say yes.
Legally, you only have to pay a deposit of 10% (3% in earnest deposit to secure the property) while you’re waiting for the bank to approve your loan.
You should keep in mind during this whole process that there are extra costs. These include:
- Hiring a realtor and a lawyer
- Paying the stamp duty, which is a tax on legal documents such as the instrument of transfer and loan agreement when you purchase a property
In 2018, it was announced first time home buyers would be exempted from stamp duty charges on the first RM300,000 of the property price for sale and purchase agreement (SPA) completed between the 1st of January 2019 to the 31st of December 2020.
Step 4: Apply for a loan
After your offer is accepted, save time by applying for a bank loan while the lawyer goes through the paperwork. There are several different types of loans, so you need to find the one best suited for you and your financial plans.
The basic term loan is the choice of many because of its simplicity. The borrower is only asked to pay a fixed installment amount throughout the loan term. For more flexible loan options, the semi-flexi and full-flexi loans are great options. If you prefer an interest-free transaction, consider the Islamic loan.
Step 5: Hire a lawyer
Once your offer goes through, it’s time to get a lawyer. You might think it’s unnecessary and that you can handle the paperwork by yourself. While that’s possible, the documentation might be overwhelming. The documents that must be signed and filed include:
- Letter of offer/intent to purchase
- Sales and Purchase agreement SPA
- Memorandum of transfer
By having help from someone who understands the jargon, you will prevent yourself from signing false papers or making costly mistakes. Note that it’s not a good idea to share a lawyer with the seller, as they will have the seller’s best interest at heart. So, you’ll definitely need to get your own.
Step 6: Collect the keys
With everything running smoothly, your deposit paid and the loan approved, the date set on the SPA will stand. Soon, you’ll be handed the keys to your new home. How exciting!
The process of buying a home is easy enough, isn’t it, when you have a step-by-step guide? Take what you’ve learned here and go forth on your housing journey. Take comfort in knowing that if you ever forget a step and need a refresh, you’ll always have this guide to refer to.
Want to learn more about our trusted agent services? Be sure to give our friendly customer care team a call at +60 16-299 1366 for more information. In the meantime, you can download our app from Play Store or App Store now!