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Tips On Buying A New House In Malaysia!


Are you newlyweds? Successful? Learning to be Independent? Or simply looking for a new roof to stay in? If you’re eager to buy a new house in Malaysia (Read: first-home buyers) but don’t know where to start, here are a few tips to aid you in the process of choosing your dream home!

Plan Your Budget

Always be aware and plan a reasonable budget before you begin your house-searching ventures. Furthermore, you must never forget to factor in your down payments when purchasing a property. For first-timers, 10% of the total cost of the property must be paid upfront while the remaining payment can be done through bank loans. 

E.g. If your target home is estimated to cost around RM600,000 then you must pay RM60,000 upfront as a down payment. Keep in mind that upfront costs do not only amount to down payments, there are also additional costs like stamp duties, real estate agent fees and other legal fees. 

You should also be on the lookout for housing schemes that are catered to first-time housebuyers and see which one can be approved according to your financial status!

Do Proper Research On Your New Property

One of the most important factors to consider in choosing your new property is location! If you’re feeling confused about where to start your research, this is where real estate agents step in to guide you all the way. These skilled professionals are familiar with the marketplaces, the track record of the developers, and the complexities of legal documentation. 

You can take this opportunity to enquire important questions to the agents, especially regarding the condition of the property, the appliances incorporated and the surrounding neighbourhood. Alas, when you have found the property you like, do a cost comparison with other similar properties to make sure you don’t overpay for similar projects that might give you more valuable benefits for your money.

Get A Lawyer

As it is probably your first time purchasing a house, you should always be as transparent and knowledgeable as possible to make sure you don’t run into miscellaneous conflicts along the way. 

It is encouraged for you to employ a real estate lawyer who specialises in all the legal jargon involved in your contracts to make sure you understand what you’re signing yourself up for.

Letter of Intent to Purchase and Signing Documents

Now that you’re content with the property of your choice, convey your intentions to the developer through a Letter of Intent to Purchase. It is a letter expressing your intent to buy a specific piece of property. Next, don’t forget to sign the Sale and Purchase Agreement (SPA). 

The SPA is a crucial legal document that details all of your purchase’s terms and conditions. 

After securing your finance, review your Loan Agreement and Memorandum of Transfer (MOT) carefully before signing them. All these legal documents are what prompt the use of lawyers so every procedure of document signings will go on smoothly.

Pay Your Costs And Receive Vacant Possession

After signing the SPA, you can now pay the balance of the purchase price according to the payment schedule outlined in the SPA. These include the relevant stamping fees and legal fees acquired throughout your process of obtaining the property. The Notice of Vacant Possession must be completed within a certain timeframe after signing the SPA for a new property. 

It’s important to perform a detailed check for any defects or issues during the defect liability period, where the developer is legally bound to repair any faulty workmanship at no cost to the buyer. This precedes the Certificate of Completion and Compliance—which is a legally required document that confirms the property is safe and fit for human habitation.

Want Makeover Your House?

Now that you have a new home, you probably are itching to do a makeover that suits your preferences! 

Godeco offers a FREE consultation, site visits and 3D sketch designs to help you realise your dream home as much as possible, just visit our website or contact us at 03–8740 7654 or email and we will reach out to you ASAP!

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