First-time Homebuyers - What You Need To Know

Posted on: 2017-01-11

BUYING a house is one of the biggest investments a person can commit to in a lifetime. A substantial amount of research and money is often needed to purchase a property. Often, a first-time homebuyer may be so overwhelmed with the process that they may overlook some important things and add more stress to their buying experience.

According to VKA Wealth Planners Sdn Bhd head of planning Lawrence Seow, usually a first home is not for investment but more for practical living.

“The distance from work, schools, child care centres and primary services such as banks are all important aspects when planning.

“Having targeted a certain area for your first home, next would be to look at your own financial needs and evaluation of a budget for the home,” says Seow.

Founder of Chur Associates Chris Tan notes that first-time homebuyers should also decide whether they want to buy from the primary market or the subsale market as there are different precautions to look out for from each market.

GMAC Realtors negotiator Lim Jin May notes that first-time homebuyers predominantly buy from the primary market. “One of the reasons is that developers are constantly working on giving perks and providing low entry costs to purchasers. Most of the time, they absorb the legal fees and stamp duty, providing a low entry cost [to purchasers]. New properties also require less renovation and sometimes come with add-ons such as kitchen cabinets, built-ins and air-conditioners,” Lim adds.

Meanwhile, after selecting the property, most homebuyers would need to find a financier for the home. “In terms of buying the property, an identity card would suffice where as for loan applications, you would have to provide documents to prove your income which include salary slips and tax submission forms,” says Tan.

Tan also notes that buyers would need to prepare additional money for other costs such as lawyer’s fees, stamping fees and also stamp duty of transfer should the homebuyer buy from the secondary market.

“Maintenance fees are the other additional costs that homebuyers should be aware of if the property is a strata property. The better the facilities are, the higher the maintenance fees. As for the other fees, they vary depending on your land value,” offers Tan.

See the checklist for first-time homebuyers below.



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Source From: The Edge

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