Want To Buy Your First House In Malaysia? Read This First!
Owning a home represents the ultimate dream for most people. However, with the escalating real estate prices and lengthy loan repayment periods that span 30 years or more, buying and financing a home is not just a matter of saying “I like it” and signing on the dotted line. It is something that should be done with a great deal of sense and prudence.
For all young Malaysians or millennials who are actively considering buying a home by taking a loan, here are three things to determine if you’re financially ready to undertake this life-changing endeavour.
There Are Upfront Costs — Here They Are
In Malaysia, most banks offer up to 90% of the property’s price (margin of financing) for your first two residential properties. If you receive that 90%, you need to prepare a 10% down payment to cover the rest of the property’s price.
For example, if you are looking to buy a condo in Cheras that costs RM500,000. You must have a minimum of RM50,000 ready for the down payment, be it from your savings or money from your parents or siblings.