How do you know if you are ready to buy your first house? Without a doubt having your own home has many benefits but it is also one of the toughest decisions to make.
There are a lot of new housing developments in Penang
, especially in locations such as Gelugor, Batu Ferringhi, Jelutong and Bukit Mertajam offered at affordable prices
that you can check out. But if you are looking more to buy a township development, you should definitely go to the Mainland.
But the question here is if you are ready to buy your first home or not. So answer honestly to these 5 questions, and see if you are ready to make the move.
Do I have the savings? Do I have the money?
It is very important to answer these questions before you decide to buy a new house. If you are having problems paying your monthly bills; if you are yet to save at least 10% for down payment, maybe you are not ready.
You need to prove you have the discipline and ability to save.
For example, if you want to buy a unit at Airmas new housing development in Jelutong, Artis 3
, the minimum down payment is 10%. If the property price is RM200,000, you will need at least RM20,000 for the down payment.
How long am I going to stay? Am I ready to settle down?
Buying a home is a commitment, one that you should be ready to make. Keep in mind that the typical appreciation rate is around five years or more to breakeven. So if you don’t want to lose money, you should consider keeping the property for at least seven years.
Remember you could lose money when you sell your home if the property has not appreciated at all. So it is not a good idea to buy a house just to sell it two to three years later. If this is the case, it is better to keep renting.
Also it is a good idea to buy a home in a hotspot, so if you need to leave before the breakeven point, you can rent out the property for a few years to avoid losing money. Thus it is also recommended to check out the rents in the area to have a backup plan.
Here in Penang one area that is good for renting is Bukit Mertajam. For example, you should check out 79 Residence
, a Penang Residential Property, which is also a very popular condominium in the area with good rents.
Cost of Owning
What is the cost of owning your home? Is your new home a good deal?
Before you buy a new house, you need to do research on rents and home prices. Renting can be expensive, sometimes even as high as the mortgage and fees of ownership cost. So if there is no a big difference between what you are paying monthly for rent and your mortgage fee, perhaps it is time for you to buy a new house.
Before you apply for a mortgage, you must document your income and taxes. So organize your documents before going to the bank. Remember buying a property takes time, but if you know what you need and where to find it, you will save time and money.
What are the hidden expenses of buying a new house?
Consider all the additional costs, don’t overlook them. For many new housing developments, like condos and apartments, you must pay a monthly maintenance fee. This fee is for all the amenities and shared infrastructure, and the monthly payment can really add to your expense.
Also consider the home maintenances costs, from painting, to new roofs.
One last thing you should really know before making a purchase is the real estate market. Check out not only the city but the neighborhood too.
Property market will always fluctuate. But if you do a good research, you should find the right investment to make. One thing is certain -- buying housing developments in Penang is a good investment.