If you are thinking about buying a Penang residential property, you may be overwhelmed with all the things you need to know, especially if you are taking a loan like the majority of home buyers. Financing a home is something you need to understand and think about before signing on the dotted line.
In this guide, you will learn the ten most important things to know before buying a Penang property development.
10 Important Things to Consider
One of the most important things to consider before buying a Penang residential property is to find a location that has access to the places you frequent the most.
In Penang, the question has always been the island or the mainland. Even though the island has been considered a top investment choice, things have started to change as developers in the mainland offer affordable alternatives or bigger houses.
Penang property new projects such as Artis 3 and Residence 79 are great options for those who want modern living with everything just minutes away.
2. Number of Bedrooms
It is important to have an idea of how many bedrooms you would like. If you are thinking about having children, think about them to see if you will need more bedrooms in the future.
When you look at new housing developments in Penang, think carefully about your lifestyle and what will be right for you and your family.
3. Number of Bathrooms
Another important thing to focus on before you decide to buy a new house is to decide how many bathrooms you need. You should also focus on the size and style of the bathroom as you may want a bathtub, a shower or both.
For most Malaysian families, the heart of the home is the kitchen. It is here that you created special moments with your family and friends. So it is important to see the size and layout of the kitchen.
It is important to know your price range and get pre-approved for a loan, even before starting to look for new housing developments in Penang.
As you know, buying a home could be the biggest investment in your life, and you should always look for houses you can afford to pay. Include and consider all the costs and mortgage payment and see what is best for your finances.
6. Upfront Costs
When you are taking a loan, you should know that in Malaysia, the majority of banks will offer up to 90% of the property’s price for your first two residential properties. This means you will need to be able to pay a 10% down payment on the house.
For example, if you are buying a condo at 79 Residence for RM511,500, you will need to make a down payment of RM51,150. So it is important to have this money in your savings account before you decide to buy it.
7. Extra Cash
When you buy a house there are other miscellaneous fees that you need to pay besides the down payment including:
- Memorandum of transfer or MOT is the stamp duty for the transfer of ownership title.
- SPA (Sales & Purchase Agreement) legal fees.
- Stamping for SPA.
- SPA legal disbursement fee.
- Loan agreement legal fees.
- Stamp duty for the loan agreement.
- Loan facility agreement legal disbursement fee
- Fee for transfer of ownership title
- A government tax on legal agreements.
- Bank processing fee for the loan.
Reminder: With promotions and offers, the above mentioned fees can sometimes be waived. Check with your developer, Airmas for more information.
8. Monthly Installment
Don’t forget to add to your budget the monthly installment of your loan. The current market rate is 4.5% p.a. interest in a standard home loan.
Keep in mind that Malaysian banks will usually permit you to hold loans of up to 70% of your income if you have a good credit score. So before you buy a home it is important to do the math and determine if you can afford it.
9. List Your Priorities
Now that you know how much you can afford, you can start searching for your home. It is a good idea to have a list of priorities. It is possible you will not be able to fulfill every item on your wishlist but you can always look for the best option within your budget.
10. Penang Developer
When you are looking to buy a new house, it is important to find a good property developer in Penang. This way you can be sure they have the experience of delivering high-quality projects, as they have great architects, materials, and construction workers.
So here you go. We hope that this simple guide is useful to you. Last but not least, it’s important to list your priorities so that you understand more about what you want for your next property. If you have more questions, please do not hesitate to get in touch with our friendly consultants at https://airmas.com/home/contact