Taken by iPhone 6s Plus
So, there are three types of people in this world.
First: Buy a house with their hard earn money because they want to own a house
Second: Rich bastard!!! Buy properties like going to buy some clothes from Cotton-On
Third: Be a good tenant & rent house for their life
Unfortunately, OJ fell on first category but OJ want to build a home not a house. What we need is a home. A home that provides you shelter, food, love, comfort & a place where you would like to rest on after a hectic life in your work. For OJ to achieve this, it is not an easy task at all because there are so many things need be consider. Here, OJ will go through with you all the steps to buy a house before you can build a HOME and you need to be physically & mentally fit.
Step One:
When you need the house? ASAP or you can wait for another 3 years?
This is a very important question. WHY?
If you are not urgent and plan to have your house to be ready a few years later, then you may go for NEW LAUNCH housing project. Because there are many attractive offers by the developers; such as FREE S&P, lawyer fees or even built in cabinets (doubt on their quality though) and the most important one is - NO 10% DOWN PAYMENT IS REQUIRED. This is a big deal because down payment ain't CHEAP at all.
For OJ, they need the house ASAP. Hence, to purchase a new housing project absolutely is not their choice. So, OJ have to hunt for sub-sale properties. When you hunt for sub-sale properties, you have to take these into consideration: 10% down payment, 1% agent fees (which is ridiculous for OJ as buyer need to pay for the agent? absurd! but it is a norm in penang), lawyer fees (which included the STAMP duty for S&P and Loan Agreement), property evaluation fee, house insurance...... In short, you must be loaded with money bullets before you are ready to hunt for a sub-sale property. If you don't have the above FEES, then forget about it.
GO FOR NEW LAUNCH PROJECT TO AVOID THOSE FEES.
Step Two:
Where to search for your dream house? p/s: here OJ will only discuss for sub-sale unit. As new launch projects are available in every shopping center or radio advertisement. Developers need your support man.
Newspaper advertisement column or website are the main platform for OJ to search for their dream house. As stated by media, Malaysia economic is in good shape but OJ notice there are many advertisement hanging on traffic light or street light along the road in Penang area. Everyone is selling their properties for a reason but OJ felt that they need to find their dream house from reliable sources. Hence, OJ choose propertyguru & mudah.com as their main source to search for their dream house.
Step Three:
How much you willing to pay for a unit?
Be realistic! It is all about money. If your are rich then go for a bungalow. If not, then buy according to what you can afford. For OJ, they are very clear with the price they willing to pay for their dream house. That is RM450k MAX!!!
From the budget, OJ roughly know which area they should focus on to search for their house. The areas where housing price starting from RM400k & definitely not in Penang Island! One thing you must bear in mind, if you are looking for sub-sale & with cheaper price, then you may end up with a property with age of 10-15 year & you have to accept it. Because, this is what you can afford!
Step Four:
Go slow & steady.
Please do not rush to end a deal. OJ knows that they will only buy ONE HOUSE in their whole life, hence they can't simply end a deal. So it took more than a year for OJ to found their dream house. Over the year, OJ search the properties from website, make a phone call to the agent, arrange appointment on every Saturday when it is available, visit the house for sale, checking every details in the house and finally asking for the offer price. OJ did not go for price discount if they are uncertain of their decision yet. Finally, it took a year for OJ to find the house they wanted. The main attraction to OJ is the open concept house & the gated garden community. It gave OJ a sense of PEACE, a place to chill after a hectic life & a sense of quietness at night.
***Unhappy event during the house hunting: so OJ found their 1st dream house and negotiated the price with the owner. Owner had agreed with the selling price of RM450k. Hence, the next day OJ want to pass the 1% deposit payment to the agent. Upon meeting with the agent, she told OJ that the owner had a miss communication with her. Owner is selling the property at RM460k. So, OJ were pissed by that owner and decided cancel the deal. One principle for OJ, that is honesty in making deal. The agent explained to us but OJ told her that we are cancel for this as owner is a piece of shit. Even OJ need to pay more than RM460k for another deal, OJ ARE WILLING TO PAY. So 1 week after, the agent call and told us there is another unit for sale which is beside the previous house OJ want. Asking price is RM480k and OJ closed the deal at RM460k. OJ closed the deal with the same price as the previous seller offer.
Step Five:
1% Deposit to the seller + 1% agent fee (absurd) p/s: 1% of the selling price
After OJ found the house, they negotiate the price with the owner to get the best deal. Finally price OJ had is RM460k with some terms & condition. OJ accepted it & proceed with 1% deposit payment to the owner (agent will help u to pass the money to the owner, so please remember to get a receipt from the agent + a booking form).
IF you can find the owner and negotiate the deal without the involvement of AGENT. It will be the best as you can save a 1% of agent fee. Unfortunately OJ did not manage to find the owner (stingy one, but rich people usually stingy one that's how they become rich), hence OJ proceed the deal with the help of agent. So, OJ HAVE TO PAY THE 1% FEE.
Cost: 1% Deposit: RM 4,600 + 1 % agent fee: RM 4,600 = RM 9,200
Step Six:
Lawyer + Housing Loan + Loan Insurance + House Insurance + Evaluation Fee
For lawyer, agent will help to settle unless you have someone better then go for it. First the deal must be done within 4+2 months time. IF NOT, YOU WILL BE FINE & it is calculated as daily basis. Please make sure your lawyer settle it before the due date. Secondly, if you are purchasing your first house, please check if they is any discount for stamp duty on S&P + Loan. You may entitle for 50% discount on stamp duty. Please double & triple confirm with your lawyer. It might ended up save you roughly RM8000. It is a big amount for OJ but maybe not you who are rich.
For housing loan, do some research before you choose it. Please double and triple confirm with the banker that extra payment will go into principal NOT TO THE INTEREST. This is to ensure that you can settle the loan in shorter duration with minimal payment of interest. There are some charges need to pay for housing loan. OJ will use the value of their house as example.
There are two type of loan insurance in Malaysia, MLTA & MRTA. Check out the detail and buy accordingly. OJ chose MLTA as OJ just need to pay a lump-sum once for all. Somehow, if you are scare of your spouse might having financial problem after you die, then go an get another Life Insurance. It is cheaper than MRTA if not mistaken.
As OJ took Hong Leong Islamic Housing Loan, hence OJ need to buy an insurance from Takaful for the house. This is a must process in order for you to get the loan from Hong Leong Islamic.
The evaluation fee is like a report card for the sale and purchase of houses around your housing area. This is for the bank to check whether the selling price of your house is on par with the market price. With this report card only the bank will approve your loan. And again, this is to be paid by the buyer.
Step Seven:
The most exciting moment: Sign documents in lawyer firm to complete the sale and get your house key. There are two feeling when you sign the document; is either you are freaking happy or you feel the stress as you had officially became a house slave? OR maybe is a MIX of both. Either one, OJ wish you have a nice & thrilling experience on purchasing your own property. Good Luck...
Taken by iPhone 6s Plus
Taken by iPhone 6s Plus
