ON
FRIDAY
JUNE 21, 2013
Buyingyour
firsthome
MUST-KNOWTIPS formaking that first
successful homeor propertypurchase.. with
insights fromthosewhohavewalked that path
THE
Brown Paper Bag seminars under The International Real
Estate Federation (FIABCI) Malaysian Chapter goes into its
second series of informational talks this June 26 at Imperia
Institute of Technology, KL.
Ho Chin Soon, director of his own property information
firm specialising in land use and ownership maps will deliver
this talk. Ho, an authority onMalaysian real estate will reveal
how the Geographic Information System (GIS) industry has
evolved over the years inMalaysia, and discuss some case
studies with participants.
A third session under this series will take place on July 4 at
Tunku Abdul Rahman College. It will feature two speakers,
Azmall Jamaluddin, regional director and CEO of a London-
based architectural firm and Building InformationModeling
(BIM) manager Rizal Rosdy. They will speak on the
development and implementation of BIM, now in its infancy
stage in the local construction industry.
For more information on these talks, please log on to
Note: Brown paper bag seminars are usually held during lunch
hour where participantsmunch their own packed lunchwhile
listening to insights.
FIABCIMalaysiabrownpaper bagseminars
THE
local property market offers
some of the best in real estate
–
competitive rates, attractive prices,
avant-garde architecture and design
–
in and around the region. With
that, it’s not rare to find long queues
and only odd lots left if you’re not
one of the first in line at prime
property development launches.
What more with the government’s
initiative of My First Home Scheme
providing 100 per cent financing,
making it easier for young
professionals 35 and below to own or
invest in a property, and the
construction of more affordable
homes, it looks like now’s a good
time to make that first time property
purchase, if you have not already.
According to Ir YeowThit Sang,
the president of FIABCI, “Ten years
ago, property prices were still very
affordable and property buyers
between the ages of 28 to 38 could
put a down payment with the help of
their parents. Today, prices are two
to three times more than what it was
in 2003 and the percentage of young
buyers has dipped some 20 per cent
as salaries don’t commensurate with
property costs. These young buyers
are also going for new developments.
They’re price conscious, particular
about location, and purchase within
their means.
Affordability is
the
priority in
young buyers mind.”While the
housing index inMalaysia reported a
decrease
of
6 per cent in the first
quarter of 2013, compared to the 12.2
per cent in the last quarter of 2012.
T
he Central Bank of Malaysia
forecasts a rise to 9.31 per cent by the
year end. (InMalaysia, the housing
index is measured by the per cent
change in House Price Index to the
value of 100 in 2000 and refers to the
residential construction activity in a
country at a certain period of time.
(Information gleaned fromwww.
tradingeconomics.com/malaysia/
housing-index)
YOUNG FAMILY
Lai Hoong Jinn’s first property buy was
a condo unit which he sold off soon
after, due to security reasons. His
second purchase was a two-bedroom
condo unit in the sophisticated
environment of Mont Kiara. “We went
through a real estate agent and told
himwhat we were looking for. This
time we were particular about the
location. We were looking for a place
to call our family home with good
security features and lifestyle
conveniences. We had a good vibe on
the first property our agent showed
us." Lai is content with his purchase
because of the location. "I don’t need
to leaveMont Kiara with everything
located nearby. It’s a pleasant
environment to live in and I’m happy
with the management. I find the place
ideal for a growing family.” His advice
for first-time home owners: “
Buy
finished properties rather than a
home you’ll only see after some two
to three years.
You’ll be able tomake
a wiser choice having checked out
things like the environment, the
people living around the area, the
safety and suitability for children etc. If
you do choose to take the latter route,
study the background and credibility
of the property developer first.”
SINGLE PROFESSIONAL
Surendaran Chandra Sekaran is 32,
single, and owns a bachelor’s pad.
“I knew the type of property I wanted,
had the location in mind, and had the
down payment,” Suren says. He found
all these in a freehold high rise
development in the Segambut area.
Happy is this home owner who says,
“My condo is situated next to the
Hartamas area and that automatically
doubled the property price, and
quickly.”With the price having already
escalated,Suren has plans to buy his
next property, “perhaps tomove into
and stay, or as an investment.” He asks
young property buyers to consider the
hidden costs when buying a property.
“There are costs such as strata titles,
legal fees, stamp charges and such
that will come up and are not cheap.
The higher the property value, the
higher these costs.”
SMART INVESTOR
Rosita Faisal was 27 when she bought
a condominium unit near her family
home in Ampang. Two years down the
road, on completion, she went
through an authorised real estate
agent and rented out the new unit,
now into its fifth year. She advises
property owners and landlords to be
more detailed when drawing up rental
agreements. “
To safeguard from
damage to property, list down
everything included in the property
you rent out, right down to the
furniture, if furnished.
Don’t forget to
add a two-plus-one deposit for rent
CUT AND KEEP
STEP-BY-STEP GUIDE
WHEN BUYING A HOME
1. Find your dream home
2. Negotiate the purchase price
3. Sign offer of purchase
and place deposit/booking fee
4. Get sale and purchase
agreement (S&P) prepared
and signed
5. Apply to EPF to withdraw from Account II
6. Pay balance of deposit
7. Apply for a bank financing
8. Appoint valuation company
9. Sign facility agreement
10. Pay balance of purchase price
11. Get the keys
12. Renovate
13. Move In
Information from CIMB Bank’s Home Buyers Guide -
MY FIRST HOME SCHEME
Who Is Eligible?
• Malaysian citizens
• First time home-buyers
• Individuals or couples (husband & wife or siblings) up to age 35 years
• Private sector employees only (including couples)
• Income not exceeding RM5,000/month for individuals or combined
income of RM10,000/month for couples (based on gross maximum
income of RM5,000/month per individual)
• Individuals/couples with minimum employment of over 6 months with
same employer
• Repayment of total financial obligation must not be more than 60% of
the net monthly income or maximum financing limit of the participating
bank, whichever is lower
For more information please visit
EPF WITHDRAWAL FOR FIRST-TIME HOME BUYERS
How exactly does EPF help with buying your first home?
It allows members to withdraw their savings in Account II to finance the
purchase of a home. Typically the funds are put as a down payment to pay
monthly installments, reduce/redeem housing loan or if one is going for
'My First Home Scheme' which doesn’t require down payment, the money
from EPF will help cover other charges like strata titles, legal fees etc.
For more information please visit
INSURANCE FOR RESIDENTIAL PROPERTY
Fire
– covers loss/damage to property building and contents caused by
fire, lightning and domestic gas explosions
Houseowner
– can only be taken by the house owner and covers the
building including its fixtures, fittings, garages, walls, gates and fences,
against several specified risks
Householder
– recommended especially for those renting residential
properties as well as house owners, and covers movable household goods
within the property, against specified risks
For more information please visit
WHEN VIEWING A PROPERTY, LOOK OUT FOR .....
•
Roof, ceiling and walls
– watch out for leaks, water marks
•
Floor
– check for damages caused by water etc
•
Doors and windows
– check for rotten wood and cracks in glass surfaces
•
Pests
– keep an eye out for termites and other pests especially in wooden areas
•
Electrical and wiring system
– test electrical outlets
BEST HOME LOAN PACKAGES
Since banks adjust their home loan rates and packages every quarter, savvy investors intending
to purchase property should scan through the various bank websites. Or get the latest and most
comprehensive updated rates in Malaysia from
Smartloans
at
and utilities,
and the contract,
preferably a yearly one, must also
be ‘stamped’ or made legal by a
Commissioner of Oaths.”
EXPERIENCED REALTOR
Jonathan Lee is COOof his own real
estate firm and has been investing in
property for the last nine years. He has
invested in more than 10 properties to
date, buying and selling in prime
locations. His advice to young
investors: “
Educate yourselves on
the market and system first.
Don’t
seek advice from inexperienced
people and
don’t followmarket
rumours and trends without doing
research.
Speak to the experts like
successful business people who have
invested, good real estate agents,
people who are buying and selling in
the area you’re interested to invest in.
Don’t make emotional purchases
.”
On financial planning, Lee
recommends calculating the risk
factors. Adding that one should invest
within their means and believes there
is no one location better than another,
“not when you’ve done your research
and invested wisely.”
Feel free to email your queries to us:
To read the more comprehensive version of this article, please log on to
INSIGHTS
