Wednesday, September 3, 2008

5 Things to Consider Before Buying House

Buying a house would probably be the largest and most significant investment we will ever make in our lives. (Beside choosing a life partner?). Although a daunting task, research and preparation will help us to reduce the anxiety and to make a wise choice. Here are the 5 important things to consider :

1) Location, Location, Location
New development will pose higher risk especially with unproven developer. Established area with proven investment track record is a surer bet. Better to pay a slight premium that end up with an abandoned 'baby'.
Spot on, you will get Bukit Damansara. Bomb out, you will get Bukit Beruntung.

Location that is popular, has the necessary amenities such as market, school, mall, eating joints and transportation options. Also consider the traffic situation.

With the increase in crime, security and safety is also a major issue. Gated and guarded housing estates are becoming popular.

2) Location, Location, Location

3) Location, Location, Location

4) What Should I Look Out For?
During the house inspection, bring someone along, preferably one with a sharp eye to spot things that we may miss. Visit during the day. View the condition of both interior and exterior. Knock on the floor, tiles and doors. Lookout for leakages and water mark. Check if there is any plumbing, electrical and termites problems. Find out the reason of sales from vendor and neighbours.

5) Financial Issues
Compare the market price from a few agents and classified advertisements. Decide on the loan amount. Most banks would provide loans of up to 80 to 90% of the purchase price. Compare the bank rates. Decide on either fixed or floating rates. Ensure you have enough money not only for the down payment but also to cover the expenses like legal fees (both S&P and loan agreements), valuation fees, stamp duty and insurance. If you intend to renovate and furnish, allocate more money. Make sure you can afford the monthly installment, maintenance and taxes.

Happy House Hunting!


Center Parted said...

I think the 'gut-feel' bit is important as well. If you've seen enough houses, you'd know that there are some houses - regardless of its physical state - that will give you an uplifting feeling, and others that sends a cold tingling down the spine.

If I don't feel 'good' about the house, I'd walk - no matter how cheap or good a deal I think it may be!

Call me paranoid, I dunno :)

CheeWee said...

agreed... few yrs back when I put my hse for sale, there was this prospect lady (>50 yrs) who viewed and asked if there's any death in the house!!! Thot of giving her a discourse from the Jataka tale but... i rest my case!!

Pia @ Philippines properties for sale said...

Thanks for sharing those things to consider. That information would really help those who are planning to buy a house especially the first time buyers.