The real estate market trends still seem to be very positive, even for the year that has just begun. We talked about it in the recent news ” Real Estate, a 2018 dedicated to growth “: according to the Research Department, sales volumes will rise from 2% to 4%, while housing prices will stabilize on average between + 0.1% and + 2%. It is therefore a good time to buy a house, even if, as always happens in these cases, the evaluation is complex and based on several factors.
Buying a house, the mistakes not to make
Let’s start with financial culture: in Titiwangsa we are doing very well. This is why we often underestimate the real cost of a home. In fact, it is not enough to calculate the price of the property, but taxes, notary fees and any commissions for the intermediary who followed the sale must be added. On taxes, we give a detail in the dedicated guide.
- Usually in preliminary contracts, there is a confirmatory deposit with which the buyer undertakes to give the seller a sum of money that has a double value and meaning, as an advance on the agreed price and compensation in case of default.
- Before choosing the property it is always advisable to try to quantify the fixed expenses to be incurred, once you become the owner. We refer in particular to condominium expenses and also to any extraordinary expenses. Let’s not forget that the houses require maintenance, even for the common parts (facade, antenna, elevator, etc.).
- The budget must include expenses for any restructuring, furniture and an extra fund for the unexpected that can happen (for example, a car breakdown while the mortgage is being taken out). Do not forget that the renovation and furniture costs can be deducted, as we explain in the news ” First home: lighter with tax breaks “.
When planning the outgoings for the financing of the house, a good rule, moreover indicated by the Bank of Malaysia, is not to take out loans for more than 30% of one’s income, adding up all the outstanding debts (the payment of the car, credit card credit, and personal loans). This also serves to have a more reliable profile at the time of the assessment by the lender, which will carry out a screening on the installment income report.
It is always advisable, even if not so immediate, to seek information on market trends. As regards the mortgage rate, you can find here an analysis on the possible trends of the current year: “Mortgages, negative Euribor and last minute fixed”.
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