If you’re looking to buy property in Malaysia, you may find the process exciting but full of complexities.
There are numerous factors you’ll need to take into account when buying a property. However, it’s easy to get caught up in certain details, skip important steps or gloss over things you might regret later on.
Missing any important details can be very costly for your future; therefore, it is important to be prepared. We’ve compiled a list of the five most common mistakes homebuyers make when they buy property.
5 Common Mistakes Homebuyers Make When Buying A Property
1. Not Doing Enough Research And Preparation
It is important that you first understand your family’s finances and needs. Analyse your assets and go through your debts before you begin your property-buying journey.
It would help if you also got to know the neighbourhood. Some important considerations are the quality of schools, the crime level, transport, and more.
2. Not Securing A Pre-Approved Loan
A common mistake most people make when they buy property is not getting their loan pre-approved. However, getting a pre-approved loan puts you in the best-negotiating position and shows that you’re serious about buying the property.
Moreover, through this process, you will get a better idea of your borrowing capacity and be prepared when you find the dream property you’ve been searching for.
Read More: Different Types of House Insurance for Your Property
3. Failing To Budget Well
When buying a property, a buyer can understand the full cost and still run into financial trouble. One of the key aspects of purchasing a property is setting your budget and keeping to it.
However, in most cases, once a homebuyer has fallen in love with a particular place, it’s hard to go back. As a result, the homebuyer will throw caution to the wind and go ahead with the purchase, putting their financial future in a dangerous position.
Therefore, it is recommended for homebuyers to plan a thorough, realistic budget and stick to it.
4. Not Inspecting The Property
An important part of the property-buying process is the home inspection. You can either consult a professional to conduct the inspection or do it yourself.
A quality home inspection will reveal critical information about the property’s condition. This makes the homebuyer aware of what costs, repairs and maintenance the property may need.
5. Not Checking Your Credit Score First
It’s important to make sure your credit score is in good condition before applying for a home loan.
Your lender will want to see if you’ve managed debts responsibly in the past, and if your credit is poor, you risk having your loan application rejected.
A rejection will further damage your credit score, thus making it harder to take out a mortgage elsewhere.
Moreover, checking your credit score in advance gives you time to correct any errors, pay off any small outstanding debts and look for other ways you can boost your score.
Read More: Difference between Flat, Apartments and Condominiums
Easy Renting with Rumah-i
Buying a property is a challenging process, but it can be simple. If you’re mindful of the issues ahead of time, you can protect yourself from making costly mistakes or decisions you may regret.
When buying a property, remember to take your time and don’t act on impulse. That way, you can make a home-purchase decision that does not harm your finances.
Rumah-i is a prominent rental services company in Malaysia. If you’re looking for your dream home, download our Home Renting App on Google Play or the App Store to view the various housing options we offer.
Homeowners can also list their properties on our platform for free!
