THE INTRO
It’s been a terrific and yet terrifying experience
buying my first house.
Example data and specifications of the house(example only):
·
Single story corner lot.
·
Land area 2160 square feet.
·
Lease on land 99 years.
·
Purchase value RM 550K.
First of all of course you have to search for the
right house, it might not be your dream house but at least it is landed. In
Penang, island of the rich and famous, prices of a landed property that is
freehold is crazy and unaffordable for the average Joe’s and Jones. So for a
middle class working hero like me this is the best that I could afford for my
family of 4.Allhamdulliah!
THE BANK
My journey began with negotiation on the price and we
agreed that it should be sold at the market value of RM550 K .To show faith and
my true intention of buying the house I had to cough out some earnest money
about RM 5K just to tie things up.
After that I promised her that within a week i would
sort out the loan for the house from the banks. And trust me you should really
do your homework on this. Although all banks in Malaysia have almost the same
base financing rate (BFR), but they have many different approach to the
payments of the loans. Some banks requires you to inform them before making a
lump sum payment, some banks allows you to have a flexi payment where you could
pay more than the required sum and it will be deducted on a daily basis from
your principle loan. Be patient and don’t rush. You’ll be attached to this bank
for almost your entire life so choose wisely.
Me on the other hand i decided to go for the black and
yellow brand its BFR rate was 6.6% - 2.4%.
To get the loan, the bank will need some info from
you. The documents that u must prepare are:
1.
Payslip 6 month( some banks only
3 month)
2.
Borang J(for private sectors)
3.
Letter of work confirmation
4.
KWSP latest Statement
They will also ask about your commitments like cars,
marital status, nos of kids and also bankruptcy status. They will check online
using CTOS or CCRIS.
If Ur total commitment + 30% are not more from ur
income, then they will assume that ur balance is applicable to apply for loan.
Example:
Loan application RM 450,000
Using a mortgage calculator online: monthly
instalment over 30 years RM 2,200.
Salary = RM 5000
Commitment = (30% x 5000) + (800 miscellaneous)
= RM 2300
Balance = RM 5K – RM2300
=
RM 2700
Status for
application is possible.
|
THE LAWYERS
Get lawyers that are reliable, they will have to
kowtim alot of things for u. I suggest u liaise with ur bank on who are their
panel lawyers, it works faster and smoother if they are a panel of the bank. Remember
u have the right to choose ur own lawyer they can only suggest. Choose a new young
and enthusiastic company to represent you, they will go through hell and back
for u plus they are more willing to listen compared to the big fishes.
Once u have a representative lawyer u are now known as
the purchaser and the seller of the house as a vendor. Money will then start to
flow as follows:
·
10% check for the down payment
of the house example (eg 10% x 550K)=RM 55K
·
U will then have to prepare
lawyer’s fees for Sales and purchase agreement
(eg:2.5% from
ur house value x RM550K = RM
14 K)
·
For the bank loan the lawyers
will charge about 2% from ur total loan
(eg: 1.6% x RM450K = RM 7200)
To summarise this u have to prepare around RM 21,000
just to pay the lawyers before even entering the house.
The lawyers will then prepare every document under the
sun for the house purchase. The hard part is the waiting....and waiting.....and
calling.....and waiting...zzzzz.
By law u could not ask for a discount but try to beg
for some, the disbursement claims are somehow quite ridiculous.
All releasing of money should be done through lawyers,
it is much more accountable. Write checks for all amounts if u don’t have one
make a bankers check it will only cost u a couple of ringgit. (RM2.15)
Safer and easier to leave a trail of bread crumbs just
in case u got lost in the greenssss.
THE KWSP
Here’s the deal, according to the rules, first time
house buyers are allowed to take out all savings in their second account to
purchase their first house. Ladies and Gentlemen it is not a myth it is true.
Go get them, it is yours. But remember to bring the following particulars:
1.
Photocopy of ur IC
2.
Certified true copy by lawyers
on:
a.
Sales and Purchase agreement
b.
State consent (I had to wait 1
moth for this but my lawyer did his best tq MR Singh!)
c.
Surat Cukai tanah as evidence
d.
KWSP latest statement and
e.
Bank account number
For lease hold houses ,your state consent is very
important no state consent no money in ur pocket.
Once that is settled then u wait, this time not so
long about a week then there is money in ur bank. Use the money wisely some
choose to buy cars, some renovate their house. But me i use it to buy some
essential furniture and pay my house insurance (MRTT) by cash (RM 14,000).
THE VALUERS
This is the funny part, in order for the bank to
release my loan they require a certified valuer to evaluate the house. Well u
once again can have the luxury in choosing a variety of valuers like Robert Bench,
GE Tan and many others .But again there are small companies that are willing to
write a report for you at a cheaper price than the big shots. The valuation
cost is also based on the price of the house, the higher the purchase price, the
more expensive your report would be. A house with a purchase rage up to 200K
will cost you around RM600 for the report. Mine,... i had to scavenge for RM950
money that I had not placed in my initial budget. So heads up guys! No one told
me bout this before. :P
THE FINAL
COUNTDOWN
When almost reaching the final lap towards your landed
property, there might be some Knicks and knacks that u might have to tie. I had
to pay up the balance that i owe to the vendor (purchase price RM550
K),(deposit + earnest paid RM 55K) ,(bank loan paid RM450K) balance....(RM45K).
MRTT is an insurance that u should take for the house
in case u die the bank will waive the balance on the house loan. U Can opt to
pay it by cash or absorbed into the principle loan. Best if u take ur KWSP and
pay up the MRTT by cash it reduces the amount on ur principles in the long run.
As an end note this info is not about me showing off
to the public but to share my experience.... i ask many of my friends regarding
the procedures of buying a house but no one could tell me the entire process
vividly or they simply forget. Huh,? Me on the other hand..... If i went
through all that trouble.... it is something that i would not easily
forget..... Perhaps they bought their house by cash that’s why?
Feel free to ask questions i would answer them if i
could. Wassalam.
