First-time home buyers should ensure they meet the affordability criteria before buying a home to avoid taking on a debt burden they cannot handle.
Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz said banks had provided individuals “many flexible ways” for them to meet the affordability requirements.
“They must, and if they can, demonstrate even if they are sole proprietors and they are not employed in any organisation or corporation that they can prove that they have met the affordability criteria in many different ways. Banks have given that flexibility.
“It’s worse when somebody buys a house and in the end, he or she is not able to have the basic needs because of the debt burden they have taken on,” she said on the sidelines of the Malaysia-OECD High-Level Global Symposium.
She added that it was worse if the first-time home buyer was not able to service the loan in the end. “The house will be repossessed and they can end up in bankruptcy. We certainly don’t want that to happen,” she said.
There are 2 classification of house i.e. New house (a.k.a. Primary market) and Sub-sale (a.k.a. Secondary market).
Many people ask rumahsewa4u which one is better? Buy a brand new house from developer or from secondary market. Funny thing is, some people also called it second hand house. Rumahsewa4u not sure if the term is correct or not, but to be more accurate let's use sub-sale house.
Before we go into details, here are some definition of new and sub-sale.
New House: you buy directly from the Developer. It can be already completed house, in construction or most of the case just launched.
Sub-sale House: you buy from current owner of the house (most of the case individual or their appointed agent). It is usually a completed house.
Actually, there are no definite answer rumahsewa4u can give to the question of which one is better. Let's do some comparison on the pros and cons.
If you choose to buy anew house from the Developer, the good things are:
Devloper always come with good package of offers and discounts. E.g.: low booking fee, free SPA (sales and purchase agreement), free aircond and water heater, free maintenance fee for 1 year and so on. It means a relatively low entry cost.
Choices of unit, layout and level. Since you buy from Developer, you still can select your favorite unit according to your taste. E.g.: unit facing pool, corner lot unit, size etc.
Buy property at cheapest price. Since property appreciate in terms of price, buying it at the early stage means you can gain handsome money once the house completed and appreciate in price.
If you choose to buy a sub-sale house, you gain advantage from:
Matured neighbourhood. Pretty much you can have an idea how good the house is in terms of crime rate, rental price, appreciation, traffic, surrounding development and many more. Knowing the neighbourhood is an important criteria in buying house. You don't want to get stuck in high crime rate area or very bad traffic.
Better picture of market. Sub-sale house already have a statistics on how the current market is going on in terms of rental and selling price and also the appreciation over time. This becomes important because it will effect the market value of the house if you are investing.
Rumahsewa4u do not need to list the disadvantages because they are just the opposite of the other type i.e. disadvantage for new house is the opposite of sub-sale house and vice-versa.
In conclusion, there is no definite answer which one is better than the other. It really depends on the situation and what you need when you buy a new house.
Suasana Lumayan, Bandar Tun Razak, Cheras
Suasana Lumayan Condo untuk d SEWA
Sebulan RM1550/neg bermula sekarang 4 bilik, 2 bilik air, 1 balkoni ada tiles, rumah d cat baru tingkat 15, kedua hujung, 1142sf, mengadap tasik permaisuri ada security, swimming pool, lot parking sendiri, playground kemudahan shops, school, playground, banks berminat.. sms/call ilah 012-6892703
Many people come to rumahsewa4u asking about how to buy a house?
Rumahsewa4u responded with a congratulation because he/she has successfully passed the first step of buying a house i.e. Dreaming
The answer is always 'yesterday' when it comes to when is the best time to buy a house. The big question that always turn dream remain a dream is how and where.
For rumahsewa4u, taking action is the most important step after dreaming. DO YOUR RESEARCH and SAVE MONEY.
When you do your research you will get the answer on how to buy a house, where is the best location to buy your house, what is the best method to save money for the deposit, what is the best loan you can get in the market and many other question that may raised.
In the era of internet, doing the researh is not that hard. There is a lot of website you can refer to like iproperty.com.my, propwall.my, propertyguru.com.my etc. Also don't forget to get in touch with property expert (of course like rumahsewa4u). Last but not least, read books by malaysian author on property. Why rumahsewa4u said malaysian author? It is because their content suits local environment better in terms of law, banking and location.
Financially, it is good if you dont have problem. If you still do not have enough money, then it is time to stengthen your financial management knowledge so that you can have the money as much and as soon as possible.
Last but not least, if you still do not pass the first step do not wait too long until it is too late.