5 Common Mistake You Need to Avoid When Buying A New House

By Anders Ong

Buying a house is one of the biggest commitments or decisions a person will make in his life, unless he is filthy rich. It is also the biggest and perhaps the scariest for some as it can tie a person down for 35 years of mortgage repayment, which will mean less entertainment and less money to spend on other things. 

1. Emotion

We buy because we love what we see or what we believe is right without doing any proper survey and research, and then we get stuck unless we are lucky and bought the right property accidentally. Forget Love, Remember Money.

2. No Financial Planning 

We fail to plan when the house is priced at RM1,000,000 and our income is only RM4,000 to RM6,000, but we place the booking anyway without a loan pre-approval and financial checking. Our application will either get rejected or if it’s approved, we will suffocate with the mortgage repayment later.

3. Procrastination

This is one of the main reasons why people cannot afford to buy properties years later. People wait and hope for the price to decrease in the future but the chances for this to happen are very slim. Property prices will most probably go up or stagnate in good areas and the outskirts too and get more expensive due to inflation.

4. No Research

“So, my friend is buying this property. Maybe I should buy as well and maybe what the salesperson said is correct.” Buying without knowing the actual market value is what gets most newcomers stuck with their overpriced properties. Years later, they will make losses when they sell their properties below the purchase price.

Buying without knowing the actual market value is what gets most newcomers stuck with their overpriced properties.

5. Wrong Property

There are so many types properties in the market now – from SOHO to SOLO, SOFO and SOVO suites. Once the assessment and quit rent receipts are out, don’t be shocked. The property may be cheap and attractive, but if it’s cheap and attractive, normally there is something wrong with the facts presented.

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