Buying a house (1)

I was asked if there are any all-in-one guides to buying a house in Malaysia. Thought I'd write it all down because I think most of us will be buying something at this stage of our lives within the next few years.

Below are some websites which I thought was rather good reference :

1. http://www.iproperty.com.my/articles/buyprocedures.htm This is a very general idea of the buying-selling procedure

2. http://www.iproperty.com.my/financing/articles.asp This provides you with loan-financing tips

3. http://hba.org.my/HBA/Publication/hbg_info.htm If you're buying a property direct from a developer, this book will probably help you understand what kind of protection you get as a house-buyer. The book costs RM5

4. http://www.realestate.net.my/forum/viewforum.php?f=7&sid=12f70dfcf0a08961c05b1c95a6d6bdbf This is a forum which discusses all kinds of housing projects, mostly in the Klang Valley. It gives the typical man-in-the-street's point of view of new projects - what's good, what's not, price too high, etc. Definite must-read particularly if you're buying a new project.

5. http://www.hba.org.my/faq/sale_and_purchase.htm This is a VERY good reference as it tells you what kind of scale fees you should pay your lawyer, what kind of documents you need from the seller, and what kind of time-frame you're working with in order to ensure you don't get charged abominable interests due to unnecessary delays

And some of the things I learnt so far in the house-buying process (even before I've signed the Sale and Purchase Agreement - SPA) :

• Before you sign the "Letter of Offer to Purchase", make sure you let your lawyer see what you're signing as the terms in it will affect the SPA that you sign later.
• Get your lawyer's advice on EVERYTHING i.e. when you should start applying for a loan, before talking to your agent or the seller, etc. You're paying your lawyer a huge sum to protect your interest, so your lawyer is obliged to be constantly harrassed by you for all matters whether big or small.
• When scouting for home loans, do it early. So you'll have time to weigh your options. A homeloan is usually a 30-year commitment. Interest rates ARE important. Got pros and cons to various interest rates which is too lengthy to discuss here :P But you'll understand once you talk to more and more bankers. Even number-dummies like me can get it.
• Remember to get a verbal indicative value of your property from a valuer before agreeing to buy. You can usually do this by calling up a valuer (which means, me!). The valuer will verbally indicate the market value to you (you need to provide address, land area / built-up area, details of renovations), and this value will be used to determine how much the bank will be able to lend to you. If you do not call a valuer before buying, you may accidentally buy at a high price and banks may not be able to lend you the maximum amount, where you'll have to fork out a lot extra.
• All fees are negotiable. Negotiate fees with your lawyer before agreeing to appoint him. Get second quotations on fees from others. Some bank loan interest rates are also negotiable.
• Inspect your property properly before signing the Letter of Offer to Purchase. Most offer letters include clauses of "as-is-where-is basis" which means WYSIWYG. Try to bring a contractor to inspect the property before buying, get opinions on cracks and damp patches.
• If your property has been extensively renovated, make sure that the seller can show you proof of approval for the extension. Or you'll get into trouble with the local authority in the near future.

And actually, I'm not a pro at this, so I'm still learning things. If you guys need to know anything, I'll be more than happy to help. Because : buying a house is probably the most expensive thing a person will ever buy in his life, and because there is an obvious lack of professional advice offered to property buyers.