For individuals who are new to the process of buying a house whether to stay on their own or investing, there are lots of critical factors that need to be studied first.
When buying a house, we are terrified of buying the wrong home. So, If You See These Signs, Do Not Buy The House.
What a nightmare when you realized the house that you purchased isn’t precisely what as expected?
It’s going to be a beginning of a nightmare.
So, today we will be sharing a few tricks up our sleeve to make your life easier and hopefully if you see all these signs, you’ll walk away and never look back.
1.A Bankrupt Developer
Make sure first check the status of the developer for the house whether it’s still active or bankrupt. Once the developer has gone bankrupt, your housing loan or loan becomes more difficult as not all banks will offer housing financing.
If you are buying a home through a new project or under construction, first check the developer profile, financial strength and blacklisted developer listing with Bank Negara Malaysia (BNM). Always remember financially strong developer will stay longer in the market especially during uncertain economic conditions and for a small developer it’s going to be challenging for them.
It’s also important to look at developer past project history. Visit those completed project and search for any comments or complaint by the buyers of the project online. From here evaluate yourself, whether the project worth your investment.
2. Selling Price Higher From Market Value
The first thing before you agree with the selling price of the house, you need to know the actual market value of the house.
If the house bought exceeds the real market value of the house, you will have no choice, but to top up the difference on your own.
Selling price: RM400,000
Actual Market Value: RM300,000
Based on the above situation, the bank will only provide financing or loan for a maximum margin of 90% of the actual market value of the house, which is RM300,000.
Total funding = RM270,000 (RM300,000 x 90%)
Total amount of money needed = RM130,000 (RM400,000 – RM270,000)
So, how to check the actual market value?
You can check the market value of the house with the bank or registered valuer.
3. A Poor Neighborhood & Surrounding
Several factors can cause you or your tenant to be uncomfortable with the house.
A Poor Neighborhood & Surrounding can be one of the main factors.
a. Occupied With Foreigners
Let’s be honest; if you’re living in Kuala Lumpur, Selangor or any major city, you’ll be bumped to live with some foreigners.
Co-living with a foreigner is not an issue unless they start to make a nuisance or loud noise. Things can be out of hand when there are too many of them staying or living together.
At times, they can monopoly a condominium, apartment or a community.
If there are too many foreigners in the area, you will feel uncomfortable with the neighborhood especially concerning your level of security.
b. Basic facilities
Most residential areas in Klang Valley already have sufficient basic facilities and are located at a distance. However, if the basic facilities do not have proper maintenance and repair, it will look old and rusty, and may not be appropriate for the public to use.
c.Too many empty or vacant houses
Additionally, if you see that area is less populated, lots of empty houses, many For Sale and For Rent banner everywhere, or even some abandoned or unfinished houses, keep moving and find another better home. One of the factors in the area is still unpopulated is due to weak demand.
Frequent problems such as water problems, thefts or crime are also the cause of people not wanting to stay in the area.
For investment and leasing purposes, your tenants may feel uncomfortable when their nearby houses are uninhabited especially when the house is ‘damaged’.
d. Facts are hidden
There are some cases where the host does not want to show the whole house and only shows the living area only.
The bedroom is locked, and he will give a reason that tenants live inside and do not allow buyers to see.
As a buyer, you have the right to look at the whole home to avoid problems with hidden damage.
Additionally, if the host refuses to cooperate regarding sharing documents such as Sale And Purchase copies and grants, you need to be more careful.
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