First-time homebuyers: Things to knowJune 23, 2020
Buying your first house is not a small matter and it could be one of the biggest decisions you will ever make. Buying your first house for some signifies stability, while for some it is a rite of passage. There are many things you need to know before purchasing our first home. Many have shared tales of people making rash purchase decisions which ended up regretting them soon afterwards.
Other than choosing the right location, size and design, you are likely to end up with a host of different questions. Here are some of the things that first-time homebuyers should know.
Can you really afford it?
Buying your house is more than just paying your down payment. For most buyers, you are placing unto yourself a financial commitment that can last up to 30 years. During that period, you have a fixed monthly commitment in addition to any ad hoc costs. The true cost of owning a house can quickly add up. Even those advertised as affordable housing or condos can quickly burn a very big hole in your pocket. Also, there are plenty of other “hidden” costs such as renovation fees, stamp duty, maintenance costs and more.
Rent-To-Own (RTO) Scheme
The government is aware that there is plenty of unsold property in KL, Penang and other major cities. The RTO Scheme is designed to make homeownership easier for first time buyers. The scheme allows homeowners who are unable to pay the initial 10% down payment and those who are unable to secure financing options.
The scheme allows applicants to rent a house for a period of up to 5 years, in which he/she will be given the option to purchase the unit at a fixed price later on. Other than that, stamp duty is also exempted on transfer instruments between developers, financial institutions and buyers. This is excellent if you are still starting to build up your finances but is unwilling to miss out on that house in KL that is up for sale.
Youth Housing Scheme
Almost every working youth aspires to own their own property in Kuala Lumpur. The Youth Housing Scheme is introduced in collaboration with Bank Simpanan Nasional (BSN) to make homeownership easier for qualified individuals. The government has decided to extend the scheme from 1 January 2020 to 31 December 2020. Qualified applicants are given a guaranteed 10% loan guarantee and monthly instalment assistance of RM200.
In addition, the government has also launched the Home Ownership Campaign. Property developers that provide at least a 10% discount on qualified properties will also be rewarded with stamp duty exemption. All of these means that buying your first home may not be as difficult as it seems.
What is Legasi Kampong Bharu?
The Legasi Kampong Bharu project is a mixed development designed to combine functionality, aesthetics and quality of life. With a mesmerizing view of KL landmarks such as KLCC and Menara Kuala Lumpur, it is poised to be the next iconic development in the city. Other than that, the Legasi Kampong Bharu condo is also near to an LRT station, with the station being only 50m away. The best thing is, it is also one of the most affordable housing options available in KL!
Click here to know more about the Legasi project.
So..should you own a house?
The answer to that question is totally up to you. For first time homeowners, try to take advantage of the various housing schemes that are available right now. With the right planning, owning your first home is not that difficult.