PROPCAFE is happy to share the dilemma that faced by many first time property buyers. This guide should help the first timers, especially at this climate, to be more savvy when comes to property hunting. Hey, this will be the first property in your life, so make sure you get it RIGHT! Enjoy and have a good 5 minutes read here to make you a wiser, sharper and proud first time home owner!
1. Cannot decide whether to buy his first home for investment or own-stay
This will make the first time buyer in dilemma when comes to pick the right property since investment and own-stay criteria can be contradicted to each other.
PROPCAFE has seen many first timers ended up stuck with unfavourable investment in the location that not convenient and fancied by the owner themselves.
When these properties cannot be rented out or sold, even buyers willing to force themselves to stay at these places temporary, it will not last long. Most of the time, buyers cannot wait to let go, so it likely to be forced sell at below market value in the end.
Advice: Make up your mind (invest or own-stay) before your property hunting journey starts. Not many first timers able to make good investment decision in his first property!
2. Moving Budget!
Buyer or investor does not know or cannot control their limit/budget. This will make the first time buyer keep visiting many sales galleries with the property of different price range.
The nicer property they see, the more difficult for them to decide as everyone want to have a better and nicer house, but it comes with a price! Don’t put yourself into this situation when your desired property doesn’t match your financial capability. It will make you drag the plan further to fulfill your dream to own your first property.
Many first time home buyers end up nothing then start moaning on the property prices being unaffordable!
Advice: Set a budget with a range that not more than 100k difference. The flexibility of RM100k equates to around RM500 monthly instalment which is always achievable with some hard-core saving or salary increment over next two years. Only visit the property sales gallery falls into the price range that match your financials.
3. First time buyer cannot decide to buy landed property or high-rise
Even budget is set, the buyer will still visit all type of properties that is within the budget. The problem will then surface to make many first timer cannot decide whether want to stay at landed at suburb (e.g Rawang) or high-rise in city centre (e.g. Petaling Jaya). You don’t want to suffer this! Follow your heart (if you are buying for own-stay)!
First home being a first home, it will be “replaced” in future! Most importantly is to start now! Without a starting point, you will not get anything in future, whether it is for you dream landed home or luxury high-rise.
PROPCAFE witnessed some first timers suffered their daily journey to workplace due to the choice of own-stay property. Most of the time, the time spent on the road does not justify the nice stay of landed property. Worst, the property didn’t appreciate much due to the new township that needs time to mature.
In opposite, another one young buyer picked a small pad but fantastic location in downtown, the property has been appreciating and at the same time he has plenty of fantastic spare time to enjoy his lifestyle before the next upgrade comes into picture.
Advice: Don’t get us wrong from the example above, not everyone like to stay at city centre. First, think about the living lifestyle you want to have in next 5 years. Together with your budget, it will lead you to buy a right property for you to enjoy life.
In short, lifestyle first and landed or high-rise is secondary for first home. You may move more than 3-5 times before you end up with your dream home. Be patient!
4. Buy property with partner or girlfriend/boyfriend.
Due to the unaffordability, this idea always comes into the picture. It is potentially a disaster in the making as relationship without legal commitment can change very fast. You do not want to share property with ex-lover for sure. The property will end up to sell cheap in the secondary market.
Advice: Don’t do it. Keep it simple and buy whatever you can afford even it is only a small pad as a start. If your partner also loves property, then buy one each. After two of you legally “attached”, make one of it as an investment.
5. Bring parent and sibling to join the hunt for your first property.
Too many opinions will make you only get the perfect property that meets all their requirements in million years. Being a first timer does not mean you do not know what you want and need your parent/sibling to advise. Of course, nothing wrong to seek their view as they could be more experience in property.
However, most of the parents do not know property, they owned one property because they just need one as a shelter and do not follow the property market trend and prices. Not to say to keep pulse of what next generation or millennials’ need.
Parent in previous generation mostly see property as a place to live, not to enjoy. In the other hand, some of them just enjoy to stay at a big house, yup, literally just within the house.
The home now is not just the brick walls, new generation buyers demand more like safety, landscape, overall environment and feeling to go home rather than just a home itself!
Advice: Stick to your own criteria and lifestyle. Bring them to view the two “finalists” with the mind-set that either one is fine for you. To hear from others is good but you know yourself the best, so don’t listen to them before you finalise your final two candidates or else you will never get one!
6. First timer to buy property for own-stay but choose to attend a property investment seminar!
It is so dxmn wrong as the seminar materials will confuse the first timers to look for wrong property hunting criteria. High yield, flexibility, high leverage, rebate bulk purchase, 10 million loan capacity and etc.
Firstly, you may eventually choose an own-stay property that comes with all investors and student/bad mixed tenants. Secondly, the high rebate will normally make you think you can own more expensive properties which will also sway your decision making.
PROPCAFE sees many first timers ended up with investment properties instead of realising their first proper home. This is because when they walk out from the seminar, they believe it is possible to own multiple properties and becomes tycoon soon.
Buying an own-stay home becomes secondary as their mind is full of dreams and totally believe that they can straight to own a luxury property in few year time after their golden gooses laid eggs.
Advice: First time property buyers should forget about property investment seminar when comes to own-stay property hunting. Stick to your requirements and what you want!
Read all PROPCAFE Guides will be sufficient. It is free of charge!
7. Cannot decide the location
First time buyer always will try to stretch their comfort zone due to the offering of nicer house in different locations which could be further from their daily routine spots.
The definition of far always depend on the radius and distance from your main and daily routine location. Rawang can still be a good location for you if your office is at Selayang or Northen Klang Valley!
Advice: First to set the barrier on your comfort zones that can fit your lifestyle and distance that you can tolerate. If you want to stay in Petaling Jaya and Subang Jaya, then cancel out the other options like Shah Alam, Setia Alam, Puchong and etc.
Again, look for the property in your preferred location with the consideration of your likely daily routine for next 5 years, not to look for nice property everywhere!
PROPCAFE™ Guide : 75 “DON’T” In Your RENOVATION Processes
8. Want the best of the world from size, facilities, lobby and everything
First timer needs to be realistic to know that there is no perfect home. Something needs to give in order to make a decision. For instance, if you “die die” want to stay at Desa Parkcity and enjoy the outdoor landscape and environment, then you need to give up the wishful thinking of having a big house there as majority landed houses at DPC are small. Even the project “Mansion” is a big link house! Yes, rm5 million terrace house.
In short, prioritise your criteria! Always think about 5 year horizon and what’s fit you the best.
Advice: Keep the key criteria list as short as possible. If you intend to buy a small pad, then facilities could be important as you may want to entertain your guest in residence lounge more often or want to enjoy the facilities more for yourself.
Having a baby soon or plan for it in near future means you need minimum two bedroom apartment to start with as the key criteria. Having an old parent/grandparent with you means you need a proper room at ground floor if you opt for a landed property. The list goes on.
9. Miscalculate the property prices especially comes with limited budget for renovation.
This happened when first time buyers missed out the details of the property offering. Certain property prices look cheap but it may be a totally bare unit without even comes with piping of air conditioners. The kitchen cabinet and electronic items can be costly and not to say to let the unit vacant for additional few months, just for renovation (since it is bare), can be additional costs for you!
Advice: Make sure you have the renovation budget and always have some numbers in your mind to compare bare and partial furnished properties which offered by developers.
10. Fed up and give up!
It is always difficult, as a first timer, to buy property as there are many concerns and factors that would confuse you and eventually make you afraid to make decision. The biggest mistake is FED UP and GIVE UP! This will make you end up with NOTHING!
Advice: If you are confused and could not make decision after your 6 month or a year hunting mission, take a break! Start from zero base again. Read more and less action before you re-start your journey.
You must have learnt a lot along the way, so use it to re-arrange your requirements, re-prioritise your factors, re-assess your needs, and review all things that matter to you, then you are ready to go again.
Make sure you do it right and good thing is, YOU ARE ALREADY READING PROPCAFE Guide HERE! Trust us, You will be alright!
Last but not least, make sure you finish PROPCAFE Property Buyer Dictionary below before you make any move. You will be good!