With lower interest rates and various offers now available on the property market, many first time home buyers and investors are now looking to make a purchase and enjoy higher Return on Investment (ROI).
While some buyers are looking at newly launched properties, including new Melaka property for sale or Melaka houses for sale, others set their eyes on the secondary market properties.
For those who are interested in acquiring secondary market properties, there are key things to remember that can help you make the best decision. Read on to find out!
1. Set your budget and calculate the costs
Like any other major purchase, your priority is to set a budget. With a clear grip on your purchasing power, you can hunt for the appropriate deals.
To set your budget, you also need to include various costs in the final price. While you may get exempted from stamp duty and the 5 per cent RPGT, other costs such as valuation fees, fire insurance and sinking fund must be considered.
You should also add legal fees to the cost and seek the help of a legal professional so that you can get a fair deal and protect yourself from hidden clauses in the Sales and Purchase Agreement.
Moreover, depending on the condition of the property, you may need to allocate a sum on the renovation as well.
2. Check out the property with an experienced local agent
When buying secondary market properties, it’s recommended to assess the property for potential damage that may affect your Return on Investment (ROI).
Therefore, it’s important to pay close attention while exploring various properties for small discreet details. Since you don’t get a Defects Liability Period (DLP) in the secondary property market (unlike newly launched properties such as new Melaka property for sale or Melaka houses for sale that offer a 12-month Defects Liability Period), harmless leaks may turn out to be a costly renovation in the future.
Get in touch with an experienced local property agent who can provide you with insights on the best neighbourhoods, local trends, and what to expect from a particular secondary market property.
You can never do enough research while buying secondary market properties. Apart from getting advice from local property agents and checking out government websites like the National Property Information Center, you may want to find out the financial help you can get.
For first time home buyers, the government offers the following initiatives to help realize their dream of becoming a homeowner.
For eligible citizens, the MYHOME scheme provides a subsidy of RM30,000.
If you are eligible, under the My First Home Scheme, you can get 100 per cent coverage for a property in the secondary market.
The BSN MyHome scheme is a Youth Housing Scheme that grants 100 per cent financing for eligible married youths or bachelors and comes with a monthly aid of RM200 from the government for the first couple of years.
4. Property Valuation
Secondary market homes are attractive as they often come with minor or significant upgrades. However, it’s important to not fall for the cheap price of faded and leaky homes that can cost twice the price on the renovation.
To avoid this mishap it’s best to conduct an independent valuation of the property with professional help.
With professional property valuation from multiple banks, you can dodge bullets like inflated prices set by the owner.
Don’t make rushed decision even if the owner claims that he has multiple offers waiting on the table. Trust bank valuation reports, which allow you to sit at the negotiation table with more clarity.
In a Nutshell
We hope this post is useful in helping you make the right decision on your secondary market property purchase. Remember that there is no need to rush and it’s best to consider all things carefully before you go out on your property hunt.
In fact, do not limit yourself to secondary market properties when doing house hunting. Newly launched properties, including new Melaka property for sale or Melaka houses for sale, are also worth considering as they offer various unique benefits.
For more information, please feel free to get in touch with our specialist. Happy house hunting!
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