Buying property is a big decision. It is usually the biggest purchase one will ever make because the cost involves a few hundred thousand Ringgit, if not higher. Even affordable homes are usually in the range of RM400,000.
First-time home buyers are usually the first to worry and the last to buy. First to worry means as soon as there is any negative news, they retreat first. Last to buy because when the market is positive, those who have bought before or are property investors will be the first to buy.
When first-time home buyers see this situation, they will have the confidence to buy and this is why they are the last to buy compared to experienced buyers. Thus first-time buyers need to consider three things in their property purchase:
1. Educating themselves on financial awareness. Investment is long term and there are definitely ups and downs along the way. The key is careful financial management and not sudden profit or loss.
Do attend talks and engagements where the first-time home buyer can listen, learn and ask questions.
2. Access information on property prices, availability and the locations of these affordable properties as this will be extremely helpful. The info needs to be all in one place, as expecting first-time home buyers to browse through 10 different sites will just get them confused and suffer from analysis paralysis.
Many newbie investors continue to believe that only landed properties rise in prices. Many also believe that they should only buy in a few popular areas.
3. Keep track of incentives. This is where the stamp duty exemptions and discounts from developers come in. First-time home buyers should keep track of upcoming events. These will give them more confidence in making choices.
If the newbie buyer follows the above 3 steps in sequence, it will assist in the buying decision process. Discounts and incentives only make sense after understanding market price.
This article first appeared in kopiandproperty.com
Charles Tan blogs at property investment site kopiandproperty. He dislikes property speculators and disagrees that renting is better than buying. He thinks it’s either property or poverty. He is presently the CEO of an auction house auctioning assets beyond just properties.