It is indeed everyone’s dream to live comfortably in their dream homes at some point in life. As much as having a home is a necessity, it is also a direct implication of one’s social and financial standard because not just everyone is able to own a home within a stipulated time.
Owning a home is a big decision in life. This means a lot of research, considerations and proper guidance needs to be taken into account before jumping and securing a property that you’re going to call home soon. It is indeed a big investment. Since it is even more challenging and exciting for first time home buyers, here’s a quick checklist to guide and lead you to the right direction of your dream home.
Budget and Affordability
It is stated that your monthly home instalments should not exceed 30% of your household income. Regardless, always work within your budget and seek for affordable house schemes especially if you are looking for your own stay. Living further away from the city is usually cheaper and even more affordable. This would be a better option for more sustainable living – especially for a bigger household.
Being Realistic on Your Dream House Expectations
One important element towards buying your first home is to know and understand clearly your needs and wants from a new house. It is okay to be extra dreamy and have visions of what you would like to have in a home. In fact, list down the type of qualities and expectations you have before getting a property to be made as your home. Be specific and customize the search to your preferred area, type of property, number of bedrooms, facilities available, neighbourhood environment and developers’ credentials to ease your home finding journey. These are some of the basic factors that you need to identify in order to speed up the search and lead you to just what you need and want while catering to one’s long term commitment.
Qualifying For Home Loans and Long Term Commitments
Your credit score is one of the most important factors in qualifying for a loan. Banks measure your repayment capability via the Debt to Service Ratio (DSR), a calculation which shows the proportion of your debt in relation to your total income. Debt refers to all existing financial obligations, such as credit card repayments, personal loans and student loans. Net income refers to your income after deductibles, such as income tax and EPF. Most banks including Maybank and Public Bank have a DSR cap of 65-70%, so it is crucial that you calculate your repayment ability for your target home before making the next move.
Of course, it is always advisable to get someone who’s knowledgeable or experienced in property investments to guide you in making a decision. It is always better to be safe than sorry. Finding the right home may not be easy, but with the right platform and sound decision making, you can rest assured that the journey towards having your dream property will become a reality!
Visual By Mah Sing Group
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M Arisa, a residential oasis just 5km from the KL city centre. We have created a sanctuary that adopts nature as an architect. It is defined by its modern homes with lush outdoor elements, including a multi-level Sky Garden while offering such conveniences like shuttle service to KTM and LRT stations. Life is better in every way here.