Things to consider for choosing your first home in Penang.
The purchase of a home is always exciting and nerve-wrecking. The thought of owning your personal space can be a fearful one if one does not know what to do. How does a person figure out their budget? What has to be settled immediately and what common mistakes are there to avoid? In this article, it will bring up things to consider when choosing your first home in Penang, a state recognised as a UNESCO World Heritage Site.
Firstly, it is important to know what you can afford. This budget should be drawn up based on living expenses and the ability of one’s income. Living expenses may include student loans, vehicle costs, credit card payments, insurances, vacations and may more. Additional expenses such as the purchase of furniture should be considered as well. One should stick to their budget instead of attempting to stretch beyond it. Looking at homes (whether landed property or condominium units) could make a person eager to pay for something they cannot afford, building up stress and debt that could have been avoided. For example, should the home be located on the island or the mainland? Both locations have their advantages and their share of everyday liabilities.
Secondly, it is vital to recognise that your ability to afford it may not match up with the bank’s willingness to lend. Therefore, the loan should be pre-approved before you place an offer for a home. In the case that the loan is not approved or an unacceptable mortgage is proposed, it would be a waste of time for both the seller and the buyer, as well as the agents. Be ready for changes in the loan approval, however, if you carry out actions that can affect your credit score, such as the purchase of a car.
Thirdly, a person cannot be too picky. While an ideal home can be dreamed of, in reality, one has to align that dream with one’s ability to afford and the overall benefits. You are required to answer whether you are ready for your own home instead of renting and being responsible for it. Is it necessary to be a homeowner now than a few years later when more money has been saved up? Also, compromising is a key component if you are purchasing the home with another person as both of you may have different ideals. Compromising requires you to give and take while being satisfied at the end result with the other party.
Next, you have to think and plan for the future. Are there any development plans in the area where your home is located? Do you plan to raise your family in this home? Would this area be potentially congested with daily traffic? Are there neighbouring facilities such as schools and medical institutions? Answering the list of questions may be tiring but it will help you understand the risks and situations that you are expecting to handle. It will assist you as to whether this property in Penang (whether island or mainland) is a proper first home for you to manage.
Although buying a first home would seem incredibly daunting by the end of this article, it does not need to be impossible. Although the purchase of a home may be the largest thing a person may do, it does not need to be the toughest one. Hiring a reliable agent who is well-versed in the trade would help immensely and reduce some of the worries you may have. The agent would be a good guide in negotiating the entire process such as making the offer, getting a loan and completing the necessary paperwork.
Written By : Katherine Khaw Ze Yun
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