Khasiat Fadhilat (Isnad) Doa Haikal - Majmu' Syarif

Top tips when buying your 1st property In this article, we cover the tips to watch out for: Tip 1: Valuation When you have found the property of your choice, you are usually required to pay a holding deposit of 2 – 3% of the purchase price to take the property off the market. However, making an offer and paying the holding deposit does not necessarily equate to acceptance. Until the Seller signs the Letter of Offer, nothing is confirmed. As the Buyer, you should always add in a clause to say ‘Offer is subject to the confirmation of the actual square footage of the unit’ in the Offer Letter. Reason being, you don’t want to be caught out in a situation whereby the agent tells you it is 1,200sf when it is actually only 1,000sf, which would mean that you would be paying much more per square feet. Your lawyers will then be able to confirm this for you whilst in the process of drafting the SPA. Before you pay the holding deposit (also known as Earnest Deposit), make sure you do the following two checks: (a) Valuation of Property If the price that you have agreed to pay for the property is RM400,000, and you are looking for a 90% loan from your bank, you need to check with your bank that the valuation is ‘up to mark’. Reason being, if the banks’ valuers only value your property at RM350,000, the bank will only be willing to lend you 90% of RM350,000 and NOT 90% of RM400,000 One way to mitigate this risk is to ensure there’s a clause written in your Booking Receipt which says that you are entitled to get back your Holding Deposit in the event you are unable to obtain a loan. This is not a standard clause in the Booking Receipt, but don’t be afraid to insist on this even if it means penning it yourself on the Booking Receipt. Also, don’t rely on just one valuation. Ask a few Loan Officers to get a more accurate reading of the valuation of the property. (b) Check up on your Estate Agent Before paying your Earnest Deposit, be sure to also check up on your Estate Agent to make sure they are legit. Also, only issue cheques to the Realtor’s Company and never to an individual name. Tip 2: Secondary market – Getting a deal! This is a little trick that you can use to find undervalued properties. If you have been following the property market i.e the Classifieds be it online or in print, avoid buying from real estate agents who are regularly advertising for a specific area or for a specific development. They are more likely to be working with a lot of owners in that area and are more inclined to want to maintain high selling prices to protect the interests of all these owners. We recommend finding the ‘one hit wonders’ of the real estate agents / negotiators where they have little to no experience in selling properties in that area or development. Reason being, these types of agents are more likely to want to go for a quick sale and are more likely to be able to convince the owners to sell at a lower price. Tip 3: Transaction Cost is MATERIAL When budgeting, be sure to factor in the transaction cost for your purchase (between 3 – 5% of purchase price) as you will need to have cash in hand to pay for these things. Some banks allow you to include your legal fees and the Mortgage Reducing Term Assurance (MRTA) in your loan amount which helps ease the burden as you won’t have to pay these potentially huge amounts upfront in cash.