When it comes to buying a first property, a condo is a natural choice. Ticking all the right boxes as a first home for investors/homeowners, a condominium can be obtained at a fairly lower price point compared to a landed property.
In addition to being more accessible, condos also come with the necessary requirements that most modern home dwellers want. We’re talking about security and facilities such as a gym, pool and tennis courts. As such, condos also hold good value over time and it’s also appealing within the rental space, offering optimal return of investment for buyers.
But before you jump head into the condo-buying space, you need to put in the ample amount of research and also take heed of several considerations before putting down that deposit. Here are some important tips you need to consider before buying your first condo:
Work Out Your Finances
Any purchase of a big ticket item starts with a budget. So work out your financing – what you can afford on both the purchase price as well as the monthly mortgage – so that you don’t overstretch yourself. Remember the overall financing also includes the 10% down payment, legal fees and also deposits for amenities and maintenance as well as potential renovation costs. You can gauge how much your mortgage will cost with this calculator.
Also, keep your eyes peeled for additional incentives and financing opportunities in the market, which are targeted towards first home buyers. Skim Rumah Pertamaku (MyFirst Home Scheme) for example is targeted towards young Malaysians and offers up to 110% financing for properties below RM500,000. There’s also PR1MA (1 Malaysia Housing Program), which offers enticing benefits such as stamp duty exemption and rent to own schemes for both high-rise units and terrace homes under the PR1MA program.
Know What You’re Buying
You already know the importance of location when it comes to property. So if you’re looking for a centrally-located unit in a prime area, there’s always a premium attached to a price. For more bang for your buck, securing a place near the outskirts of town or the city centre could prove beneficial, especially if it’s easily accessible and well-connected by public transport.
Also, factor in the space and the number of rooms you’ll need. A studio might fit well into your short term plans but if you’re planning to start a family, then perhaps you should eye something bigger – the standard 3 room 2 bathroom configuration is always a safe bet.
Next, know what you’re paying for. Those lifestyle facilities that look cool in the brochure are great, but remember they also come with a price. So if you’re not the pool going type or planning on hitting the gym, then scaling down to an apartment with security instead of a luxe condo with resort style facilities should prove more ideal from a financial standpoint, especially if you’re planning on staying long term.
Start Your Search
Once you’ve figured out your finances and your needs, it’s off to the most exciting part of the home ownership journey – finding your dream home. Fortunately, Mudah Property has tonnes of listings to check out, especially for both the sub sale market and for new developments.
If you’re looking specifically at a sub sale property, it could be prudent to get in touch with a property agent or area specialist and rope in their help to secure a home. After all, they’re the ones with their ear to the ground and can provide immeasurable help in scouring the market and uncovering a potential unit to invest in.
Buying brand new also comes with additional incentives and added value. Some developers offer attractive discounts, waivers and freebies such as partial furnishing, which provide good savings off the purchase price.
Factor In Your Investable Opportunities
Buying a condo also opens up a wealth of opportunities. For starters, there’s always long term appreciation to look at. If you’re planning on staying over the long term, you can always factor in the appreciative value of the property you just bought. With market prices now more favourable than ever due to the struggling economy, buying a unit now could provide optimal return of investment in the years ahead.
Also, do not neglect the possibility of regrouping some of your finances through short-term leases and long-term rentals. The rental market can provide good returns and even create an opportunity for some passive income. There’s always the option of renting out a room as well, to help with the monthly expenditure or mortgage.
After all, it may be your first condo or home, but it doesn’t have to be your last. With proper planning and research you can put yourself in a prime position to own a house of your dreams, one which may even deliver good financial returns.
Need to navigate the realm of real estate investment? Let Mudah Property’s insights help with your real estate journey starting today.