Buying a Property in Malaysia can be pretty daunting especially having to fork out money for large sum 10% deposit , Lawyers Fees, Renovation, Furniture's and etc.
This tip is rather meant to be specific type of buyers. Let me explain ;
No. 1 : This Tip only meants for Malaysian for 1st or 2nd buying a property.
Non Malaysian or Malaysian with PR will not APPLY this method.
No. 2 : Must be Earning Salary min of RM5000.00 (Must be Recorded in Bank Statement and paid KWSP(EPF)) or you may join Wife + Husband name for 2 Name application loan.
No. 3 : Must be SECONDARY MARKET (SECOND HAND HOUSES) (Developer NEW Property will not Apply to this method)
No. 4: Must be SELF Applying Loan from Commercial Banks (Not Applicable for other Finance Institutions such as MBSB, Gov Loan & Not Applicable for Companies Loan as well)
No. 5: You need CASH in Hand (Depending on How Much is the Property)
If you fit those criteria above, congratulation you in base 1. You must be wondering why buy Secondary Market , why not just buy NEW Property ? As we know, New Properties are usually far away from the City, far from your parents house, far from your work place , far from airport and etc. You may have those reservation. Ideally, everybody wants to near to City, something like say not too far, not too near within the range of 20-30min driving (with the traffic i consider it in)
Now, how to buy ? How to do it ? this stage is my best part !!! Shopping , Shopping , Shopping !!!! You need to do some research. Pick your Location to own a house , don't be choosy , but rather have a Choice 1, Choice no 2. So that you wont too headache to go all over the market location to view houses. Once you narrow down the preferred location, do your hard research home work, FB Media Social (Many Property Agent use FB for Advertisement), Mudah.com, Property Websites and etc.
2nd part, Property Valuer & Banker is your BEST Friend now. Let's say, you found a house in a good location and good area, you view it 2-3 times with your wife, mother, father, grandmother and grandfather also say OK and give you the thumbs up. You need to have Property Valuer in place now. This stage is critical, cause Time is not your friend. House for sale, you like it, but your seller cant wait for you. Now, this house as we know is Secondary Market, the condition is old, not so tidy, may be rented out for quite long time and seller need dispose this property.
Double Storey Intermediate - Hot Location only 10min away from City - 1900sqft - 4Bedroom+3 Toilets -
Opening Price : RM430K, your valuer say, at this location, at this time they can value it at RM500K. Actually can go higher , but the house is at despicable stage , so no choice valuer give this.
Go to your Friend Banker, by now you have the ready documents for Loan Processing, prepared it earlier for banker to take, more so during that week viewing the house, get the documents ready. Loan Processing will take about 3-5 working days, depending on which bank and also depending your document complete or not.
If this is your 1st house property , with the min salary in place (as per above stated), banks should not be problem giving you 90% Loan Approved. If this is your 2nd property, most likely 1 applicant name will get 70-80% loan approved, usually banker will ask you to put second name such as Wife or Husband. Lets just assume you will get 90% Loan Approved.
Now, this stage is tricky part, you go back to the seller and negotiate to lower his Opening Price, meaning ask for discount lahh, a normal typical aunty saying, this i have to pay, this i have to fix, this i have to paint, etc etc etc...Seller goes back home and talk it over with his wife, and message you RM410K. Now, you have lock down the price at RM410K , think about it now, you have secured an undervalue house - a CONFIRMED Appreciation of RM90k when you sign the agreement.
The Question is , how to get the RM90K into your pocket??? Go back to seller again, better face to face meet up as this require a convincing manner. Tell him you are serious buying the house, serious to deal and ready to pay 10% deposit to my lawyer, you can collect it by tomorrow.
However, there is a "BUT", we have agreed at RM410K. Nonetheless, I would like you to help me, this is my first house, and i dont have enough deposit to pay and renovation to make. There will be a second agreement stated that i am buying your house at RM500K, you will still receive your RM410K, however the RM500K will be price i pay - at the current market value. Letting your seller you are sincere and honest by telling him, the market value at that time is Dangerous but yet Important (you dont want to hide information, because sooner later he will find out too). Showing sincerity and honesty MOST of the time Wins. He might say , deal is off ??? because he might wanna sell higher price now ??? However, you did mention at the first introduction , you can get 10% Deposit (RM41K) tomorrow from Lawyer. He needs to use the money ASAP, he agreed to the terms.
Congratulations, Ladies and Gents, You have bought house!!!! You must be wandering, i still paid the 10% Deposit!!!, Yes, you still have to fork out FIRST, no doubt, Period. However, remember your appreciation difference of RM90K, that will be credited to your account back after the Bank has release the 90% loan to the Lawyer. Eventually you will get it back.
Lets do a Simple Math :
Bought : RM500K
Agreed to Pay : RM410K
Difference : RM90K
Expenses to Pay
10% Deposit : RM41K
Lawyer Fees : RM20K
Earn : RM29K
We can simple & smart design renovation with RM29k , and think about it . Valuer says before at this time, they only can give RM500K market value, due to bad shape of the house. With the RM29K you spend for renovation, your newly house will be value more by than. RM580K -RM600K who knows right ??
Eventhou you have to pay the RM41K deposit upfront, you will gain back after the drawdown from the bank, and this one of the way to buy a Property in Malaysia without paying a Single cents actually , or should i say still EARN....
Its 2018 now, many still use this tactic actually, always happen to be a Lelong House and i heard also not many Lawyer will do the 2nd agreement. Please do remember , there is also risk, by having said that RM500K purchase price, your loan repayment is high monthly. It will increase your monthly expenses.
All the above i mention , it goes everything BY LAW in Malaysia. No Hanky Panky stuff, you just need to position your kawan Valuer and Banker at your side and also Luck .
Do Drop Me any question below comments or find me at Teammalaysia discord if you want to be personal.
Cheers , that's all just for now. Follow me for my next Chapter of Blog
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