Buying a property could be one biggest decision in life for many people because, without proper planning and preparation, a wrong purchase decision will not only affect you financially, but also interrupt your future plannings as it requires a long-term commitment. It is no wonder many people are hesitating in making the decision no matter in the bull or bear market.
Nonetheless, as Malaysian property market has entered into its slump phase of the property cycle since the outbreak of pandemic, many experts claimed that now is the best time to buy property. While there are more people rush to take a leap from renting to buying, there are people still waiting for more positive signs to make the decision. The question is, what are these positive signs? And how can you know if it is the best time for you to buy?
As much as you want to own a house at the best timing possible, you need to consider many things, such as why, what and where to buy, and most importantly, are you ready to make such a long-term commitment as a property owner.
Here, we list down some signs that might mean you are ready or, you should, to get a property of your own.
1. You are tired of renting
While renting has its benefits – to give flexibility in moving from place to place at minimum cost of moving, and you don’t have to worry about other property costs such as tax and fire insurance, it has limitations too. For example, unresponsive landlord and rising monthly rental. If you feel exhausted to deal with landlord from hell and your cost of renting is rising, it is an important sign and a motivation to search for a property of your own.
2. You have a secure job
Another key element to consider before acquiring a property is your ability to make monthly repayments and other utility bills. Having a permanent job with stable fixed income (even better with side income) that allow to pay the mortgage and daily living expenditures – and ideally with enough extra money for saving for rainy day, is a solid sign you can afford to buy a home.
3. Your debt is manageable
The debt-to-income ratio, or DTI, is another factor considered when banks screening mortgage applications. This is an important indicator that is derived by totalling all monthly debts and dividing the total by your gross monthly income. An excellent credit history and an above-average credit score can increase your chances of loan approval. It also suggests that you have sufficient financial resources to manage your mortgage payments.
4. You know what you want
It is a good idea to have a solid concept of the neighbourhood you want to live in and the type of home you desire. If you know what exactly you want your future life to be and you are happy with your lifestyle, it will be the right time for you to search for a desire property to build your dream home.
[Image source: Photo by Oleksandr P]
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