PURPOSE OF BUYING A HOUSE
For own usage: Having an own home is a dream for everybody. It is a place where you rejuvenate yourself after a hard day’s work.

For investment purposes: The purchase of a property may be for investment purposes where you get returns from rental or a higher price from resale. It also serves as a way to maintain the value of your money during high inflation periods.

TYPES OF HOUSES
Landed house: This kind of property is suited for bigger families as it provides more room. A landed house also has open spaces for those who enjoy gardening or pets, and also allows room for renovations and extensions.

Condominium: Condominiums are becoming more popular in big cities like Kuala Lumpur, Penang and Johor Bahru. Normally they are built near city centers and attract younger Malaysians with smaller families. Condominiums normally provide 24-hours security, sports facilities, laundry services, grocery stores and food courts. A certain amount of maintenance fee will be charged for these facilities.

BUYING A HOUSE
Buy a piece of land: A piece of land can be purchased to build a house according to unique preferences.

Buy a new house from a developer: This is an easier buy as there is no need for renovations and touch-up costs.

Buy a completed house: You can choose a house to match your personal needs and the existing neighborhood can be identified. You also don’t have to worry about the risk of project abandonment.

SHOPPING FOR A HOUSE
Location: This is the most important aspect when you shop for a house. A shorter distance from home to your office will save you valuable time. Living away from the city is a good idea if one prefers a peaceful and serene surrounding and basically it will cost you less.

Price: Before buying a house, you should plan out and assess your budget and financial capability to avoid failure in making the mortgage payments. The following are the most important things to look out for:

• Downpayment: 10 to 20 percent of the house.
• Monthly repayment: 33 percent of your monthly income.
• Other costs: Lawyer fees, government duties, transfer of ownership, renovation/repairs, maintenance fees for condo living, etc.

Neighbourhood: Always look for a surrounding that you feel most comfortable and convenient to live in. Find out about the available shopping places, schools, clinics, cafeterias and others. However, illegal activities such as rubbish dumping, illegal workshops and squatters may somehow devalue your property.

• Do not rush into making a decision. Buying a house is not like buying groceries. Think carefully whether it is the one you are looking for. A cheaper house does not mean it's a better deal. Check the condition of the house and if possible talk to your potential neighbours to gather more information.

GETTING A LOAN
Where can I obtain a loan? There are a few sources of funds to choose from:

• Commercial banks
• Finance companies
• Government loansM
• Employees housing loans
• Building Societies and Cooperations

Normally, home buyers get their loans from commercial banks. Commercial banks offer several types of loans:

• Loan facility
• Overdraft facility
• Loan and overdraft facility
• Endowment mortgage
• Mortgage from Islamic banks

Features of commercial banks loans:
Mortgage amount: Basically banks offer up to 80% loan of the purchase price.
Repayment period: Maximum 25 years.
Interest rate: Normally 10%-13% depending on the Base Lending Rate.
Criteria for Loan Approval: Income, age (minimum 18 years old), employment purpose of mortgage.