During the last housing boom in the United States, most investors bought properties with only one thing in mind:sell it at a higher price. However, when the market dropped drastically,many of these investors were financially caught. Planning earlier could have helped them avoid a loss.
In Malaysia, with the rising property prices and a heightened eagerness amongst investors to own real estate, it is best to plan earlier to avoid any financial loss.
Before house hunting, get pre-approved on your mortgage loan.
Getting pre-approved will save you the disappointment of looking at houses you can't afford. This enables you to make a serious offer when you do find the right house.
Know the hidden costs
Be mindful of legal fees, disbursements, and stamp duties. A simple rule of thumb is that these costs can be 3 per cent to 4 per cent of the purchase price.
Calculating potential returns