Should You Buy or Should You Rent?

To buy or to rent? That is the question. For most people, owning a house is a dream. A lot of people say that it is more worth it to buy a house, and pay the mortgage monthly because at the end of the day, the house will be yours. But is it really that simple? Many things need to be taken into account before someone can make the decision. So should you buy or rent? Well, ask yourself these questions first before you decide.

1.What kind of credit report do I have?

In Malaysia, banks generally use the Central Credit Reference Information System by Bank Negara. Besides that, there are also two private credit reference agencies which are Credit Tip Off Service (CTOS) and Financial Information System (FIS).

These will track an individual’s spending habits, repayment patterns, credit card and other electronic transactions, and credit standing with other banks for the last 10 to 20 years.

So when an individual applies for a loan, banks will check his/her credit rating before deciding to approve or reject it. It may sound scary that everything you do is literally being tracked but it’s necessary for banks to do this to avoid giving money to people who are not genuine.

It’s all about how you manage your money. If you do it well, odds are you’re probably ready to own a house. However, if you spend your life tied up in debts, then maybe you should consider renting for a little while more until you get yourself stabilised.

2.How High is My Debt Ratio?

By adding up the total amount of your monthly payments and comparing the total to your monthly income as a percentage, you get your possible debt ratio. The higher your debt ratio is, the more difficult it will be for you to pay off your loan.

So, if, after calculation, you have a low debt ratio, then go for it! But if your debt ratio is high, we wouldn’t recommend buying a house just yet. Renting is the choice for you, at least, until you manage to lower the ratio.

3. Do I Have a Stable Job?

Before buying a house, you should make sure that your job is stable.  If you’re still unsure of your future in the company that you work in, it is best to stick to renting. You don’t want to be stuck with mortgage payments in the event that you get laid off or decide to look for a new job.

4. Am I Psychologically and Financially Ready to Deal with Maintenance Issues?

When you rent a place, the maintenance of the house is taken care of by your landlord. With just a phone call, that pipe leak is likely to be fixed within the week itself. When you own a house, however, this luxury is not there. Leaky roof? Malfunctioning lights? The cost to fix all of these would have to come out of your own pocket. Therefore, when you buy a house, you need to make sure that you have some cash stashed aside for emergency maintenance purposes.

If the down payment itself takes away all of your cash so that you have none left for these, maybe you should rent for a little while more until you’re really sure you’ll be able to afford any emergencies. These are things you have to be psychologically and financially prepared for if you intend to buy a house.

5.How Long Do I Plan to Stay?

Ideally, you should plan to stay at a house you want to buy for at least 3 years, if you want to get back what you spent. It has been said that generally, it takes about three to six years for a house to appreciate enough to make up for the cost of selling and moving as well as the amount you’ve paid in down payment and mortgages. Therefore, if you don’t have plans to move anytime soon, then buying a house is a good choice. However, if you are still uncertain about where you will be in the future, renting is the better option.

6. Is it Cheaper to Rent or to Buy?

Some people say that when you rent, you’ll forever be poor. That may be true because at the end of the day, no matter how long you stay at a rented house, it will never be yours. However, sometimes it’s good to look at the simplest of arguments: which one costs more?

Depending on your salary and the stability of your job, a costly mortgage payment may take a toll on your overall expenses. So sometimes, it’s better to save up that extra cash until you’re sure of your financial stability. However, if, after calculating everything you’d have to pay a month, it’s more beneficial to buy, then by all means, go for it!

By the way, we found a very handy tool for calculating your best option. Just enter the required information into the fields provided and let the calculator tell you which is the better option for you.

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Part 2: Looking at potential houses

Searching for a potential house?

Looking at potential houses?

Once you’ve found a few potentials online or through the newspaper, of course, you’d want to see the house in person. But don’t get dazzled by the place yet. There are some things you need to check out or ask the agent/owner before you make your decision.

1. Ask the person you are dealing with about the traffic density and noise of the area.

If you are a student, a highly noisy location would disrupt your studies. If you’re working, high traffic during rush hours would mean that it would take you longer to get to and from work.

2. Are there any amenities near the place?

Ideally, a house that has convenience stores, clinics, places of worship nearby is good. That would mean you wouldn’t have to travel all that far to get necessities. Furthermore, try to find out if there are any public transports near the house. For those without cars, this is convenient, since going places won’t be such a big problem. Continue reading

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Part 1: What you need to know before renting a house/apartment

What you need to know before renting a house/apartment

What you need to know before renting a house/apartment

If you are one of these: a college student in your second degree year, a fresh graduate just starting out on your new job venture or a newlywed building a nest for yourself and your spouse, then odds are, you’re confronted with the fresh dilemma of finding a house or an apartment to rent.

The process is tedious. There are so many places to look into and so many ways to do it that sometimes, the task is daunting to even the most confident of people, especially when it is the first time that they are embarking on this ‘adventure’.

Well, here are some things you should know before renting a house or an apartment. Continue reading

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New homes vs. Old homes

newold

As much as I’d like to say there is a tried and tested formula to help you decide if a new or old property is more suitable for you, there isn’t.

The decision lies with you depending on your tolerance of certain issues.

Thus, I can only list out a list of pros and cons of a new home vs. an old one for your own evaluation.

Ask yourself this first: Continue reading

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How to snap property picture with any camera

By Hasnuddin Abu Samah (fototeacher.com)

There are very few simple steps to shoot property picture that helps you sell your property faster on the internet. You don’t need a professional camera for that. Any basic point and shoot camera will do the job. You can even use your mobile phone camera if you like. The most important thing here is the technique.

1. USE THE HIGHEST QUALITY IMAGE CAPTURE
Before you start shooting, don’t forget to set your digital camera to capture the image in its highest quality with the largest size. In other words, the picture file must be as large as possible. With this setting, you can get the best quality picture in terms of sharpness, tone and color.

2. BEST TIME OF THE DAY
The best time to shoot the property picture is early in the morning (around 8.00am-9.00am) or late in the evening (around 5.00pm-6.00pm). At these times, the sun is quite low on the horizon, giving you a nice side lighting. The sunlight is also not too harsh as in the afternoon, and there are no ugly shadows during that time. Additionally, the early morning and late evening sunlight will give you a warm and slightly diffused lighting effect. In the art of photography, good lighting means good pictures!

3. CORRECT ANGLE OF THE LIGHT
To get the best picture, the sunlight must not come from the back of your subject. This will usually make the subject appear dark in the picture and you will not be able to capture the details of the property. The light should be coming either from the side or from the front of your subject. It’s good if you know the position of the sun according to the property beforehand. Continue reading

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Free “For Sale/Rent” Banner Giveaway is Over

For the last few months, we have been advertising our free banner giveaway throughout hartanah.net.

The response from both negotiators and property owners has been extremely overwhelming, and we have received countless requests for our customised banners.

Therefore, we would like to announce that redemption for these freebies are now closed. For those who managed to redeem their banners, the first batch is ready for collection! Please wait for our call as your cue to come and collect them.

Thanks to all members for your loyalty thus far. We hope to receive your continued support because we are now working even harder to serve your needs.

We will certainly be coming up with new and exciting promotions and features, just for you, so make sure you keep logging on for more updates!

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Selling Your Property Through an Agent

There have been tonnes of scary stories regarding buying and selling properties through dishonest agents. A better understanding of the processes might help. Here’s an idea of how it normally works.

1. How to choose an agent.

real estate agentAs with most sales people, you might want to go to a familiar name. Be it a family friend or friend’s friend or just someone you know have a good record. If all else fails, try to go for big agencies. Chances f getting a con or dishonest agent can be reduced tremendously.

Make sure you pick only registered agents as they are bound by the law and you will know exactly where to catch them if things don’t work out. Run through the list of registered agent in the Malaysian Institute of Estate Agents (MIEA) here http://www.miea.com.my/

The cost of an agent could also be a deciding factor on your choice of agents.

You should expect the structure is something like: Continue reading

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we just got a new face!

If you’ve been to our site in the past 2 days, I’m sure you would have gotten a surprise. Yes, we’ve taken all your feedbacks into consideration and revamped the entire layout of the page. Just for your convenience and usability!

layout1

In addition to that, hartanah SUGGEST also made its debut appearance on the page whenever someone searches or posts something. How helpful right?

suggest

Oh, property agent friends, make sure you come on to our website and redeem that SALE/RENT signage of yours! It’s our token of appreciation to your loyalty.

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Important! When buying 2nd hand homes

It takes alot to make a happy home owner

It takes alot to make a happy home owner

Before you rush into paying your down payment for that nice house, why not spend a little time running through these items first?

1. Find out more about the house.

Talk to the neighbours, surf the net or just ask around for a history into the area and what kind of news made it to the newspaper. That way you’ll be less likely to be surprised by strange things happening to you or the house that may have been caused by previous owners.

2. Check the amenities in the house.

2nd hand houses may come with problems that can range from a stuck toilet, leaking faucet or even a broken window. Make sure to inspect every room in the house and test all the amenities. Make sure there are no water damaged walls and ceilings.

3. Make sure the structure of the house is stable and in good condition.

This includes foundation, walls, floors, ceiling, roof and attic. Watch out for water penetration and structural damage like floor beams that have been cut or altered. Continue reading

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NEW FEATURE ANNOUNCEMENT! LOCAPEDIA!

Looking for the perfect home? Searching for the sweet spot to relax and enjoy life? Or just looking for a great investment opportunity? Look no further…..Locapedia has it all.

Locapedia has all the details that will make life easier and much happier for you. It contains all the main aspects which a person will and has to consider in buying a property. The locapedia features are divided into 8 main aspects which is the history of the area, dwellings, landmarks, amenities around the area, schools and collages, transportation and highway excess, neighbouring locations, area proximity and more.

This is a one-stop information for all your needs…..The will be no need to go else where…..Come now and see it for yourself.

You need to see it to believe it!

locapedia

Locapedia

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