Search Articles

Find tips, tools and how-to guides on every aspect of property

How to buy a house in 2020 and save money

test

2020 has been a challenging year to a lot of people, except potential homebuyers if they play it right.

©khwaneigq | 123rf

The unforeseen circumstances that have happened this year have made it quite a challenging time for many people. As society tries to cope with the challenges now and ahead, the situation has also unexpectedly opened up opportunities for people who are looking to purchase a property.

The decrease in demand for properties has forced the government and the property industry to think of creative ways to entice potential owners to buy at this time. We’ve outlined some of the ways and how you can even save more money if you purchased your property now.

1. Take advantage of the OPR cut

©nerthuz | 123rf

The decision by Bank Negara to cut in the overnight policy rate (OPR) to 1.75% in July this year to stimulate economic growth should greatly increase the appeal for homebuyers to purchase a property at this moment. The OPR has a direct influence on the Base Rate (BR) and the Base Lending Rate (BLR), which determines the interest rate on properties.

As such, with the OPR cut, it is now cheaper for potential homeowners to take up home loan products as they can leverage on the lower initial interest rate of the property to get the home they desire.

2. Goodies that come with the Home Ownership Campaign

©colors06 | 123rf

Designed to drive the increase of homeownership among Malaysians, the Home Ownership Campaign offers some kickbacks that could be the last push towards some potential homebuyers finally owning homes.

Under the scheme, successful applicants could enjoy a 100% stamp duty exemption or at least a partial exemption on any Sale & Purchase Agreement executed between 1 June 2020 to 31 May 2021. Properties that are within the scope of this campaign are the ones within the price range of RM300,000 to RM2.5m. On top of that, the campaign also offers a minimum 10% discount (from property price) for all units that are not subjected to government price control.

3. Competitive mortgage interest rates

©Karen Roach| 123rf

Banks are also getting more competitive with their loan products to entice potential homebuyers into taking a loan with them. It includes offering attractive mortgage interest rates and other benefits. This, in turn, benefits the homebuyers as they would have a lot of attractive options to consider before leaping.

To be certain of what you’re getting yourself into, always request for a Product Disclosure Sheet (PDS) to compare the effective lending rate, monthly instalment, total repayment amount, lock-in-period, early settlement penalty, and charges.

It will also tell you how a rise in the interest rate over time affects your monthly instalments and the total repayment amount over the life of your loan. This would certainly help you make a more informed decision on which loan product to choose.

4. Developer’s offers and promotions

©Benjawan Sittidech | 123rf

Just like the banks, developers are also getting more competitive with their offers and promotions to try and attract homebuyers into buying their properties. This includes anything from giving free fixtures such as kitchen cabinets and air-conditioning units with the property, to offering rebates.

For example, Matrix Concepts have launched a very attractive Homemade Plan that is designed to bring assurance and to assist potential homebuyers to own their dream home, especially during these challenging times. 

Some of the key features of their Homemade Plan includes not having to place a down payment to secure the property you want. You only need to pay an RM1,000 booking fee*. They are also offering an instalment subsidy for up to 18 months*.

Other cool freebies include complimentary broadband internet service for one year*. Via the loyalty program, there is also a discount offered to those who purchased a second property from Matrix. 

For the parents, an enrolment discount for Matrix Global Schools which offers preschool, private primary and secondary schools with KSSR syllabus is available. This would be certainly something to consider for young families. Those who love being a part of a community will enjoy a complimentary clubhouse membership and some of the best lifestyle facilities in d’Tempat Country Club.

If you’re interested in what the Homemade Plan has to offer, do call 1800 88 2688 to find out more or visit Maxim’s website. 

So as you can see, buying a home is probably one of the most significant investments you will make in your lifetime. Take advantage of the current economic climate to earn some savings while doing it, especially if you’ve already set aside funds to purchase the home of your dreams.

*Terms & Conditions apply with Selected Projects only.
Disclaimer: The information is provided for general information only. iProperty.com Malaysia Sdn Bhd makes no representations or warranties in relation to the information, including but not limited to any representation or warranty as to the fitness for any particular purpose of the information to the fullest extent permitted by law. While every effort has been made to ensure that the information provided in this article is accurate, reliable, and complete as of the time of writing, the information provided in this article should not be relied upon to make any financial, investment, real estate or legal decisions. Additionally, the information should not substitute advice from a trained professional who can take into account your personal facts and circumstances, and we accept no liability if you use the information to form decisions.

More Articles