Thread by @BreakMyCoffee

I purchased a service apartment last year to enjoy the Home Ownership Campaign (HOC). My first ever property.

Since the campaign will end on Dec 31, 2021, I thought it'd be good to share my thought process on acquiring my unit and the learnings I've had along the way.

1. What's HOC? It's a campaign by the government to encourage Malaysians to buy developer units (i.e. Help developers sell overhang units.)

What does it entail?
a. 10% discount
b. Stamp duty exemption on MoT & Loan Agreement*

*Got T&C on the amount

2. Why did I decide to buy a house?

a. Low-interest rate environment - OPR was at 1.75% p.a.

b. The HOC subsidies (approx RM20K for RM500k house).

c. Minimal upfront costs (usually 1% of down payment).

d. And it'd be nice to have a place. A rite of passage.

3. How did I start my search journey?

I did a lot of driving around the areas I want to stay in, to search for buildings - mainly around PJ / Subang area.

I visited three showrooms only. I was afraid of analysis paralysis. There are pros and cons to this.

4. How did I decide which property to buy?

- Affordability. I also considered rental yield, in the event I need to relocate or lose my source of income.

- Purpose of purchase (rite of passage).

- KYC on the developer & contractor. Both are listed cos.

5. There will be "noise" when you make your purchase such as:

"What if property market gets worse? Then it'll be cheaper in the future!"
"Eh I heard that property okok only, this property better!"
"Will I be able to afford? If you need HOC, means you cannot afford it la."

6. I don't have a crystal ball. I definitely wouldn't know if the market will get better or worse.

There'll always be better property out there but is it better for YOU, & your circumstances?

I look at HOC perks as savings. Money saved on admin stuffs to renovation :)

7. It was my first house purchase but I was not picky when it came to details. All I wanted was to buy a place and call it my own.

I don't have buyer's remorse but there were things I wished I had done better in selecting the property.

7 LESSONS ahead!

8. Visit more showrooms.
- To know more about what's available in the market.
- To notice the details of the properties. Some developers are better than others, no doubt.
- To give yourself options.

I visited only three when I could have visited at least 10!

9. At the point of making the purchase/selecting units (high-rise)
- Consider the placement of the unit (is it near lifts or garbage disposal?).

When I bought mine, I didn't even ask. Rookie mistake. Luckily, I selected a unit that was far away from both. Don't rely on luck!

10. I didn't ask for discounts. I was happy with the price but I was told this:

"You could be called an idiot either way, which idiot do you want to be?"
- One who asked for a discount and GOT it.
- One who didn't ask for a discount and got nothing.

There's no harm in asking.

11. Don't fall for sales tactic - "last few units, need to make booking asap."

When you have to make a decision under duress, it usually isn't a good one. It's your property. Take your time.

If you've missed this one, it's okay. Wait for subsale. Look for the next project.

12. Survey the area of the project you are eyeing - the one that you are interested in.

@taniherng made a great video on this topic when he was scouting Maya Ara. Very sound advice. I learned a lot watching his videos too in general. Thank you Sean!

13. Always remember your objective of the purchase. For own stay or rental?

If your plan is to rent the place out, look for a property that you are willing to stay in. In case you are unable to find renters, at least you yourself can stay in it.

14. Last advice:

Don't regret the purchase. Be at peace with your own choice. Don't overthink.

No doubt it's a big decision but gather the necessary information, make the decision and then be at peace with it. You'll sleep better at night.

I sincerely hope what I've shared will help you in your house buying decision.

Good luck! If you think it's useful, share it with your friends and family!

https://twitter.com/BreakMyCoffee/status/1468056093888692224?s=20