A 24-year-old Malaysian has sparked discussion online after sharing his dilemma about buying his first home despite having limited savings.
Planning to buy RM200K subsale home
In his post, the man revealed that he earns RM3,000 a month and currently only has a car commitment of RM620.
He is eyeing a subsale property priced at RM200,000 and plans to take up a full loan. However, his biggest concern is his lack of savings, as he only recently learned that buying a home involves more than just the down payment.
At the moment, he has about RM4,800 in his EPF Account 2 and RM6,000 in cash.
Shocked by hidden costs
While he was initially prepared to pay a 3.24% booking fee amounting to RM6,480, he later discovered additional costs involved in the process, including legal fees, SPA legal fees, valuation, disbursement, and processing fees.
After calculating everything, he began to worry that he might not be able to afford the total upfront cost.
To clarify, he consulted a banker who told him that only the Sale and Purchase Agreement legal fees need to be paid upfront, while other costs could be absorbed into the loan.
However, conflicting advice left him confused and unsure of what to believe.
Torn between proceeding or waiting
With plans already set to meet the agent and property owner to sign the booking form, he is now questioning whether to proceed or hold off.
He expressed concern about being financially burdened or facing unexpected costs he is not prepared for.
Netizens urge caution
In the comments section, many netizens advised him to hold off on purchasing the property for now.
Some pointed out that buyers typically need around 15% to 18% of the property price in savings to comfortably cover upfront costs such as the remaining down payment, legal fees, and valuation fees.
Others shared personal experiences, warning that committing to a home loan with a RM3,000 salary could lead to tight monthly finances.
One user suggested renting a room or studio instead, while gradually saving or investing before committing to a property purchase.
Another recommended considering newly completed properties, as some developers offer zero entry cost packages or absorb certain fees.
Some offer alternative strategies
Despite the caution, a few commenters encouraged him to plan strategically if he is determined to proceed.
Suggestions included renting out extra rooms to offset monthly repayments, negotiating with lawyers to deduct fees from loan disbursement, and ensuring a proper understanding of which costs can be included in the loan.
View on Threads
