Buying your first home is exciting. It feels like a big adult milestone.
But according to property expert Dr Azizul Azli Ahmad, many first-time buyers unknowingly make decisions that lock them into financial stress for years.
If you are planning to buy your first home, here are some practical tips you might want to think about before signing anything.
1. Your first home is NOT your dream home
It is easy to feel pressured to “upgrade” immediately, whether it is a bigger house or a trendy luxury unit.
But Dr Azizul advises keeping your first home simple.
Your first property should be small, practical, and manageable. Chasing large homes or high-end studio units too early comes with higher risks, especially when your income has not fully stabilised yet.
2. Never let your home instalment exceed 30% of your income
This is one rule many people ignore until it is too late.
Dr Azizul recommends keeping your monthly housing instalment below 30% of your salary.
If you earn RM4,400 a month, your housing payment should be around RM1,320. Once it goes beyond that, financial pressure tends to creep in quietly, affecting savings, lifestyle, and even emergency funds.
3. Compare buying vs renting using real numbers
Buying is not always the smarter option.
If renting a similar unit costs RM1,500 a month but buying it requires RM3,000 in instalments, renting may actually make more sense for now.
Dr Azizul suggests using the extra RM1,500 to save or invest instead, such as in Amanah Saham Bumiputera (ASB), which offers estimated returns of around five percent a year.
4. Don’t be fooled by maximum loan & renovation offers
Banks may offer to finance not just the house, but also renovation costs.
While it sounds tempting, Dr Azizul warns that these “extras” often turn into decades of unnecessary debt.
A beautifully renovated home means little if it keeps you financially stressed for years.
5. Watch out for hidden costs in serviced apartments
Serviced apartments may look attractive, especially for first-time buyers.
However, many are built on commercial land, which means higher maintenance fees and utility bills compared to residential properties.
These extra monthly costs are often overlooked during the buying process but can add up significantly over time.
6. Buy a home that is easy to exit later
One mistake many buyers make is choosing a home that is difficult to rent out or sell.
According to Dr Azizul, your first home should be easy to exit if your life plans change.
An ideal first home usually has:
- Three bedrooms
- Two bathrooms
- An affordable price
- Good rental and resale potential
Dr Azizul stresses that buying a home is not a mistake, but buying the wrong home is.
So before committing to one of the biggest purchases of your life, slow down, run the numbers, and choose what truly works for your situation, not just what looks good on paper.
