Should You Buy A Home In Malaysia With 0% Downpayment? Here's What You Need To Consider
Even with 0% downpayment, it's important to purchase a home within your means.
Published for Tropicana, 23 Sep 2024, 05:37 PM
Whether it's your first time or fifth, buying a home always involves major considerations, including budget, location, and financing options
In Malaysia, a trend that's getting more popular among developers is a zero downpayment financing option. For prospective buyers looking to own their first or second home, options like Maybank Islamic's HouzKEY scheme seem like a smart option in terms of flexibility.
But before that, there are some aspects of a zero downpayment plan that you should be aware of before you sign the dotted line.
With a zero downpayment scheme, you no longer have to part with a significant chunk of your finances in order to own your first home
Instead of gathering RM50,000 for a 10% downpayment on a RM500,000 home, plus additional costs like legal fees and renovations, potentially totalling RM60,000 to RM70,000 upfront, you can put it towards other needs.
For example, the money you would have spent on a downpayment could go towards home renovations, your child's college education, or building an emergency savings fund.
This flexibility is particularly beneficial for young families or individuals starting out, allowing you to manage multiple financial commitments without sacrificing your goal of homeownership.
Another underrated aspect of zero downpayment schemes is that it helps you own a home you really desire when the opportunity presents itself
Everyone has unique requirements for their ideal home. Whether it's proximity to a school, ample public transport, or access to retail, finding a property that meets most of your needs can be rare.
Imagine a young professional who finds her dream home but hasn't saved enough for a traditional downpayment. With a zero downpayment scheme, she can own her dream home immediately without financial delay.
A zero-down payment scheme allows you to own a home without waiting to save a large sum of money, ensuring you don't miss out on your dream home.
But before you commit to such a scheme, there are also some financial factors to consider for the long term
For starters, you should ask yourself how a zero downpayment plan will affect your financial plans for the foreseeable future. It's important to understand that while you avoid a large upfront cost, your monthly payments may be higher compared to traditional mortgages.
Additionally, consider the interest rates associated with 100% financing. While the initial appeal is the lack of a downpayment, higher interest rates over a longer period can increase the total amount paid for the property.
Another thing that most people don't tell you when you buy a home is all the additional costs that come with maintaining a home. This can range from unexpected repairs and higher utility bills, to recurring payments like maintenance fees.
Ensure that your monthly budget can comfortably accommodate these payments without compromising your other financial goals, such as retirement savings or children's education funds.
Whether you're a prospective first-time homebuyer or seasoned property investor, Avisa Residences in Tropicana Alam poses a unique opportunity
Nestled within Puncak Alam, the Tropicana Alam township has been earmarked as a fast-growing residential haven complete with access to lifestyle facilities for all ages.
The masterplan spans 362.72 acres and is conceptually based on the metaphorical 'Spine of Life' concept.
A central 132-foot-wide boulevard runs through the masterplan, mimicking a central spine interlinking green branches into each of the three plots: A, B, and C.
The first phase of Tropicana Alam, Avisa Residences covers 85.07 acres, and utilises the hilly topography to strategically allocate amenities and affordable housing.
Avisa Residences is the latest development within this township, and potentially checks all the boxes you're looking for in your next home
Here's a look at what sets Avisa Residences apart:
- Modern two-storey terrace homes with lot sizes starting from 20'x70' and spacious built-up areas of up to 2,324 square feet, featuring up to 4 bedrooms and 4 bathrooms.
- Gated-and-guarded community ensuring security and peace of mind for residents
- Strategic location in Puncak Alam with seamless connectivity to major highways (LATAR, GCE, DASH, NKVE)
- Comprehensive amenities nearby including educational institutions (UiTM Puncak Alam, Sekolah Kebangsaan Puncak Alam, SKJC (C) Pin Hwa), medical facilities (Hospital Al-Sultan Abdullah), banks, suraus, and shopping centres (KIPMALL Desa Coalfields, Econsave Puncak Alam)
- Proximity to green spaces including a five-acre scenic lake, an enchanting 4.5-acre central park, and a 1.3-kilometre tranquil lakeside jogging trail, where residents can enjoy a balanced lifestyle with access to nature
What's cool is that Avisa Residences is now offering you the chance to own a unit from RM580,000*!
Plus, through Maybank Islamic's HouzKEY scheme, you can obtain 100% financing if you're a Malaysian buying your first or second home.
HouzKEY is a unique scheme with no downpayment required and no payment during the construction period.
Here's how it works:
STEP 1 (Application): Browse for the property you like at Maybank2own and register your interest. Representatives from the developers will reach out to you for the next steps. Once a booking is made, you can apply for the HouzKEY scheme directly online. Do ensure you meet the eligibility criteria, including a stable income, and a good credit history.
STEP 2 (Approval): Once approved, you'll be required to pay a refundable three-month security deposit as well as any other possible legal fees. Then, you can move into your chosen Avisa Residences unit without making a downpayment. If your unit is still under construction, you won't have to make any payments in the meantime.
STEP 3 (Monthly Payments): You make monthly payments upon obtaining vacant possession of the property, which are typically higher than traditional rent but lower than a mortgage. For Avisa Residences, monthly payments are available from as low as RM2,018 per month.
STEP 4 (Option for Early Settlement): Homebuyers under HouzKEY start off with a five-year tenure, and subsequently have the flexibility to continue for up to an additional 30 years (subject to terms and conditions).
After a minimum 12-month period, you have the option for an early settlement at a pre-agreed price. Homebuyers may opt to settle early by refinancing via mortgage, cash, or dispose to third-party buyers.
Stay tuned for the upcoming premium release of Tropicana Alam soon!
To get more details about Avisa Premium Green Terraces next phase opening, register here. You can also learn about owning a unit through Maybank Islamic's HouzKEY scheme here.
Grab this opportunity to own your dream home in Puncak Alam at this latest township development, with 75% of the first phase already sold.
