In today property market in Malaysia, property prices have risen crazily, it makes many of the Malaysian can’t afford to buy a house with their little salary. For the youngster, they’re force to rent a house out there or live at their parents’ house as the costs of a house is a nightmare for them. However, some of the smart young people who get the allowance from the government to buy a house or buy an old house then rebuild it.
Recently, a young couple from Pahang shared their experience from purchasing a second-hand house and rebuild the house into a brand new luxury home. This exemplary could inspired all of the young couple who want to buy a house but have restricted budget.
1. How much money did you spend on purchasing this house? How much time and money did the renovation cost?
I bought this second-hand house in 2015 for RM165,000, the renovation costs around RM65,000 and it took place over a period of three and a half years. The expenditures for furnitures and electrical appliances were approximately RM30,000.
2. Why did you decide to purchase a second-hand house and not a new one instead? Did you go through a property agent or did you do your own research?
House value – RM165,000
Renovation – RM65,000
Furnitures and fittings – RM30,000
Mortgage loan – RM149,000
Renovation loan – RM33,000
Legal fees – RM1,800
Overall expenses – Around RM80,000
Monthly housing loan repayment – RM1,100
Many homeowners offer to sell their homes at prices higher than what banks value the properties to be, ultimately the loan granted is only 90% of the sales price. For example, if the offer price is RM260,000, and bank values it at RM210,000, the approved loan amount will only be RM189,000, therefore you will need to fork out about RM75,000 just to purchase the house itself, not inclusive of renovations and furnitures expenses yet.
Prices of new properties are on the high, we fear not being able to afford the expenses in later years, and we happened to stumble upon this second-hand leasehold property by chance. So, we took some time discussing over the matter and finally decided upon making the purchase, we made the decision so that we can have extra disposable money to pay for renovation costs and to purchase furnitures. The price of this house itself is cheap due to its leasehold tenure, with 22 years gone past, the tenure is left with 77 years. The former homeowner of this unit was worried that it will become harder to sell as time goes by and decided to let it go to us.
My wife and I were not buying a house for investment purpose, our only intention was to have a cozy and comfortable home of our own. Therefore we chose not to care too much about the remaining 77 years tenure and went ahead with the purchase. As for the renovation, the idea was generated from our own preferences, even though the initial expenses were rather hefty, the subsequent monthly loan repayment amount is very affordable, in line with our current standard of living and financial affordability. We are very delighted that many people out there admire the beautiful end result, but the best and most pleasant part of it all is that we now have a home that we both adore.
This is the pictures of the original look of the second-hand house:
The house transformation is in process
Ready to see the completion of the house transformation??? We’ll reveal in 1..2..3…
This young couple really amazed us, they just transformed the old house into a luxury home. While the second-hand house price is quite affordable for a landed house. Every young couples out there are encourage to do the same as above. If you can’t afford for a brand new house, you may consider to buy an old house and decorating the house as you like.