Introduction: Buying Property is a Big Deal
For most Malaysians, buying a property is the biggest financial decision they'll ever make.
But because it's so exciting — and sometimes pressured by friends, family, or FOMO — many end up making expensive mistakes.
Today, let’s walk through the most common property-buying mistakes in Malaysia and more importantly, how you can avoid them.
1. Not Knowing Your True Budget
Just because the bank approves you for a RM500,000 loan doesn’t mean you should borrow that much.
✅ Tip:
Use the 30/30/3 Rule:
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30% of your monthly income should cover mortgage payments.
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30% down payment ideally.
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3x your annual income is the max price of property you should target.
Example:
If you earn RM5,000/month → mortgage ideally ≤ RM1,500/month.
2. Ignoring All the Hidden Costs
Buying a house isn’t just about downpayment and loan.
Hidden costs include:
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Stamp duty (RM10k+ for mid-range homes)
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Legal fees (lawyer fees, SPA, loan agreement)
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Valuation fees
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MRTA/MLTA insurance
✅ Tip:
Prepare at least 5%–7% of property price for these extras.
3. Overestimating Rental Yield (For Investors)
Thinking "I can easily rent it out for RM2,000/month" is dangerous.
Reality check:
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Many condos sit empty for months.
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Rental markets fluctuate.
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Maintenance costs eat into profits.
✅ Tip:
Always use conservative estimates (example: assume 10% vacancy annually and maintenance fees).
4. Choosing the Wrong Loan Package
Some buyers blindly pick the first housing loan offered.
Mistake!
Loan terms (interest rates, lock-in periods, flexibility) matter a lot over 30 years.
✅ Tip:
Use home loan comparison sites like iMoney or RinggitPlus.
✅ Pro Tip:
Sometimes a slightly higher rate with no lock-in period saves you more flexibility long-term.
5. Not Checking Developer Reputation
Especially for new projects, choosing a bad developer leads to nightmare:
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Construction delays
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Poor quality
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Abandoned projects
✅ Tip:
Always check:
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Developer past projects
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Any late delivery complaints
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Financial strength
6. Buying Emotionally, Not Logically
"I fell in love with the kitchen!"
"I love the pool view!"
Be careful.
Buying property is about long-term finances, not just emotional excitement.
✅ Tip:
Before signing, ask:
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Is this area growing in value?
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Are the amenities sustainable (future MRT, malls, universities)?
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What’s the potential rental demand?
Real-Life Example: How Small Mistakes Cost Big Money
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A young couple bought a condo RM500,000.
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Monthly installment RM2,300.
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After 5 years, market price dropped due to oversupply — now valued at RM450,000.
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Monthly rental achievable: RM1,800.
✅ They overpaid. ✅ Wrong location (too many new condos around). ✅ Now stuck unless they sell at a loss.
Conclusion: Property is a Marathon, Not a Sprint
Buying your first (or second) property should be a carefully planned decision, not an emotional race.
Take your time, do your homework, calculate conservatively, and always be prepared for hidden costs.
Because in property, small mistakes today = big regrets tomorrow.