Before buying a House

To buy or not to buy? Should I buy a house when the price of property is sky high? Or should I wait until the price drop (if it ever)? Nowadays the price of house for a double storey semi-D is around 250k - 350k. The price varies depends on location and design. The other day I went to my friend house at Taman Bukit Sepangar and fell in love with the house immediately, first they know how to add design to the house and make it look like a resort. And secondly, there's a really nice view, you can see the mountain. And the neighborhood is friendly and clean. They bought it just before the fuel price increase, then it was still 300k (2.5 storey, corner), after the fuel hike, now corner lot, I think maybe around 350k - 400k. And eventhough government has reduce the fuel price 3 times since, damage has been done. What do I look for in house?

1. Must be within my budget. Preferably below 200k.
2. Location. Preferably near town, school, church and workplace. Not at crime prone area (away from the Pilaks).
3. Design. Cosy and nice to look at. Doesn't have to be double storey or big.
4. Have lawn, so I can keep a dog or cat and park my car.

It sure sound easy when put it that way, but it's not. Especially when my budget is below 200k. For 200k, nowadays maybe can afford only apartment (base on location). I went to survey a few house, some are too far, whereas some are too expensive. I don't want to buy a house thats too expensive and in the end when can't afford to pay monthly only ending up in debt. So, when buying a house must think carefully, if not, you'll end up having a big house and a huge debt and eat sand and grass for 20-30years. However, some people buy house for investment purposes (these are mostly rich people). Well, figuring out where you want to buy your house and setting your budget and all that is one thing. But in Malaysia, there's a lot of things to prepare beside that. These are the things I've just find out about buying a house.

1. Eligibility - Buyers must be Malaysian citizen. Bumiputra can enjoy from 5% up to 8% discount on purchase price. YEY!
2. Title - Most land has 99years. Native land have 999years. Make sure don't buy land that is almost expired.
3. Financing - Most bank provide housing loan for their client, hopefully you've a clean background (and you may also choose to refinance your house after a few years). Otherwise, withdraw from EPF, 30% of the total amount deposited in the EPF.
4. Documentation & Procedures - Fill in forms (for purchase of house contract). It is common practice that upon signing of the sale and purchase agreement 10% of the purchase price be paid to the seller.
5. Stamp Duty - Levied on the document of transfer. 1% on the first RM100,000.00.
6. Legal Fees - Here's where the lawyer comes in. 1% on the first RM100,000.00, For each sale and purchase of a house, the solicitors concerned can only collect fees based on the above scale from either the seller or the purchaser and not from both of them.

Phew!!.. I'm now so envy of the people who build their land illegally without paying a single cent and have big huge bungalow-like house, some of these houses even have electricity and water supplies (don't ask me how they got it).