Buying a RM1.2M Home Before 30: Tips from Young Homeowners
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Owning a home in your twenties can seem daunting with high housing prices and a preference for flexible living arrangements. For many, renting or living with parents is the practical choice for saving money.
Yet, if you’re under 30 and put off by steep property prices and mortgage complexities, know that you are not alone. Despite these challenges, achieving homeownership is still within reach.
Introducing Cheng and Sean, a vibrant couple from Kuala Lumpur, who prove that owning a home in your twenties is still achievable with the right planning and determination.
Now, let’s delve into the strategies and insights Cheng and Sean employed when they decided to buy a home.
Starting With Strategic House Hunting
Cheng and Sean set out with a clear mission: to own a home in Kuala Lumpur before they hit their 30s. This was not just an idle dream but a target they pursued with unwavering determination and strategic planning.
Reflecting on their journey, they share, “People often ask us how did we buy a RM1.2 million property in KL before our 30s?” Their simple answer: “We were determined to do it.”
Want to know how they managed to achieve this? Here are some foundational tips they followed when searching for the right home.
Tip 1: Extensive Market Research
Sean emphasises the importance of thorough market research, saying, “We’ve done extensive research. I have this huge spreadsheet with about over 60 properties.” Their approach went beyond simply viewing numerous properties. It involved understanding pricing, market trends, and identifying what made a property a good buy.
This deep dive into market analysis allowed them to make an informed decision when they finally chose their home.
Not sure where to start? On PropertyGuru’s Buy Section, you can explore a wide range of properties and use filters to narrow down choices by property type, size, location, and even price points.
Tip 2: Choosing the Right Property Type
Sean and Cheng’s decision to opt for a townhouse over a condominium was influenced by more than just lifestyle preferences. It was also a personal decision.
“One of the reasons why we chose a townhouse over a condominium was because we felt like we would struggle with dealing with the management of the condominium to do the renovations the way we wanted to do it, which would limit our creative freedom,” Sean explains, clearly satisfied with their decision.
For those deciding between landed houses and high-rise, consider the advantages of landed properties. Sean and Cheng appreciated the greater control and flexibility they offer, which can be a significant benefit for those looking for more freedom in managing their living space.
Moving On To Financial Strategy & Cost-Saving Measures
When managing expenses related to their new home, Cheng and Sean took several proactive steps to ensure they remained within their budget while achieving the desired outcomes for their property.
Tip 3: Mastering Negotiation Tactics
Negotiation played a crucial role in their financial strategy. Cheng shares a valuable tip for first-time buyers: “Don’t be afraid to pitch a lower price. Usually, the price that they list is never the price that they know that they’re going to sell it for.”
The key here is to be well-informed about the market price. Having a solid understanding of what properties are worth gives you a strong basis for negotiation.
Using this strategy, Sean and Cheng stayed within their budget without compromising their needs.
Tip 4: Choosing a Partially Renovated Home
One of the most significant decisions that impacted their budget was choosing a partially renovated property. This strategic choice allowed them to save on initial costs that would have been necessary for a full renovation.
Cheng highlights the financial advantage of this decision, stating, “If we didn’t get a partially renovated house, I think we would have had to double our budget for our renovation cost.”
Thus, opting for such a home allowed them to direct their resources toward personalising their space to suit their tastes rather than allocating funds for extensive rebuilding.
Tip 5: Budgeting for Renovations
Understanding the true cost of renovations is crucial for any homeowner. Aware that even well-planned budgets might stretch under pressure, Cheng and Sean prepared for unexpected expenses.
Cheng recommends, “Whatever your budget is for renovations, add another 50% to it because you never know when things might come up.” This buffer ensured they could handle unforeseen costs without compromising other financial obligations.
So, if you’re planning a renovation, consider setting aside a contingency fund to safeguard your financial health and keep your renovation goals on track.
Tip 6: Investing in Second-Hand Furnishing
Cheng and Sean also embraced the idea of not moving in with complete furnishings immediately, which significantly reduced upfront expenses. To further stretch their budget, they opted for second-hand furniture.
“You don’t have to get all of your furniture new. You can buy second-hand furniture to save some money,” Cheng shares practical advice she received from a friend.
The best part? Using second-hand furniture is a savvy way to manage expenses and enhance decor. Each unique piece brings distinct character and flair to your home, making it uniquely yours.
Tip 7: Leveraging Technology for Design
Cheng and Sean took advantage of digital tools to plan and visualise their space efficiently, without the need for expensive professional services.
Sean encourages economical planning by encouraging people to “also become thrifty and learn how to use interior design apps. ” Cheng adds, “There are lots of apps that can help you. We used this 3D rendering software called Home by Me.”
These tools allowed them to experiment with different layouts and designs, ensuring they were satisfied with their choices before making any physical changes.
Cheng confidently sums it up: “It takes time, but anyone can do it.”
Tip 8: Most Crucially, Learn How to Budget
Last but not least, everything comes down to budgeting, which is managing the costs associated with buying and maintaining a home.
Sean emphasises, “My recommendation is to learn how to budget and track every transaction. It’s just about prioritising, really.”
Keeping a detailed budget helps you control spending and plan for future expenses, which is vital when managing large investments like home ownership. It also enables you to make informed decisions and adjust your spending.
Personal Touches Transform Living Spaces
Cheng and Sean’s journey included not only financial planning and strategic buying, but also adding personal touches that reflected their personalities and enhanced their home’s functionality.
Sean’s interest in smart home technology led to installing automated lighting and climate controls, enhancing both convenience and efficiency.
At the same time, their home has deeply influenced their lifestyle. While they enjoy social activities, they spend more time at home, appreciating the environment they’ve created.
Cheng remarks, “We’ve become more like homebodies. Having friends over makes me feel proud and has greatly enriched our lives.” Their space has evolved into a beloved gathering spot, boosting their overall satisfaction with homeownership.
Young Adults Proving Homeownership Possible
Cheng and Sean have established their own home and crafted a guide that can inspire and assist young couples and individuals who doubt their ability to buy a house.
They show that smart planning, thorough research, and confident negotiation were key to turning their dream of owning a home early into reality. For first-time homebuyers, conducting extensive research and finding out what to know is necessary before making such a significant commitment is crucial.
Remember, achieving your “home sweet home” is within reach. You can make this dream your reality with determination and the right strategy. Best of luck!
