5 Things You Should Know Before Buying Your First House

• By adji.hendrawan
• June 27, 2022

The process of buying your first house can be overwhelming. Whether you have found a home that fits your preference or still hunting, we got you covered! In addition to sharing 5 things you should know before buying your first house, we’ve also asked a few first-time homeowners to offer their insights into the process.

1. Never settle for less

It’s normal to feel overwhelmed when you’re in the process of buying a house. All the house viewing, meeting with different property agents and banks, and figuring out how to come up with a down payment and other fees can be nerve-racking. We get it!

Best to create a list to ensure you didn’t miss out on anything. Allow sufficient and realistic time for each step. The process of buying a house for each individual is different, your parents might take 3 months to find their dream house and you may take a longer time and it’s fine. 

The last thing you want after you’ve bought a house is regret. So take all the time you need, after all, it’s going to be one of the most important decisions of your life.

2. Don’t overlook the additional charges

Most of us plan to buy a house because we want to save money. If a house’s monthly mortgage is the same amount as our monthly rent, might as well buy a house right?

If this is the reason you want to buy a house, we beg you to reconsider your decision. 

The cost of buying a house is not just the monthly mortgage. House owners are responsible for maintenance fees, quit rent or ‘cukai tanah’ for landed properties and property assessment tax or ‘cukai pintu’.

“Make sure you’re prepared for all the extra charges before buying a house. I wish property agents would explain all the additional costs post purchasing a house in detail so first-time homeowners like me will be more prepared.”- Nur Amira Tan.

Check out all the fees you need to pay when buying a house, here. 

3. Purchase the right home and mortgage insurance

Home and mortgage insurance aren’t mandatory in Malaysia. However, your lender may still require you to purchase the insurance policies.

Let’s look at the difference between these two insurances. A home insurance policy covers interior and exterior damage, loss or damage of personal assets and injury that arises while on the property. Mortgage insurance on the other hand protects a mortgage lender in case the borrower is unable to repay the loan. 

We recommend you research all options from banks and insurance providers before making any decision. 

One of the first-time homeowners we interviewed, Ahmad Bin Zakaria said, “I was talked into taking the most expensive insurance by the property agent. I obliged because I had no idea about property insurance back then.” 

Related: 5 Types Of Insurance You Need But May Not Have

4. Discuss EVERYTHING with your partner

Buying a house with your partner? Discuss everything and address each other concerns before making any decision. 

“Have an in-depth discussion with your spouse because buying a house as it is a long-term commitment especially if you’re planning to get a joint home loan.” – Latifah Bakri and her spouse.

On top of that, once you purchase a house under a joint tenancy, you might not be able to enjoy the initiatives for first-time homeowners such as the My First Home Scheme which allows first-time home buyers to get a 100% loan for properties valued between RM100,000 and RM400,000. Read more on the first-time home buyer initiatives, here.

5. Invest in a professional home inspection service

If you want to save money on a professional home inspection service and think you can do it yourself, think again! 

Do you have all the tools needed for home inspection such as a moisture meter, infrared thermometer, gas detector, telescoping mirror and four-foot level? If you are not familiar with or have never heard of the items listed, you definitely need to hire a professional home inspector. 

We get how unnecessary this service seems, but it can actually save you a lot of money in the long run. Imagine discovering a leak on the roof after a few days of moving into your new house…

Finally, the process of buying a house can be stressful and challenging if you’re not prepared! Do as much research as possible and shop for your first house with confidence! 

Real couples tell us financial questions to ask your future spouse

• By CompareHero.my
• June 24, 2022

As we all know, relationships take a lot more than love – it takes trust, commitment, honesty, and so much more.

With the ever-increasing divorce rate in Malaysia, we’ve found that the one thing that holds many couples back from a successful marriage is the problem we all face: money.

With that being said, we asked 4 couples in different life stages about financial questions we should ask our partners before getting married.

Jenny and Nash: dated for 3 years, newlyweds

“What’s your current financial situation like and what kind of spender are you?”

Jennie: I think making sure to ask them about their debts, assets and current financial situation is the most important thing lah. The last thing you want as newlyweds is to find out that you now have to help settle your significant other’s debt!

Nash: I agree. Another thing to look out for is how they usually manage their finances. You gotta make sure the person you’re marrying isn’t reckless with money or a compulsive shopper, man!

Emily and Kwan Yi: dated for 3 years, married for 5 years

“Do you want to get a joint account?”
“Who should handle the family’s finances?”
“How did money affect your upbringing?”

Emily: Even though it can be scary or even a little awkward, it’s important to sit down and have a talk about how the both of you would like to handle your finances, such as whether you would like to have a joint account, or whether one of you should manage the family’s money, or the kind of lifestyle you would like to live, and more.

Kwan Yi: Oo, it’s also good to ask about how money affected their upbringing too. It helps you to understand each other and your views on money. I mean, the last thing you want is for the both of you to be on completely different pages. That’s a recipe for endless arguments man!

Aira and AJ: dated for “who knows how long”, married for 13 years

“What kind of life do you want to live and what financial goals do you have to achieve it?”

Aira: There are a bunch of questions that you’ll be asking them along the way, but something that helped me understand AJ much better was asking him about his financial goals. It helped me gauge how mature he was when we were dating and gave me the confidence to spend my life with him.

AJ: Wah, so nice ah? Make sure to answer in the best way possible je lah, okay guys? Hahaha. But to be honest, I would suggest the same thing. When it comes down to having and raising kids, buying a house, and planning for retirement, you would just feel better knowing that you and your wife have a similar plan in mind lah.

What questions did you ask your significant other before getting married to them? Let us know!

My Journey To Financial Freedom Started By Investing At 19 Years Old

• By Dharshaini Grace
• June 22, 2022

We admire those who invest but, at the same time, we’re fearful of making an investment ourselves. Perhaps it’s because the returns aren’t guaranteed, hence there’s a risk that you might get back less than what you originally invested. 

Also, we often ‘play it safe’ when it comes to our finances – after all, it’s our hard-earned money! But fear is hindering us from reaching our long-term financial goals. 

So I checked in with Rachel, 23 years old, a Content Specialist here at CompareHero and the ‘baby’ of our team. Other than being a plant mom and obsessing over K-dramas, she started investing at the young age of 19 years old! 

This is her story.

Rachel: I’ve always heard bits and pieces about investments, but I really got into it after reading up on it. With everything that I’ve discovered, my goal is to eventually be able to rely solely on my investments to maintain my lifestyle! #FinancialFreedomHereICome.

AM I FINANCIALLY PREPARED?

Of course, I had my worries, and there were things I had to consider before making an investment. One of the questions I had was, am I financially prepared to do this? But I always knew it’s always better to start with little than to not start at all. 

Read also: 4 Popular Platforms For Trading in Malaysia

STARTING SMALL…

I started my investment journey by purchasing stocks, with only RM4,000 that I’ve saved up from my part-time job. Fast forward to today, I do investments in the stock market, unit trusts, ETFs, and fixed deposits. 

Read also: Stock Exchange: What Is It & How Does It Work

Consistency and discipline are key – hence I kept adding more and more to my investments which has helped increased my returns over time. 

BAD RETURNS? IT HAPPENS.

Another thought I had was about bad returns. Here’s the thing, it happens, and sometimes you have to accept that some things are out of your control. Believe me, when I say this, there’s no point in being emotional about your losses. Waiting to cut your losses can often do you more harm than good.

GO FOR WHAT YOU’RE INTERESTED IN!

But on the other hand, there were other things that I could control, for example, choosing an investment that suits me. I assessed my risk appetite and slowly adjusted it over time. I also wanted to go for investment methods that I found interesting – there is no point in investing in something you’re not interested in learning about!

Read also: How to get into investing in REIT

WANT TO START INVESTING?

Making an investment it’s not a must for everyone, but I believe that investing can help grow your wealth over time. Hence, making it a really wise financial decision in the long run. Plus, it’s a great way for regular people like you and me to gain financial freedom! 

So if you’re looking to get serious with investing, be sure to really find out what your risk appetite is and do your research on different types of investments. Never put all your eggs in one basket, read some books on investing, and don’t let opportunities that you’ve missed out on hold you back.

Did you know, you can invest with only RM100? How Millennials Can Start Investing From As Low As RM100.

How To Decide If You Should Rent Or Buy A House?

• By adji.hendrawan
• June 20, 2022

Deciding whether you should buy a house or rent? If you’re planning to buy a house you have to be financially ready, your credit score needs to be healthy, have at least 10% of the property price for the downpayment, prepare extra cash for miscellaneous charges and the list goes on. Hence, a lot of people opt to rent. But then again, owning a house has somehow become one of the life goals for most of us. Let us help you decide if you should rent or buy a house.

Are you financially ready to buy a house?

If you have no idea how much a house cost, let us break it to you in the simplest way.

• You need a good credit score, so the bank will approve your loan. Learn more about credit scores, here. 
• The bank will also examine your DSR before approving your loan. DSR or Debt Service Ratio refers to the percentage of your monthly income that is used to pay your monthly debt. Banks use this ratio to determine your ability to repay the loan you’re applying for. Each bank has its own maximum allowable DSR limit. Normally, it would be around 70%. Find out your DSR with this formula: 

DSR Formula: Debt ÷ Monthly Income X 100.

• Once your loan is approved, you need to prepare at least 10-20% for the downpayment of the property you’re eyeing.
• You need to be able to afford the monthly instalment and other miscellaneous charges such as stamp duty, legal fees, maintenance fees, sinking fund, quit rent or ‘cukai tanah’ for landed properties and property assessment tax or ‘cukai pintu’.

Rent if you want to enjoy a fixed monthly commitment 

Some of us are living on a tight budget and are not able to afford any unexpected expenses. If this describes your financial situation, we would recommend you to rent instead of buying a property. 

You’d only have to pay the amount you agreed with your landlord for the span of your contract. You will also be exempted from paying maintenance and other charges. This cost will fall upon the homeowner. 

While of course, the homeowner can raise the rent, they still have to provide an advance notice which allows you to budget and consider other options. 

Find out how you to ask your landlord to lower your rent, here. 

Real estate is one of the best investments

No matter how you define the word investment here, buying a house has a lot of advantages, provided you’ve prepared yourself and understand the risks.

You can buy a house to live in, that’s an investment. In years to come, the property prices will increase and buying one now especially if you’re financially ready will save you all the headaches in the future.

You can also generate income from your property by renting it out or simply wait until it multiplies in value, then sell it off – that’s also an investment. 

Related: 7 Lesser-Known Websites To List Your Property On

You’ve more flexibility if you’re renting

Renting would be the best option if your lifestyle demands more flexibility. If you need to relocate due to work or any other reasons, you’re free to do so. Whereas homeowners need to either sell their property or put it up for rent.

It would be best to rent if you’re the type of person that has trouble settling in or constantly looking for opportunities in other cities or countries.

So, should I rent or buy a house?

Owning a property requires more financial commitment compared to renting. If you’re looking for more flexibility, renting is the best option. Make sure to consider the above factors and weigh all the pros and cons of renting vs buying before you make a decision.

How To Negotiate For A Higher Salary Based On HR Experts In M’sia

• By Dharshaini Grace
• June 17, 2022

There’s no question that we all want better salaries. But the reality is, while our job roles may be similar, our paychecks aren’t!

According to a recent Malaysia Income Satisfaction Survey 2022 conducted by iMoney, 46.3% of Malaysians surveyed have no plans to leave their current employers in the near future, despite 57.7% of these individuals feeling ‘underpaid’ or uncertain if they are paid at market rate.

Read also: 6 Signs That You Are Being Underpaid

Before the big salary talk happens…

We need to understand what are the achievements and criteria that HR professionals pay attention to during a salary negotiation. 

“Firstly, it’s whether the candidate’s qualifications tick the boxes. There is rarely a perfect candidate, but being a good 80/90% fit would place them in a good position to negotiate and it’s even better if their qualifications exceed what is required. Secondly, is potential. High-potential candidates with leadership qualities or experience in extra-curricular projects would be in demand in the market and are subsequently able to negotiate for more,” says Muqriz Mustaffa Kamal, a legal professional turned HR professional at Hays. 

Nathaniel Tan Su Chong, an HR personnel and seasoned trainer with experience in both retail and hospitality sectors at multinational companies states, “If you don’t feel confident about your recent work and professional accomplishments, now probably isn’t a good time to ask your employer for more money. Ensure that you’re executing on all cylinders of your current job, and taking on additional responsibility outside your everyday job description.”

But negotiating for better pay can be tricky, whether it’s for a new job or getting a bump at your current workplace. 

Deepa George, a managing consultant who’s worked with leading companies from various industries which include telecommunications, banking, logistics, and pharmaceuticals says, “Candidates shouldn’t bad mouth their current employer about how little they get paid or recognize it as it indicates this may happen in the future too. Also, candidates should not get emotional about their personal life situation and make it seem they are entitled to higher pay. For example, I just got married or bought a house, hence the need for more salary.” 

On the same note, Thila Suppiah, having held Human Resource strategic and operational roles in various multinationals and also the founder of People Synergy Asia, mentions, “Negotiation is an interaction and process between entities who aspire to agree on matters of mutual interest while optimizing their individual outcomes.”

Adding, “That does not mean you go to your colleagues, ask them for their salary and then create conflict for a raise – this is unethical but this is also happening in organizations a lot.” 

While Aziq Kamarudzaman, an HR consultant at an international recruitment firm, specializing in talent acquisition tells, “It’s all about finding the middle ground, an area that satisfies both parties – as the person being recruited as well as for internal management in getting the best fitting talent.”

“Let’s face it, we all want a higher pay when shifting to a new company. But through the recruitment lens and as someone standing in between both parties, I often view and advise both the hiring managers and candidates on what works best as there are the intangible values that either side will view in hindsight,” he adds. 

So, how DO you negotiate for higher pay? We asked the experts! 

We approached HR experts in Malaysia from various industries to give us the inside scoop! 

1. Know your achievements and performance

Deepa George, Managing Consultant of MY HRC Services.
Years of experience: 23 years in corporate experience, leading the HR function for >12 years.

 “Showcase your achievements, not just what was done as actions but the impact it created either as positive monetary results, successful crisis management, or avoidance of potential pitfalls.

Try to demonstrate 2 of these 4 areas: 

• how you positively drove profit, managed cost, enhanced productivity, or improved people initiatives.

For those of you looking to negotiate an increment at your current job, ensure you are objective about it. Speak from a positive angle about “I trust you can acknowledge how I have managed to do this over the last 2+ years ……”

Find a way to gently remind the decision-makers of the value and impact you bring WITHOUT making it seem like a threat to leave the organization.” 

2. Set your expectations

Aziq Kamarudzaman, HR Consultant at Robert Walters.
Years of experience in HR: 4 years

“To negotiate better during a new job application is to set your expectations upfront. When being approached by the recruiter, be bold to inquire about their range of budget and discuss if your asking price is reasonable to what they can afford.

With this, do your market research on pay scales and salary benchmarking. There is an abundance of locally available salary mappings that you can request from consulting companies such as Robert Walters’ Annual Salary Survey. This will be a good referencing point to know where you stand given your level of experience and skillsets so that you will not fall short or demand too high, that it becomes almost impossible to be offered. 

Companies have a formula to calculate their offering, often called the ‘Compensation Ratio’ where the candidate’s current total package is determined upon their internal equity and feasibility to adjust the package to ensure they are offering the best amount to attract the person in, and also ensuring their equity and hiring budget is balanced out.” 

3.  Do market research

Muqriz Mustaffa Kamal, Hays Malaysia Recruitment Firm.
Years of experience in HR: 1+ year

“It’s important to do your own market research on the salary range of the position. Talk to your peers/mentors, look it up online, or download the Hays Asia Salary Guide for the year 2022 for free! 

If you’re negotiating for your current job, point to reasons why you are valuable to the organization uniquely, and that a raise would motivate you to continue contributing. However, be mindful of striking the balance between pushing and pulling in a negotiation, the purpose of which is to find a middle ground that works for both parties.” 

4. Be confident and convincing

Thila Suppiah, Founder of People Synergy Asia.
Years of experience in HR: 26 years

“Be confident but most importantly be convincing with your negotiation on why this is the salary you are asking for. Build your case on why you want to negotiate your salary, be familiar with the market trend, practice your case – ensure you have everything in writing, and remember if it doesn’t work – prepare to take a step back. 

You should stay positive always and negotiate politely. If the negotiation process is not successful, walk away – it’s their loss. Keep trying and do not give up!”

5. Don’t make impulsive decisions

Nathaniel Tan Su Chong, Head of Human Resources at myBurgerLab.
Years of experience in HR: 25 years

“Accepting the first offer given is lowballing yourself, plain and simple, and not only in the immediate future. Remember, you’re not only sacrificing money up front but in the long-term as well, as raises are often calculated as a percentage of your previous salary. You could be losing out on hundreds of thousands of dollars throughout your careers simply for the mistake of accepting a low salary offer in your 20s.

Most companies don’t expect candidates to accept the first offer, so what they present is usually lower than what is probably in the budget. In most cases, offers are made with wiggle room built-in. Some companies, particularly very large ones, do have tight budgets for certain positions, leaving little to no flexibility. But, you should still ask — it doesn’t hurt to ask.”

Salary negotiation must be tread lightly. If you’re seeking to get higher pay, we hope these salary negotiation tips from HR experts will guide you in your negotiation. All the best!