7 Financial Planners Spill The Beans On How To Unlock Your First Home

7. Set a target and work towards it

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For most newlyweds, buying their first property can be stressful due to other commitments, such as car loans and family dependents. Thus, it is important to set a target for yourself.

If your target is to buy your first residence in three years’ time, set aside a minimum of 30% of your household net income and save up to 20% of the price of your potential property.

For example:

Household net income = RM6,500

30% monthly savings for 3 years to achieve 20% of down payment:

RM6,500 X 30% = RM1,950

RM1,950 X 36months = RM70,200

With RM70,200, you can start looking for a property within the range of RM351, 000

By setting a realistic deadline, it motivates you to achieve your target and minimise the risk of property volatility. It is also recommended to save up 20% down payment to cover the processing fees, legal fees, stamp duty and others. By saving more, you can hedge the property inflation risk.

– Nicholas Chu (CFP, IFP, RFP), Financial Planner cum Speaker, Phillip Wealth Planner Sdn Bhd

Armed with these practical tips, you can take first step to buying your first home. These money management tips could possibly save you from making a bad decision that would delay your goal.

Ultimately though, saving, no matter how insignificant the amount may seem, is more than half the battle won.  Discipline yourself to stick your plan and goal.

Share with us some of lessons you have learned in buying your first residence in the comment section below!


Ready to start your home buying plan? Calculate your housing affordability and determine the property price point you should go for.

Giving up on your dream home as it is just too far out of your reach? Get a starter home first. 

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