“RM1,500 a month? I think I can manage that.”

You begin picturing your own living room, a welcoming kitchen and a place for family gatherings. Buying your first home is an exciting milestone.

Before committing, however, ask yourself: after paying the monthly instalment, will your budget still have room for the other costs of owning a home?

1. Upfront Purchase Costs

Beyond the down payment, a purchase may involve legal fees, stamp duty, valuation fees and financing documentation costs.

The amount depends on the property, financing arrangement and any applicable exemptions or promotions. If a package offers “free legal fees”, ask for written confirmation of what is covered and what you must still pay.

Request an itemised estimate before committing. This helps you understand how much cash you need upfront.

2. Moving In and Making It Liveable

Receiving the keys does not always mean the home is ready to live in.

Utility deposits, moving services, lighting, curtains and essential appliances can add up quickly.

You do not need to buy everything at once. Prioritise what makes the home safe and functional. Your ideal sofa or additional cabinetry can wait until your budget allows.

3. Recurring Charges Beyond Financing

For strata properties such as apartments and condominiums, check the maintenance charges and sinking fund contributions. Attractive facilities also come with management costs.

Allow for assessment tax, land rent or parcel rent, as applicable, and relevant home insurance or takaful.

Some payments are annual, but setting money aside monthly can make them easier to manage when they fall due.

4. Repairs and Upkeep

A leaking pipe, faulty air conditioner or damaged socket rarely waits until payday.

Build a home maintenance fund gradually. If you are buying a subsale property, checking its condition before purchasing can help you identify repairs to include in your budget.

5. The Cost of Your Location

A cheaper home farther from work may mean higher spending on fuel, tolls, parking or daily transport.

Picture your actual routine: commuting, taking children to school and buying groceries. These expenses affect what you can comfortably afford after moving.

Look at the Full Cost of Ownership

Before buying, prepare three lists: upfront purchase costs, moving-in costs and ongoing expenses.

Then check what remains for family needs, savings and emergencies. For civil servants using bank financing or LPPSA, financing eligibility should be considered alongside your household’s actual ability to afford the home.

Before choosing your first home, request a full cost breakdown and build a post-move budget. A well-planned purchase can help you enjoy your new home with greater peace of mind.