The purchase of one’s new home is one of the most exciting milestones in a person’s life. But buying a home can be a stressful and emotional process, one that should be approached rationally.

With that in mind, what are some of the things you should consider when buying a home, apart from whether the price range fits within your budget? Here are three key factors.

1. Proximity and accessibility

The most crucial factor you should evaluate is proximity to places you need to frequent. Offices, schools, shopping centres… how far, how long, and through what means can you commute to these locations?

Also look into transport options and accessibility, depending on what applies to your situation. Do you have easy access to highways, MRT stations, public buses, and so forth?

These decisions will affect your ability to move around, and will also have an impact on your budget in terms of transport costs.

2. Needs

If you are the type who needs to move every few years, renting a property would be a more suitable option for you.

But if you decide to buy a home, consider your requirements for the long term – will your property serve your needs for the next 10, 15 or more years?

Will you, for instance, be living on your own, or with your partner, or with your family? Might your children need to go to different schools in farther locations as they progress academically?

Also consider how much physical space you require – would you need to buy a landed residence, or would a high-rise better suit?

And when you no longer want to stay there, would it be easy to find tenants or sell the property when you decide to move?

3. People

A third option that you might want to consider is the demographic of the area you will be living in.

In Malaysia, people generally tend to gravitate towards areas predominantly occupied by those of the same ethnicity or age group. Chinese folks might prefer a Chinese community; Malaysia might opt for predominantly Muslim neighbourhoods.

The truth is, however, that living in a setting that offers diversity is infinitely more interesting. You get to experience different types of food and cultures, and interact with people of every stripe. Isn’t that the wonderful thing about Malaysia?

Thinking about the above factors will allow you to narrow down the locations you might want to live in. If you are still unsure, consider spending time in an area for a few nights through a homestay.

Test the commute time during peak hours. Experience day-to-day living. If there is something that turns you off, it is not too late to reconsider.

This article first appeared in kclau.com. KC Lau’s first book ‘Top Money Tips for Malaysians’ has sold thousands of copies. He launched the Money Automation System, the first online personal finance course specifically designed for Malaysians, and co-founded many other online financial courses including the Bursa Method, Property Method, Founder Method and REIT Method.