Monday, November 28, 2011

The cost of buying and owning a property in Malaysia

The property market in Malaysia has gained quite a lot of interest, especially over the past 3 years when the mortgage loan interest dipped to historical low.

If you were to buy a property for own stay or for investment, you should be well prepared for the cost involved.

The typical cost consists of:

A. One time cost

1. The booking fee, down payment and subsequent unfinanced payment of the property (normally about 10%-20% of the property price)

2. Lawyer fee for Sales and Purchase Agreement (calculated based on the property price):

  • First RM150k = 1% (or minimum RM300, whichever higher)
  • Subsequent up to RM1 million = 0.7%
  • Subsequent up to RM3 million = 0.6%
  • Subsequent up to RM5 million = 0.5%
  • Subsequent up to RM7.5 million = 0.4%
  • Above RM7.5 million = negotiable
3. Miscellaneous fee for preparation of Sales and Purchase Agreement = at least a few hundreds

4. 6% government tax on total lawyer fee for Sales and Purchase Agreement

5. Stamp Duty of Sales and Purchase Agreement (calculated based on the property price):
  • First RM100k = 1%
  • Subsequent up to RM500k = 2%
  • Subsequently onwards = 3%
6. Lawyer fee for Loan Facility Agreement (calculated based on mortgaged amount):
  • First RM150k = 1% (or minimum RM300, whichever higher)
  • Subsequent up to RM1 million = 0.7%
  • Subsequent up to RM3 million = 0.6%
  • Subsequent up to RM5 million = 0.5%
  • Subsequent up to RM7.5 million = 0.4%
  • Above RM7.5 million = negotiable
7. Stamp Duty of Loan Facility Agreement (calculated based on mortgaged amount) = 0.5%

8. Miscellaneous fee for preparation of Loan Facility Agreement = at least a few hundreds

9. 6% government tax on total lawyer fee for Loan Facility Agreement

10. Land/Strata Ownership Title Transfer = at least a few hundreds + 6% government tax on legal fee

11. Stamp Duty of Land/Strata Ownership Title Transfer (calculated based on the property price):
  • First RM100k = RM1 for every RM100 or fractional part of RM100
  • Subsequent up to RM500k = RM2 for every RM100 or fractional part of RM100
  • Above RM500k = RM3 for every RM100 or fractional part of RM100
12. Consent to Charge (for leasehold property) = at least a few hundreds + 6% government tax on legal fee

13. Mortgage Reducing Term Assurance (MRTA, optional) = a few thousands

14. Deposit for water and electricity = at least a few hundreds

15. Deposit for telephone, Internet service, satellite/cable TV (optional) = at least a few hundreds

16. Renovation and moving cost = depends on you, easily more than RM10k

B. Recurring cost

1. Quit rent (yearly) = around RM50

2. Assessment tax (yearly) = a few hundreds

3. Fire insurance (yearly) = a few hundreds

4. Mortgage Level Term Assurance (MLTA, yearly, optional) = a few thousands

5. Housing loan repayment (monthly) = at least a few hundreds

6. Severage treatment fee (half yearly) = RM48

7. Water, electricity, telephone, Internet, satellite/cable TV, etc. = depends on usage

8. Cooking gas = depends on usage

9. Security fee (for gated & guarded community or apartment/condominium) = depends

10. Maintenance fee and sinking fund (for apartment/condominium) = depends

11. Car park rental (optional for certain apartment/condominium) = depends

12. Pest and termite control service (yearly, optional) = at least a few hundreds

You might probably be interested to also read about:

1 comments:

Renuka Bala said... Reply To This Comment

Thank you so much! Very useful

Post a Comment

Hint: Click on the "Older Posts" link to continue reading, or click here for a listing of all my past 3 months articles.