If you’re planning to buy a subsale property, the cost of acquiring one is different than the new property. Let’s look at what are the cost involved if you choose to buy a subsale property in Malaysia. If you’re wondering why subsale property, check out why people buy subsale property.
In summary here are cost involved in buying subsale property:
- Down Payment
For first-time and 2nd time house buyer, the loan margin you can obtain from the bank is usually 90%. For third house and onwards, you can get max 70%.
Depending on the price of the property, the down payment usually in the range of RM50,000 – RM150,000. For example, if your new property cost RM500,000 (SPA Price) and assuming you’re first-time buyer, you have to prepare 10% for the down payment which is RM50,000 - Sales and Purchase Agreement Legal fee
Legal fees are charges incurred for legal services such as preparing the Sale and Purchase Agreement (SPA), conducting title searches, and completing the transfer of ownership. The fees are typically based on the property value and subject to negotiation with the appointed lawyer. - Loan Agreement Legal Fee
Loan agreement incurs about 3% from the loan amount - Stamp Duty
Stamp duty is a tax imposed by the government on property transactions. The rate varies depending on the property value and whether you are a Malaysian citizen or a foreigner. For example, as of 2022, the stamp duty rate for properties valued between RM100,001 and RM500,000 is 3% for Malaysian citizens and 5% for foreigners. - Valuation Fee
Before securing a loan, the property may need to be valued by a licensed valuer. The valuation fees vary based on the property’s value and complexity, usually 0.3% from the property’s value. - Bank Processing Fee
This usually involves one-time small fees from RM50-RM200. - Miscellaneous Costs:
These may include charges for utility transfers, insurance, and any other incidental expenses related to the property transfer process.
source:propertyguru.com