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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
