Checklist: Before Buying a House | Malaysia property news and resources

Checklist: Before Buying a House | Malaysia property news and resources

The house that you may wish to buy may seem like your dream house, but before putting in an offer, consider a few details past its design and price.

For example, a basketball hoop attached to the home may cause you to assume that the neighbourhood is great for children. However, closer inspection may show that it has not been used in a long time, and there are no signs of children in the neighbourhood.  

Make a few visits to the neighbourhood

A residential street that seems quiet and peaceful may be noisy and could be a highway-feeder road during rush hour traffic making it almost impossible to enjoy a quiet day or move around without hassle.  Having a school opposite the potential buy could appear to be a perk during the holiday seasons, but come school days the extra traffic and racket might make you think otherwise.

Neighbourhood associations

How often does the neighbourhood have get-togethers? Do they host events often? Even if you don’t want to be a part of the association or attend the events, the fact that the association meet regularly is an indication that they care about their community and are working towards building a strong community. These are the kind of people who will look out for your house and your kids.

Browse through newspaper archives

Do ensure that you gather all the information on things you cannot see. For example, it could have been reported that a high voltage electrical line might be coming through your backyard or the neighbourhood may have had a lot of water supply problems in the past. Furthermore, you could check with the local city council, such as MBPJ, to see if there are any proposed future projects in the area.

Check the view

There are many neighbourhoods that have teardowns (or homes that have been demolished). Thus, it is vital that you look at the two houses on either side of yours. Check to see if they have had some teardowns. If they do, then you might consider that they could be building some huge structure that may affect your view or light.

Look at old utility bills

A pristine, landscaped garden may add to the allure of a home, but the water bill (apart from the other bills you would get trying to maintain the garden) could push up your monthly payments beyond the affordable range. The same applies for homes with multiple rooms and sections that you have to spend to air-condition during the drier, warmer months.

Look at the surrounding areas

This may not be a big concern if you are moving from just a few neighbourhoods away, but when you are moving to a completely new neighbourhood, you may not be aware of the little quirks or issue that might affect you. For example, if your home is a few streets away from an air base or an airport, then you can expect the reverberations and loud noises of aircrafts taking off and landing throughout the day.

Remember to do your homework and look beyond the property that you are considering to purchase.

7 Simple Ways to Increase Your Home’s Value | Malaysia property news and resources

7 Simple Ways to Increase Your Home’s Value | Malaysia property news and resources

For many of us our home is our most valuable possession. Hence, you should look for ways to further increase your home’s value. Regardless of whether it is simply to grow your investment or earn you better rewards when you sell it, increasing your home’s value is something you should attempt to do, especially since there are seven very easy ways to do it.

1)    Inspect your home frequently
Being a homeowner yourself, you should remember that one of the steps you went through before buying your home was inspecting it yourself or hiring a professional to do it for you. As such, do ensure that your house is in tip-top shape by checking every now and then for signs of damage or disrepair and fix them as soon as possible.

2)    Add more seating
If your home has space to spare, try adding a few extra chairs and a small table. You will be converting a previously empty open space in your house into a second dining, seating or lounge area. The furniture you choose will give potential buyers an idea of what to do with the space, which can translate into a higher perceived value of the house. This works especially well with outdoor areas such as the patio.

3)    Tidy up
If you are getting ready to show your house to a prospective buyer, it would be best if you cleared up some of the clutter and random stuff you have accumulated over the years. This extends beyond little knick-knacks; pieces of furniture with no real purpose should get the boot as well. Minimalism is the key as less clutter will make your house seem bigger and more organised.

4)    Paint your kitchen cabinets
If you are looking to revamp your kitchen, you should already know that your kitchen cabinets are something that cost a hefty sum and a fair amount of time to replace. Rejoice, however, for there is a very simple and cheap solution: give them a fresh coat of paint. This not only gives your kitchen a new look but covers up any scratches and surface damage they may have acquired over the years.

5)    Throw in some potted plants
Not everyone has or can afford the time to upkeep a garden, but no one can deny that some greenery livens up a home like no other. A viable option is to decorate the inside or outside of your home with a few potted plants of your choice; this increases the appeal of your home but does not require you to hire a gardener.

6)    Add storage
Creating additional storage in your home serves two purposes: not only are you providing potential buyers with more storage space, you are also adding a greater sense of organisation to your home. However, do not go overboard by stuffing every available space with a cupboard or closet.

7)    Give it a good shine
Beauty tips are not just for people’s physical appearances; your home can benefit from its own version of make-up as well. Fixtures and any stainless steel features in your home such as your kitchen sinks and faucets deserve to shine – literally – and their sparkle will give your home a ‘new’ look.

Tips: Buyer's Viewing List

Tips: Buyer's Pre-Checklist

Cost of Buying a House - SPA & Loan Legal Fees

COST of BUYING A HOUSE
PART A: SPA Lawyer Fees & Loan Facility Agreement Legal Fees

Sales & Purchase Agreement (SPA)
1. Lawyer fee for Sales and Purchase Agreement (calculated based on the SPA Property Price):

- For the first RM 150,000, the legal fees payable is 1%

- For the next RM 850,000, the legal fees payable is 0.7%

- For the next RM 2,000,000, the legal fees payable is 0.6%

- For the next RM 2,000,000, the legal fees payable is 0.5%

- For the next RM 2,500,000, the legal fees payable is 0.4%

- For the remaining, if any, negotiable

2. Miscellaneous fee for preparation of Sales and Purchase Agreement = at least a few hundreds

3. 6% government tax on total lawyer fee for Sales and Purchase Agreement

4. Stamp Duty of Sales and Purchase Agreement (calculated based on SPA property price):
First RM100k = 1%
Subsequent up to RM500k = 2%
Subsequently onwards = 3%

Loan Facility Agreement
5. Lawyer fee for Loan Facility Agreement (calculated based on mortgaged amount):

- For the first RM 150,000, the legal fees payable is 1%

- For the next RM 850,000, the legal fees payable is 0.7%

- For the next RM 2,000,000, the legal fees payable is 0.6%

- For the next RM 2,000,000, the legal fees payable is 0.5%

- For the next RM 2,500,000, the legal fees payable is 0.4%

- For the remaining, if any, negotiable

6. Stamp Duty of Loan Facility Agreement (calculated based on mortgaged amount) = 0.5%

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

8. 6% government tax on total lawyer fee for Loan Facility Agreement

(note: you can include Loan Facility Agreement fees into your bank loan. So you can save your cash for house renovation!)

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

10. 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

11. Consent to Charge (for leasehold property) = at least a few hundreds + 6% government tax on legal fee

Syarat2 Pembelian Rumah Kos Rendah Selangor

Syarat2 Pembelian Rumah Kos Rendah melalui pasaran sekunder (subsale, beli atas org)
a) Umur 18 thn ke atas, warganegara Malaysia
b) total gaji RM5k ke bawah (utk bujang/gabung jika berkahwin)
c) tidak pernah memiliki rumah di KL & Selangor
d) rumah yg di beli mestilah sudah lebih 5 thn dr tarikh SPA

The cost of selling a property in Malaysia

original link
If you were to buy a property for investment, you should be well aware of the cost involved in buying the property, as well as the cost to sell it later.

The typical cost of selling the property consists of:
1. Advertisement fee to look for buyer (if any).

2. Agent fee (if you engage property agent to help you to sell your house): 3% of selling price. There is a 6% government tax on this agent fee too.

3. Lawyer fee for Sales and Purchase Agreement
(calculated based on the property's selling price, if you engage a lawyer on your behalf. You can save on this if you use the buyer's lawyer. Lawyer can only on one-side, so if you use your buyer's lawyer, the lawyer is only helping you to fill in & submit forms. You also need to pay for the cost):

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

4. 6% government tax on total lawyer fee

5. Deed of Receipt & Reassignment, Revocation of Power of Attorney, Letter of Undertaking, Statutory Declaration, etc. = a few hundreds                    

6. Miscellaneous legal fee (disbursement charges such as transportation costs, searching cost etc) = at least a few hundreds

7. Submission of CKHT 1A form per seller = RM300 (RM600 if the house is jointly owned by 2 owners)

8. Real Property Gain Tax = payable to LHDN.
For 2015 (individual RPGT)
below 3 years = 30%
4 years = 20%
5 years = 15%
after 5 years no RPGT
You may also request for once in a lifetime waiver

9. Penalty payable for early mortgage settlement (if still within lock-in period) = depends on the loan agreement

Besides, you can get back some surrender value (partial refund on premium paid) from the following (if applicable):
Mortgage Reducing Term Assurance (MRTA)
Fire insurance

The cost of buying and owning a property in Malaysia

original link

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