HUGE charges when you buy your property !

It is very important to know that there are actually extra charges to pay for when you buy a property. A condo with nett price of 450k does not mean you just pay out the 10% downpayment (45k) and its done.

There are actually quite an amount of different charges that applies to the buyer which we have to ready another sum of money to pay for it. When buying a house, the buyer should set aside enough cash to pay the initial expenses, these include the deposit, charges for the memorandum of transfer (MOT), legal fees and stamp duty.

 This post will talk about the type of extra charges when you buy a property.

The stamp duty is commonly paid by the buyer. Documents like the sale and purchase agreement (SPA) must be stamped within 30 days of execution, otherwise the government will impose a fine.

After the loan to purchase a property was approved by bank and signed the SPA by buyer, the bank will appoint a valuation company to conduct a valuation report for Application of Credit Facility where you have to pay for the valuation fee.

After its done, you got to pay for the lawyer fees for handling your signed documents and name changing on the property. Well we couldn't deny the importance of these process and I am sure we should pay them for their hard work. After all, some firms can offer you cheaper rate but can delay the processing of your documents , which could ultimately lead to more problems occurring later on.

To help first time home buyers in getting their home, the government has implemented some stamp duty exemption for certain percentage. The first RM300,000 will be fully exempted from stamp duties. So if the value of the property is RM450,000, you will get a full exemption on your first RM300,000 and will pay the prevailing stamp duty rate for the balance RM150,000 only.
*This offer is only applicable to the first property bought under your name.

From the photo , you can see that the extra amount of money you need to pay can cost up to RM25k! Excluding those rich families, how easily can we fork out another RM25k out of the air? Duhhh

Good news is, nowadays with the soft property market, developers are giving sweeteners for new projects like they will pay for the legal fees of SPA & loan , some even stand to pay for your stamp duties! Look out for those special package offers and they might just save you a FD!

Many first-time house buyers make the mistake of underestimating the amount of money they need in the initial stage of purchase. They take into account money they need for their deposits, less their loan amount. Some also calculated in the amount of money required for repairing and renovation or furnishing. Unfortunately some forgot to count in those charges and it could make them splurge out of their budget.

Plan your financial condition well and happy investing!
*The apps to estimate your extra charges are LKC Property Malaysia Charges in playstore.

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