Buying a house for the first time is never an easy affair. There are so many things to consider, and a massive amount of long-term financial planning is required – making the whole process a very daunting one from the start.
However, if you’re a first-time home owner, and don’t press that panic button and tap out just yet!
We at Finder understand the struggle and would like to help you make better-informed decisions with the following list of seven must-knows when it comes to buying a house for the first time in Malaysia.
We’ve also assembled examples for each item, using a house with the purchase price of RM600,000 as an example.
With these pieces of information under your belt, you’ll definitely be on your way to becoming ‘Malaysia’s Next Best First-Time Home Owner’, so read away!
|Document/Fee||What is it?|
For example, if your house’s purchase price is RM600,000, and the MOF is 90%, you will be required to place a downpayment of RM60,000 and pay off the balance with a loan of RM540,000.
In our example, with a margin of 2%, the booking fee would be RM12,000. If 3%, your booking fee will be RM18,000.
|Sale and Purchase Agreement (SPA) Legal Fee|
The legal fee is derived from percentages of the purchase price of a house. Based on current tiered rates for SPA legal fees, you would be looking at a payment of RM5,800 for a house that is valued at RM600,000.
|Loan Agreement Legal Fee|
|Memorandum of Transfer (MOT)|
For a house that is valued at RM600,000, the MOT will be RM12,000.
There you go! Five potential fees or charges that you should pay attention to when buying a house for the first-time.
Each has a large effect on the amount of money you will have to pay for your dream home, so do be sure to account for them when undertaking the planning of your finances for your big purchase.
Let’s not forget that you should consider the following too when considering your first property.
The location of your desired house can make a huge difference in the valuation or the purchase price of that house. Houses in cities, for example, are far more expensive than those in rural or less-developed areas.
Houses which are nearer to large array of features and infrastructures – like public transport hubs and malls – will also be more costly. For instance, according to Brickz, a landed house in Subang Jaya’s popular SS15 costs around RM900,000 while one in USJ 12 costs RM610,000.
Buying a house in a housing estate that has a lot of facilities will be far more expensive than that of a simple and basic residence in a low-cost housing area.
The sam applies to apartments and condominiums. Serviced apartments will be far more expensive than bare and basic ones, as they come equipped with access to a wider range of facilities and services, and are often fully furnished.
Ultimately, you should always remember to purchase properties that you can actually afford. Houses require maintenance too, and this maintenance will become more expensive as time passes. This is why you should budget adequately at all times – instead of exhausting all your funds from the get-go in pursuit of a luxurious and lavish home!
More guides on Finder
How to help the people of Ukraine from Malaysia
If you’d like to help, here’s a verified list of organisations accepting donations, plus other ways you can provide support.
Finder Bares All: Are You a Bankrupt Malaysian?
Did you know that you can go bankrupt in Malaysia without necessarily being aware about it? Fear the B word, then read up right now!
Finder Bares All: Should You Invest with Robo-Advisors?
Robo-advisors have landed in Malaysia, but are they the right investment tool for you? Find out if digital financial advice is what you need
Investment-Linked Product (ILP): What Is It and Is It Suitable For Me?
Enjoy the flexibility of choosing your own level of protection and investment that will take care of your health, and your financial future
EPF Is Not Enough: 3 More Ways to Save for Retirement
Fancy a comfortable retirement? It is not totally out of your reach! Here are additional options to add to your retirement finances!
7 Attitudes to Money That Could Be Holding You Back
We take a look at habits which could be harming your financial life and preventing you from making the most out of your money for your future
The Finder 10-Point Year-End Financial Planning Checklist
Time to review your finances! As 2019 comes to a close, here’s a checklist to help you focus on the most crucial aspects of your annual financial review – and make 2020 an even more successful year!
Your 2019 Mid Year Money Review: 8 Things You Should Do
It’s the perfect time to take stock of your finances and keep the money train on track! Find out how to review your money situation and make changes for the better!
Cryptocurrency Comparison: Bitcoin vs Ethereum vs Ripple vs Litecoin vs Nem
There’s more to cryptocurrency than just Bitcoin. Get to know Ethereum, Ripple, Litecoin, and Nem and how the other alternatives might pique your interest
The Finder Complete Guide to LHDN Income Tax Reliefs
Looking for tax deductions to lighten up your tax submission for year of assessment 2018? Get our detailed overview of all the items you can claim when you file your taxes
Ask an Expert