Here, we unveil to you the possible costs which you may incur when buying a property.
Try our Home Loan Calculator which is great for calculating your entry costs. Below we explain the different entry costs in more detail.
**Update 15/03/17: With the recent announcement of the fee structure revision in the Solicitors' Remuneration Order, there have been a few significant updates to the figures contained in this article.
1. Down payment
10% of the total purchase price OR the difference between the loan amount and the purchase price.
2. Costs related to S&P Agreement (Legal Fees + Stamp Duty)
a. Legal Fees
b. Stamp Duty
The government is taking certain measures in order to further aid Malaysians with first home ownership. As such, the stamp duty exemption has been increased to 100%, limited to houses valued up to RM300,000.
3. Costs related to Loan Agreement (Legal Fees + Stamp Duty)
a. Legal Fees
The legal fee percentage and structure for loan agreement is similar to the S&P legal fee structure (refer to table in 2a above). However, it will be based on the loan amount (unlike S&P that is based on the purchase price).
b. Stamp Duty
4. Valuation Fees (Where formal valuations are required)
5. Real Estate Agent’s Fee (Usually paid by the seller but may be charged to buyer instead)
*Note: Real estate agent fees varies from 2 - 3% regardless of price. Cost is beared by developer and sellers in most instances.
Conclusion
There are people who make the mistake of underestimating the affordability of a property before they make a purchase. In most cases, it is the lack of knowledge regarding the hidden entry costs that causes complications.
If you are considering a property purchase, Loanstreet has a Home Loan Calculator that helps you to visualize not just the monthly installments, but also the Entry Costs involved before you purchase any property.
Once you have determined its affordability, remember to make use of our Home Loan Comparison tool to find the cheapest loans available for your needs!
