welcome to Vincent Yim's Free Real Estate Information and Reports

Ask any buyer stepping on to the property ladder for the very first time what their biggest worry is and, more often than not, the answer you’ll hear is "the costs involved". By that we don't just mean finding the initial deposit but the extra costs incurred throughout the whole process.

To help you, we’ve put together a list of mostly unavoidable but sometimes hidden and therefore unbudgeted-for costs you’re likely to encounter on the path to buying your dream home. Using this list will help you calculate the funds you need to set aside to meet them.

Stamp duty on Sale & Purchase Agreements is calculated as a percentage of the purchase price. The cost of stamp duty is calculated as follows:

First RM100,000.00 @ 1.0%

Next RM400,000.00 @ 2.0%

Remainder above RM500,000.00 @ 3.0%

In addition you will need to pay the stamp duty on your Loan Agreement, the cost of which is based on 0.5% of the mortgage sum.

The legal process involved in buying or selling a property, called conveyancing, is complex. You will need a solicitor to prepare all the necessary paperwork to effect the legal transfer of the property.

The legal fees for preparation of the Sale & Purchase Agreement are calculated as a percentage of the purchase price using the following formula:

First RM150,000.00 @ 1.0%

Next RM850,000.00 @ 0.7%

Next RM4.0 Million @ 0.6%

Next RM6.0 Million @ 0.5%

Over RM10.0 Million @ min 0.25%

If you’re arranging a mortgage, your lender will typically require that the property be valued. Some lenders may perform this free of charge but most will levy a fee.

The valuation fee is calculated as a percentage of the purchase price using the following formula:

First RM100,000 @ 1/4%

RM100,001 - RM2.0 Million @ 1/5%

RM2,000,001 - RM7.0 Million @ 1/6%

RM7,000,001 - RM15.0 Million @ 1/8%

RM15,000,001 - RM50.0 Million @ 1/10%

Over RM50.0 Million @ 1/25%

Before your mortgage is granted you will have to take out insurance cover on the building: your lender will insist on this to protect their investment and you will need it to protect your home against any damage.

Your lender will also insist you take out life cover to ensure that your mortgage will be repaid in the event of your early death. This type of insurance is called MRTA (Mortgage Reducing Term Assurance). MRTA costs are dependent on the age of the borrower and the amount of mortgage on the property. As a rule of thumb, cost of MRTA is usually estimated at 3 to 5% of the total mortgage amount.

Don’t forget you may need to organise reconnection of water, electricity, gas and telephone as well as furnish your new home - inside and out! It makes good sense to take these additional expenses into account.

As you can see, there are considerable costs to consider when deciding how much you can afford to spend on buying a new home. With careful financial planning beforehand you can prevent unforeseen and potentially embarrassing financial problems later in the buying process.

Hidden Costs