Home Buying Guide

Decide on what is affordable and set aside a budget for the type of property you want. The budget should include the following cost, fees and duties will be incurred when you purchase a property such as:

1. Down payment - The amount of the purchase price not covered by bank financing (banks will typically lend 80-90% of the purchase price).
2. The Sales & Purchase Agreement legal fees :
   

   Value of Property or Loan (RM)	Scale Fees (%)
   For the first 500,000	1.25% (subject to minimum of RM500)
   For the next 7,000,000	1%
   For the next 7,500,000	Subject to negotiation on the excess but shall not exceed 1% of such excess

3. Stamp duty or Memorandum of Transfer (MOT)

   Property Purchase Price (RM)	Fees (% from purchase price)	Stamp Duty
   First 100k	1%	RM0 – RM1,000
   Next 400k	2%	RM1,001 – RM9,000
   Exceed 500k	3%	from RM9,000

4. Loan agreement stamp duty: 0.5% of loan amount transfer

Knowing where to buy your property is a very important factor. This criteria could be dependent primarily on the key priorities of your life i.e. proximity to your work place, your parents house, nature reserve, public transport hub, etc. Newly developed areas may differ from established townships in terms of amenities, safety and facilities. However, regardless of your priorities, the following are some factors you may want to consider before buying your property:

1. Proximity to work
2. Amenities including schools, public transport, shopping, leisure, religious facilities, parks, etc
3. Safety
4. Prestige

There are basically two types of properties in Malaysia - landed and non-landed properties. Landed property include detached, semi-detached and link houses, while non-landed property include condominiums, apartments or flats.

Landed properties tend to appreciate more when compared with non-landed properties, while non-landed properties tend to give higher rental returns. However, location also plays a part in influencing property appreciation.

Another important aspect in purchasing a property is choosing between a freehold or leasehold property. Freehold properties tend to appreciate more and are easier to sell. However, if you wish to buy a property for your own stay, then a leasehold property should be considered as well so as it suits your requirement.

Make a checklist of your requirements:

1. Land area
2. Built up area
3. Number of bedrooms (do you require a bedroom on the ground floor?)
4. Number of bathrooms
5. Size of kitchen
6. Car park area