Things I Wish I Knew Before Buying A House- HOW MUCH YOU NEED TO BUY A COMPLETED OR SUBSALE HOUSE?

/, Home Loan Library, Latest News and Update/Things I Wish I Knew Before Buying A House- HOW MUCH YOU NEED TO BUY A COMPLETED OR SUBSALE HOUSE?

Things I Wish I Knew Before Buying A House- HOW MUCH YOU NEED TO BUY A COMPLETED OR SUBSALE HOUSE?

When comes to the purchase of a completed property, you’ll need to aware of the cost occur. Completed property or Subsale properties are among the best investment right now. If you look hard enough, you might find a good deal in this market.

Despite the attractive return, buying a subsale property require lots of cash compare to under construction property. So, what are the cost involve in the purchase of a completed property?

1. Downpayment Of Property
A purchaser will need at least 10% of the property purchase price as a deposit to the Seller. The first 3% will be collected during property booking and the balance 7% is during the signing of Sale and Purchase Agreement (SPA).

For example,
SPA Price : RM300,000
10% Deposit : RM300,000 x 10% = RM30,000

2. Cost In Preparation of Sale and Purchase Agreement (SPA)
When a Purchaser buying a house from a Seller, a SPA will be executed as a contract of buying and selling. The SPA will be stated the conditions and terms of buying and selling. Once both parties agreed, then they will sign a SPA to seal the deal.

You’ll need a lawyer to prepare the SPA. The SPA lawyer will charge lawyer fees on preparing the SPA. The SPA lawyer fees will include the following items:-
a. Professional Legal Fees with GST
– The new charges of Professional Legal Fees will be based on the following scale:-

– The lawyer fees charges will be charged based on the above scale with GST.

b. Property Stamp Duty
The scale for Property Stamp Duty 2017 is as below:-
First RM100,000 :1%
RM100,001 To RM500,000: 2%
RM500,001 and above : 3%

For example, If property price is RM1mio. The stamp duty will be:-
RM100,000 x 1%=RM1000.00
RM400,000 x 2% = RM8000.00
RM500,000 x 3% = RM15,000.00
Total Stamp duty to be paid : RM24,000

There are also 100% rebate on stamp duty for the first RM300,000 for first-time home buyers if your property price is less than RM500,000.

c. Disbursement Fees with GST
The disbursement fees with GST will be included affirmation fees on SD, developer and SPA confirmation, adjudication fees, traveling and photocopy, etc. The cost will be ranging of RM800-RM1000.

d. Non-GST Disbursement Fees
The Non-GST Disbursement Fees items are like title search, stamping of SD and SPA, registration fees, private caveat, etc.The cost will be ranging of RM600-RM1100.

The general rule of thumb, a purchaser might need to prepare about 3%-4% of the SPA Price for Lawyer Fees in Preparation of SPA, included everything.

3. Loan Documentation Lawyer Fees
If a Purchaser required to apply for a home loan, which lots of us will, then you’ll need to pay the lawyer fees to the bank lawyer.
Bank’s lawyer will charge a significant amount of lawyer fees as below:-

a. Professional Legal Fees with GST
– The new charges of Professional Legal Fees will be based on the following scale:-

– The lawyer fees charges will be charged based on the above scale with GST.
– Other than that, a lawyer will also charged 10% from principal amount fees for every sub-documents with a minimum charge of RM300.00 each or maximum fees of RM1200.00.

Note:
Normally, most banks will allow a borrower to finance their Loan Documentation Lawyer Fees with the loan to lessen the financial burden of the borrower.

b. Loan Document Stamp duty
The stamp duty for loan will be 0.50% from loan amount. For example, RM300,000 x 0.50% = RM1500.

There are also 100% rebate on loan stamp duty for the first RM300,000 for first-time home buyers if your property price is less than RM500,000.

c. Disbursement Fees with GST
The disbursement fees with GST will be included the purchase of documents, affirmation fees on SD, developer confirmation, traveling, and photocopy, etc. The cost will be ranging of RM1000-RM1200.

d. Non-GST Disbursement Fees
The Non-GST Disbursement Fees items are like title search, stamping of SD and facility agreement, registration fees, private caveat, etc.The cost will be ranging of RM800-RM1000.

The general rule of thumb a purchaser might need to prepare about 2%-3% of the Loan Amount for Lawyer Fees in Preparation of Loan Documentation included everything.

4. Valuation Fee
For all the completed property, a submission of valuation report from professional valuer firm is required before disbursement. The valuation fee cost will be in the range of 0.30% (estimation) from the property value.

5. Bank Processing Fee
Certain banks will charge one-time processing fees. Most banks do not charge processing fees, however, if the borrower opts for Full Flexi Home Loan Product, the banks will require RM200 one-time fees.

Bank processing fees will be charged with GST. In the range of RM50-RM220.00

6. Another cost to consider :-
a. Renovation Cost: Can easily ranging from RM20k to RM50k.
b. Furniture & fittings Cost: Buying a new furniture and appliances for the new house might cost you too.
c. Moving Cost: To rent transport for house moving.

Summary:
1. Downpayment Of Property, 10% x SPA Price
2. Cost In Preparation of Sale and Purchase Agreement (SPA), 3%-4% of SPA Price
3. Loan Documentation Lawyer Fees, 2%-3% of Loan Amount
4. Valuation Fee, estimation 0.30% x property value
5. Bank Processing Fee, RM50-RM200
6. Another cost to consider :-
a. Renovation Cost: Can easily ranging from RM20k to RM50k.
b. Furniture & fittings Cost: Buying a new furniture and appliances for the new house might cost you too.
c. Moving Cost: To rent transport for house moving.

For Example, Property Price RM500,000.00
The following calculation is based on estimation only.

1. Downpayment Of Property, 10% x RM500,000= RM50,000
2. Cost In Preparation of Sale and Purchase Agreement (SPA), 4% x RM500,000= RM20,000
3. Loan Documentation Lawyer Fees, 3% x RM450,000 = RM13,500.00
4. Valuation Fee, estimation 0.30% x RM500,000 = RM1500
5. Bank Processing Fee, RM200
6. Other cost to be consider :-
a. Renovation Cost : RM30k
b. Furniture & fittings Cost : RM20k
c. Moving Cost: RM2k
Total cost : RM137,200.00 @ 27% from SPA Price

However, if we take out ‘other cost to be considered’. The total cost will be RM85,200 @ 17.04% from SPA Price.

Hope this article will guide you through owning your dream house.

Good luck!

If you think this is helpful, feel free to share it with all your friends and family on all the social media platform.

We post weekly video and articles on Youtube and Facebook. Follow us around. Don’t forget to LIKE and SHARE.

Youtube channel: https://www.youtube.com/user/malaysiahousingloan
Call or WhatsApp: +6012-6946746
Visit our website: www.malaysiahousingloan.com

By | 2017-05-31T20:35:44+00:00 May 31st, 2017|Buying A Home, Home Loan Library, Latest News and Update|0 Comments

About the Author:

Hey guys, thank you for coming here and check out our website. We have been doing this housing loan loan services more than a decade and i truIy feel old already. Our website is updated frequently. You can always find us at google+ or our youtube channel http://www.youtube.com/user/malaysiahousingloan. Along the years, we helped thousands of people with their home loan. Sometimes we felt our works is worthy because we help many people to get their dream house. Please come and engage our services. We promise to guide you through and be there when you need us. Until next time, Good Luck!

Leave A Comment