Getting tired of renting at people's place? Planning to purchase your first house? Are you financially ready to purchase your dream house? Besides deposit, you should expect to incur other expenses when you buy a property in Malaysia. Let's check out what expenses you need to pay.

1. Deposit

When you have decided to buy your dream house, you are expected to pay a down payment after negotiating the property price. Down payment in Malaysia is 10% of the property sale price. If you choose to finance the purchase, you only need to pay a 1% booking fee first, then settle the balance 9% down payment after the bank approves your loan.

2. Sale And Purchase Agreement Lawyer Fee & Stamp Duty

The lawyer will draft and prepare all documents that are needed, lawyer fee depends on the property sale price, about 0.25% to 1% of the sale price. Some developers will bear the cost of their new housing projects.

Besides, you need to pay the stamp duty on the property you purchase. The stamp duty is about 1% to 4% of the property sale price. In 2020, Malaysians first homeowner will enjoy a special rebate on stamp duty, which you don't have to pay for stamp duty for purchasing a property below RM300,000.

3. Loan Agreement Lawyer Fee & Stamp Duty

If you finance your property, you need to pay for the loan agreement lawyer fee and stamp duty. The stamp duty is about 0.5% of the property sale price.

4. Valuation Fee

The bank will value the property market price before approving the housing loan. This is to ensure the loan price is not exceeding the current house price. This valuation fee is charged to the buyer, about 0.2% to 0.25% of the property sale price.

5. Agent Fee

If you find your property through a property agent, you will need to pay an agent fee. The maximum agent fee can be charged to the buyer is 3% of the property sale price.

6. Insurance

If you finance your property, most banks will request the buyer to purchase insurance as a prerequisite of loan approval. The buyer can choose to purchase MRTA or MLTA. 

7. Renovation & Furniture Expenses

If your house is ready to move in, then you save a lot of money on this expense. Renovation fee is not cheap but you can modify the whole house into your dream house. The expert suggests the renovation fee should not exceed 10% of your house price.

Listed above 7 expenses are the expenses that must be considered before you purchase your house. Get a rough calculation before making your mind up may help you decide whether you are financially ready to own a house. Don't let your dream house be your financial burden.