HIDDEN COST WHEN YOU BUY PROPERTY IN MALAYSIA

I'm just so happy and excited when I receive lots of emails from you guys regarding your investment journeys. However, as most of us are still new to this, I thought of highlighting the different blind costs that I wish I knew when I bought my first property.
The key thing is to not be afraid of all these cost, but to be informed that they exist. Then we can face investment with higher confidence level. If you felt that there's still some other cost that the other audience really need to know, kindly comment them below=)

[@shafhamid83]

When we talk about legal fees, I think house buyers are unaware that they are being conned by lawyers. Now I am aware there are legal costs and someone needs to cover them but it looks like lawyers involved in property deals are making money from both sides (which they should not and is actually illegal to do so) Example: You can only buy & sell stocks through a stockbroker. If I buy stock through a broker and the agreed price is RM10,000, that is all I pay and I get the stocks I want. The broker will then take whatever fee they deemed is fair and pass the remainder to the seller. In any stock transaction, the broker probably agreed to buy the stocks from the seller at RM9,800 and sell it on at RM10,000 for example. So when buying property from a developer, if you are signing the SPA with the lawyer appointed by the developer, it is the developer who should pay the legal fees to the lawyer. Why? Because the: 1. The lawyer is appointed by the developer, to draft the SPA. They also act as the broker/middle man 2. The SPA will always be skewed towards the developer's interest 3. Should there be any disputes between us the buyer and the developer who is the seller, the lawyer will always side with the developer because the developer is their client Because of that, when signing SPA, the lawyer cannot ask us for any more money. It is actually illegal for the lawyer to ask us for money and say it is for their services rendered. The lawyer is not providing us the buyer any service! They are appointed by the developer/seller and thus the 'services rendered' is to them. If they need money to cover their legal costs, they need to ask from the seller who appointed them. The money should come from the money we pay to buy the house, i.e. the agreed selling price. So when you see new projects from developers saying free "MOT & Legal Fees" in a way it should be free in the first place. We are already paying a lot of money to buy a house so why should we pay more? In fact developers have already factored in the legal fee costs in the selling price anyway. Short answer is that if I am buying a property, I should only pay for the agreed listed price. Extra payments I make should only be stamp duty & government tax because these are fees going to government/housing authority. Lawyers should not and cannot make money from both sides! Stop being cheated by the system!

[@kimmyt1330]

Summary : 1. Legal Costs (SPA , Bank Agreement,) 2. MOT (Memorandum of Transfer) 3. Strata Title Transfer Fee 4. Valuation Fee 5. Deposits (Maintenance, Utilities etc.) 6. MRTA / MLTA (Insurance) 7. Fire Insurance 8. Quit Rent (Cukai Tanah / Cukai Pintu)

[@iherng]

You're awesome Kimmy. This just saves everyone's time hahaha!!

[@ezrayusuf]

@@iherng and what would be the hidden cost if you buy property in cash?

[@SEAsia_RTS]

How much the cost for each of these? How many percentage roughly? So do we need to have at least 10% cash or can cover all this by markup the loan?

[@Bambotb]

What if you're buying everything cash

[@Mikey-fo9mm]

Keep up the good work young man. You are doing something thousands of young M'sian don't know yet. They will thank you later one day for saving them time & possibly heartache.

[@iherng]

Mikey Thanks man. How I wish there would be someone sharing these with me when I first bought my house. Anyway, thank you for sharing your thoughts. I appreciate the effort:)

[@patoises]

I have been binge watching your videos and subscribed. What I like most - your sensibility (what you say makes a lot of sense, most of the time) and openness (your willingness to share them, and help people with your knowledge). Good job! And good editing too...

[@iherng]

This just made my day!! That's one of the reason for channel, which is to help others in their acquisition of their first property as it can be really scary. Thank you very much for the comment and thanks for watching=) *can't stop smiling now

[@archiehalloway2428]

Appreciate all the info and knowledge shared. You are the real deal! 👍👍👍

[@hasrulwayne]

Thank you very much. You already highlighted every blind spot I can't see. :D

[@iherng]

You're most welcomed!! Thanks for watching =)

[@resilientum]

i’m trying to learn as much as i can before i start looking and making any decisions. your channel has been the most helpful and practical. thank you!!

[@iherng]

Happy to hear that Zoe!! Do share with your peers as well yea=)

[@Surbana2]

@@iherng agreed. There are hidden costs which sellers and some agents would not tell us in the beginning. we learnt from yr experience. Thks.

[@williamhayden2492]

Superb Sean Tan!! DaiLou in property!!

[@leongsgp2]

Thanks Sean, great content as always. very informative especially for 1st time buyers.

[@iherng]

Glad you enjoyed it Sebastian=)

[@JeremySee]

Extremely well communicated.

[@iherng]

Jeremy See Thank you very much for the kind words:)

[@azimahabshukor]

I love your channel so much. I got a lot of information from you.

[@iherng]

Do share with your friends so I can help them as well yea=)

[@mariam-fn4vt]

Hi , i just found this channel , and it's so helpfull for me , thanks !

[@iherng]

Hopefully you learnt something yea=)

[@nadhirahhamzah8947]

Tq for sharing all these info!!

[@hazzznain]

Thanks man it was a great info truly appreciate it

[@iherng]

You're most welcomed! Thanks for watching yea. Do share around if you find value in this so I can help more people:)

[@Athena3838]

Wow! This is an education... I had no idea! Thanks.

[@iherng]

Hopefully it'll be helpful. Thanks for watching!!

[@Lizara14]

Soooooo helpful! Thank you 😭

[@iherng]

You're most welcomed!!

[@stevetan3822]

Sean Tan...Great advice & Great work. All the Best 👏👍

[@iherng]

Appreciate it Steve!!

[@wanashraf4489]

a good share bro,keep up the good work,appreciate it very much,tq

[@iherng]

Thanks for watching Ashraf!!

[@moneybenny6522]

Hands down most legitimate video in KZbin. Keep the great work man !!!!

[@iherng]

Wow, thanks! I appreciate the kind words!! Thanks for watching=)

[@rinmansor]

Very useful video. Thanks!

[@iherng]

Thanks for watching Rin!!

[@asyraf2057]

Thanks dude for the vid. Very informative.

[@iherng]

asyraf2057 You’re most welcomed!!

[@jinglingyap6093]

Thank you soooo much for sharing!! 😊

[@iherng]

Thanks for watching Jing Ling:)

[@NplusO88]

Can you do a video about air bnb or short term stay business in strata title and non strata title properties

[@haziqhaime5345]

I need more vid like this💯💯💯

[@iherng]

More coming up!! Thanks for watching Haziq=)

[@hzwnnzm]

good sharing... nice one

[@iherng]

Thanks Hazwan. Appreciate the kind words=)

[@jennylim3447]

Thanks for the advice.

[@iherng]

Thanks for watching Jenny!!

[@bgschecks6368]

Thank you Sean

[@iherng]

You're most welcomed! I hope the information came handy=)

[@nss7230]

Thank you for the video. Really learned strata vs landed for the first time.If it is strata land, did you say maintenance fee is for first 3 months only?

[@muddyjoe73]

Very helpful .Thank you

[@iherng]

You're most welcome!! Thanks for watching 😁

[@CarolKishen]

Benefitted info. Thanks. Sir, please put video on project in progress and we starts paying the bank loan interest. Then, developer delaying in billing to bank.

[@iherng]

Yea, maybe I can explain the cash flow part of the business in one video. Thanks for suggesting!!

[@ammararal]

Thanks for tips

[@iherng]

You're most welcomed! Hope this video came in handy=)

[@alfq87]

Great tips!

[@iherng]

Glad you like it bro!!

[@alfq87]

You should do review on advantages buying property in 2019. Got a lot of advanges and free stamp duty & etc.

[@shazrinyusof8550]

Thank you for sharing the info :)

[@iherng]

You're most welcomed. Thanks for watching Shazrin!!

[@shazrinyusof8550]

@@iherng i just discovered your channel. Keep up the great work, Sean. Very informative videos, for a newbie person like me who doesnt know much about real property. Just subscribed to your channel..hehe. Will definitely watch all your videos.

[@azrainisahak]

For fire insurance in strata land (in my case) the fees you paid for maintenance normally covers it as well, and you have to provide the certificate to the bank. Otherwise bank will charge you

[@iherng]

Thanks for sharing yea Azrain! I really appreciate it=)

[@bowlampar]

Many hidden fees, charges and tax need to be aware of for first time buyer other than the property developer stated selling price .

[@iherng]

Thanks for watching Lam=)

[@rnurmin4967]

Found your channel and subscribed. Great information. Question: the hidden cost you mentioned in this video is a one time cost right (incurred during transaction and getting the keys)?

[@iherng]

Thanks for subscribing. Do share with your friends who are getting their property as well so they don't get surprised with the amount of fees they need to pay. Anyway, some are one time, some are occurring... But the one timers are the hefty ones unfortunately=/

[@kohlee888]

👍🏻

[@thevarajveeraiah9954]

Hi Sean, thanks for the wonderful video. I’m a first time buyer with no clue on what going to be the hidden chargers. This video really gave me a detailed idea. I’m planning to get Rumah Wip at 300K price. How to contact you for further advice on this ?

[@iherng]

The purpose of these videos is to show you guys what kinda information to ask from your agents or salesperson and I'm confident they'll help you accordingly *because you're paying their fees anyway=) All the best in your pursue yea!!

[@DinKnight]

This is a short but very important episode that I need to share with my clients buying their homes.

[@iherng]

Yea, I seriously wish that I knew all these before I bought my first property.. Anyway, thanks for watching!!

[@KeepingItRealBro]

I waited a long time for this video. You really should've put all of it in writing for a better overview. Every percent counts, bro!

[@iherng]

Haha... As detailed as usual bro!! Thanks for watching as usual =)

[@ivarvoorel3590]

hey man, thats wonderful, good job, tnx, it is my 1st watch here, tell me are you real estate broker? thank you for your reply

[@iherng]

Hi Ivar. Thanks for watching !! I really appreciate it. I'm not a real estate broker but is there anything that I can help you with?

[@hasics94]

Hai, can you do a video about tenancy agreement, what is it, what need to be in there, the details and also the procedure and fees needed for the tenancy agreement to be valid. Thanks. Cheers. Love the videos.

[@iherng]

Hi there. Coming up!! Thanks for letting me know.

[@Kianrui]

What age should I buy my first property? How much salaries should I get if I want to buy a House??

[@chongkitty8964]

👍👍👍

[@iherng]

=)

[@tharumarajah2189]

Hi Sean, have heard about legend or ledger account ???

[@atomicowl-]

So how many % should we calculate, if not 10%, should we calculate 15% downpayment?

[@nadhirahhamzah8947]

Please make a video on how to buy a house for salary below 2k..please please please..tq!!!!

[@iristan5628]

Hi Sean, Thanks for this Sharing of this video. It’s very informative and useful. I would like your advices and follow up too as am interested to purchase a piece of land in a few months time (5-6 months). We will be retiring soon and would like to invest freehold land in Malaysia with a mini resort with orchard if possible. Land to have durian trees and other fruits is the best n ideal for our future plans. Do u know of such opportunities? We have relatives in KL to help us see the land. Will you be interested to service us ?

[@jenifferyixuan6280]

Hello Sean, I’m now planning to buy a condo 1100 psf with RM660k, I’m okay with it because it’s located at Puchong. But my parents suggest me to buy subhouse landed house. Can you please give me some suggestion?

[@iherng]

First of all, this will sound quite direct but may I know who will be paying for the property yea? If they're assisting you with the down payment, then I would suggest you to go for the landed home because the initial capital can be quite hefty. But if you're gonna buy yourself, then a new condo would be way easier on your cashflow. Personally, it's great when your parents are involved in the process where you'll understand the difference of context between our generation and theirs. But they will always prefer landed homes as capital appreciation has been the ONLY thing they look at for property those days... Do let me know further on how can I be helpful. DM me via my IG for faster reply =)

[@ryce80s]

Hey! I'm looking to buy a home in Malaysia to retire young. Ive heard they lowered the required money to purchase home to 600k n over? What do I need to go about or do you have a video explaining this? Ive been looking into mm2h visa still bit unclear

[@iherng]

Let me try to prepare something yea=)

[@puifong82]

Hi Sean I’m about to decide if I need to buy a new house or a sub sale since new developer are giving me lotsa free legal fees, stamp duty of spa, moc, free kitchen cabinets, stove hood & hob, free air conditioners, free maintenance fee for 1st year move in... so my question to you is should I go for this new property instead of going for sub sale unit?

[@iherng]

Hi there chea. First of all, thanks for watching. It boils down to what's the intention of buying that property? There's this old video I've made before regarding this topic, maybe you want to check it out first Link: kzbin.info/www/bejne/n6uVYY2XbddpqtU If there's any further questions, feel free to email me at [e-mail] =)

[@puifong82]

iherng yeah very helpful I’ve been following and subscribing your KZbin channel

[@AK57612]

yup, I'll be renting my whole life then 😂

[@iherng]

Hahahaha. Thanks for watching Kawaii=)

[@reef557]

I'm from USA, I wanna retire there. I'm not in retirement stage yet, but I wanna buy a home now, so I can go back for vacation. Also while I'm working I wanna pay it off. Does all these fees apply to me? Any advice on who and how to go about to buying a home? Thank you in advance

[@iherng]

Hi there. As for the cost, these applies to the home ownership irregardless to where you're from. As for buying a home, it's really up to your preference. Kindly go through my channel to go the topics of landed vs highrise, new property vs secondary market, and etc to guide through your decision making process=)

[@alikhan3848]

nice video thanks sir ...sir how about 100000 Malaysian can buy property or not and apply for citizenship..

[@iherng]

Erm, I'm not too sure about the recent changes of our MM2H program. Let me check.

[@dc6958]

Hi Sean, what is the yearly assessed fees? Is it only for rental properties?

[@iherng]

It's called Assessment Tax, it's a tax that property owners need to pay to local council office twice a year. The amount is usually determined with a percentage on the rental rate of that particular property. If you're a tenant, then have no worries=) Anyway, thanks for watching!!

[@jonaafr]

U are talking about technicalities. Whatever cost incurred are obligations and there is no way around it. But it doesn't stop there, there are always hidden cost.

[@iherng]

Thanks for watching John;)

[@ivanlow7338]

Hi Sean, just wondering.. wheres the Perfection of Charge fee? Btw, GREAT video

[@iherng]

Ivan Low It’s the process when the bank somewhat takes control of the property before giving the buyer the loan. That process is called “charge”. So you’re paying for the legal documentation and administrative process lah:) Hope that helps.

[@Kho66666]

So i should prepared 20%? 10% for DP and 10% for those hidden cost :D?

[@iherng]

It depends whether is it a sub-sale or new property. So for subsale property, then it's around 18% if you're buying within the price range below RM 1million. If the price exceeds RM 1m then it would be even higher...

[@jeremytan1605]

Do we need to pay valuation fee for a residential non landed property that just launched? I was told to pay at mizu residence

[@iherng]

Jeremy Tan Usually it’s covered by the developer for pre-constructed units. Is the for the completed units?!

[@jeremytan1605]

@@iherng it's a completed unit. But the developer reimbursed in the end haha

[@godgash]

Haiz now only saw this video

[@iherng]

Alamak, what happened?!

[@godgash]

@@iherng nola hidden fees didn't rdy cash rolling and renovate spend 40k.. Not enuf cash to get my design.. So 40k design for rent only.. Sigh

[@CYBRCDZEN]

is majority of malaysia freehold or leasehole? is there even fee simple? if freehold whats the longest you can hold ownership for example a condominium in KL, and whats the circumstances when the property can be revoked? thanks.

[@iherng]

I'm not too sure about the percentage between freehold against leasehold because it's purely up to the jurisdiction of the State Government. I've witnessed where leasehold were converted into freehold upon application. Freehold means in perpetuity = forever. In our National Land Code, there's a clause stating that if your land is within the zone of development for the country, they can still acquire your land forcefully, but at market price. Hope these clarifies=)

[@_syedadli_3511]

hi...can you do the list houses under RM500,000-RM700,000???

[@iherng]

Hi there. I'm not sure if I get your question correctly. If you mean to look for properties within that price range, I would suggest to search those on property portals such as iproperty, property guru, prop social and etc instead. But if you meant to list the cost of those that I mentioned for properties within that range, there are also formulas online to assist. I would be challenging to calculate here as most of the cost are calculated based on tier.. How bout if you provide me with a fixed price, then it would be easier=) Anyway, thanks for watching yea!!

[@_syedadli_3511]

Iherng wc....i had checked website that you gave...tq yea...btw how we can know that price of property can pass with our salary???or any formula to buy properties???...

[@gaaneshsundrammoorthy6570]

like this dont wanna buy house la........

[@iherng]

It's to make informed decisions bro... instead of just being crippled by it. Thanks for watching yea=)

[@adamadnand]

If im buying house for 900k from a developer lets say from sime darby, how much do i need to have? Is 15% of 900k enough?

[@iherng]

Usually less than than because it's often the time only booking fee of around RM 10k max, provided if you get 90% financing loan from the bank. 15-18% is around the rate for sub-sale properties already=) Thanks for watching Adam!!

[@anoihardy106]

i find this video is really helpful for me. im a 22 years old guy who is excited to invest in properties especially in malaysia

[@iherng]

Glad to hear that. It's always better to be informed !!

[@rogersmith1408]

Normal stuff

[@iherng]

Unfortunately not common to first time buyers.

[@Onion_Knights]

One more, Agent fee if it involve one

[@iherng]

That's not really HIDDEN but thanks for sharing Chris hahaha=) I really appreciate it!

[@Onion_Knights]

@@iherng hmm.. yea lol but i tend to forgot about agent fees when i "try" to buy my 1st house. Dunno who is the one who pay, the seller or the buyer

[@iherng]

That differs to local cultures. In KL seller pays the fees, but in JB the fees is split between buyer and seller. Interesting findings for me:)

[@Onion_Knights]

@@iherng ahhhh, ok ok, then have to ask the agent. Thanks!

[@lengkm6379]

Bro consent fee pay by buyer or by seller

[@iherng]

What's consent fee?? Agent fees?

[@dennisang96]

why this video showed up on my recommendation video on my YT so late ? all saving burned

[@iherng]

Owh no....

[@zulzali17]

Hi... So what's the recommended budget.. Price of property + 20%?

[@iherng]

18-20% would be fine. Thanks for watching Ali=)

[@zulzali17]

@@iherng thanks..