Price Tier<\/b><\/td>\n	Stamp Duty Malaysia (% of property price)<\/strong><\/td>\n<\/tr>\n<\/thead>\n
First RM100,000<\/td>\n	1%<\/td>\n<\/tr>\n
RM101,000 – RM500,000<\/td>\n	2%<\/td>\n<\/tr>\n
RM500,001 – RM 1 million<\/td>\n	3%<\/td>\n<\/tr>\n
> RM 1 million<\/td>\n	4%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/figure>\n\n\n\n Payment of stamp duty can be now done online on the LHDN official website through the Stamp Assessment And Payment System or STAMPS<\/a>.<\/span><\/p>\n\n\n\n But good news…<\/h4>\n\n\n\n First-homebuyers who purchase residential properties worth between RM500,001 to RM1 million <\/strong>will enjoy a 75% stamp duty exemption up to 31 December 2023.<\/strong><\/p>\n\n\n\n For the transfer of property between family, <\/strong>stamp duty on the instruments of transfer of property will be fully exempted for the first RM1 million<\/strong> of the property’s value.<\/p>\n\n\n\n <\/a>2. Home insurance<\/h2>\n\n\n \n $\"\"$ <\/figure>\n<\/div>\n\n\n Most banks will require buyers to purchase insurance on their homes<\/strong> as part of the housing loan package to protect the value of the property. <\/strong><\/p>\n\n\n\n The common options include:<\/p>\n\n\n\n Mortgage Reducing Term Assurance (MRTA)<\/h3>\n\n\n\n\n Most popular and economical option<\/li>\n<\/ul>\n\n\n\n Mortgage Level Term Assurance (MLTA)<\/h3>\n\n\n\n \n Sum assured remains constant or level throughout the policy period<\/li>\n<\/ul>\n\n\n\n Term Life insurance<\/h3>\n\n\n\n \n Oldest and most common life insurance<\/li>\n<\/ul>\n\n\n\n <\/a>3. Legal fees<\/h2>\n\n\n \n $\"\"$ <\/figure>\n<\/div>\n\n\n If you’re unfamiliar with the proceedings of creating a Sales and Purchase Agreement<\/strong>, you might have to appoint a lawyer<\/strong> to help you with it.<\/p>\n\n\n\n They will prepare all the necessary documents and contracts to facilitate the transfer of the property.<\/p>\n\n\n\n The fees are then calculated as a percentage of the purchase price<\/strong>.<\/p>\n\n\n\n How are legal fees calculated in Malaysia?<\/h3>\n\n\n\n The legal fee rates in Malaysia are as below:<\/p>\n\n\n\n \n \n\n\n\n\n\n\n\n\n\n PRICE TIER<\/strong><\/td>\n LEGAL FEE (% of property price)<\/strong><\/td>\n<\/tr>\n<\/thead>\n First RM500,000<\/td>\n 1%<\/td>\n<\/tr>\n RM500,001 – RM 1 million<\/td>\n 0.8%<\/td>\n<\/tr>\n RM1,000,001 – RM 3 million<\/td>\n 0.7%<\/td>\n<\/tr>\n RM3,000,001 – RM 5 million<\/td>\n 0.6%<\/td>\n<\/tr>\n > RM 5 million<\/td>\n 0.5%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/figure>\n\n\n\n Note that some developers may absorb the legal fees but you will always need to pay the stamp duty yourself as a buyer.<\/strong><\/p>\n\n\n\n Read: ENGLISH MARKET INSIGHTS [Latest Update] The Solicitors’ Remuneration Order 2023 (SRO 2023)<\/a><\/p>\n\n\n\n <\/a>4. Malaysian property tax<\/h2>\n\n\n \n $\"\"$ <\/figure>\n<\/div>\n\n\n As a homeowner, you are legally required to pay tax<\/strong> on your property every year. <\/p>\n\n\n\n Here are some of the types of tax to take note of:<\/p>\n\n\n\n Quit rent (cukai tanah)<\/h3>\n\n\n\n \n Collected by the state government’s Land Office<\/strong> or Pejabat Tanah Dan Galian (PTG).<\/li>\n\n\n\n For highrises in some states, quit rent is charged to the Joint Management Body (JMB)<\/strong> and they include<\/strong> it as part of your maintenance charges<\/strong>.<\/li>\n<\/ul>\n\n\n\n Parcel tax (cukai petak)<\/h3>\n\n\n\n \n A relatively new tax<\/strong> introduced in Penang and Kuala Lumpur so far. <\/li>\n\n\n\n It is also collected by the state government’s Land Office<\/strong> or Pejabat Tanah Dan Galian (PTG).<\/li>\n\n\n\n Parcel tax is equivalent to quit rent for property divided into parcels<\/strong> such as apartments.<\/li>\n<\/ul>\n\n\n\n Property assessment rates (cukai pintu)<\/h3>\n\n\n\n \n Property assessment rates<\/strong> are collected by local councils to be used in developing and maintaining<\/strong> local area infrastructure and services such as public parks and garbage collection services.<\/li>\n<\/ul>\n\n\n\n <\/a>5. Utility fees<\/h2>\n\n\n \n $\"\"$ <\/figure>\n<\/div>\n\n\n <\/p>\n\n\n\n Without a doubt, you’ll need basic utilities<\/strong> for your new home – which come at a cost<\/strong> as well.<\/p>\n\n\n\n You’ll need to prepare some allocations<\/strong> for:<\/p>\n\n\n\n \n Electricity from Tenaga Nasional Berhad (TNB)<\/strong><\/li>\n\n\n\n Water supply<\/strong><\/li>\n\n\n\n Sewerage services provided by Indah Water<\/strong><\/li>\n\n\n\n Internet or broadband connection<\/strong><\/li>\n<\/ol>\n\n\n\n To sign up for these services, you’ll fill out forms, pay a deposit<\/strong>, and cover fees<\/strong> for installation and paperwork.<\/p>\n\n\n\n <\/a>6. Monthly maintenance & sinking fund<\/h2>\n\n\n \n $\"\"$ <\/figure>\n<\/div>\n\n\n When you purchase a property in a strata\/gated community<\/strong>, you become a part of a private community that’s managed by a Joint Management Body (JMB)<\/strong>.<\/p>\n\n\n\n You’ll typically be making regular contributions to cover these familiar expenses:<\/p>\n\n\n\n \n Maintenance fees:<\/strong> Fees to keep common facilities<\/strong>, like elevators, swimming pools, and gyms, in good working condition, plus other common services such as cleaning and security.<\/li>\n\n\n\n Sinking fund:<\/strong> A larger sum of money set aside for unexpected, significant community expenses<\/strong> such as an elevator break down.<\/li>\n<\/ol>\n\n\n\n It’s a good idea to talk to your JMB<\/strong> to find out how much you’re expected to contribute.<\/p>\n\n\n\n <\/a>7. Furnishings and maintenance<\/h2>\n\n\n \n $\"\"$ <\/figure>\n<\/div>\n\n\n One more thing to take into account is of course, the furnishings<\/strong> and the overall look of your home – including its maintenance<\/strong>.<\/p>\n\n\n\n It can be an additional cost to keep your home looking timeless, especially the things you don’t normally see<\/strong> such as the lawn, the decorations for your balcony, etc.<\/p>\n\n\n\n If your home comes with furniture, remember that there will be an additional penny<\/strong> to pay to take away your unwanted items.<\/p>\n\n\n\n With thoughtful financial planning and a bit of savvy, you’ll be well on your way to making that dream of owning your own space a reality.<\/p>\n\n\n\n \n\n\n\n If you need advice to purchase your first home, our team of real estate professionals are ready to help! Drop your details below and our team will assist you.<\/strong><\/span><\/p>\n\n\n\n\t\t\t\t\t\t

7 Hidden Fees When Buying a Home<\/h2>
1. Stamp duty fees<\/a>
Latest stamp duty fees on the MOT or DOA<\/a><\/li><\/ul><\/li>
2. Home insurance<\/a>
Mortgage Reducing Term Assurance (MRTA)<\/a><\/li>
Mortgage Level Term Assurance (MLTA)<\/a><\/li>
Term Life insurance<\/a><\/li><\/ul><\/li>
3. Legal fees<\/a>
How are legal fees calculated in Malaysia?<\/a><\/li><\/ul><\/li>
4. Malaysian property tax<\/a>
Quit rent (cukai tanah)<\/a><\/li>
Parcel tax (cukai petak)<\/a><\/li>
Property assessment rates (cukai pintu)<\/a><\/li><\/ul><\/li>
5. Utility fees<\/a><\/li>
6. Monthly maintenance & sinking fund<\/a><\/li>
7. Furnishings and maintenance<\/a><\/li><\/ul><\/div>\n\n\n\n
\n\n\n\n
<\/a>1. Stamp duty fees<\/h2>\n\n\n
\n
$\"\"$ <\/figure>\n<\/div>\n\n\n
You can never run away from stamp duty fees.<\/p>\n\n\n\n
This is the tax placed on your property documents<\/strong> during the sale or transfer of the property which must be stamped within 30 days<\/strong> from the date of transaction.<\/p>\n\n\n\n
What are some examples?<\/p>\n\n\n\n
\n
Stamp duty on the Sale and Purchase Agreements (SPA)<\/strong> of your property<\/li>\n\n\n\n
Stamp duty on Deed of Assignment (DOA) \/ <\/strong>Memorandum of Transfer (MOT) <\/strong><\/a>paid by new property owner<\/span><\/li>\n\n\n\n
Stamp duty on your loan agreement<\/strong> (0.5% of the total loan)<\/li>\n<\/ul>\n\n\n\n
Latest stamp duty fees on the MOT or DOA<\/strong><\/h3>\n\n\n\n
\n
\n\n\n\n\n\n\n\n\n
Price Tier<\/b><\/td>\n Stamp Duty Malaysia (% of property price)<\/strong><\/td>\n<\/tr>\n<\/thead>\n
First RM100,000<\/td>\n 1%<\/td>\n<\/tr>\n
RM101,000 – RM500,000<\/td>\n 2%<\/td>\n<\/tr>\n
RM500,001 – RM 1 million<\/td>\n 3%<\/td>\n<\/tr>\n
> RM 1 million<\/td>\n 4%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/figure>\n\n\n\n
Payment of stamp duty can be now done online on the LHDN official website through the Stamp Assessment And Payment System or STAMPS<\/a>.<\/span><\/p>\n\n\n\n
But good news…<\/h4>\n\n\n\n
First-homebuyers who purchase residential properties worth between RM500,001 to RM1 million <\/strong>will enjoy a 75% stamp duty exemption up to 31 December 2023.<\/strong><\/p>\n\n\n\n
For the transfer of property between family, <\/strong>stamp duty on the instruments of transfer of property will be fully exempted for the first RM1 million<\/strong> of the property’s value.<\/p>\n\n\n\n
<\/a>2. Home insurance<\/h2>\n\n\n
\n
$\"\"$ <\/figure>\n<\/div>\n\n\n
Most banks will require buyers to purchase insurance on their homes<\/strong> as part of the housing loan package to protect the value of the property. <\/strong><\/p>\n\n\n\n
The common options include:<\/p>\n\n\n\n
Mortgage Reducing Term Assurance (MRTA)<\/h3>\n\n\n\n\n
Most popular and economical option<\/li>\n<\/ul>\n\n\n\n
Mortgage Level Term Assurance (MLTA)<\/h3>\n\n\n\n
\n
Sum assured remains constant or level throughout the policy period<\/li>\n<\/ul>\n\n\n\n
Term Life insurance<\/h3>\n\n\n\n
\n
Oldest and most common life insurance<\/li>\n<\/ul>\n\n\n\n
<\/a>3. Legal fees<\/h2>\n\n\n
\n
$\"\"$ <\/figure>\n<\/div>\n\n\n
If you’re unfamiliar with the proceedings of creating a Sales and Purchase Agreement<\/strong>, you might have to appoint a lawyer<\/strong> to help you with it.<\/p>\n\n\n\n
They will prepare all the necessary documents and contracts to facilitate the transfer of the property.<\/p>\n\n\n\n
The fees are then calculated as a percentage of the purchase price<\/strong>.<\/p>\n\n\n\n
How are legal fees calculated in Malaysia?<\/h3>\n\n\n\n
The legal fee rates in Malaysia are as below:<\/p>\n\n\n\n
\n
\n\n\n\n\n\n\n\n\n\n
PRICE TIER<\/strong><\/td>\n LEGAL FEE (% of property price)<\/strong><\/td>\n<\/tr>\n<\/thead>\n
First RM500,000<\/td>\n 1%<\/td>\n<\/tr>\n
RM500,001 – RM 1 million<\/td>\n 0.8%<\/td>\n<\/tr>\n
RM1,000,001 – RM 3 million<\/td>\n 0.7%<\/td>\n<\/tr>\n
RM3,000,001 – RM 5 million<\/td>\n 0.6%<\/td>\n<\/tr>\n
> RM 5 million<\/td>\n 0.5%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/figure>\n\n\n\n
Note that some developers may absorb the legal fees but you will always need to pay the stamp duty yourself as a buyer.<\/strong><\/p>\n\n\n\n
Read: ENGLISH MARKET INSIGHTS [Latest Update] The Solicitors’ Remuneration Order 2023 (SRO 2023)<\/a><\/p>\n\n\n\n
<\/a>4. Malaysian property tax<\/h2>\n\n\n
\n
$\"\"$ <\/figure>\n<\/div>\n\n\n
As a homeowner, you are legally required to pay tax<\/strong> on your property every year. <\/p>\n\n\n\n
Here are some of the types of tax to take note of:<\/p>\n\n\n\n
Quit rent (cukai tanah)<\/h3>\n\n\n\n
\n
Collected by the state government’s Land Office<\/strong> or Pejabat Tanah Dan Galian (PTG).<\/li>\n\n\n\n
For highrises in some states, quit rent is charged to the Joint Management Body (JMB)<\/strong> and they include<\/strong> it as part of your maintenance charges<\/strong>.<\/li>\n<\/ul>\n\n\n\n
Parcel tax (cukai petak)<\/h3>\n\n\n\n
\n
A relatively new tax<\/strong> introduced in Penang and Kuala Lumpur so far. <\/li>\n\n\n\n
It is also collected by the state government’s Land Office<\/strong> or Pejabat Tanah Dan Galian (PTG).<\/li>\n\n\n\n
Parcel tax is equivalent to quit rent for property divided into parcels<\/strong> such as apartments.<\/li>\n<\/ul>\n\n\n\n
Property assessment rates (cukai pintu)<\/h3>\n\n\n\n
\n
Property assessment rates<\/strong> are collected by local councils to be used in developing and maintaining<\/strong> local area infrastructure and services such as public parks and garbage collection services.<\/li>\n<\/ul>\n\n\n\n
<\/a>5. Utility fees<\/h2>\n\n\n
\n
$\"\"$ <\/figure>\n<\/div>\n\n\n
<\/p>\n\n\n\n
Without a doubt, you’ll need basic utilities<\/strong> for your new home – which come at a cost<\/strong> as well.<\/p>\n\n\n\n
You’ll need to prepare some allocations<\/strong> for:<\/p>\n\n\n\n
\n
Electricity from Tenaga Nasional Berhad (TNB)<\/strong><\/li>\n\n\n\n
Water supply<\/strong><\/li>\n\n\n\n
Sewerage services provided by Indah Water<\/strong><\/li>\n\n\n\n
Internet or broadband connection<\/strong><\/li>\n<\/ol>\n\n\n\n
To sign up for these services, you’ll fill out forms, pay a deposit<\/strong>, and cover fees<\/strong> for installation and paperwork.<\/p>\n\n\n\n
<\/a>6. Monthly maintenance & sinking fund<\/h2>\n\n\n
\n
$\"\"$ <\/figure>\n<\/div>\n\n\n
When you purchase a property in a strata\/gated community<\/strong>, you become a part of a private community that’s managed by a Joint Management Body (JMB)<\/strong>.<\/p>\n\n\n\n
You’ll typically be making regular contributions to cover these familiar expenses:<\/p>\n\n\n\n
\n
Maintenance fees:<\/strong> Fees to keep common facilities<\/strong>, like elevators, swimming pools, and gyms, in good working condition, plus other common services such as cleaning and security.<\/li>\n\n\n\n
Sinking fund:<\/strong> A larger sum of money set aside for unexpected, significant community expenses<\/strong> such as an elevator break down.<\/li>\n<\/ol>\n\n\n\n
It’s a good idea to talk to your JMB<\/strong> to find out how much you’re expected to contribute.<\/p>\n\n\n\n
<\/a>7. Furnishings and maintenance<\/h2>\n\n\n
\n
$\"\"$ <\/figure>\n<\/div>\n\n\n
One more thing to take into account is of course, the furnishings<\/strong> and the overall look of your home – including its maintenance<\/strong>.<\/p>\n\n\n\n
It can be an additional cost to keep your home looking timeless, especially the things you don’t normally see<\/strong> such as the lawn, the decorations for your balcony, etc.<\/p>\n\n\n\n
If your home comes with furniture, remember that there will be an additional penny<\/strong> to pay to take away your unwanted items.<\/p>\n\n\n\n
With thoughtful financial planning and a bit of savvy, you’ll be well on your way to making that dream of owning your own space a reality.<\/p>\n\n\n\n
\n\n\n\n
If you need advice to purchase your first home, our team of real estate professionals are ready to help! Drop your details below and our team will assist you.<\/strong><\/span><\/p>\n\n\n\n\t\t\t\t\t\t