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Property Transaction Costs In Malaysia (Simplified) / Note: MYR=Malaysian Ringgit

1) Stamp Duty == 1% - 3% (By Buyer)
2) Lawyer/Solicitor's Fees == 0.4% - 1% (By Buyer)
3) Other Fees == MYR180 (US$49) (By Buyer)
4) Real Estate Agent's Fees == 2% - 2.75% (By Buyer or Seller or Both)

Details as follow:

1) Stamp Duty (Value Of Property in MYR -- Rate)
First 100,000 -- 1%
Next 400,000 -- 2%
Remainder (Over 500,000) -- 3%

2) Lawyer/Solicitor's Fee (Value Of Property in MYR -- Rate)
First 150,000 -- 1%
Next 850,000 -- 0.7%
Next 2,000,000 -- 0.6%
Next 2,000,000 -- 0.5%
Next 2,000,000 -- 0.4%

* where the consideration or adjudicated value is in excess of MYR7,500,000 then it's negotiable but shall not exceed 0.4% of such excess

3) Other Fees (MYR)
Stamping Fee (per document) -- MYR10
Adjudication Fee -- MYR10
Title Search Fee -- MYR60
Registration Fee -- MYR100

4) Real Estate Agent's Fee
Agent's Fees are regulated by the Board of Valuers, Appraisers and Estate Agents Malaysia (LLPEH). Commission is paid either by buyer or seller, subject to a maximum discount of 30% but a minimum fee of MYR1,000 per case. The scale is not applicable to sale of foreign properties in Malaysia.

Agent's Fee (Value Of Property in MYR -- Rate)
First 500,000 -- 2.75%
Remainder -- 2%

Property Buying Procedure(Simplified):

The first step to purchasing property in Malaysia is to hire a real estate lawyer to assist in the transaction. Once property is selected, a Letter of Offer/Acceptance is signed, and a 3% deposit is expected from the buyer.

Within 14 days, the Sale and Purchase Agreement is signed. The buyer must pay another 7% deposit. From the date of the signing, the buyer has a maximum of three months to accomplish full payment.

The Sale and Purchase Agreement must be stamped at the Stamp Office. After the examination on the property of the valuation department, Stamp Duty is paid to the Stamp Office. The transfer must be registered at the Land Office Registry.

Be cautious when buying new property in unfinished condominium projects. Buyers may not be fully protected against default, an issue vigorously raised by the Malaysian House Buyers’ Association, which has pointed to flaws in The Housing Development (Control & Licensing) Act 2002, and the Strata Titles Act. Those buying unfinished property from developers should ensure that the developer has a valid Developer’s License and a valid Sales & Advertising permit.

Disclaimer: This article is written to give you a basic idea of how property buying cost and procedure in Malaysia works in a nutshell, always consult a professional real estate agent should you have any doubt or questions.

Source: http://www.globalpropertyguide.com/Asia/Malaysia/Buying-Guide

Types Of Home Insurance

You need home insurance. Which one do you really need?

Please insure your house immediately after buying it. If you're building your house, insure it when you start the roofing. Besides taking care of the building, the contents of your home must be protected too. Burst water pipes, fire and damage from theft are some of the calamities that insurance can protect against. While it cannot replace damaged buildings or lost items nor relieve you of the stress that these tragic events can cause, it can prevent total loss of your property by reimbursing you financially.

Sometimes, insurance is mandatory, such as when your house is financed by a bank. You should also take up a mortgage life assurance policy to protect your family from financial burden if something happens to you. In the event of death or total disablement, the insurance company will settle your loan in full for you.

Mortgage Life Assurance can be divided into three areas:

-> Mortgage Reducing Term Assurance (MRTA) ensures that your family won't have to pay your loan for you if something happens to you. Your bank may offer extra financing to cover the cost of the insurance premium. The repayment for this premium is spread over the period of the loan tenure.

-> Overdraft Life Assurance gives you an overdraft credit limit, which you may withdraw in any amount at any time. You're insured for the full amount of this limit even if you use only part of it. However, you'll need to renew your policy every year at the time your overdraft is renewed.

->With the Mortgage Endowment Plan, you pay your housing loan interest + an insurance premium every month. At the end of your loan tenure, the insurance company will pay the full capital sum of your loan to your bank and any cash bonuses to you. However, this bonus is not guaranteed; it depends on the insurance company.

Houseowner/Householder insurance protects you against calamities such as:

-> Natural disasters: fire, floods, lightning, typhoons, hurricanes, windstorms, cyclones, earthquakes and volcanic eruption.

-> Man-made disasters: theft, riots, explosions, strikes, damage from malicious intent, damage from impact, aircraft damages, burst pipes and water damage.

-> Loss of rent

-> Public liability

-> Other household predicaments, removal of household content, accidental breakage of mirrors, personal accident, even loss or damage to clothing and personal items of domestic servants.

Source: http://www.memylife.com/