Buyer

Buying Properties with ease

Hi, for those who have no ideas on the buying process & the money involved, here is a simple guidelines :]

Firstly, there are 3 type of seller

•  Home owner
•  Property Negotiator
•  Bank ( Repossession /Lelong unit) 

However, the general procedure is similar. Following is about going through property negotiator & home owner.

1. After confirming the property you wanted to purchase, you have to place a deposit of 2-3% of the purchase price and in return you will be given a Letter of Purchase ( Undertaking letter) signed by both the purchaser & seller agreed on the selling price.
2. Purchaser & seller are given 14 working days to apply for the housing loan & get a lawyer for the execution of the Sale & Purchase Agreement (SPA). 
3. If during this period, any party renegade to proceed with the SPA, the deposit will be forfeited if purchaser refuse to buy. Or the buyer can claim back its deposit plus an equivalent sum of the deposit to be provided by the seller if the seller refuse to sell. 
4. Once the SPA is ready, the lawyer will fix a date for the signing. The purchaser need to prepare the balance sum to make up the 10% deposit of the purchase price. 
5. Next is to wait 3+1 months for the property transition. 
6. Lastly is the property redemption. Depends on the loan to value (LTV) ratio, if you are purchasing your 1st or 2nd home & your financial profile is good, most likely you could get a 90% LTV. If this is your 3rd residential property, then the maximum LTV would be only 70%. In the 70% of LTV, you would need to pay the balance of 20% in order to redeem the property. 
7. Voilà, now the property is yours ! 

On to the charges....This is the one that gonna hurt your pockets but this is the payment that would ensure the transition & to make the property yours.... To simplify, in lawyer fees the major fees are

•  Lawyer fees
•  Stamping fees 

The table explain more about the lawyer fees

 Next is the stamping fees

For an example, for a Rm500k property :-

Lawyer fees = (150,000 x 1%) +( (500,000-150,000) x 0.7% )
                   =  RM 3,950

Stamping fees =  (100,000 x 1%) +( (500,000-100,000) x 2% )
                   =  RM 9,000

So you can expect your total SPA would be around RM12,950.00...There are some other minor charges like disbursement fees.

Feel free to find more information on the SPA calculation with this link
http://www.elawyer.com.my/legal_calculator_info.php

Well, a 2 cent advise for every home buyer. Always locate the area you wanted first then choose the property you like. From there , choose the unit you want to make it as your home. Not to forget, your financial ability , buy within your means taking into account the monthly commitment you gonna have & the initial down payment. Happy buying : ]

Loan calculator