(Image source: EdgeProp.my)

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✱✱ Calculate your home loan & stamp duty costs here! ✱✱

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What else do I need to pay for upon delivery of vacant possession?

Congratulations! Now that you've got the keys to your new property, you'll need to consider these costs too:

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• Monthly

- Maintenance fees and sinking fund (if applicable)

- TNB (electricity)

- Syabas (water)

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• Every 6 months
- Indah Water (sewerage)

- DBKL Assessment (cukai pintu)

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• Annually

- Quit Rent (cukai tanah, for landed properties)

- Parcel Rent (cukai petak, for strata properties)

- Fire Insurance

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• Others, if applicable:

- Renovation costs

- Home insurance (Houseowner policy, Householder policy, Landlord insurance, etc.)

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Budget 2023: Campaigns, Incentives & Exemptions

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• Housing Credit Guarantee Scheme (SJKP) / PR1MA Housing Loan:

- For those without payslip and/or who are self-employed

- Funding limit: Up to RM400,000 (including the amount of principal financing, MRTA/MRTT, LTHO, legal fees and appraisal fees)

- Funding guarantee: 100% guarantee on the financing amount (including principal financing amount, MRTA/MRTT, LTHO, legal fees and appraisal fees)

- Funding period: Up to 35 years or up to the financing period, whichever is earlier (two generation loans allowed)

- Mandatory deposit equivalent to 3 months of monthly payments.

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• i-MILIKI:

The Malaysian government has introduced the i-MILIKI, a new home ownership program for first-time homebuyers.

It aims to provide affordable and quality housing to young people, low- and middle-income groups in the country. 

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First-time homebuyers who purchase a property through this program can benefit from two stamp duty reductions, namely:

- Stamp Duty Exemption for Loan Contracts

- Stamp Duty Exemption on Assignment Deeds

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The exemption is applicable for homes with specific prices as such:

- Below RM500,000 : Fully (100%) exempted

- RM500,000 to RM1 million : 50% exemption

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This incentive will make it easier for first-time homebuyers to own a home as the reduction of stamp duties will lower their burden when buying a property.

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To be eligible for these reductions, the property must be a new project or from a developer participating in the i-MILIKI initiative and is residential-titled only (commercial-titled under HDA properties such as SOHO and serviced apartments are not included). 

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It is also important to note that these discounts are only available for purchases made between 1 June 2022 and 31 December 2023, upon signing the Sales and Purchase Agreement (SPA).

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• BNM First Home Scheme:

Skim Rumah Pertamaku is another government initiative for first-time homebuyers (Malaysian citizens only), which allows qualifying candidates to get up to 110% financing for completed or properties under construction from partnering banks to promote homeownership.

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It offers affordable financing for monthly income earners of RM5,000 or below (salaried or self-employed in public/private sector), no downpayment is required and joint applications are allowed with immediate family members.

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Property Criteria:
- Residential properties in primary or secondary market (new/subsale)

- Residential properties must be owner-occupied

- For purchase of property priced up to RM300,000

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Financing Criteria:

- Tenure up to 35 years (applicant age not exceeding 70 years at the end of the financing tenure)

- Up to 105% (i.e. 100% of the property value and up to 5% for capitalization of MRTA/MRTT premium)

- Amortising loan facility only (no redrawable features or financing of properties)

- Compulsory Fire Insurance/Takaful

- Moratorium period of 5 years

- Mandatory completion of online financial education module by AKPK

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• My First Home Scheme by Maybank:

Similar to the BNM First Home Scheme, this initiative allows qualifying candidates to get up to 105% financing for completed or properties underconstruction.

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It offers affordable financing for monthly income earners of RM10,000 or below (salaried or self-employed in public/private sector), no downpayment is required and joint applications are allowed with immediate family members.

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Property Criteria:
- Residential properties in primary or secondary market (new/subsale)

- Residential properties must be owner-occupied

- For purchase of property priced up to RM500,000

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Financing Criteria:

- Tenure up to 35 years (applicant age not exceeding 70 years at the end of the financing tenure)

- Up to 105% (i.e. 100% of the property value and up to 5% for capitalization of MRTA/MRTT premium)

- Amortising loan facility only (no redrawable features or financing of properties)

- Compulsory Fire Insurance/Takaful

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• HouzKEY Homeownership Plan:

Maybank's HouzKEY is a revolutionary financing option that provides home buyers with increased adaptability and improved cash flow efficiency. This solution features complete financing with the lowest monthly payments for the initial 5 years, requiring only a 3-month deposit instalment payment that can be refunded.

 

It eliminates the need for a substantial down payment, enabling homeowners to save money. Additionally, homeowners can benefit from zero payments during the construction phase of the project. They can sit back and relax, knowing that they will not have to worry about making monthly loan payments until their homes are completed.

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• Free Stamp Duty on MOT & Loan Agreement:

- For the first home priced below RM500k (SPA signed from 1 Jan 2021-31 Dec 2025)

- Only applicable to residential properties, excluding SOHO/SOFO/SOVO/serviced residences

- First-time homebuyers must be Malaysian citizens. Also applicable for abandoned housing projects under developers appointed or approved by the Minister of Housing and Local Government to carry on rehabilitation works for said projects.

- Buyer must not already own a residential property, inherited/gifted/jointly-owned property included

- The exemption is given at 2 stages of transfer, i.e. from the property developer to a qualifying financial institution/bank, and from the bank to the Malaysian citizen.

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• Rent-to-Own (RTO) PR1MA (with Maybank)

- Offers the M40 group an opportunity to own a PR1MA home via an affordable home ownership scheme

- Dedicated to helping those interested to own a PR1MA home, but unable to afford the upfront costs

- A 5-year moratorium will be imposed on the property, during which it cannot be sold/transferred without approval from PR1IMA

- Property priced between RM100,000-RM400,000; must be owner-occupied and no subletting is allowed

- Applicants must have an individual/combined (husband & wife) monthly household income of RM2,500-RM15,000

- Applicants must not own more than one property, between them and their spouse.

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• Smart Sewa (Rumah Selangorku)

- A rent-to-own house scheme that covers a minimum rental duration of 2 years and a maximum of 5 years

- A 30% return of the total rental is paid and used as a deposit if the tenant can buy the property within the stipulated five (5) years;
- The average rental rate begins from RM600 to RM650 per month and is subject to the location’s market rate;
- The initiative is for applications keen to rent-to-own Selangor homes ONLY. Applicants must not already own any property in Selangor;

- Applicants’ monthly family income level must not exceed RM5,000 a month for Type A or low-cost housing, OR RM15,000 a month for Type B, C, and D properties, including affordable and low-cost housing (those below RM10,000/ month are prioritised);
- Applicants and their spouses must live and work in Selangor. They must also be registered voters in the state of Selangor.

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Tips for the Buyer
Thinking of buying a home and/or an investment property? Here are some basic tips:

Buying a home - be it a house or condo - can be a daunting experience. For most people, it is the biggest investment anyone will make in their lifetime. As such, you may want to consider these several points when doing your homework, which is the most important task you need to complete before acquiring a property for your personal use.

Before You Start Looking For Your New Home:

• Determine a comfortable monthly budget for your new purchase, including down payment and monthly payment. Use the loan calculator to assist you.

• Find a loan program that meets your needs and get pre-qualified (preferably pre-approved). 

• Choose a real estate agency or negotiator that you trust and who understands your needs.

• Determine what type/which neighborhood that best matches your needs.

• Identify important features you need your new home to have (see below). 

When Looking For A Home - Points to consider:

When buying a home, ask yourself how the property is going to fit your needs. Think hard and understand how you live your life or the kind of lifestyle you prefer. Separate that form the sometimes fiction of what you think you want in a house. Nevertheless, it is also advisable for potential buyers to not get emotionally involved. Many people talk themselves into falling in love with the property before they've really looked at it. What you really should be looking at is the quality as well as location.

Does the property have curb appeal? Look at the outside of the house from the curb because that is going to give you a great clue as to how the rest of the house has been maintained. For example, savvy buyers would look for signs of water damage on the exterior; deterioration or damage of the roof; is the there peeling, bubbling or stain damage on the paint, or does it look worn or thin?; do you see cracks in the exterior brick?; etc. Of course, it doesn't necessarily mean you should pass on the house, but rather a sign that you need a qualified expert to examine the situation before you buy.

From an investment perspective, how easy is this property going to be to resell? Look into features of the property that can affect or effect the resale.

Be nosy - but not intrusive - when you tour the property. Open cabinet doors, inspect the appliances (e.g. oven doors, refrigerator, dishwashers) if they come with the house, walk through the attic and garage (if any), test out the heating and air-conditioning systems, check the condition of built-in furnitures/fixtures, take note of how well the garden in kept, look for signs of quality (e.g. materials used in the home), take note if there are fresh paint, mold and/or rust (they "may all be telling you something"), etc. Hidden spaces like air filter and the ducts can also sometimes gauge how well the property has been taken care of in the past. But if you're touring someone's home, do refrain yourself from touching their personal belongings. Remember, you're still a visitor.

To check the condition of the floor, walk from one corner to another of the room and the length of the hallways and stairways. You should be able to feel the depressions, dips or bubbles if there are any. Also, diagonal cracks above the interior door jams or windows and windows that don't open properly could mean a foundation problem.

Talk to the present owners to find out what sorts of work they have done to the property while it has been in their care. And if you are planning on remodeling it yourself later on, make sure the house is up to the job. Verify any ongoing costs like utilities, maintenance fees, taxes, etc.

If you are buying a condominium, you may want to talk to some residents to find out if the condo board has a good working relationship with the community and check if the association is well funded and maintains a good financial record.

Show some appreciation. Real estate professionals often sing the praises of location, location, location. For the higher priced neighbourhoods in particular, the value to the property is the land it sits on. Is the property located near to shopping centres, a commercial area, parks and schools?

For a new neighbourhood, talk to the developers and/or local municipal office and find out the development plan for the area, e.g: Will there be a highway or road expansions to offer easier access? What kind of facilities will there be in the area six months from now? Do analyse the potential for appreciation based on location, distance from adverse conditions and the likelihood that the neighbourhood improves or stays the same.

Also, don't forget to try out your commute, i.e. from your workplace, shopping centres/commercial areas, your kids' schools, etc. Talk to the neighbors, too. Ask them if there is anything that you need to know about what is happening in the general area.
 

Quick Check-list:

1) Neighbourhood: Evaluate the location according to the atmosphere, the proximity to nearby facilities/amenities

(e.g. shops, eateries, schools, clinics, petrol stations, etc.)

2) Noise: Look for factors that may disturb your sleep, e.g. sound of traffic from nearby highway or train/commuter tracks.
 

3) Smells: Odours from manufacturing, waste processing facilities, oxidation pond, etc.
 

4) Animals: The sound of constantly barking dogs could be very annoying, especially if they belong to your new next-door neighbours. Also, check if the neighbourhood has any pest-control problems in general.
 

5) Crime: Gated and guarded neighbourhoods are the norm these days. However, you may also want to check with the Residents' Association and/or the police if the local area has a problem with home break-ins, burglary or car theft.
 

6) Commute time: What is the cost and how long will it take to get to work by car or public transport? What are the alternative routes or short-cuts available?
 

7) Schools: For families with your children, you would want to find find out how accessible schooling is and the reputation of schools in the local area.
 

8) Hospitals: Make sure that there is a medical facility not too far away.
 

9) Home Garden: Sure, it is nice to have a garden, but it won't look after itself. Do you have a personal gardener or is there one in the neighbourhood that you can hire on regular/occasional basis?
 

10) Property condition: It is essential to determine the necessary work that needs to be done and how much it will cost, particularly if you are prepared to do work on an old property. Be sure to check the structural soundness, which should be evaluated by a property surveyor and/or other qualified experts.
 

11) Interior features: Is there ample living space for the whole family? Is there an additional room for a visiting relative/friend to stay over or might a grandparent move in? Will there be enough rooms for a growing family? Are there enough wardrobes and how much clutter must be accommodated? Do you need a small office area or working space? How important is the balcony and its view to you? For those who do a lot of cooking, is the kitchen big enough? And for those who like to eat in the kitchen, is there space for a table? How many stairs are there and how steep are they? Determine the property layout and consult your feng shui expert if necessary.
 

12) Car Parking: Check if the front porch can accommodate the number of cars your family has, or if there is an additional garage. For those who expect frequent visitors, take note if there is ample space or a proper parking lot nearby your property.


* Also read: 
- What You Need to Know About Homebuyer's Tribunal

- Loanstreet: Best Housing Loans Malaysia 

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