WHEN buying property, especially for the first time, it is always best to do proper research before signing any agreements.
A local real estate agent recently warned first-time property buyers not to overlook the often unmentioned additional costs, which can significantly increase the total amount needed beyond the standard deposit.
“A friend came across a house priced at RM500,000. He quickly did the maths in his head:
‘Okay, 10% deposit – just RM50,000. Settle!’ He smiled broadly, thinking he had saved enough.
“But when he met the agent, lawyer, and banker – he was shocked. The money in his account wasn’t nearly enough.
“The actual cost of buying a house isn’t just RM50,000 — it can go over RM80,000!”
said Azlan Nizam in a Facebook post.
Azlan went on to explain how first-time buyers can easily find themselves in a difficult situation if they fail to budget properly, highlighting the key costs that are often overlooked.
In the context of a RM500,000 property, here’s what buyers need to take into account:
▷ Deposit: RM50,000
▷ Legal Fees: around RM11,000
▷ Valuation Fees: around RM1,500
▷ Stamp Duty for Memorandum of Transfer (MOT): RM9,000
▷ Stamp Duty for Loan Agreement: RM2,250
▷ MRTA (Mortgage Reducing Term Assurance): around RM8,000
Altogether, the total comes up to around RM82,000, which Azlan claims can amount to 12% to 15% of the property price.
“In conclusion, when budgeting for a property purchase, don’t just look at the deposit. Prepare extra funds because these other costs can add up to half of the deposit,” he added.
