Did you know that buying a sub sale property costs more than just paying the down payment, mortgage and lawyers fees?

Before you venture into buying a sub sale property do ensure you have sufficient cash before you proceed.

Here’s a quick checklist:-

• 10% of the purchase value (provided that you can get a 90% loan)
• Lawyers fees and stamp duty for SNP and Memorandum of transfer
• Lawyers fees and stamp duty for the loan document (For the ones that cannot afford to buy property in cash)
• Mortgage Insurance – MRTA /MLTA ( You can request for the to be included into your loan)
• Valuation Fees
• Renovation and furnishing cost ( Sort of optional however normally there would be some costs involved regardless, even moving and throwing furniture has costs to it)

Also there are other variables in owning a home such as:-

• Utilities name transfer or set up costs
• Property assessment tax
• Quit Rent
• Maintenance Fees
• Home Insurance

An Example for a RM700,000 Home ( This is only an estimate from my own experience, the price will vary)

• Downpayment : RM70,000
• Loan & SNP ,Legal Fees, Stamp Duty : RM34,000 ( Estimated Only, depending on quotations you receive from your lawyer)
• Mortgage Insurance :  Assume its included in loan ( Price varies depending on years insured and type)
• Valuation : RM1,750 (estimated)
• Furnishing : RM35,000 (Assume that 5% of home value)

It is safe to conclude that to buy a sub-sale property of RM700,000, do ensure that you have about RM140,000 in cash before embarking on this journey. Sub-sale properties may seem like a better buy at times compared to new developments under construction however , you will need to fork up a huge initial sum.