People who Bought Subsale Propety

[iyimipiru]

Idk if this is the right sub for this but it could be usefull for someone who is considering Subsale Property.

Can I get a rough estimate as to how much upfront payment you guys provided just to purchase the unit?

I went online to figure out the calculations but I'm not exactly sure if I have the numbers correct. My biggest fear is agreeing to purchase a property but ending up I don't have enough initial capital.

Example:
To purchase a 500k value property

1. Down-payment (10%): 50k
2. SPA and Legal Fee
   1% for first 150k, 0.7 for remaining 1mil: 3950
3. Stamp Duty
   1% for first 100k, 2% for subsequent 500k: 9k
4. Professional Legal Fee
   1k to 1.5k (for the sake of this example I'll assume it's 1.5k)
5. Loan Agreement Legal Fee
   0.5% of total loal amount: 2250
6. Valuation Fee
   0.3% of property value: 1.5k
7. Bank Processing Fee
   50 to 200 (for the sake of this example I'll assume it's 200)

Total Upfront Cash Needed: 68.4k

Am I getting the numbers correct or did I miss out on any further payments? Hoping someone can shed some light on this. Thanks!

 

[apa]

@iyimipiru Roughly 13%.

So your calculation is bang on.

 

[dirtysouthboy]

@iyimipiru Downpayment may be 10%, but there may be a valuation vs sale price difference that you may need to cover.

Example, sale price 500k, valuation 450k, loan is 90% of valuation = 405k. Remaining payable is 95k, downpayment 50k, so there's a difference of 45k that you need to pay after depending on the schedule/clauses.

 

[shannonhartwell24]

@iyimipiru Prepare 15% and you’ll be fine

 

[jonnyalliance]

@iyimipiru Basically you have it right. I purchased just 3 years ago, these is what you have to consider:

1. Downpayment
2. SPA Legal Fees
3. Loan Legal Fees
4. SPA Stamp Duty
5. Loan Stamp Duty
6. Valuation Fee
7. Misc Deposits you will have to pay - e.g. TNB, Air Selangor etc

 

[iyimipiru]

@jonnyalliance Thank you!

 

[revtyl]

@iyimipiru Also good luck finding a good lawyer if u prepare that much for fees.

Ur calculation is based on old rate, plus it's like 70-80% discount given. Definitely got lawyer desperate enough to take it up but u get what u pay for.

 

[iyimipiru]

@revtyl This is going to sound dumb but what would be the difference between having a good lawyer and a bad one? I assume there are some things they must comply to?

 

[revtyl]

@iyimipiru Service, speed

 

[stringplayer]

@iyimipiru IIRC if it is your first property, the stamp duty is waived (but check again as things may have changed since)

Also, what’s your plans for the property- own stay or rental investment?

You also need to take into consideration if there’s any reno required, cost of furniture and fittings, etc.

 

[iyimipiru]

@stringplayer Yes for first property and most likely it's for own stay

 

[katherines12]

@iyimipiru The best thing to also do is just get a quotation from a lawyer on all those fees. It’s free. Just see a property, get the address and hit up a lawyer / law firm. But yes your budget seems alright. To be honest by the time you factor in basic repairs and renovations and basic furniture you know you are 100k in the hole, cash. At least

 

[wolfy]

@katherines12 If OP is feeling brave he can do a markup loan to cover some costs. Though take in mind the process can be a little complicated and costs extra once you get your ‘cash back’ you can go hentam at r/wsb and now being a millionaire is not a dream /s

 

[misunderstood4]

@iyimipiru Just a general advices. Avoid buy high rise property that price more than RM350k especially if u treat it as invested property.

And if own stay, better take new unit. Unless u really preferred the location and good management office (u rent there)

 

[resjudicata]

@misunderstood4 Couldn’t agree more. Nowadays most of the high rise is downtrend.

 

[stringplayer]

@misunderstood4 I’m just curious where you think there is high rise property that’s less than 350k, especially if it’s in a decent location and condition?

 

[theprinceofthisworld]

@stringplayer Razak City lol