theSun Property June 2017

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CONTINUING from last
week’s article on the
sub-sale market in which
we defined the term and
disclosed the local scene and
statistics, this week we highlight
dos and don’ts in purchasing a sub-
sale residential property in
Malaysia.
POINTS TO CONSIDER
According to personal finance
guide KC Lau, there are a few
important matters one needs to
consider when intending to
purchase a sub-sale or
“secondhand” residential
property. Other than the location,
which is numero uno, one needs
to deliberate on these other
important issues:
Property type i.e. landed
property or high-rise/serviced
The size
Number of bedrooms
Facilities
The age and “lifespan” of the
property
The tenure
Purpose of purchase i.e.
investment to rent or re-sell, or
stay
Amenities and conveniences
Safety features
Market value
Selling price
Once all the above are
contemplated and decided on, the
next thing to do is check the sub-
sale listings, one of which
we recommend being
under the REA
Group, recently
tying up with
India’s Elara
Technologies.
The online
property site gives
access to 4.5 million
property listings across
72 countries via various
portals.
In the meantime, while
hunting for that perfect
place to call home or
to invest in, it is best
to check with the
banks if you plan on
taking up a loan. Do
research to find the best
home loans.
Websites like
makes life easier by
providing a “loan
X
X
X
X
X
X
X
X
X
X
X
calculator”. You could also check
with individual banks on loan
packages and offers, and get the
bank to do a valuation and
assessment on the property you
intend to buy. It is advised that
you get three “independent” banks
to do the valuation.
PLANAND BUDGET
Next step is to plan your budget,
irrespective of buying cash or
taking a bank loan. This is due to
the various fees and charges
incurredwhen buying sub-sale
property.
According to Lau, the
proportion or percentage of down
payment is crucial. This will give
the buyer a sense of howmuch
cash he needs to put upfront.
Other payments that need to be
considered include:
> Residential buy checklists, tips and advice
Sub-sale propertymarket PART2
List of documents required for standard bank loan application
Copy of IC
3 months’ payslips (fixed salary)
3 months’ bank statement showing crediting of salary
Previous year’s income tax returnwith payment receipt
Latest EPF statement
Liquidity backup i.e. fixed deposit, saving/current account
Other source of income such as rental income substantiated by
stamped tenancy agreement and bank statement
Booking form
Application form
X
X
X
X
X
X
X
X
X
List of disbursements and legal fees involved
Legal Fees
Sale and Purchase Agreement
Entry&withdrawal of private caveat
Submission of Borang CKHT 2A
6%government tax.
Disbursements
Stamp duty on the Sale and Purchase Agreement
Stamp duty on the transfer
Title search
Registration fee on the transfer
Registration fee on the entry andwithdrawal of private caveat
Bankruptcy/winding up search
Affirmation fee on surat akuan
Transport charges
Telephone charges
X
X
X
X
X
X
X
X
X
X
X
X
X
Email your feedback and
queries to: propertyqs@
X
Legal fees
Property stamp duty charges
Loan agreement stamp duty
Disbursement fees which cover
registration of charge, land
search and bankruptcy search
Loan processing fee
An earnest deposit is usually
requiredwhen one has already
decided to buy a particular sub-
sale property. The amount is
usually 1% to 2%of the agreed
property price. Once this sum is
paid, a deal ismade and buyer and
seller are bound.
As the purchaser, youwill need
to appoint a lawyer to act on your
behalf.
In themeantime, your bank
loan/mortgage planwill need to
be settled. This covers loan type,
amount, description of property,
duration of loan, fees,
monthly service
charge, interest and
repayment,
instalments, security
and insurance
documents, excess
interest rates,
Mortgage Reducing
TermAssurance
(MRTA) or Group
Mortgage Term
Assurance
(GMTA) if any,
and other conditions.
HOUSE
CONTENTS
AND
CONDITION
Amajor area
many overlook
when buying sub-
sale property is
the recce, also
known as the “fact
finding visit”
X
X
X
X
X
according to
Lau. One
needs to draw
up an
inventory list,
stating items
the seller will
leave within
the property
and those he/
she will
remove. Best
state the
condition the
said “items”
are in.
The
signing of the
“Sales and Purchase Agreement”,
otherwise known as the SPA, is
next, along with settlement of any
outstanding payments, and the
solicitor’s bill. As the buyer, it is
good to ensure that the condition
of the premises and its contents
are correctly described in the
SPA.
A valuation report will be
conducted by the bank of which
youwill need to bear the report
charges. A home loan account will
be set up along with the bank loan
agreement.
If buying a high-rise sub-sale
unit i.e. condominiumunit, there
should be amaster insurance
policymaintained by the company
in charge of managing the
building, of which the charges are
usually incurred in your monthly
condominiummaintenance fee.
Partial and full disbursements
will need to be settled by this time.
This is when the seller will need
to settle all outstanding loans/
amounts with his/her bank on the
property and you, the buyer, will
need tomake all necessary
payments between your bank and
the seller’s bank.
This is also a crucial period
when the seller will need to
deliver “vacant possession” of the
sold premises within a specified
timeframe according to the SPA.
For a detailed step-by-step
guide, samples of forms and
checklists, visit the KCLau.com
website. For a comprehensive
listing of sub-sale properties, visit
Followour property section next
week for additional information
on the sub-salemarket.
[Lists , information and charts
retrieved fromKC Lau and
iProperty.com]
PURCHASED PROPERTY BELOW 1,000 SQ FT – TOP STATES
Kuala Lumpur
40%
Selangor
50%
Johor
50%
50%
Penang
WHAT BUYERS PAID FOR A
RESIDENTIAL PROPERTY IN MALAYSIA
48%
34%
11%
7%
Below250k 250-500k 500-850k Above850k
BELOW RM500K MARKET SHARE
IN TOP STATES
Kuala
Lumpur
50%
80%
80%
80%
Selangor
Johor
Penang
DOES SIZE MATTER?
50%
Bought a property below
1,000 sq ft
SIZE MARKET SHARE – MALAYSIA
24%
28%
14%
10%
13% 11%
501-750 sq ft751-1,000 sq ft1,001-1,250 sq ft1,250-1,500 sq ft1,501-2,000 sq ftAbove 2,000 sq ft
20
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