Overview
A population of about 7 million—expected to increase to 10 million by 2020—are spread across the 690,165 acres encompassed by Greater KL: it is occupied by a low-density yet highly connected community. Some of the country’s leading residential and business locations are found here, such as the upscale Mont’Kiara and Dutamas, the evolving township of Bangi, the technologically advanced Cyberjaya and the affluent suburb of Bukit Jelutong
The thriving business and residential ecosystem that already exists in Greater KL is supported by its technologically advanced infrastructure and cost competitiveness. Its multi-national, multi-lingual and well-educated population contributes not only to a vibrant culture to live in, but also provides a diverse workforce of both young and experienced talents to support the business environment. Navigating Greater KL is easy with its integrated road and rail systems: the comprehensive network of expressways, Mass Rail Transit, Light Rail Transit and KL Monorail connect residential neighbourhoods, and retail and business hubs to one another.
The low-density environment adds to the high liveability of Greater KL, along with high living standards: housing options at different price points, for the single occupant or small-to-large families; an abundance of public parks, green spaces, and sports and recreational facilities; and easy access to numerous healthcare facilities, private schools, retail and entertainment hubs.
Do you plan to have children?
Then having schools and parks nearby would be convenient.
Do you have a growing family?
Then you need more space which you can get in less developed areas, but would require longer daily commutes.
Is this an investment asset/rental property?
Then rental yield and ease of finding tenants are important.
A Real Property Gains Tax is imposed if you intend to dispose of the property within five years of acquisition.
Is there growth potential?
The location might not be prime today, but could become so in five to ten years.
Section 1
Set a budget
Your debt service ratio
This is the total of all outstanding loans (personal, minimum credit card payments, car, etc) against your total income. It determines how much you can borrow from the bank if you are qualified. In Q1 2017, Bank Negara Malaysia reported that 42% of approved loans had debt service ratios of less than 40%.
Your monthly commitment
As a rule of thumb, allocate no more than a third of your take home pay for your home loan repayment.
Additional costs and fees
On top of the down payment (usually 10% with a 90% margin of finance), you will have to allocate about another 10% for legal fees, stamp duty, etc.
Subsequently, there could be on-going costs, such as maintenance fees and a sinking fund.
Section 3
Compare prices & specifications
Check out the transacted prices of similar properties in the vicinity (for new developments) or within the same property (for sub-sale). For sub-sale properties, this will help you to negotiate a fair price that is close to its valuation price; in the next step of applying for a loan, the bank will use the valuation conducted by a licensed valuer to determine the loan amount.
Section 4
Make an offer
For new developments, you will have to pay a booking fee to the agent. Make sure that your deposit/booking fee is refundable if you are unable to obtain a home loan or the valuation is much lower than the purchase price.
Property Calculator
Sale & Purchase Agreement Costs
RM
Loan Documentation Costs
RM
Loan Documentation Legal Fees
Loan Documentation Stamp Duty
* The calculation presented here is only an estimation of the fees required for your purchase. Actual charges might vary across different states, status of the property, availability of documentations and others. Please refer to your legal firm for an accurate quotation.
Section 5
Apply for a loan
Look around for a bank that can offer you the best interest rates and terms. Factors to consider:
- Traditional (fixed amount) vs flexible (reduce interest by saving money in the linked current account);
- Interest rates;
- Margin of financing: the maximum is usually 90%; the remainding 10% comes out of pocket;
- Lock-in period: the period during which a penalty will be charged (usually 2% or 3%) if you pay off the loan before the end of the tenure.
Get approval for your loan before the next step.
UEM Sunrise offers EASY Financing by assisting buyers in narrowing the gap between the loan amount obtained from the end-financier and the home purchase price.
- With a deposit as low as RM5,000, buyers may start the process of obtaining a dream home built by UEM Sunrise;
- Buyers only need to obtain a loan of at least 60% from an end-financier;
- UEM Sunrise offers financial loans of up to 30% to make up the balance of the purchase amount.
Section 6
Sign the documents
Have your lawyer prepare the loan agreement, Sales & Purchase Agreement and prepare the remainder of the 10% downpayment. Your lawyer should look out for your interests, but understand all the Terms and Conditions before signing.
Section 7
Wait for delivery of vacant possession
Vacant possession means that the property is in a state fit for occupancy.
For new residential developments, developers have to deliver the vacant possession within 24 months for landed properties and 36 months for high-rise stratified buildings.
For sub-sale, it has to be done between 3 to 5 days after payment for the property has been made in full.
Section 8
Get the keys to your new home!
After the bank disburses the remainder of the loan, pay the legal fees and stamp duty.
Your lawyer will arrange for the handover of the keys. Inspect the property to ensure that it is in the agreed condition, and that all maintenance and utilities fees up until the handover date have been cleared.
All that is left is for you to enjoy your new home!
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