Tuesday, December 1, 2009

How Much Should I Pay When I Buy A Property?

Let’s say I am buying an apartment on purchase price RM 150,000 and get a 90% financing. Below is the calculation for stamp duty, legal fee, MOT (Memorandum Of Transfer). The total amount I should prepare is $4,575 + $3,092.50 + $15,000 (10% of deposit) = $ 22,667.50.

Property Price           : RM 150,000.00
Margin Of Finance    : 90%
Loan Amount             : RM 135,000.00




Sales and Purchase Agreement
Purchase Price
Tier Rate
Payable
First 150k
150,000.00
1.0%
1,500.00
Next 850k
0
0.7%
0
Next 2M
0
0.6%
0
Next 2M
0
0.5%
0
Next 2.5M
0
0.4%
0
Exceed 7.5M
0
0.3%
0


Legal Fee
1,500.00


Service Tax (5%)
75.00.00


Disbursement
1,000.00
Memorandum Of Transfer
Purchase Price
Tier Rate
Payable
First 100k
100,000.00
1.0%
1,000.00
Next 400k
50,000.00
2.0%
1,000.00
Exceed 500k
0
3.0%
0


Stamp Duty
2,000.00


Total
4,575.00




Loan Facility Agreement
Loan Amount
Tier Rate
Payable
First 150k
135,000.00
1.0%
1,350.00
Next 850k
0
0.7%
0
Next 2M
0
0.6%
0
Next 2M
0
0.5%
0
Next 2.5M
0
0.4%
0
Exceed 7.5M
0
0.3%
0


Legal Fee
1,350.00


Service Tax (5%)
67.50.00


Disbursement
1,000.00
Execution Loan Doc
Loan Amount
Tier Rate
Payable
Total Loan Facility
135,000.00
0.5%
675.00


Stamp Duty
675.00


Total
3,092.50










































Other fees included MRTA, Fire Insurance, Caveat, furnishing expenses and miscellaneous expenses.

It is needed a huge capital ($ 22,000++) to buy a $150,000 property, what if buying a $400,000 property? or $ 800,000 shop lot ?
Hence, we should have a well planning on our cash flow before we decided to buy a property for investment purpose.







No comments:

Post a Comment