Hidden Costs You Should Know Before Buying a Property in Malaysia

When buying a property in Malaysia, most buyers focus on the purchase price — but that’s only part of the story. Many first-time buyers are surprised to learn that owning a home involves several hidden costs that can add up to tens of thousands of ringgit.

At Miros Property, we believe in full transparency. Understanding these extra costs upfront helps you budget better and make confident investment decisions.

1. Legal Fees

Every property transaction requires a Sale & Purchase Agreement (SPA) prepared by a lawyer. The legal fee is usually calculated based on the property’s price and regulated under Malaysia’s Solicitors’ Remuneration Order.

Approximate legal fees:

• 1% for the first RM500,000
• 0.8% for the next RM500,000
• 0.7% for the next RM2 million

Tip: Always appoint a licensed lawyer who specializes in property transactions to ensure your interests are protected.

2. Stamp Duty

Stamp duty is a government tax imposed on property transfers.

For property purchases:

• 1% on the first RM100,000
• 2% on the next RM400,000
• 3% on the next RM500,000
• 4% for amounts above RM1 million

For loan agreements: 0.5% of the total loan amount.

This can be a significant expense, so plan accordingly.

3. Loan Agreement & Valuation Fees

When taking a housing loan, you’ll also need to pay for the loan agreement legal fee and valuation fee.

• Loan legal fee: Similar to SPA legal fees, based on loan amount
• Valuation fee: Typically between RM500 – RM2,000 depending on property type and value

These are often overlooked but essential to complete your mortgage process.

4. Memorandum of Transfer (MOT) Fee

The MOT is the official document that transfers ownership of the property to your name. The stamp duty on MOT is separate from SPA costs and is based on the property value.

Some developers include MOT costs in their packages, while others don’t — so always check before signing the agreement.

5. Maintenance Fees & Sinking Fund

If you’re buying a condominium, serviced apartment, or gated community, you’ll have to pay monthly maintenance fees for facilities and common areas.

Average rates: RM0.25 to RM0.60 per sq ft, depending on the property’s facilities and location.

Additionally, developers collect a sinking fund (usually 10% of annual maintenance fees) for long-term repairs and upgrades.

6. Property Agent Fees

If you’re purchasing through a property agent, commission fees may apply. In Malaysia, the maximum agent commission is regulated at 3% of the property price.

At Miros Property, we’re transparent with all costs upfront — no hidden commissions, just clear professional service.

7. Utility Deposits & Renovation Costs

Upon receiving your keys, you’ll need to place deposits for electricity, water, and gas services, typically ranging from RM500 – RM2,000.

Renovation and furnishing can also add significantly to your initial budget — plan these expenses early to avoid financial stress.

Summary: Estimated Extra Costs

Expense Type	Estimated Range
Legal & Loan Fees	2% – 3% of property price
Stamp Duty	1% – 4%
Valuation Fee	RM500 – RM2,000
Maintenance & Sinking Fund	RM200 – RM800/month
Utility Deposits	RM500 – RM2,000
Agent Commission	Up to 3% (if applicable)

Miros Property Tip:

Before signing anything, always request a complete cost breakdown. A trusted agent or consultant will help you avoid surprises and stay within your budget.

Frequently Asked Questions (FAQ)