Step-by-Step Guide to Renting a Residential Property in Malaysia

You’ve decided to rent a new place to call home for the next couple of years. Maybe buying a house isn’t financially possible for you yet, and that’s okay, as financial planning will help you get there. But for now, leasing a home is a great option.
The process is simple and fast, and no loan approval needed. However, that doesn’t mean you might know how to go about the whole situation. Ohmyhome has got you covered with this simple and easy to follow step-by-step guide.
How to Rent Residential Property
Step 1: Research the location
By looking up different residential property listings in the areas you’re interested in, you’ll have a rough idea of the price range for houses and apartments.. You’ll be able to compare your budget to these listing prices. This will help determine what type of home will best fit your needs. Also, consider features such as number rooms and baths, etc.
You can gather this information several ways. The first is simply through your computer or phone screen. Visit Ohmyhome, which features a simple approach to helping you find a home through a database of ready-for-rent properties. Another way to scout out homes for rent in an area you’re interested in is by driving around the neighborhood to look out for signs and banners with the words “For Rent” on them. Or, you can employ a realtor for a fast and easy solution once you’ve narrowed down the area and your property must-haves.
Step 2: Go on a viewing
Keep these in mind when you visit properties in your rental shortlist.
1. Be on time for the viewing
Arrange a date and time for a viewing. Make sure you’re on time, as it will demonstrate to your future landlord that you are a responsible tenant. This will help you stand out from other potential renters.
2. Ask questions and express concerns
You should clarify any and all concerns you have during the viewing of the property regarding the responsibilities that will fall on you as a tenant, and on them as a landlord. Ask about the previous tenants, was it a family? A young couple maybe or a bachelor? This will give you a better picture of the condition of the house you might rent.
In case you can’t go to the viewing in person, ask about the
virtual property tours
 on Ohmyhome.
Step 3: Pay the deposit and sign the papers
1. Make the deposit
Once you’ve made it clear to the landlord that you’re interested in renting their property, it’s time to take things a step further by making a deposit. You’ll be expected to put a deposit of a total of two to three months of rental payment. A deposit will secure your place as a tenant, as the tenancy agreement is drawn up.
2. Sign the tenancy agreement
The tenancy agreement is a legally binding contract between the landlord and yourself. It explains your different and shared responsibilities, including the monthly rental amount, method of payment, and property maintenance. It is important that you have a signed copy of it, as you’ll often refer to it during the leasing period. Once signed, you can start packing up and moving in on the agreed-upon date stated in the agreement.
Renting property need not be complicated. It’s an easy three-step process that allows you access to housing at different price points for different types of properties.
With Ohmyhome’s mobile app, you’ll have your choice of properties for rent, all according to your needs and preferences, just download Ohmyhome from
Play Store
 or
App Store
 now!


Step-by-Step Guide to Selling Your Residential Property in Malaysia

Editor’s Note: This post was originally published in April 2020 and has been completely revamped and updated for accuracy and comprehensiveness.
Are you ready to sell your home and move on to your next chapter? The recent changes in stamp duty exemptions by the Malaysian government make it an excellent time to sell now.
There is a 75% exemption for homes priced between RM500,000 to RM1 million until December 31, 2023, which means potential buyers can save a significant amount of money.
For example, a 75% exemption on an RM750,000 property purchase will save a buyer up to RM15,000. This will pique the interest of middle-to-upper income first-time home buyers as well as those who are looking to upgrade their property.
On top of that, the memorandum of transfer for houses priced RM500,000 and below is 100% exempt from stamp duty until the end of 2025, offering even more savings for buyers.
With your buyer pool pretty much guaranteed, you can start the process of selling your property with no stress. Here’s a step-by-step guide for you to sell your home:
Step 1: Decide if you will engage an agent or go DIY
As a seller, you can choose to either do everything yourself using property websites or with the help of a professional agent.
While selling your home on your own means you can save from paying the usual 2-3% agent’s commission fee, but it also means taking on all of the responsibility of a property agent:
Marketing the listing,
Negotiating the price with buyers,
Finding qualified buyers to negotiate the price with,
And all of the legal paperwork in between for you to cash out, transfer ownership, and move into your new home.
While you can do it yourself to save money, there are many advantages to engaging a property agent, such as: They’ll be able to dedicate a lot more time to the process, which can be quite complex, including plenty of financial and legal paperwork that has to be done correctly.
Furthermore, agents have a wealth of information about the property market and are experts at working with buyers. They can persuade buyers to make an offer and negotiate the price to ensure that you get the most money possible for your property. Furthermore, they can leverage their network of past and current clients and collaborate with other agents to expedite the sale of your home.
Step 2: Research the asking price
This next step is important, especially to those of you that are confident in your decision to not hire a realtor.
Before putting your home up for sale on a property platform like
Ohmyhome
, you should first get an accurate valuation of your home. It’s important that you have an estimate of the current market price for your home so that you won’t ask for too much money and scare off potential buyers, or ask for too little and not make a profit.
With a little bit of research, you can get a better idea on how to price your home:
1. Ask your agent to generate a home valuation
One way to get a home valuation, which is typically based on a number of factors like property type, location, average prices and more, is by getting a professional appraiser to conduct an inspection of your home. This ensures you’re not overpricing and scaring away potential buyers, or greatly losing out on profits by underpricing.
The great thing about our Ohmyhome Super Agents is that they are able to generate a home valuation for you, and you won’t even have to ask them for it. This is part of their process in serving home sellers like yourself.
With Ohmyhome, you will be getting a comparative market analysis on top of your home valuation. That means you will be able to see past transaction data of houses in your area (i.e. how much they have been sold for), and a market survey including the asking prices of property listings similar to yours and whether the property is furnished or renovated.
2. Look up online listings in your area
If you’d rather DIY, you need to conduct a market research on your own. You can visit property portals such as Ohmyhome, where you can filter your search by property type, such as bungalows, semi-detached homes, or terrace link houses, to find similar property listings and how much they are selling for. are currently being sold for.
3
. Try contacting realtor agencies
Call up a few local realtor agencies and ask about the price of properties similar to yours in your neighbourhood. They may be willing to share some insights and give you a better understanding of the local real estate market, though probably not without getting you to sign an exclusive agreement with them first. So may the odds be ever in your favour on this one, because it’s really a toss-up.
4. Drive around your area and look for other for-sale properties
The third method is an oldie but a goodie. Take a drive around your neighbourhood and look for “For Sale” signs and banners. Call the phone numbers on the signs and ask about the asking price and other relevant details. This method can also give you a better understanding of the current supply of houses on sale in the area.
5. Consider the renovations you’ve done for your home
If you have made any unique renovations or improvements to your property, be sure to take them into account when determining the asking price. These can add value to your home and set it apart from others in the area.
Step 3: Spruce up your property
As a homeowner, you may have become accustomed to certain areas of your home and may overlook areas that need improvement. Try to look at your home with fresh eyes, as a potential buyer would.
Framing your home in the best possible light is crucial when it comes to selling your property. One effective way to do this is by choosing colours, furniture, and decor that complement each other and create an overall aesthetic that appeals to potential buyers.
In addition to framing, there are several general rules to follow when preparing a house for sale. Giving both the exterior and interior a fresh coat of paint, and performing a deep cleaning are great places to start. It’s also important to take care of any plumbing issues, leaking roofs, broken fixtures, and other repairs. Neglecting these issues can make it harder to land a buyer and could even decrease the perceived value of your home.
By taking the time to properly prepare your home for sale, you can increase its perceived value and attract more potential buyers.
Step 4: Conduct a home viewing or a video tour
Once again, if you have hired a property agent, they would handle this step by taking potential buyers around the property and answering questions that they might have. Realtors would discuss at length with the buyers regarding an offer to purchase agreement and relay it all back to you once an offer is put in.
If you are conducting the viewing, make sure to take precautions by having someone you know and trust there with you. If you’re still living in the house during the viewing, tidy the place up and take down personal things such as photos. Make it feel as homey as possible, but remove any clutter. After all, you’re trying to sell them a house so that they can turn it into their home.
If you cannot conduct physical home viewings, ask about doing a video property tour and put it up with your listing. At Ohmyhome, our property agents. You can upload the video on the Ohmyhome platform.
Step 5: Hire a lawyer
Several legal documents have to be written up and signed for the house to be sold and passed on from you to the new owners. The lawyer is there to write up all the legal documents required to have the house sold, such as the sale and purchase agreement (SPA) and the memorandum of transfer.
The Sales and Purchase Agreement (SPA) is one of the most important documents of the entire process. It is often too late when people realise their SPA’s crucial importance until something goes wrong.
This is also why
hiring the right property agent
 is essential. You’ll be able to tap into their vast experience and network of contacts to ensure you’re doing things the right way. They know every trick in the book and can connect you with the right representatives.
Step 6: Getting paid and deducting expenses
After accepting an offer, your buyer should give a deposit worth 10% of the selling price. All you have to do is wait for the buyer’s bank to release the money to your lawyer and then to you. The bank often releases the money in two stages: the first is often to cover your mortgage loan on the property with your loan bank, then the second is to you through your lawyer.
Once you’ve received the payment in full and you’ve handed over the keys, it’s time to pay your dues to the government. As of 2019, there were amendments made on the Real Property Gains Tax (RPGT) rates, which were announced during Budget 2019. If this is the first home that you’re selling, you will be given a one-time exemption from RPGT.
If you follow these steps, you can cover the essentials and complete the property transaction hassle-free.
Let us help you sell your home at the best price
Having an experienced Super Agent from Ohmyhome by your side gives you invaluable peace of mind as you know you have someone who is looking out for your best interests. You will be matched with an experienced agent specialising in your area – which means they will have extensive knowledge of the real estate market and the neighbourhood where your home is located.
They can help you understand market trends and conditions, identify potential buyers, and negotiate the best possible price for your home, while also handling the paperwork and legalities involved in selling a home, making the process less overwhelming and more streamlined.
Secure an appointment with any of our Super Agents today
 by dropping us a message on
WhatsApp
 or via our Live Chat at the bottom, right-hand corner of the screen. You can also
give us a call
 on our hotline at
016-299 1366
.


Stonor 3 KLCC: Opulence in the Heart of Kuala Lumpur

Written By:
 Henny Maherah
Stonor 3 KLCC, the newest property launch by Tan & Tan exudes luxury living right at the heart of the Kuala Lumpur City Centre. This freehold serviced residence is perfect for those seeking an urban lifestyle.
Central Location in Kuala Lumpur
With a natural city skyline backdrop, this high-rise condominium keeps you close to the constant excitement of city life. A 10-minute walk brings you to the emblematic core of Kuala Lumpur, the KLCC Park and Petronas Twin Tower. With future developments within the area, including multiple MRT stations slated for completion in the coming years, Stonor 3 KLCC will be a worthwhile investment.
Move-In Ready Finishings
Like all Tan & Tan property developments, Stonor 3 has the latest homeware technology and luxury finishings. The doors in each unit is fully equipped with robust Japanese locksets that provide the best security while adding a touch of elegance to your home.
Interior materials are chosen for their durability and strength to ensure you get the best quality finishings. Golden-brown teak flooring runs through the entire house, making sure your feet stay cosy and warm. With these added features you would be guaranteed a worry-free move-in transition.
Amenities for Resort-Style Living
Stonor 3 KLCC boasts of recreational facilities for the entire family. Enjoy stunning views of the Kuala Lumpur skyline while you swim in the 40m infinity-edge pool on the 7th floor. Suspended over the glistening water of the pool is a 200 sqm floating gym.
Patio garden spaces, function rooms, BBQ facilities, and a children’s pool make great venues for social gatherings.
The 40th floor welcomes you to a rooftop garden that gives you a bird’s eye view of the exciting city. With yoga spaces and private reading nooks, tranquility and peace await you.
With its prime location, luxury finishings, and exclusive amenities, Stonor 3 KLCC is your perfect hideaway right at the centre of Kuala Lumpur.
Interested to call Stoner 3 KLCC your home? Talk to our
in-house agents
 to find out more!
Call us at +60 16-299 1366 today!


Temporary Pause in Malaysia My Second Home (MM2H) Programme

Written By:
 Henny Maherah
The
 Malaysia My Second Home (MM2H) Programme
 will freeze till December this year.
Foreigners Affected by Halt of MM2H Programme
Immigration laws continue to tighten in view of COVID-19. A staggering 90% of new MM2H applications have been rejected. This amounts to over 1,000 rejected applications, a sharp increase over the usual 10% rejection rate last year.
One of the factors that might have contributed to the sudden MM2H programme halt is the ongoing disagreement between the Tourism and Immigration Ministry in Malaysia. While health concerns may arise from letting foreigners enter the state, the MM2H initiative has also been an integral pillar of the local economy. This has left officials ambivalent in the decision making process, as both the health and economy of Malaysia took a hit as a result of the coronavirus.
MM2H Programme Remains Crucial to the Malaysia Economy
Since the introduction of the MM2H programme in 2002,
 RM40.6 billion has been pumped into the Malaysian economy
, mostly through property purchases and compulsory fixed deposits in local banks.
Despite such uncertainties, foreigners looking to relocate to Malaysia need not worry in the long run as it is highly probable that the suspension of the MM2H programme is only temporary. Tourism, Arts, and Culture Minister Nancy Shukri reports that while the programme is currently under review, it is unlikely for it to be entirely cancelled given the significant economic benefits to the country.
Property plans in Malaysia affected by the MM2H Programme cease? Talk to our trusted
 in-house agents
 for professional advice about how we can help you achieve your property goals.
Call us at +60 16-299 1366!


The Alcove: The Perfect Sanctuary for You

Written By:
 Henny Maherah
Located in Subang Jaya’s most exclusive neighbourhood, The Alcove features resort-style living right from the comfort of your home. Offering a collection of 72 private residences spread over just two 6-storey blocks, rest assured you and your family will have much-needed privacy. With options of 3 to 4-bedroom units ranging from 1,259 sq ft to 2,174 sq ft, every family will be spoiled for choice at The Alcove.
Low-rise units for high-quality living
The Alcove specialises in luxurious low-rise condominiums with each unit designed with open spaces to provide you the freedom in creating your own personalised home. Units comes with either a two or three-vehicle carpark, perfect for large families. Located within the The Glades, Subang Jaya’s most coveted residential enclave, the close-knit community would offer you the most inviting welcome to The Alcove.
Luxury amenities a stone throw away
With exclusive access to The Glades’ resort-style clubhouse, leisure time will never be the same again. Providing you with an Olympic-sized pool, jacuzzi, and sauna, The Alcove hands you unlimited relaxation and peace just moments away from your home. A fully-equipped gym and tennis court are also available for stress-relieving workouts.
For nature lovers out there, the yoga deck at The Glades gives you a panoramic view of beautiful lakes and lush greenery. With its own parks, shaded pathways, and jogging paths within the compound, you can enjoy a plethora of recreational activities at The Alcove.
Worry-free sustainable living
Developments within The Glades are mostly equipped with sustainable features for an environmentally-conscious lifestyle. The Alcove is no exception in providing modern and sustainable living. All units are equipped with an automated waste management system, rainwater harvesting system, liquefied petroleum gas system, and centralised water filtration system to make every day tasks easy and less damaging to the environment.
To ensure you can always go to sleep with utmost tranquility, The Alcove compound is housed within an electrified perimeter fenced with only one secure entry and exit. With 24-hour security personnel along with CCTV surveillance, the safety and security of residents will not be compromised. You can be sure to never miss a wink of sleep.
Strategic location within the heart of Subang Jaya
Looking for a quality shopping experience? The Alcove is in close proximity to city centres such as One City and The Main Place that offers you a one-stop destination for all things retail therapy and leisure.
World-renowned schools are also situated near The Alcove. Schools such as the Kingsley International School, Monash University and Sunway University are all readily in close proximity to provide the best education experience for your child.
Key transport infrastructure is also located near The Alcove. With the nearby Putra Heights Interchange and USJ Interchange, exciting locations like the Subang Skypark or Shah Alam are only a 15-minute drive away! For a simpler commute, the Putra Heights and Subang Alam LRT stations are also nearby.
With luxury amenities, convenient location and unrestricted spacious layouts, The Alcove would be the perfect home for families seeking a peaceful haven.
Interested to make this serene haven your own? Get in touch with our
in-house agents
 to find out more!
Call us at +60 16-299 1366 now!


The Truth About Below Market Value (BMV) Properties in Malaysia

BMV (below-market-value) properties can seem like an opportunity that’s too good to pass on. A property with a price point that’s significantly below its market price? Sign me up!
But it turns out there’s a deeper truth behind this very tempting proposition.
We’ve compiled a list of the most common ways these BMV deals often go wrong – and how you can find better BMV deals that are actually profitable.
1. Hidden repair needs that cost a bomb
One of the attractive factors of buying a BMV property is the potential to save money on a home purchase.
Sellers and agents know this all too well. It’s why you see the term BMV liberally thrown about in so many listings. In fact, for many of them – it’s a sales trick used to pull in innocent, unassuming buyers looking for a good deal.
BMV properties may have a lot of issues and damages that will cost you in the long run.
They may be hiding a laundry list of expensive repair needs and require renovations that come with a huge price tag – such as structural problems, water damage, or issues with the foundation.
This is why having the right agent in your corner is key.
When you engage one of
our Super Agents at Ohmyhome
, you’re also getting someone experienced, honest, and who’s seen all of these tricks by sellers and other agents. With their trusted expertise, you can safely be guided through the buying process according to your specific needs.
They’ll warn you against listings that aren’t actually a good deal, consult you on how to make a decision, and negotiate, liaise, and deal with the sellers on your behalf. You can find Ohmyhome’s customer reviews about our property agents on Facebook and Google, on which they have an average 4.9-star rating.
2. Difficult to resell
Another important point to consider is the valuation of the property. What if the valuation is not an accurate one?
On one hand, you have unethical sellers who are obviously trying to overinflate the property’s valuation.
But on the other hand, there are many ways even a perfectly legal home purchase may not make a profit in the future.
Unrealistic expectations by the owner
The owners themselves may have unrealistic expectations as they have a simplistic view of their own property.
Ignoring important market trends
Over the previous years, we’ve seen numerous major trends heavily affect home prices. From supply chain issues due to the pandemic, economic factors affecting interest rates – and leading to a drop in the volume of transactions, and even the political situation over the last years as well.
Getting an accurate valuation is one of the most important aspects of the home-buying process.
Unrealistic assumptions about a property’s future growth
Certain infrastructure and government projects in the upcoming years can really move the needle for a property’s future value. But newer agents and optimistic sellers tend to make projections that are a little overblown and not matched to reality.
Getting an accurate valuation is one of the most important aspects of the home-buying process. With a few simple steps, you can easily access a more wallet-friendly (because it’s free) option with an Ohmyhome market report. It will include a comparative market analysis: the past transaction prices of properties in your town and in its surrounding area. This will enable you and your property agent to determine the best selling price for your home which is also according to the current market trend, so you’ll neither price it too high nor too low, but just right.
3. Potential legal complications
Do you value your sleep at night? Then, you want to be cautious of certain sellers that are potentially hiding behind serious bankruptcy, credit, or insurance issues.
They may also be operating with malicious intent. Here are a few common loopholes these sellers will attempt to deploy against unsuspecting buyers.
a) Unethical sellers
One such way a seller might try to pull one past you is through unscrupulous changes in the Sale and Purchase Agreement (“SPA”).
There are very strict regulations in place to protect homebuyers, but that still doesn’t prevent unethical sellers from trying to slip one past you.
Sometimes, you may find yourself signing onto a SPA with terms that are not the same as what both of you initially agreed on. Even if the law is on your side, you’d still have to spend precious time, energy, and finances trying just to sort this out.
b) Unpaid fees & taxes
Property owners are required to maintain upkeep on multiple fees, rates, and taxes such as quit rent, parcel rent, and assessment rates “cukai pintu”.
Owners that are behind on their required payments can be a legal nightmare to deal with.
c) A front for scams & frauds
One of the most common schemes is the ‘booking fee’ fraud, where the fake agent claims to be the owner, and says this is the first sale. After bringing you for a viewing, they subsequently ask for a booking fee, after which you will not hear from them ever again. The act of collecting booking fees is also illegal, and those found guilty could be liable to a fine of up to RM50,000 or a jail term of up to five years or both.
Owners that are behind on their required payments can be a legal nightmare to deal with.
d) Properties in distress
There are many popular videos on social media claiming properties that are ‘under distress’ are a perfect buy as they can provide you with a significant profit.
Properties that are facing foreclosure or where the owner is facing bankruptcy are also situations that can cause your experience to be a truly unpleasant one.
Keeping an eye out for these common potential legal pitfalls can save you a world of trouble and headache, which is exactly how your first home-buying experience should be in the first place – seamless and convenient.
Find Your Dream Home In No Time, Hassle-Free
At
Ohmyhome
, your convenience is our priority. Our highly experienced agents are trained to match you with the right home and property, take you through the process with an expert hand and be there to advise you when it matters the most.
You can sit back, relax and let our experienced agents expertly hold your hand through the entire process. They’ll keep you far, far away from unscrupulous agents and unethical sellers while showing you only the most relevant and perfect homes for you.
Our Super Agents have served more than 8,000 happy customers, with over 70 families housed almost every single month.
You can contact us via our Live Chat, Whatsapp, or fill up this form to book a free consultation with our knowledgeable and experienced in-house agents who have a track record of transacting more than 70 homes every year.


What Does the Loan Deferment Mean for Malaysian Property Buyers?

The COVID-19 pandemic is not just a health crisis, but an economical one as well.
With small and medium business owners potentially shutting down due to the movement control order (MCO), many citizens and property investors are concerned about their livelihoods.
Onn 27 March 2020, the Malaysian Prime Minister announced a whopping RM250 billion stimulus package comprising of loan deferments, one-off cash assistance, credit facilities and rebates, and direct fiscal injections worth RM25 billion.
While the bulk of the package seems to be targeted towards the B40 group – citizens in the bottom 40% household income range – existing property investors can take advantage of some of the policy changes. A key highlight is the automatic six-month loan deferment.
What is the loan payment deferment?
This loan repayment deferment, or loan moratorium policy, exempts citizens from paying back their loans for the six months starting 1 April 2020. This includes any conventional loans or Islamic financing repayment obligations, with the exemption of credit card loans.
Bank Negara Malaysia (BNM), or the Malaysian Central Bank, has issued a straightforward FAQ on this particular subject. BNM clarifies that borrowers need not apply for the loan moratorium from their banks, as the process is automatic.
However, make no mistake thinking that you have been awarded six monthly instalments worth of free cash, because the remaining balance on your loans will continue to accumulate during the deferment period along with its interest rate charges. This could result in a higher monthly instalment amount or an extension to the loan tenure.
While the central bank has issued such guidelines, it is up to the local banks to properly enforce them. By default, the interest on your mortgage loan will be compounded because property owners are technically defaulting on their loans for six months.
Which banks offer this loan moratorium?
Fortunately, several banks have publicly announced that they will not be compounding the interest during the six-month moratorium period for their respective customers.
The banks in question include:
RHB Bank
Public Bank
Maybank
CIMB Bank
OCBC Bank
HSBC Bank
AmBank
Affin Bank
UOB Bank
Citibank Malaysia
While all of these banks will not compound their interest, each bank has their own separate terms and conditions for this newfound policy. Note that terms may also differ if you opt for an Islamic loan as opposed to a conventional mortgage loan.
If you have taken out of the mortgage loans from the banks listed above or from any other bank, it is highly recommended that you visit their Frequently Asked Questions page to learn more about their mortgage loan moratorium policy and determine if it is a good fit for you.
Should you opt for the loan deferment?
As a disclaimer, Ohmyhome does not hold a financial planner license and we are not legally fit to provide financial advice to our readers. We can, however, share some of the facts and offer recommendations or insights.
It is important to note that people have different needs at this point in time. Some people who have job security and a hefty emergency fund may choose to opt out of the loan repayment moratorium in order to save on the interest accrued.
However, not every property investor and owner has the capacity to do so. For those who will struggle financially in the following months due to the pandemic, consider applying for the loan repayment moratorium. It will provide the much needed cash flow to keep your head above the water amid these trying times.
How much will you save?
A local property expert has actually done the math and determined that the total amount of interest incurred is negligible in the grand scheme of things.
Assuming a property owner has obtained a RM500,000 loan at the start of the loan moratorium period, at a standard interest rate, the total amount of damage incurred is RM20,714 in exchange for RM11,355 worth of immediately freed up capital.
Principle Amount
Total Interest Paid
Total Amount Paid
Monthly Instalments
Without deferment
RM 500,000
RM 412,032
RM 912,032
RM 2,533
With deferment
RM 511,355
RM 421,391
RM 932,746
RM 2,591
Difference
RM 20,714
RM 58
He argues that property owners should use the freed-up capital for other much more urgent purposes, such as paying off credit card debt, serve as an emergency fund, or to invest in other asset classes to diversify their investment portfolio.
From a general perspective, the pros do outweigh the cost, especially when your local bank offers a non-compounding interest policy on loans during the moratorium period.
Each of us is responsible for our own finances, no matter the financial advice which has been put forth. It is best to do your own research and calculation to determine if a loan deferment is right for you.
Ready to start your housing journey? At Ohmyhome, we have a team of trusted real estate professionals that is able to guide you on your property purchasing or property liquidation journey. Like any journey, it starts with taking the crucial first step, which involves getting in touch with our professional and adept real estate agents.
Check out Ohmyhome’s
trusted agent services
 today, or call +6016-299 1366!


What No One Tells You About Buying Your First Home

If you ask almost any Malaysian who owned a house, they will probably never forget the first time they bought a home.
As the common assumption is that you need a 10% downpayment to buy a home, most Malaysians only save up for that number, leaving them unprepared for a seemingly endless list of costs, one after the other.
To smoothen this transition, we compiled some of the biggest costs of buying a home in Malaysia that no one tells you about for every stage of your property transaction journey.
Before Buying
A. Booking Fee
B. Valuation Fees
C. Mortgage Insurance
D. Agent Fees
While Buying
A. SPA Legal Fees
B. Loan Agreement Fees
C. Stamp Duty for MOT or DOA
After Buying
A. Maintenance, Utility, and Sinking Fund
B. Quit Rent, Parcel Rent, and Assessment Rates
C. Assessment Tax
1. Before Buying a Home
A. Booking Fee (Also known as an earnest deposit)
This non-refundable deposit serves to demonstrate the buyer’s commitment to the purchase and is generally equal to 3% of the total property value. The remaining amount of the downpayment is to be paid in full on the day of signing the Sale and Purchase Agreement (SPA).
So for a RM 700,000 house, a booking fee estimate would cost as follows:
RM 700,000 x 3% =
RM 21,000
.
The earnest deposit is usually submitted alongside a Letter of Offer or Offer to Purchase. It is important to note that these agreements typically state that the deposit will not be refunded if the deal fails to complete.
This fee will be included as a portion of the down payment should you choose to move forward with the home.
B. Valuation Fees
If you are getting a loan, financial institutions typically require a property valuation before approving a loan amount, and the fee is usually borne by the buyer. An official valuation may also be required if the buyer and seller disagree on the price.
The exact fee for the valuation is calculated as a percentage of the finalized home price.
Here is an estimated breakdown based on the value of your home:
First RM 100,000 = 0.25% of the property’s value
The next RM 2 million = 0.20% of the property’s value
The next RM 7 million = 0.167% of the property’s value
The next RM 15 million = 0.125% of the property’s value
C. Mortgage Insurance (MRTA or MLTA)
When buying a house with a loan, banks will often imply the requirement to purchase insurance to ensure they are protected. But insurance schemes are also vital and beneficial for buyers.
The two main kinds of insurance you would encounter are MRTA and MLTA. Be prepared that the cost can range from RM 10,000 to RM 30,000 or more, either made as a lump sum payment in the beginning or stretched out as monthly payments.
The exact cost varies on which insurance you purchase, along with factors like your home loan value, interest rates, and loan term.
Mortgage Reducing Term Assurance (
MRTA)
This is a type of home loan insurance that takes care of your mortgage payments in the event of your death or, in some cases, a terminal illness or disability.
As you pay off your home loan, the value of your outstanding debt will fall. MRTA is designed so that the amount that would pay out at the point of a claim covers the total value of your outstanding home loan.
Mortgage Level Term Assurance (MLTA)
Meanwhile, the MLTA is a type of home loan insurance where the sum insured remains level throughout the term of the plan. It does not reduce, unlike an MRTA.
MLTA provides a defined benefit amount during the entire period of the policy. Unlike MRTA, any additional amount is paid to the beneficiary.
D. Agent Fees
It is still surprisingly common for Malaysians not to factor agent fees into the overall cost, which can significantly impact you financially if you are on a tight budget.
With Ohmyhome’s Super Agents, you will be charged with a 3% commission, inclusive of SST, with a guarantee of aggressive marketing. From guiding you through every step of the process (and fees you’d need to pay) to leveraging their years of experience to get the best possible price for your dream home, they’ll expertly navigate you through the turbulent seas of homeownership.
2. Transaction Fees While Buying a Home
Now it’s time to walk through the buying process, in this stage, you will be shouldering a few types of fees – legal fees, disbursements, and stamp duty.
Legal fees
are made to the necessary legal firms and representatives throughout the buying process.

Disbursements
 are payments made to compensate the expenses incurred by the lawyers involved in preparing your agreements.
Stamp duty
 is the official tax you pay to the government on legal documents such as the instrument of transfer (MOT or DOA) and loan agreement.
A. SPA Legal Fees
The Sales and Purchase Agreement (SPA) is one of the most important documents of the entire process.
The SPA is a legally binding contract intended to protect the buyer’s interest (that’s you). And as you can imagine – without appropriate legal representation, there are many ways the SPA can go wrong.
It is often too late when people realize their SPA’s crucial importance until something goes wrong.
Having a legal firm allows you to have an expert manage the extensive paperwork and negotiate on your behalf while protecting your interests every step of the way. Legal representatives are trained to manage complex legal documents, negotiate on your behalf, and protect your interests throughout the acquisition process.
This is also why
hiring the right property agent
 is essential. You’ll be able to tap into their vast experience and network of contacts to ensure you’re doing things the right way. They know every trick in the book and can connect you with the right representatives.
Here’s a breakdown of how SPA legal fees are charged:
Value of Property
SPA Legal Fee Percentage
First RM 500,000
1%
Next RM 500,000
0.8%
Next RM 2,000,000
0.7%
Next RM 2,000,000
0.6%
Subsequent RM 2,500,000
0.5%
For example, if you’re buying a house worth RM 700,000, here’s what your SPA legal fees might look like:
RM 500,000 x 1% = RM 5,000
RM 200,000 x 0.8% = RM 1,600
Total = RM 6,600
A basic rule of thumb is the higher the value of your house, the more you’ll have to pay in fees.
B. Loan Agreement Fees
The loan agreement is a document that contains all the details of your loan with the bank. These costs usually cover the processing and signing of your loan agreement.
Value of Property
Loan Agreement Percentage
First RM 500,000
1%
Next RM 500,000
0.8%
Next RM 2,000,000
0.7%
Next RM 2,000,000
0.6%
Subsequent RM 2,500,000
0.5%
The stamp duty for the loan is then calculated as 0.5% of the total loan amount. The bank processing fee is usually within the few hundred range, so there’s not too much to worry about there.
The fees for a 90% loan on a house costing RM 700,000 might look something like this:
Loan Agreement Legal Fees:
Total Loan Amount = RM 630,000
First RM 500,000 x 1% = RM 5,000
Next RM 130,000 x 0.8% = RM 1,040
Stamp Duty:
RM 630,000 x 0.5% = RM 3,150 (0.5% of the loan amount)
Total Loan Agreement Fees = RM 6,040 + RM 3,150 = RM 9,190
C. Stamp Duty for Memorandum of Transfer (MOT) or Deed of Assignment (DOA)
One other essential document in this process is the Memorandum of Transfer (MOT). This is a document to transfer ownership from the seller to the buyer. In cases where the property to be bought had not received its relevant Land Title, a Deed of Assignment (DOA) form is used to transfer ownership of the property.
Here’s how a stamp duty fee is calculated:
Value of Property
Stamp Duty Percentage
First RM 100,000
1%
RM 100,001 to RM 500,000
2%
RM 500,001 to RM 1,000,000
3%
RM 1,000,001 and above
4%
So for your RM 700,000 house, here’s an estimated fee:
First
RM 100,000 x 1% = RM 1,000
RM 500,000 x 2% = RM 10,000
Bal RM 100,000 x 3% = RM 3,000
Total stamp duty = RM 14,000
The total amount you’ll need at the start
Here’s a table of how much you’d have to save up for your RM 700,000 home in transaction fees:
Downpayment
RM 70,000
Valuation Fee
RM 1,750
SPA Fees
RM 6,600
Loan Agreemen Fees with Stamp Duty
RM 9,190
Stamp Duty Fees on SPA
RM 14,000
Total Payable
RM 101,540
So the actual amount you need at the start is not only 10% — it is actually closer to
14.5%
.
3. After Buying a Home
A. Maintenance, Utility, and Sinking Fund
If you’re buying a subsale high-rise property, expect to pay a maintenance fee. This fee is instrumental to ensuring the property is well-maintained and managed. This includes maintaining common areas such as lifts, lobbies, corridors, gardening, security, and recreational facilities.
The sinking fund is the building’s way of hedging against future large-scale repairs or major works on a building. By contributing to the sinking fund, buyers can ensure that their property is protected in the event of an unexpected major repair, which can be costly and disruptive.
B. Quit Rent, Parcel Rent, and Assessment Rates
In addition to considering home-related costs such as home deposits, housing loans, home insurance, property owners are required to pay quit rent, parcel rent, and assessment rates under the Malaysian legal system.
Quit Rent or Parcel Rent
Quit Rent is calculated by multiplying the size of an owned property in sq ft or sq meters by a specified rental rate. As many Land Offices don’t list the quit rent rates on their official websites. Hence, it’s advisable to visit the nearest Land Office or contact them.
In June 2018, a new land tax was created for strata properties in Selangor to replace the quit rent, called parcel rent. This new parcel rent is now a separate charge billed directly to owners.
While this significantly increased the amount of taxes charged to Malaysian strata property owners, the change was made to ease the transfer of ownership of strata properties to make up for defaulters.
C. Assessment Tax
This is a tax collected by the Municipal Council of the location of your property to cover the cost of financing the development and maintenance of local infrastructure and services.
Payments are to be made to your local Municipal Councils, for example, these would be councils like DBKL, MBPJ, MPKJ, MPSJ, MPSP, MPAJ in the Selangor area.
Secure Your First Home With An Experienced Super Agent
Buying a home can be one of the biggest investments you make in your life. Having an experienced Super Agent from Ohmyhome gives you invaluable peace of mind as you know you have someone who is looking out for your best interests. You will only be matched with an experienced agent specializing in your area – which means they will have extensive knowledge of the real estate market and the neighborhood where you want to buy a home.
They can provide you with invaluable insights into the local market conditions, including the trends in home prices, the availability of homes for sale, and the potential for investment in the area.
In addition to that, a good agent is able to negotiate a lower purchase price, better terms, or even additional contingencies to ensure you are protected.
Our Super Agents have served more than 8,000 happy customers, with over 70 families housed almost every single month. Secure an appointment with any of our Super Agents today by dropping us a message on
WhatsApp
 or via our Live Chat at the bottom, right-hand corner of the screen.


Why Having 1 Agent Is Better Than 20

Engaging multiple agents may seem like a good idea to gain wider exposure to potential buyers.
While this would have been an acceptable route back then, technological advancements have significantly changed the playing field with online property marketplaces and search portals.
Doing this today can cost you tremendously – from lowering the appeal of your listing, receiving lowball offers far lower than your asking price, and causing your home to sit in the market longer than necessary.
1. Sends the wrong message to prospective buyers
With multiple agents, you begin to get duplicative listings for your property, each with a different agent’s name attached.
This does several things.
a) Confuses prospective buyers
Firstly, this can confuse potential buyers as they’re referring to the same listing sites. And so, when they see multiple listings for the same house, this presents the appearance of desperation or a lack of confidence in the property’s appeal.
They may start to get the impression that the unit is difficult to sell and that something is wrong with it.
b) Get the impression that the listing is fake or a scam
They might even assume that this is a scam and that something shady is happening, especially with the prevalence of online scams today. This can harm your chances of attracting high-quality buyers and securing favourable offers.
The longer your house sits on the market, the harder it is to sell. After spending longer than 60-90 days in the market, a property is often considered “stale.”
When you engage multiple agents to sell your home, you should be prepared to be bombarded by calls and texts at all times.
2. A logistical nightmare
Another downside to engaging multiple agents is the flood of communication that can create more hassle and frustration than you’re ready for.
Be prepared for a bombardment of phone calls, text messages, and e-mails from multiple agents seeking details about your home. It’s also uncommon for sellers to forget the exact agents they are engaging – making the process even more complicated.
These agents will naturally need more details about your home to sell your home. From the exact square footage, floor plans, if there have been any unique features or upgrades, updated photographs, maintenance and repair records, list of included items, and more.
This can all lead to a more time-consuming process that is more exhaustive than productive.
Coordinating viewings and keeping track of multiple agents’ progress can be challenging, resulting in a more chaotic and stressful selling experience. In contrast, working with a single dedicated agent streamlines the process and makes it easier to stay informed and involved in selling your property.
Having just one property agent streamlines the process and eliminates the need for multiple conversations and repeat information sharing. By working with only one agent, you can simplify the home-selling process and avoid the frustration of dealing with multiple agents.
3. Agents aren’t motivated to sell your house
Under an exclusive agreement, the agent is the sole agent authorised to sell your property for you during a specified period of time, usually 3 months.
And the issue that arises when you contract an agent without an exclusive agreement, is that they will not be as invested in putting in the necessary time and effort to market your property effectively.
The reason is simple: the agents cannot be certain that their efforts will result in a commission. They know that if you end up transacting with another agent, their time and money invested will be for nothing.
This lack of motivation can also be seen in the quality of the listings created for your property. Agents may create lower-quality listings with subpar photography and poorly written descriptions, which leads to limited exposure for your property on real estate websites.
A single, dedicated real estate agent is fully motivated to invest their time and resources for you, resulting in a significantly faster sale and better offers. However, choosing the right agent can prove to be a more challenging affair than it seems.
One of the best ways to find the right agent is to see what previous clients have said about them. You can easily find Ohmyhome’s customer reviews about our property agents on Facebook and Google, as all of our agents have an average 4.9-star rating on Google and Facebook. We encourage you to check it for yourself.
Ohmyhome Super Agents have access to technology that enables them to sell your home faster.
4. Agents may use your house as leverage to sell their exclusive listings
As a seller, it’s vital to consider the negative implications of engaging multiple agents. One such risk is non-exclusive agents using your property as a bargaining tool for their other exclusive listings. A bait and switch as they say.
In addition, agents can intentionally undermine the value of your property to highlight the features of another exclusive property in their portfolio.
The agent may show a prospective buyer your home as leverage to sell a better house to raise the perceived value of the home they’re trying to sell. During in-person viewings, the agent may emphasise the shortcomings of your property and downplay its strengths to make the other exclusive property seem more appealing by comparison.
On the other hand, when you engage a property agent exclusively, you have to ensure that your property is in capable hands. With Ohmyhome, our Super Agents have the rest of the market beat. They have the support of the whole company, from tech to marketing and even operations, so they can focus on getting your home sold. We also have a free property app that lets sellers such as yourself list properties for free, so your listings have a higher chance of getting viewed by ready buyers who may call for viewing at any time.
Work With An Exclusive Agent – 1 Is All You Need
With Ohmyhome, our Super Agents have the rest of the market beat.
As Ohmyhome agents only work with exclusivity, you’re guaranteed to have an agent that’s motivated and dedicates significant time, effort, and resources to selling your home.
No longer will prospective buyers be confused with duplicate listings with poor quality and lowballing you with underpriced offers. Everything is taken care of for you with Ohmyhome as you only have to deal with 1 point of contact.
With more than 8,000 happy customers served, our experienced in-house agents have a track record of transacting more than 70 homes every year.
Our agents are also trained in proven marketing strategies that go beyond listing on our platform as your property will also be marketed across all major listing platforms, including Google and Facebook.
You can contact us via our Live Chat,
Whatsapp
, or fill up this
form
 to book a free consultation with an expert ASAP.


Why Titiwangsa Could Be Your Next New Property Destination

The Titiwangsa Range, also known as the “Banjaran Besar” in the Malay language, is a chain of mountains that runs from the north of the Thailand border down to the southeast portion of the Malaysian peninsula.
Just like how the Titiwangsa Range serves as the geographical backbone of Malaysia, so does the constituency of Titiwangsa forms the backbone of the metropolitan city of Kuala Lumpur.
Here are some of the compelling reasons why this particular constituency should be the focal point of your next property investment journey.
1. Titiwangsa Lake Gardens
There is little doubt that the highlight of the Titiwangsa constituency is its proximity to the Titiwangsa Lake Gardens.
At 95 hectares, the Titiwangsa Lake Gardens is one of the few rare green sites within the concrete jungle of Kuala Lumpur City Centre. The gardens provide a unique blend of both natural and cosmopolitan flavour. Plenty of coconut and banyan trees provide shade while the city skyline in the distance serves as a backdrop for landscape and wedding photographers.
Half of the area is covered by a lake left over from mining activities during the British colonial period. From its industrial past, the area has been transformed into the go-to place for fitness enthusiasts and familial leisure activities, with facilities such as jogging tracks, cycling tracks, kayaking, horse riding facilities, radio-controlled car-racing, and much more.
2. The Palace of Culture
The Palace of Culture, more commonly known as “Istana Budaya,” sits at a corner of the Titiwangsa Lake Gardens. As the name suggests, it is one of Malaysia’s main venue for all types of cultural and theatre work, including operas and classical concerts.
With 1,412 hall seats and box seats, it is one of the most luxurious and grandest theatres available in Malaysia. Located next to it is the National Art Gallery, home to many intricate visual art pieces made by locals..
What may come as a surprise to most people is, while the palace started its construction in 1995 and was completed in 1999, the idea and proposal for the theatre started back in 1964, costing a whopping total RM210 million to construct.
Now, it is the home to the Residence Artists group, the National Symphony Orchestra, and the Orchestra Traditional Malaysia, some of the pillars of art and culture in the country. Not to mention, the building’s unique design is now prized as an exemplary case study of architectural work for both local and foreign architects-in-training.
3. Strategic Location
It seems that the name “Titiwangsa” has deep connotations in geography, as the constituency is well located in the heart of Kuala Lumpur. Its proximity to the district of Chow Kit gives residents easy access to the famous Chow Kit traditional market, which is tightly packed with stalls selling a variety of produce, clothing, and home goods.
If traditional goods do not strike your fancy, there are contemporary malls like Sunway Putra Malls and the Quill City Mall that offer mainstream fashion and chain dining. Unassuming eateries nearby serve local fares like noodles and roasted meats.
On the other side of the Titiwangsa lake lies the Malaysian Police Training Centre, or PULAPOL, one of the oldest training institutions for the Royal Malaysia Police force. With so many officers entering and leaving the district, safety won’t be an issue in this neighbourhood.
4. Healthcare and Education
Titiwangsa is also well served by the following healthcare providers:
Damai Service Hospital HQ
KL Hospital
KPJ Sentosa KL Specialist Hospital
KPJ Tawakkal KL Specialist Hospital
Lourdes Medical Centre
Pintu A MRT Hospital KL
Sentul Medical Centre
National Heart Institute
The district is also well equipped with educational institutions such as Chiao Nan Primary School, Maxwell School, SJK (C) Sentul KL, SMK Sentul Utama, and Wesley Methodist School KL (International).
Here you can find several institutions of higher learning such as Binary College, Perdana University Clinical Centre, President College, Universiti Kebangsaan Malaysia Fakulti Sains Kesihatan Kampus KL, and Universiti Utara Malaysia Kampus KL.
The strategic location of Titiwangsa could not be any less understated. Not only is it a stone’s throw away from the city centre, a diverse set of facilities and amenities available within mere kilometres. However, if you wish to leave the district, Titiwangsa located is right alongside the “original” Middle Ring Road of Jalan Tun Razak. Public transport is easy, thanks to the Titiwangsa LRT and Monorail station.
Property buyers will be hard-pressed to find a district just as dynamic as Titiwangsa.
Want to check out the top residential properties on the market? Through Ohmyhome’s
new launches page
, you can access to the most lucrative and exclusive deals on new property launches directly sourced from the property developers themselves, with great discounts and freebies headed your way.
Check out
our genuine listings
! Or call +6016-299 1366.


Your Ultimate Guide to the Overnight Policy Rate (OPR) Decrease

Written By:
 Henny Maherah
For the third time this year, Bank Negara Malaysia (BNM) issued a
new Overnight Policy Rate (OPR)
 at 2% on 5 May 2020, a decrease from the previous OPR of 2.5% announced on 3 May 2020. Why did they do this? BNM reports that these measures are intended to cushion the harsh impacts of COVID-19 on the Malaysian economy and “create enabling conditions for a sustainable economic recovery.”
But what exactly is the OPR and how will it affect your property investment?
What is the Overnight Policy Rate (OPR)?
OPR is an interest rate policy set by the BNM. In most instances, banks would maximise their outflow by lending as much money to borrowers while maintaining the minimum cash reserves available within the bank. However, in some cases, the cash withdrawal for loans exceeds the amount of cash available in the bank.
In such instances, these affected banks would resort to borrowing cash from other banks. This is where the OPR comes into play by determining the interest rate during loan transactions between banks.
How will the OPR decrease affect your housing loan?
One of the most common forms of bank loans acquired is a housing loan for your property. Many homeowners obtain a loan from the bank that will gradually be repaid within a set duration of time.
The repayment amount would include a loan interest rate, also known as a
Base Rate (BR)
, which is determined by the OPR.
With the recent OPR decrease, how will your repayment terms be affected?
Here’s an example:
Housing Loan Amount
 $150,000
Duration of Loan Tenure
 30 years
OPR
2.5%
Current:2%
Loan Interest Rate

(OPR + BR)
2.5% + 0.8% = 3.2%
2% + 0.8% = 2.8%
Monthly Loan Repayment

(Loan Amount + Interest)
$416 + $133 = $549
$416 + $116= $532
In short, the lower the OPR, the lower the interest rate for your loan repayment. Malaysians would have an incentive to take up new loans to supplement their spending. The OPR change would also cause a hike in disposable income due to reduced interest payments. You may have more for essential purchases, especially during this challenging time.
While it may seem tempting to invest in a new loan immediately, it is important to remember that the rationale behind the OPR decrease is the current soft economic outlook.
Financial budgeting
 is key. However, the OPR decrease could be a golden opportunity for those who are intending to invest in property and have been putting off their home purchase. If you’re ready to embark on your home buying journey, this may be an optimal time to
apply for a housing loan.
Ready to find your dream home? Get in touch with our
trusted in-house agents
 to kickstart your buyer’s journey!
Call us now at +60 16-299 1366!
Source:
New Straits Times


Powering Up Our Tech! Prioritising Security for Our App Users

In 2016, Ohmyhome launched with an app that helped you buy and sell homes easier and faster.
In the years since, we’ve included plenty of features that made the initial promise easier to fulfill.
And as usual, we only keep improving.
In August this year, Ohmyhome will be rolling out a new in-app chat update that creates a safer environment for all users on our app.
Ohmyhome chats now have a more modern and aesthetic look and feel.
We’ve doubled down on security and made that our utmost priority by:
Introducing fraud detection measures that flag out suspicious behaviours on the marketplace by blocking phrases and sentences typical scam artists use.
Removing the “Make An Offer” feature, which we’ve identified as one of the functions abused to pressure users to send money to what they believe to be a legitimate process and request in buying or viewing a home.
Implementing read receipts to ensure that a user always knows the buyer or seller’s level of engagement. In a chat conversation, you can now see if the other party has read your message.
You will receive push notifications when you get a chat reply on the Ohmyhome app.
Adding push notifications for the chat function so that you’re notified when you receive a reply. This means you end up buying, selling, renting, or leasing your home much quicker, saving precious time, and likely closing at a better deal.
Promoting an environment to keep the entire conversation you have with an interested party within the app (it’s much safer to keep Chats on Ohmyhome).
Important note for active users:
1. (For all users) All closed and completed chat history sessions will be removed, but conversations with active listings will remain.
2. (For Singapore app users only) The appointment setting function will also be removed, but only temporarily. A new and improved version will be introduced soon.
This will be a mandatory update so you will have to ensure you’ve updated the app to its latest version before you can continue using it.
We’ll remind you as the days get closer.
If you have yet to download our app, today is still the best day to do so. Put the power and knowledge of buying or selling your home in your hands. Feel free to click the image to your respective app stores below to
download the app
.
Download the Ohmyhome app on
Google Play or App Store
.
We’re looking forward to making sure your experience with Ohmyhome continues to be a pleasant one and we’re excited to let you know what else we have in store to make your homeowning experience even simpler and safer.
While the Information is considered to be true and correct at the date of publication, changes in circumstances after the time of publication may impact on the accuracy of the Information. The Information may change without notice and Ohmyhome is not in any way liable for the accuracy of any information printed and stored or in any way interpreted and used by a user.