Your Ultimate Guide to Buying a Subsale Property

What is a Subsale Property?

Subsale properties are pre-owned properties that are being resold. These properties have had one or more previous owners and are distinct from newly developed properties, which developers typically sell. Subsale properties encompass a wide range, from residential homes to commercial spaces. Buying a subsale property requires planning, researching and lots of patience.

When buying a subsale property, the journey of it is pretty similar as buying a new project from developer. The only differences is newly launch projects from developer requires 3 years or more for the project to be done. Meanwhile, for subsale properties you can directly move in and start renovation once your loan approve. Which is why, when it comes to subsale properties, you need to ensure you have your budget set not only for legal fees but for renovation as well.

The Process Of Buying A Subsale Property

Step 1: Determine Your Budget

The first step to buying a resale home is figuring out what you can afford. Think about your money – how much you can put down, what you’ll pay each month, and other costs like fixing things or paying the legal folks. Knowing your budget helps you narrow down your choices. You can use special calculators that match your money with what you make to find the right budget for you. Also, think about other bills like the first payment, taxes, legal stuff, and fixing up the place if needed.

Step 2: Hunt for Your Dream Home

Once you’ve sorted out your budget, start hunting for your dream place. Go online to places like NextSix, search and talk to property agents. Think about which area you want to live, what kind of place you need, and how big it should be. Best to visit the house yourself, check out the area, and see if it feels right. You can also compare it with other similar places to know if it’s worth it.

Use the NextSix comparison tool! – Link to nextsix app

Step 3: Property Inspection

It’s super important to check the house really well. Look for any damages, like broken stuff or anything that looks weird. Also, check if the house itself seems okay, like the walls or roof. If you’re not sure, get a professional to check it out and tell you all about it.

Step 4: Negotiation and Offer

If you really like a place, start talking with the owner about buying it. Make an offer based on what you can pay and what other houses cost. Make sure to do your proper research or even ask your property agent who is servicing you on the property value. But do take note, offers are likely to be accepted when the condition of the house is not in a good condition. So make sure to do your property inspection thoroughly.

Step 5: Sign the Papers

A Sales and Purchase Agreement (SPA) is a legally binding document that outlines the terms and conditions of the property sale. It includes details such as the property price, payment schedule, and the date of vacant possession. Ensure that you understand the terms and have a legal professional review the SPA.

Financing Subsale Property

If you require financing for your property purchase, apply for a mortgage from a bank or financial institution. Be prepared to provide the necessary documents, such as proof of income and credit history, to facilitate the loan application process. Because a house loan is a substantial financial commitment, choosing the appropriate option based on your repayment capacity is critical to receiving the best financial deal on a home.

An important thing to remember is that the bank will only provide a loan up tp 90%, tops, of the total value of the property. If the subsale property is selling at the price of Rm 520,000, the most gracious act the bank will do is to loan you Rm468000.

Check out to know more on 2023 house loan interest rate from different banks here – https://blog.nextsix.com/2023/11/08/malaysia-mortgage-loans-2023/

What legal fees to pay?

Stamp duty

Stamp duty is a tax imposed on property transactions. The amount varies based on the property’s price and location. It’s important to budget for stamp duty as it’s a significant expense in property purchases.

Legal Fees

Engaging a lawyer is essential to facilitate the property transfer process. Legal fees are incurred for services such as conducting title searches, drafting and reviewing the SPA, and overseeing the property transfer.

Post-Purchase Considerations

Renovation and Moving In

If you plan to renovate the property, ensure that you follow local regulations and obtain the necessary permits. Coordinate your move-in date and arrange for utilities and services to be connected.

Maintenance and Management Fees

Subsale properties, especially in condominiums or gated communities, may have maintenance or management fees. Be aware of these fees and budget for them as they are recurring expenses.

Buying a subsale property in Malaysia is a pretty similar process as buying a new project. An exciting journey that requires careful planning and consideration. It’s essential to be informed about the process, from understanding your budget to completing the legal requirements. By following this comprehensive guide, you can navigate the complexities of purchasing a subsale property with confidence and ensure that you make a well-informed decision that aligns with your real estate goals.

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