The property costs RM500,000. You budget RM50,000 for the 10% downpayment. You show up at the lawyer's office and discover you need RM73,000. That extra RM23,000 — stamp duty, legal fees, valuation, insurance — blindsides first-time buyers because agents quote the property price, not the acquisition price. They are not the same number.
This guide itemizes every single cost of buying property in Malaysia, from the obvious to the obscure, at three common price points. No line item is too small to include. If you pay it, it is in the table.
The Complete Cost Breakdown: RM500,000 Property
First-time buyer. Malaysian citizen. 90% loan-to-value financing. Standard subsale purchase.
Upfront Costs (Cash Needed Before Keys)
| Cost Item | Amount (RM) | Notes |
|---|---|---|
| Down payment (10%) | 50,000 | Paid to vendor's lawyer upon SPA signing |
| MOT stamp duty | 9,000 | 1% on first RM100K + 2% on next RM400K (Item 32(a), Stamp Act 1949) |
| Loan agreement stamp duty | 2,250 | 0.5% of RM450,000 loan (Item 22(1), Stamp Act 1949) |
| Legal fees — SPA | ~5,750 | Tiered scale per SRO 2023: 1.25% on first RM500K |
| Legal fees — loan agreement | ~3,500 | Tiered scale, typically 60-70% of SPA legal fees |
| Valuation fee | ~300 | Bank-appointed valuer inspects property |
| Fire insurance (year 1) | ~250 | Mandatory for financed property |
| Miscellaneous (search fees, admin) | ~250 | Land search, bankruptcy search, stamping |
| Total cash needed | ~71,300 | 14.3% of property price |
That 14.3% is the number you should budget against. Not 10%. The 10% down payment myth causes more first-time buyer financial stress than any other misconception in Malaysian property.
What About MRTA?
If you accept MRTA and finance it into the loan: add RM10,000-20,000 to your loan principal. No additional upfront cash, but your monthly payment increases and you pay interest on the MRTA premium for 30 years. Total real cost: RM17,000-36,000.
If you pay MRTA cash: add RM10,000-20,000 to the upfront total. Cash needed jumps to RM81,000-91,000.
We excluded MRTA from the base table because it is optional. But if you include it, total acquisition cost reaches 16-18% of property price.
The Complete Cost Breakdown: RM800,000 Property
Second-time buyer or investor. Malaysian citizen. 90% LTV (assuming second property still qualifies for 90%).
Upfront Costs
| Cost Item | Amount (RM) | Notes |
|---|---|---|
| Down payment (10%) | 80,000 | Or higher if bank requires larger deposit |
| MOT stamp duty | 18,000 | 1% + 2% + 3% on RM100K/RM400K/RM300K |
| Loan agreement stamp duty | 3,600 | 0.5% of RM720,000 loan |
| Legal fees — SPA | ~7,350 | 1.25% on first RM500K + 1% on next RM300K per SRO 2023 |
| Legal fees — loan agreement | ~4,750 | Approximately 65% of SPA fees |
| Valuation fee | ~500 | Higher value = higher valuation cost |
| Fire insurance (year 1) | ~350 | Higher rebuild cost |
| Miscellaneous | ~300 | Searches, admin, courier |
| Total cash needed | ~114,850 | 14.4% of property price |
The percentage holds remarkably steady. Whether you buy at RM500K or RM800K, plan for approximately 14-15% of property price in total upfront cash.
The Complete Cost Breakdown: RM1,000,000 Property
Premium purchase. Could be a third property (70% LTV applies — BNM ruling from 3rd property onward).
Upfront Costs (at 70% LTV)
| Cost Item | Amount (RM) | Notes |
|---|---|---|
| Down payment (30%) | 300,000 | 70% LTV cap for 3rd property |
| MOT stamp duty | 24,000 | 1% + 2% + 3% across tiers |
| Loan agreement stamp duty | 3,500 | 0.5% of RM700,000 loan |
| Legal fees — SPA | ~8,150 | 1.25% first RM500K + 1% next RM500K per SRO 2023 |
| Legal fees — loan agreement | ~5,200 | Tiered scale on loan amount |
| Valuation fee | ~700 | Bank valuation for RM1M property |
| Fire insurance (year 1) | ~450 | |
| Miscellaneous | ~350 | |
| Total cash needed | ~342,350 | 34.2% of property price |
Notice the dramatic jump. The 70% LTV cap on the third property turns the equation upside down. Your down payment alone is RM300,000 instead of RM100,000. This is why most Malaysian investors hit a practical limit around their third or fourth property — the cash requirement balloons.
Key takeaway: First and second properties cost ~14-15% of price in upfront cash. Third property onward costs 34%+ because of the LTV cap. Plan your portfolio accordingly.
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Side-by-Side Comparison
| Cost Item | RM500K (90% LTV) | RM800K (90% LTV) | RM1M (70% LTV) |
|---|---|---|---|
| Down payment | 50,000 | 80,000 | 300,000 |
| MOT stamp duty | 9,000 | 18,000 | 24,000 |
| Loan stamp duty | 2,250 | 3,600 | 3,500 |
| Legal — SPA | 5,750 | 7,350 | 8,150 |
| Legal — loan | 3,500 | 4,750 | 5,200 |
| Valuation | 300 | 500 | 700 |
| Insurance | 250 | 350 | 450 |
| Misc | 250 | 300 | 350 |
| Total | 71,300 | 114,850 | 342,350 |
| % of price | 14.3% | 14.4% | 34.2% |
Ongoing Costs: Year One and Beyond
Upfront costs are only half the picture. Your first year of ownership includes recurring costs that many buyers forget to budget for.
Monthly Recurring Costs
| Cost Item | RM500K Condo | RM800K Condo | RM1M Condo | Notes |
|---|---|---|---|---|
| Maintenance fee | 250-400 | 350-600 | 450-800 | Varies by development, RM0.25-0.50/sqft |
| Sinking fund | 25-40 | 35-60 | 45-80 | Typically 10% of maintenance fee |
| Monthly total | 275-440 | 385-660 | 495-880 | |
| Annual total | 3,300-5,280 | 4,620-7,920 | 5,940-10,560 |
Annual Recurring Costs
| Cost Item | RM500K Property | RM800K Property | RM1M Property | Notes |
|---|---|---|---|---|
| Assessment rate (cukai taksiran) | 800-1,200 | 1,200-2,000 | 1,500-2,500 | Paid to local council, semi-annually |
| Quit rent (cukai tanah) | 50-200 | 100-300 | 150-500 | Paid to state land office, annually |
| Fire insurance | 250 | 350 | 450 | Mandatory renewal |
| Annual total | 1,100-1,650 | 1,650-2,650 | 2,100-3,450 |
Total First-Year Ongoing Costs
| Property Price | Monthly Recurring (RM) | Annual Fixed (RM) | Total Year 1 Ongoing (RM) |
|---|---|---|---|
| RM500,000 | ~350/mo = 4,200/yr | ~1,400 | ~5,600 |
| RM800,000 | ~500/mo = 6,000/yr | ~2,100 | ~8,100 |
| RM1,000,000 | ~650/mo = 7,800/yr | ~2,800 | ~10,600 |
These are costs you pay whether the property is occupied or vacant. For investors, vacancy means these costs come directly out of pocket with no rental income to offset them.
First-Time Buyer vs Second Purchase vs Foreigner
The buyer's profile dramatically changes the cost structure.
First-Time Malaysian Buyer (Under RM500K)
If stamp duty exemption is active:
| Cost Item | Standard (RM) | With Exemption (RM) | Savings (RM) |
|---|---|---|---|
| Down payment (10%) | 50,000 | 50,000 | 0 |
| MOT stamp duty | 9,000 | 0 | 9,000 |
| Loan stamp duty | 2,250 | 0 | 2,250 |
| Legal fees — SPA | 5,750 | 5,750 | 0 |
| Legal fees — loan | 3,500 | 3,500 | 0 |
| Valuation + misc | 550 | 550 | 0 |
| Insurance | 250 | 250 | 0 |
| Total | 71,300 | 60,050 | 11,250 |
First-time buyer exemption saves RM11,250 on an RM500K property. That is a 16% reduction in total upfront costs. Significant.
Second-Time Malaysian Buyer
No stamp duty exemption. Full rates apply. At RM800K:
| Item | Amount (RM) |
|---|---|
| Down payment (10%) | 80,000 |
| All stamp duties | 21,600 |
| All legal fees | 12,100 |
| Valuation + misc + insurance | 1,150 |
| Total | 114,850 |
Identical to the standard RM800K table above. No special benefits.
Foreign Buyer (RM1,000,000 Property)
Foreigners face additional costs:
| Cost Item | Malaysian Buyer (RM) | Foreign Buyer (RM) | Difference (RM) |
|---|---|---|---|
| Down payment (30-40%) | 300,000 | 300,000-400,000 | 0-100,000 |
| MOT stamp duty | 24,000 (tiered 1-4%) | 80,000 (flat 8%) | 56,000 |
| State consent fee | 0 | Varies by state | 10,000-20,000 |
| Legal fees (SPA + loan) | 13,350 | 13,350 | 0 |
| Valuation + misc + insurance | 1,500 | 1,500 | 0 |
| Total | 342,350 | ~408,000-498,000 | ~66,000-156,000 |
Foreigners pay more because of the flat 8% stamp duty rate on residential property transfers (effective 1 January 2026 under Budget 2026, up from the previous 4% flat rate), higher minimum price thresholds by state, lower LTV margins (some banks cap foreign borrowers at 60-70%), and state consent processing fees.
Hidden Costs That Catch Buyers Off Guard
1. Renovation and Furnishing
Not part of the purchase cost, but essential for most properties — especially investment units targeting tenants.
| Item | Budget Range (RM) |
|---|---|
| Basic renovation (paint, lights, minor works) | 5,000-15,000 |
| Medium renovation (kitchen, bathroom upgrade) | 15,000-40,000 |
| Full renovation (gut and rebuild) | 40,000-100,000+ |
| Basic furnishing (essential items) | 5,000-15,000 |
| Full furnishing (turnkey ready) | 15,000-40,000 |
For an investor: budget RM10,000-25,000 for light renovation and basic furnishing of a condo unit.
2. Utility Deposits
| Utility | Deposit (RM) |
|---|---|
| TNB (electricity) | 400-800 |
| Water (Syarikat Air) | 100-300 |
| Indah Water (sewerage) | 0-100 |
| Total | 500-1,200 |
3. Moving Costs
If you are an owner-occupier: RM500-2,000 depending on distance and volume.
4. Agent Commission
Buyers do not pay agent commission in Malaysia — the seller pays (typically 2-3% of sale price). However, if you engage a buyer's agent (uncommon but growing), you may negotiate a fee.
The Real Total: What You Actually Need
Adding it all up for a first-time buyer purchasing an RM500K investment condo:
| Category | Amount (RM) |
|---|---|
| Purchase costs (downpayment + stamp duty + legal + valuation + insurance) | 71,300 |
| Light renovation + basic furnishing | 15,000 |
| Utility deposits | 700 |
| First month vacancy buffer (mortgage + maintenance) | 2,800 |
| Emergency reserve (3 months expenses) | 8,400 |
| True total cash needed | ~98,200 |
Nearly RM100,000 to buy a RM500,000 property. That is 19.6% of the property price in total cash deployment — and we have not padded the numbers.
Key takeaway: Budget 20% of property price as your total cash requirement. The "10% down payment" figure is dangerously misleading. You need double that.
How to Reduce Upfront Costs
EPF Withdrawal (Account 2)
You can withdraw from EPF Account 2 for property purchase — specifically for the down payment. This does not cover stamp duty or legal fees. Maximum withdrawal is the difference between the property price and the loan amount, up to your Account 2 balance.
First-Time Buyer Exemptions
Claim every exemption available. Stamp duty exemption alone saves RM11,250 on an RM500K property.
Negotiate Legal Fees
Lawyers can offer discounts on their fees — up to 25% below the standard scale under the Solicitors' Remuneration Order 2023. Shop around. The tiered fee scale is a maximum, not a fixed price.
Skip MRTA
Save RM10,000-20,000 upfront. Use existing life insurance or buy term life separately.
Developer Absorption (New Launches Only)
Some developers absorb stamp duty, legal fees, or both as promotional incentives. These are common during slow market periods. The "saving" is usually priced into a higher property price — but it reduces your cash outflow.
Ongoing Costs Summary
For your long-term budgeting, here is the annual ongoing cost of ownership excluding mortgage payments:
| Cost | RM500K Condo/yr | RM800K Condo/yr | RM1M Condo/yr |
|---|---|---|---|
| Maintenance + sinking fund | 4,200 | 6,000 | 7,800 |
| Assessment rate | 1,000 | 1,600 | 2,000 |
| Quit rent | 100 | 200 | 300 |
| Fire insurance | 250 | 350 | 450 |
| Total annual ownership cost | 5,550 | 8,150 | 10,550 |
| Monthly equivalent | 463 | 679 | 879 |
This is your minimum cost of ownership. Your property must generate at least this much in rent just to break even before the mortgage payment.
For a deeper dive into stamp duty calculations, see our stamp duty guide. For legal fee breakdowns, check our legal fees guide. For annual ownership costs including quit rent and assessment, read our quit rent and assessment guide. For the full ongoing cost picture, see the true cost of owning Malaysian rental property. And to run the numbers for any property, use our stamp duty calculator.
Sources
- Stamp Act 1949 — First Schedule (LHDN) — MOT stamp duty rates (Item 32(a)) and loan agreement rates (Item 22(1))
- Solicitors' Remuneration Order 2023 (Malaysian Bar) — Legal fees scale: 1.25% first RM500K, 1% next RM7M
- Budget 2026: Stamp Duty Exemptions Extended (RinggitPlus) — First-time buyer exemption extended to 31 December 2027
- Malaysia Foreign Buyer Stamp Duty Doubled (Alestria Property) — Flat 8% rate for non-citizens from 1 January 2026
- Bank Negara Malaysia — LTV Requirements — 70% LTV cap for third property onward