Hidden expenses after you get your keys

Posted on
Share this article   

By Joseph Wong josephwong@thestar.com.my

So you finally receive the keys to your dream home but are you ready for the hidden expenses that come with new homes? 

Everyone knows that banks will be the first one to hit buyers with the full loan instalment once the delivery of vacant possession (VP) is done. But there are a few more things that homeowners will have to pay because these are usually not talked about.

The savvier ones would have put aside some savings to handle these additional expenses, but there are some buyers who have already stretched their budgets to the limit and these are the people who are usually caught unaware.

Before moving in, some developers plan ahead and will ask the owners to apply for various utilities even while the property is nearly ready for VP. Others may only ask you to do it after.

Utility

Utility costs

These utilities applications include electricity supply where owners need a new account application with Tenaga Nasional Bhd (TNB); water supply via Syabas (if in KL, Selangor or Putrajaya); and Internet via the various telecommunication providers. 

For TNB, customers are required to pay upfront all the essential charges which include the connection charges, stamp duty and security deposit to apply for electricity. The connection charges vary as the TNB engineer will provide the estimate. The stamp duty is RM10 but the deposit depends on the type of home.

The latter is based on the premise type and phase of supply requested (one, two or three-phase). With a higher phase, better electrical stability is expected but a larger deposit will be charged. 

The range of deposits is between RM170 for flats or kampung houses and up to RM1, 600 for multi-storey bungalows.

The water and Internet charges vary among the providers and run in the hundreds of ringgit but are not as high as what is charged by TNB.

Memorandum of Transfer 

In almost all cases, the sales and purchase agreement and legal fees would have been paid during the initial purchasing period. The bigger sum is the fee for the Memorandum of Transfer, which is calculated based on the purchase price of the property. But fret not, for the buyers during the Home Owners Campaign (HOC) which has provided exemptions on this hefty bill for qualifying homes.

Assessment_rate

 

Assessment and maintenance

Another substantial bill that will arrive after VP is the council’s assessment rate. This is based on the value of the property. The initial assessment letter from most councils shows the proposed rates, therefore owners still have the opportunity to approach their respective councils to ask for a reduction if they feel that the rate are excessively high. A written request must be submitted to the council stating the reasons for the reduction. Knowing how much neighbouring homes are paying will help in contending for a lower rate. 

Some developers waive the first year’s maintenance fee and sinking fund but they will be some who will have to start paying this monthly bill. Depending on the shared parcel, the bigger the unit, the bigger the sum.

renovations

Renovation

One of the biggest headaches with a new property is that most units are bare units so renovation costs depends on how much the owner can spare or is willing to spend. Many buyers wait until the defects of the unit has been fixed before proceeding with the renovation as certain developers may claim that the defects were the result of the renovation works. There is also the cost of time. Owners intending to move in or rent out their properties have to wait until the defect and renovation works are completed.

The recent property and home exhibitions and fairs have been offering deals as low as RM18,000 to RM24,000 for smaller units. This writer’s neighbour paid over RM60,000 to renovate and furnish her three-bedroom unit. Owners should estimate about 6% to 8% of their property value as an indication of how much they should put aside. Even the small items add up.

Cleaning service

After all the hassle of renovations, most owners are already too exhausted to clean their homes themselves. While they can save a little more by cleaning the units themselves, for many owners, this is the final bill that signifies that their homes are finally ready.

Want to contribute articles to StarProperty.my? Email: editor@starproperty.my
Related News

Fresh from the news oven

16:03 PM
News & Articles
14:03 PM
Property News
14:03 PM
Property News
Latest News

Stories and news that might pique your interest

16:03 PM
News & Articles
14:03 PM
Property News
14:03 PM
Property News
14:03 PM
Property News
12:03 PM
News & Articles
16:03 PM
News & Articles
14:03 PM
Property News
14:03 PM
Property News
14:03 PM
Property News
12:03 PM
News & Articles
16:03 PM
News & Articles
14:03 PM
Property News
14:03 PM
Property News
14:03 PM
Property News
12:03 PM
News & Articles
16:03 PM
News & Articles
14:03 PM
Property News
14:03 PM
Property News
14:03 PM
Property News
12:03 PM
News & Articles
11:02 AM
Home & Living
09:08 AM
Home & Living
10:07 AM
Home & Living
12:07 PM
Home & Living
14:07 PM
Home & Living
22:06 PM
Home & Living
00:03 AM
Featured Dev
00:03 AM
Featured Dev
00:03 AM
Featured Dev
08:02 AM
Featured Dev
08:02 AM
Featured Dev
00:12 AM
Featured Dev
22:11 PM
Events
10:09 AM
Events
10:09 AM
Events
12:09 PM
Events
12:05 PM
Awards 2023
16:03 PM
News & Articles
10:02 AM
News & Articles
11:11 AM
News & Articles
11:09 AM
Featured
17:04 PM
News & Articles
11:01 AM
News & Articles
11:11 AM
Investment
16:06 PM
Featured
16:06 PM
Investment
15:06 PM
Investment
12:07 PM
潮樓產業
14:07 PM
潮樓產業
10:07 AM
潮樓產業
16:07 PM
潮樓產業
14:07 PM
潮樓產業
12:07 PM
潮樓產業