Author: Jason Lim

Also in: 中文 · Bahasa Melayu · Bahasa Indonesia

“Jason, should I buy a new launch or a subsale property?” I get asked this almost every week. My answer is always the same: it depends on your goal, not the property.

The wrong question and the right one

Many buyers ask which option makes more money. I think that is the wrong question. The better question is: which one fits my current situation and my long-term plan? The best investment for one person may be the wrong investment for someone else.

Side by side

	New launch	Subsale
What you see	A showroom, a brochure and a plan	The actual unit, the building and the neighbourhood
When you move in or rent out	Usually 2–3 years or more	Within months
Rental demand	A projection	Visible: you can check real rents and vacancy in the building
Payment	Progressive, as construction advances	Deposit, then the balance on completion
Defect protection	24-month defect liability period, and late-delivery compensation (LAD)	Sold as is, where is; no developer warranty
Extras	Fixed price list from the developer; check what the SPA includes	Room to negotiate on price
Main risk	Delays, and the finished product or area not matching the promise	Hidden defects and older building condition

When each one makes sense

• A new launch suits you if you are prepared to wait for future potential, prefer paying in stages, and want the statutory protections that come with buying from a licensed developer.
• A subsale suits you if you want certainty: you can see the actual condition, the surroundings and the existing demand, and start using or renting the property quickly.

Four questions to ask yourself

1. What is my objective: own stay, rental income, or long-term growth?
2. Do I need rental income immediately?
3. Am I comfortable waiting for future appreciation?
4. Which option fits my finances and my timeline?

Neither is better. A new launch isn’t automatically better, and a subsale isn’t automatically safer. Over the years, I have realised there is no such thing as the perfect property, only the right property for the right person. The best property isn’t the one everyone is buying. It is the one that is right for you.

Related: subsale risks and inspection checklist · late new-launch handovers and LAD · booking fee refunds

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Not sure which suits you? Tell me your goal, budget and timeline, and I will show you both options in JB.

General information, not financial advice. By Jason Lim (REN 84424, IQI Realty Sdn. Bhd.).

Also in: 中文 · Bahasa Melayu · Bahasa Indonesia

Most buyers assume the booking fee is refundable if things don’t work out. Check before you assume. New launches and subsales work completely differently here, and most people only find out when they try to get their money back.

Quick answer

Is my booking fee refundable in Malaysia? For a new launch, yes: Regulation 11(2) of the Housing Development (Control and Licensing) Regulations 1989 bars payments before the sale and purchase agreement, so a booking fee collected should be returned if you don’t proceed. For a subsale, it depends on the Letter of Offer, especially the subject-to-loan-approval clause and who holds the deposit.

New launch: booking fees aren’t supposed to exist

For a project by a licensed housing developer, Regulation 11(2) of the Housing Development (Control and Licensing) Regulations 1989 says no one may collect any payment, by whatever name, before the sale and purchase agreement except as prescribed by it. In practice “booking fees” are still common, but if one has been collected and you don’t proceed, it should be returned.

Paying one also matters for another reason: the Federal Court has held that the delivery period, and therefore any late-delivery compensation, is counted from the booking fee date. Keep the receipt. See Your keys are late? The developer might owe you money.

In 2026 the Housing Ministry announced a proposed Option to Purchase framework that would allow capped, refundable booking fees with a cooling-off period. Until it is in force, the prohibition stands.

Subsale: it depends entirely on your Letter of Offer

In a subsale, the earnest deposit is legitimate, but whether you get it back depends on what the Letter of Offer (Offer to Purchase) says. Two points matter most:

• The “subject to loan approval” clause. Without it, the seller may be able to keep your deposit if you walk away, even if the reason is that your loan was rejected.
• Who holds the money. The deposit should sit with the licensed estate agency or a solicitor as stakeholder, not be paid straight to the seller. If it goes to the seller and things fall apart, getting it back is much harder.

Three things to check before you pay anything

1. Who is holding it? A stakeholder account, not the seller.
2. What triggers a refund? Loan rejection, failed state consent, title problems, and how many days you have to get loan approval.
3. Is it in writing? A verbal “don’t worry, it’s refundable” is worth nothing later.

By the time you need the refund, it is too late to negotiate the clause. I check all three before any client signs.

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About to pay a booking fee? Send me the Letter of Offer for a second pair of eyes before you sign.

Sources

• StarProperty: Time to legalise booking fees? (June 2026)
• NextSix: booking fees, EOI and what’s legal before you sign
• AskLegal: LAD and the booking fee date

General information checked on 29 September 2026, not legal advice. By Jason Lim (REN 84424, IQI Realty Sdn. Bhd.).

Also in: 中文 · Bahasa Melayu · Bahasa Indonesia

Think you are paying one legal fee for your purchase? Double-check. If you are taking a loan, the legal fee scale is applied more than once, and service tax and disbursements come on top. In this short video I explain why, and here is the breakdown in writing.

The fee scale is fixed by law

Conveyancing fees in Malaysia follow a scale set by the Solicitors’ Remuneration Order 2023, in force since 15 July 2023:

• First RM500,000: 1.25% (minimum RM500)
• Next RM7,000,000: 1%
• Above RM7,500,000: negotiable, up to 1%

For purchases from a licensed housing developer, a discounted table applies. The previous scale (before July 2023) charged 1% on the first RM500,000, so older articles and calculators may show lower figures.

Where the scale is charged

1. The sale and purchase agreement (SPA), based on the property price. For a normal sale, this fee also covers preparing the memorandum of transfer (MOT) that moves the title into your name.
2. The loan agreement with your bank, based on the loan amount, even if the same firm acts for you on both.
3. Service tax and disbursements on top. Service tax on legal services has been 8% since 1 March 2024, charged on both fees. Disbursements cover searches, filing, registration and similar out-of-pocket costs.

Worked example: RM500,000 property, 90% loan

Item	Calculation	Amount
SPA legal fee	1.25% × RM500,000	RM6,250
Loan legal fee (RM450,000 loan)	1.25% × RM450,000	RM5,625
Service tax (8%)	8% × (RM6,250 + RM5,625)	RM950
Disbursements	Searches, filing, registration	Varies: ask for a quote
Total legal cost		about RM12,825 + disbursements

Shop for competence, not price

Because the scale is set by law, quotes from different lawyers should be broadly similar, so hunting for the cheapest lawyer rarely saves you much. What does differ is how well your lawyer protects you: checking the title, spotting problems in the agreement and keeping the transaction on schedule. Pick your lawyer on competence.

Budget for all of it upfront

• Ask for a written quotation that separates each scale fee, the service tax and the disbursements.
• Check who pays which fee. Your SPA and loan offer state which legal fees you pay.
• Budget stamp duty separately. For foreign buyers it is a flat 8% of the price from 2026, far more than the legal fees. See my foreign buyer guide.

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Want a personalised breakdown of your total legal costs? Send me the price and loan amount.

Sources

• Malay Mail: property legal fees increase under the new order (2023)
• Malaysian Bar: service tax increase to 8% from 1 March 2024

General information checked on 29 September 2026, not legal advice. By Jason Lim (REN 84424, IQI Realty Sdn. Bhd.).

Also in: 中文 · Bahasa Melayu · Bahasa Indonesia

When you buy a new launch, the developer must fix defects that appear during the defect liability period. Buy a subsale home instead, and none of that applies to you. What you see on inspection day is what you are buying. In this short video I explain why, and how to protect yourself.

“As is, where is”

Subsale property is sold as is, where is. There is no defect liability period, and no developer is obliged to fix anything after you move in. The seller has no duty to repair defects unless your agreement says so.

Caveat emptor: buyer beware

The seller is not required to point out problems. Your job is to find them before you sign, not after. Courts have generally upheld this: if you did not inspect properly, that is on you, not the seller. The main exception is fraud, where the seller actively lies about or hides a defect. An honest gap in your inspection is not enough.

What can pass to you with the keys

• Hidden defects: leaking pipes, roof or window seepage, termites, faulty wiring, cracks behind cabinets.
• Unpaid bills: maintenance and sinking fund arrears, quit rent, assessment tax and utilities, unless the agreement makes the seller settle them.
• Title problems: caveats, charges or restrictions on the title that delay or block the transfer.
• Tenants: an existing tenancy that does not end when you expected to move in.
• Unapproved renovations: changes the local council never approved.

Protect yourself before the Offer to Purchase

Your leverage exists before you sign the Offer to Purchase and pay the earnest deposit, not after.

1. Get a proper inspection. View in daylight, and after rain if you can. Run every tap, flush every toilet, switch on every light and air-conditioner. For older landed homes, consider a professional inspector, especially for termites and roofing.
2. List every fixture you expect to get: air-conditioners, water heaters, kitchen cabinets, lights, curtains. If it is not written down, don’t assume it stays.
3. Put repair requests in writing. Problems raised verbally mean nothing later. Anything the seller agrees to fix must go into the Offer to Purchase and the sale and purchase agreement.
4. Check the paperwork. Ask the management office for outstanding maintenance charges; your lawyer will search the title and apply for any state consent needed (for leasehold land and foreign buyers).

Subsale can still be a great deal

You can see exactly what you are buying, move in within months, often pay less per square foot, and check real rental demand in the building. But the protection a new launch gives you automatically, you have to build in yourself, up front.

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Looking at a subsale unit in JB? Message me for a pre-purchase inspection checklist, and I will tell you what to ask the seller and what should go into the agreement.

Sources

• iProperty: the defect liability period and subsale homes

General information checked on 29 September 2026, not legal advice. By Jason Lim (REN 84424, IQI Realty Sdn. Bhd.).

Also in: 中文 · Bahasa Melayu · Bahasa Indonesia

Many people think property investment is simple: buy, rent it out, collect the rent every month, and sell for a profit five or ten years later. But the rent you collect is not your profit. In Malaysia there are taxes, local council charges, maintenance, utility bills and, eventually, tax when you sell. In the video I break down the six most important ones. Here they are in writing.

1. Rental income tax

Some investors think, “I don’t work in Malaysia, I’m just collecting rent, so Malaysian income tax isn’t my concern.” That is not necessarily true. Rent from a Malaysian property can be taxable in Malaysia. Non-resident individuals are generally taxed at a flat 30% on Malaysian-sourced income, including rent, and cannot claim personal reliefs.

The good news: you are taxed on the net, not the gross. Expenses incurred to earn the rent can generally be deducted, such as assessment tax, quit rent, fire insurance, loan interest, rent-collection commissions and ordinary repairs. Initial renovations and improvements are treated differently. Keep every invoice and receipt, and speak to a tax professional about your own position.

2. RPGT when you sell

If your plan is to buy today and sell when prices go up, Real Property Gains Tax matters. Buy at RM1 million, sell at RM1.3 million, and it looks like RM300,000 profit. But the taxable gain is worked out after allowable acquisition and disposal costs, and the rate depends on how long you held the property and who you are:

Sold within	Malaysian citizen / PR	Foreigner (non-citizen, non-PR)
Years 1–3	30%	30%
Year 4	20%	30%
Year 5	15%	30%
Year 6 onwards	0%	10%

Add the agent’s fee and legal fees on the sale, and every ringgit of appreciation does not end up in your pocket. Understand this before you buy, not when you are ready to sell.

3. Assessment tax (cukai taksiran)

Charged by the local council where the property sits. In Johor Bahru, which council bills you depends on the exact location. It looks small next to the price, so investors forget it, but you pay it every year whether or not you have a tenant.

4. Quit rent (cukai tanah) or parcel rent

Different from assessment tax: quit rent is a land charge paid to the state. For strata property you may see it as parcel rent (cukai petak). Again not huge on its own, but it adds up with everything else.

5. Utility bills

“But Jason, my tenant pays the utilities.” Usually, yes. But when a tenant moves out and you need a few weeks to clean, repair and find the next one, the electricity and water are on you. Know which accounts are in your name, what deposits are needed, and for some serviced apartment or commercial-title units, check the tariff before you buy. It is not always the same as a residential condo.

6. Maintenance fee and sinking fund

For condominiums and serviced residences, this is usually the biggest ongoing cost. Maintenance pays for security, cleaning, lifts, pool, gym, landscaping, common-area electricity and management. On top of that, owners contribute to a sinking fund for major long-term works such as lift replacement or repainting the building.

Plus: vacancy and repairs

Not a tax or a fixed fee, but every investor needs a buffer. Air-conditioners break, water heaters need replacing, tenants leave and the unit sits empty for a month or two. If your numbers only work with 12 months of occupancy and zero repairs, they are too optimistic.

Example: what does RM3,000 a month really give you?

RM3,000 a month is RM36,000 a year gross. Here is an illustration with example figures. Your actual numbers depend on the building, so always ask for them:

Item (example figures)	Per year
Gross rent (RM3,000 × 12)	RM36,000
Maintenance + sinking fund (RM500/month)	– RM6,000
Assessment tax + quit/parcel rent	– RM950
Insurance	– RM300
Repairs and upkeep	– RM1,500
One month vacancy	– RM3,000
Agent fee to find a tenant (spread per year)	– RM1,500
Before loan interest and income tax	about RM22,750

Suddenly RM36,000 does not look like RM36,000 anymore. Don’t only ask “how much can I rent this for?” Ask “how much do I actually keep?” A good investment isn’t necessarily the one with the highest rent. It is the one where the numbers still make sense after every cost is included.

Costs at the point of purchase are a separate topic: see legal fees when buying property and my guide to foreign buyer rules and stamp duty.

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Want the real numbers for a unit you are looking at? Send me the project. I will work out the maintenance, taxes and a realistic net return with you.

Sources

• LHDN: RPGT rates
• PropertyGuru: rental income tax in Malaysia (deductible expenses, non-resident rate)

General information checked on 29 September 2026, not tax or financial advice. By Jason Lim (REN 84424, IQI Realty Sdn. Bhd.).