5 Hidden Johor Property Costs Foreign Buyers Must KNOW?! | Hidden Cost #2 Might Crush Your B

Avoid surprises. Plan your budget wisely. Protect your dream home.

Many Foreign Buyers Still Get Caught Off Guard

You would think foreign buyers already know all the costs involved - but surprisingly, many still discover unplanned cash outlays after signing the Sales & Purchase Agreement.

Once that happens, it’s often too late to turn back.

I’ve seen cases where buyers were excited about their new Johor home…until they suddenly realised there are major mandatory costs that their budget never accounted for.

This article highlights the five biggest hidden costs foreign buyers must know. For the real calculations and examples, watch my full video.

1. Foreign Levy (Johor State Consent Fee)

Every foreign buyer must pay this fee - it's not optional and it varies by:

• property type

• property value

• whether it’s residential or commercial-titled under HDA

And yes, the rates have changed recently, which caught many buyers by surprise. Some types of properties have a flat minimum levy, while others follow a percentage-based calculation that can jump significantly for higher-priced units. The exact numbers are broken down in my video.

2. MOT Stamp Duty (Memorandum of Transfer)

This is the tax payable when the property title is transferred to your name. A lot of foreign buyers think this is paid during SPA signing - but it isn’t.

Even more importantly, the stamp duty rate for foreigners may increase soon, meaning your stamp duty could double if your project completes after the new rate takes effect.

This is one of the biggest potential surprises for foreign buyers. I explain the timing, the rate change, and the real example in the video.

3. Legal Fees (Updated Under SRO 2023)

Malaysia revised its legal fee structure recently.

Foreign buyers will incur legal fees for:

• the SPA

• the loan agreement (if taking a bank loan)

• disbursements & registration costs

New launch projects under HDA may qualify for discounted legal fees - but subsale properties typically do not. In my video, I show a real example of how SPA + loan fees add up under the new fee scale.

4. Loan Stamping Fee

This one is often forgotten entirely. When you take a mortgage, the loan agreement must be stamped before it becomes legally valid, and this is a government-imposed fee based on your loan amount.

It’s fully payable in cash, usually during the loan documentation stage. I show the formula and exact calculation in the video.

5. Renovation & Furnishing Costs

Most new launch properties in Johor come “partially furnished” - which sounds good, but it's nowhere near move-in ready.

Buyers still need to budget for:

• lights & fans

• curtains

• carpentry

• appliances

• furniture

• smart lock (especially for Airbnb)

Depending on whether you plan for:

• long-term tenant

• Airbnb

• own stay

The cost can vary significantly. I break down each category and share a real example of renovation budgeting in the video.

Other Costs to Consider

Especially for subsale purchases:

• valuation report fee

• insurance

• utilities deposits

• assessment tax & quit rent

• maintenance & sinking fund

• possible agent fees

Not all these costs are payable upfront, but they do affect your long-term ownership cost.

Final Thoughts: Plan Beyond the Selling Price

Johor’s property market is growing rapidly - especially near JBCC, RTS Bukit Chagar, and key transformation zones.

But to invest wisely, foreign buyers must plan beyond the property price.

These five hidden costs can significantly change your total cash outlay. To help you understand the real numbers, I walk through a complete example of a typical RM900k new launch in my video.

👉 Watch the Full Video Here:

If you’d like a personalised cost estimate or want to compare different projects, feel free to reach out. I’m here to help you navigate the Johor market with clarity and confidence.

Feel free to reach out for a private consultation.

I’ll guide you with clarity, numbers, and trust.