REHDA: Increase in legal fees will burden the property buyers
No one likes price increase except the one who’s increasing it
I think this is a common thing right. We love that bowl of noodle X but we did not like it when the price is increased, again. We may stop eating it for a while but after a while we may accept it and continue eating it again unless if there’s a cheaper alternative. If there’s a cheaper alternative Y which is just as good, we would now continue that new alternative and will forget this expensive bowl of noodle X, right? Well, what happens if there’s no alternative then? Just one choice and the choice is compulsory? Yeah, that’s when acceptance is a given.
Recently, it was reported by the media that the conveyancing legal fees will increase because it has not been increased for a number of years. Read here: Property Investment 101: Be ready for higher legal fees. Now, we have one association in the property world who has given their views on this increase and their view is that this should not happen.
Article in nst.com.my Real Estate and Housing Developers’ Association Malaysia (Rehda).Rehda president Datuk NK Tong Said, “The average citizens, who are still grappling with the aftermath of Covid-19, will undoubtedly feel the impact of the increase in legal fees. At this time, industry players should strive to find ways to reduce the cost of purchasing a house in order to fulfill the housing agenda proposed by the government. Rehda will continue its duty to provide quality and affordable homes within the appropriate timeframe for the progress of the country and its people.”
The Malaysia Competition Commission (MyCC) previously opposed the increase in convenyancing legal fees involving property transfers while the people were still struggling with the rising cost of living.
Do read the article in full here: Article in nst.com.my
Would I stop buying a property when cost of buying increases?
Personally, I think it would not stop me from buying a property in the future. However, it may delay the decision definitely since the cost of buying a property has increased. If we ask the ones who are not buying a property and has given many reasons whey they would not want to buy a property, then this increase in conveyancing legal fee would just be another reason for them not to buy a property. In other words, I do not think the situation between the ones who are buying and the ones who are not buying will change.
In actual fact, first time buyers who did not know about this increase may just say, ‘wah… legal fees quite high for this property transaction.” By the way, first time buyer would have said the same with the old legal fee structure too.
I do not think the Bar Council will be reversing their decision for this increase. Let’s see what happens if indeed the property transaction slows down. Then, it may be a reason for a second thought. Else, it’s just another all talk and no action. I guess the media will move on to the election related topics for a while first.
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Next suggested article: When rates rise, property transactions drop, right?
