Hidden Cost In Buying An Auction (Lelong) Property When it comes to buying an auction property, many people fear that they may encounter many hidden costs. This can be detrimental if one does not have sufficient cash prepared. Without the cash available, the process of acquiring the auction (lelong) property after your successful bid will be halted. In the worst-case scenario, you may lose the 10%...
Buying a lelong property in Malaysia is very similar to buying a property off the secondary market. However, on top of the usual charges like legal, loan, SPA and MOT, auction properties may have additional charges.
Imagine buying a property at 30%–50% below the market value. One can definitely accumulate wealth easily through auction properties. However, like all good things, buying an auction property has its opportunities and challenges. We will discuss this further in this write-up below.
The auction property market in Malaysia is often regulated by banks, auctioneers, and government bodies. They often require many documents to process a request, just like applying for a bank loan. If you are planning to participate in an auction, these are the documents that you should prepare beforehand.
