If you’re buying a low-cost house in Selangor, I think it is best for you to read this.

We learned about this when we faced the same scenario years ago.

A client who bought a house from a Seller without knowing this is a low-cost house.

The Seller doesn’t know or recalled it as a low-cost property.

So, when a lawyer started to do the processing, there are no indication in the existing Sale and Purchase Agreement that this is a low-cost house.

No indication in the Strata title too; so lawyer did a land search. The land search doesn’t show this is a low-cost house. It looks like just another normal house transaction.

Since it looks reasonable, both parties seller and purchaser proceed to sign the Sale and Purchase Agreement.

After 1-2 months, the lawyer was triggered by the land office saying this is a low-cost house and consent from Lembaga Perumahan dan Hartanah Selangor (LPHS) is required.

The lawyer is surprised and of course the client even more stunned.

So, either you like it or not. An application for consent has to submit to Lembaga Perumahan dan Hartanah Selangor (LPHS) to proceed further.

By then, we only learned that all low-cost houses in Selangor have an additional restriction or consent.

If you’re buying a new or second-hand house in Selangor and it falls under Low-Cost house, a consent from Lembaga Perumahan dan Hartanah Selangor (LPHS) is a must.

Another requirement to get approval from Lembaga Perumahan dan Hartanah Selangor (LPHS) is the household income of the purchaser must not exceed RM5000 per month. And a purchaser is required to submit their latest payslip and some other documents with the consent application.

And so lucky, the Purchaser income is less than RM5000. Therefore the LPHS granted the application.

But, can you imagined if the purchaser income is more than RM5000, she will waste so much time and money.

In Selangor, there is a policy that once it was a low cost, it shall always become a low cost forever.

I guess, the Selangor government is trying to protect the low-cost houses from failing to the wealthy income group.

A ten years low-cost house in Selangor might be priced to RM150k to RM200k today.
As long as it falls under a low-cost house category, consent is always required.

How to identify the property is a low-cost house?

Sometimes, it’s complicated.

But you can try to identify like this.

Check the first Sale and Purchase Agreement (SPA) for the purchase price — usually, the property priced below RM45,000.

Sometimes, the low-cost house strata title stated consent is required.

Or ask your lawyer to enquiry thoroughly from the land office.

What are the criteria to get consent from Lembaga Perumahan dan Hartanah Selangor (LPHS)?

Since the last two years, there are some changes on the criteria listing. They have made slight changes on the income requirement based on property market value.

It’s no longer based on RM5000 per month regardless of any market value.
Please refer to below.

Criteria :
1. Must be a Malaysian with a minimum age of 18 years old and reside in Selangor.

2. The property must be own at least five years from the date of Sale and Purchase Agreement before the owner can sell to others.

3. A household income is required to fulfill based on the property market value.

Property Market Value Range : Allowable Household Income
a. RM100k and below : RM5000
b. RM100,001 – RM250,000 : RM7,000
c. RM250,001 – RM300,000 : RM9,000
d. RM300,001 and Above : RM10,000

* Household income is a joint income of husband and wife.

4. Purchaser and spouse don’t own any house in Selangor or Klang Valley.

5. Purchaser and spouse must stay or work in Selangor or Klang Valley.

Click here for more information about buying a low cost house in Selangor.

https://spkpm.lphs.gov.my/conditions

We hope you learn something from this article.
If you do, share the article and hope more people will be aware and learn from this story.

See you soon!

#malaysiahousingloan

Melissa Lee
Online Mortgage Consultant
012-6946746
www.malaysiahousingloan.net

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