Property News

[Tekkun]

Yep exactly right, for own stay it is good, for "investors", it is just like developers selling you the property along with the rope to hang yourself.

I remembered long ago, Proton Cars tried the same trick.
Their cars can't sell well. So they have this promotion. Buy now pay later. Installment free for 6 months.
Result: Proton became one of the largest 2nd hand car dealer after 6 months.

My advice: No money, just don't buy.
If you forced yourself to buy, you will surely die.

 

[snowbird]

I remembered long ago, Proton Cars tried the same trick.
Their cars can't sell well. So they have this promotion. Buy now pay later. Installment free for 6 months.
Result: Proton became one of the largest 2nd hand car dealer after 6 months.

My advice: No money, just don't buy.
If you forced yourself to buy, you will surely die.

I guess the developers are aiming those buyers that can afford to buy but unable to obtain a bank loan because unable to prove income, like self employed, hawkers, part timers (tutors), small time businessmen etc. Many hawkers and tutors I know are quite rich but difficult to obtain bank loan.

 

[xebay11]

I guess the developers are aiming those buyers that can afford to buy but unable to obtain a bank loan because unable to prove income, like self employed, hawkers, part timers (tutors), small time businessmen etc. Many hawkers and tutors I know are quite rich but difficult to obtain bank loan.

Yep like my dad, assets substantial and yet I had to be his guarantor when he bought a new car lol if only the banks knew, who is guaranteeing who.

 

[Tekkun]

Yep like my dad, assets substantial and yet I had to be his guarantor when he bought a new car lol if only the banks knew, who is guaranteeing who.

That's how the banks work. All based on paperwork and traceability / accountability of income.

 

[Frodo]

Need some advice, my friend is buying a subsale JB property and he has a lawyer doing the paperwork. Are cheques to be made in law firm's name or seller's name? What is the normal practice? Any fears of lawyers run road with money?

 

[Tekkun]

Need some advice, my friend is buying a subsale JB property and he has a lawyer doing the paperwork. Are cheques to be made in law firm's name or seller's name? What is the normal practice? Any fears of lawyers run road with money?

1. I always go through my lawyers. But the first 10% (inclusive of earnest deposit) has to be paid to the seller. What I would do is to buy a bank draft payable to the seller and hand it officially to the lawyer with instructions to release it to the seller only upon fulfilment of the signing process. Never hand the cheque directly to the seller on your own.

2. The buyer would be applying a bank loan so the differentials would need to be paid. In this case it is definitely through the lawyer who hold the money in escrow until completion of the process.

3. Well, it is the buyer's lawyer. If scared that he run road, then why would he appoint that lawyer? On the other hand, do you think the seller will run road also?

 

[Frodo]

1. I always go through my lawyers. But the first 10% (inclusive of earnest deposit) has to be paid to the seller. What I would do is to buy a bank draft payable to the seller and hand it officially to the lawyer with instructions to release it to the seller only upon fulfilment of the signing process. Never hand the cheque directly to the seller on your own.

2. The buyer would be applying a bank loan so the differentials would need to be paid. In this case it is definitely through the lawyer who hold the money in escrow until completion of the process.

3. Well, it is the buyer's lawyer. If scared that he run road, then why would he appoint that lawyer? On the other hand, do you think the seller will run road also?

Thanks, so other than the earnest deposit paid to the seller, the buyer will make all other cheque payments to the law firm as payee, setting aside the possibility of lawyer running road for now, ya?

 

[Tekkun]

Thanks, so other than the earnest deposit paid to the seller, the buyer will make all other cheque payments to the law firm as payee, setting aside the possibility of lawyer running road for now, ya?

Cannot as the lawyer would have to give an undertaking for the differential settlement before the change of name can take effect. No lawyer would do that unless the money is received.

 

[Frodo]

Cannot as the lawyer would have to give an undertaking for the differential settlement before the change of name can take effect. No lawyer would do that unless the money is received.

Sorry just to clarify, cannot as in lawyer cannot run road, or cannot as in not to make cheques to law firm?

 

[Tekkun]

Sorry just to clarify, cannot as in lawyer cannot run road, or cannot as in not to make cheques to law firm?

Payment of differentials cannot be made directly to the seller by the buyer.
Intitial : 10%
Bank loan: 70%
Differential: 20%. This amount got to be paid to the lawyer who would issue an undertaking letter to the seller's lawyer that the buyer will pay this amount. This money is paid by the buyer to his lawyer first who hold it in escrow (on behalf) before his lawyer would issue such undertaking. Then only the transfer can be stamped and take effect. If buyer pay seller directly or issue cheque, buyer's lawyer do not have anything concrete before they guarantee differential sum WILL be paid.

 

[snowbird]

Proposal made by Urban Well-being, Housing and Local Government Minister Noh Omar to allow developers to provide housing loans to the public got attacked first by the Finance Minister II and now by the DPM.
Just to show how the various ministries work, without consulting one another and start making announcement and then got backfired and withdraw or cancel.
The proposal also got shot down by the CIMB Chief as a "dangerous idea" that "more unregulated lenders and subprime borrowers will compound the risk of a debt crisis".
So, back to square one, unsold units will remain unsold.

http://www.malaysiakini.com/news/355350
http://www.malaysiakini.com/news/355397

 

[mpan12]

Proposal made by Urban Well-being, Housing and Local Government Minister Noh Omar to allow developers to provide housing loans to the public got attacked first by the Finance Minister II and now by the DPM.
Just to show how the various ministries work, without consulting one another and start making announcement and then got backfired and withdraw or cancel.
The proposal also got shot down by the CIMB Chief as a "dangerous idea" that "more unregulated lenders and subprime borrowers will compound the risk of a debt crisis".
So, back to square one, unsold units will remain unsold.

http://www.malaysiakini.com/news/355350
http://www.malaysiakini.com/news/355397

The authorities can say what they want. Whether do or not is another thing.

If banks are not lending with their own valid reasons, the minister must be mad to allow developers to lend.

Must be some developers desperate now that they cannot move sales. Probably need to engage more sweet tongue salesmen to give talks on why this is the best time to invest in their properties.

 

[xebay11]

The authorities can say what they want. Whether do or not is another thing.

If banks are not lending with their own valid reasons, the minister must be mad to allow developers to lend.

Must be some developers desperate now that they cannot move sales. Probably need to engage more sweet tongue salesmen to give talks on why this is the best time to invest in their properties.

All depends on who the developers bribe the most.

 

[Tekkun]

All depends on who the developers bribe the most.

It is the most stupid suggestion I ever heard.
But knowng how Malaysian politicans work, I am not surprised. All red herrings.
Mark my words, soon some 2nd tier financial institutions will soon come in to the rescue eg. Insurance companies, Malaysian Building Society, etc. The interest rates would be higher but the criteria would not be as strict as banks. Or the Government would announce some stupid soft loan schemes to help these poor buyers. Well..this is Malaysia. You cannot read things on the surface.

 

[Manhattan]

Developer's loan will be 12 to 18 % interest ?!? Asking for trouble.

http://www.thesundaily.my/news/1967458

 

[xebay11]

Developer's loan will be 12 to 18 % interest ?!? Asking for trouble.

http://www.thesundaily.my/news/1967458

Woo hoo, developers win.

 

[xebay11]

It is the most stupid suggestion I ever heard.
But knowng how Malaysian politicans work, I am not surprised. All red herrings.
Mark my words, soon some 2nd tier financial institutions will soon come in to the rescue eg. Insurance companies, Malaysian Building Society, etc. The interest rates would be higher but the criteria would not be as strict as banks. Or the Government would announce some stupid soft loan schemes to help these poor buyers. Well..this is Malaysia. You cannot read things on the surface.

Ha ha why stupid leh? In Malaysia, if any business is restricted, it simply means no kick back, look at the DVD business can survive so long, much protection money was collected.

 

[sgcount]

Sep 2016 construction update.

Iskandar Residences & Medini Signature

Afiniti & Gleneagles

Encorp Marina, Teega, Puteri Cove

 

[Merlion]

Super nice!

 

[snowbird]

It is the most stupid suggestion I ever heard.
But knowng how Malaysian politicans work, I am not surprised. All red herrings.
Mark my words, soon some 2nd tier financial institutions will soon come in to the rescue eg. Insurance companies, Malaysian Building Society, etc. The interest rates would be higher but the criteria would not be as strict as banks. Or the Government would announce some stupid soft loan schemes to help these poor buyers. Well..this is Malaysia. You cannot read things on the surface.

This Dumno Urban Well-being, Housing and Local Government Minister ought to be sacked because he don't even know his job and his ministry's responsibility.
Housing loan matters are banking and financing issues and should be left to the finance ministry and is none of his business and jurisdiction.
His job is to make sure that housing development for all wealth groups is properly and evenly carried out across the country, redevelopment of slump areas, urban renewal, etc. and on this part, he failed miserably.