Inclusive.

Pls refer to Post #336 for answer on 2nd sentence.

Hi Joink,
Can I share this ebook with my blog readers? I want to provide a download link in my blog for this ebook because it is very useful.

Can I share it?

Please let me know asap.

Thats why I said reconsider..

FD rate is not as good if compare with your principal reduction..

Sure but it is not mine.

Just give the cedit to Milan.

Hi all,

First of all, I would like to thank everyone who has made this a very resourceful site for property investment. I'm starting to look into Auction Property, but have many questions in my mind, which i hope to get some guidance here. Gam xia Gam xia.....

1.) If we are the successful bidder for an auction property, we will get a Memorandum of Sale immediately. Correct? And this MOS is equal to the S&P for a normal property transaction. Then do i still need to spend money on solicitors on the purchase documents?

2.) Where can we check the outstanding balance for water & electricity bill?

3.) From what i understand, below will be all the cost of acquisition of an auction property, please correct me if i'm wrong:
- Downpayment (Base on Margin of finance provided by bank)
- Legal Fee & Stamp Duty ( Not too sure about this, this is asked in Question No. 1)
- Loan Agreement Fee (My banker will absorb this)
- Repair Work (Depends on the condition of the unit)

4.) Is there any possibility to get more than 90% loan for an auction property? Because i understand that for a sub-sale property, we are able to get more than 90% loan if we r buying the unit below the bank's valued price by marking up the S&P. Can we do this with auction property???

Thank you very much!!

1. From what I understand, u dont need to assign a solicitor to execute a new snp. But pls check around coz Im not extremely sure about this one.

2. TNB and management office.

3. maybe just stamp duty.

4. No chance at the moment of application.

Pai Kor,

I have asked 2 agents doing auction property...they say i need to pay money to lawyer, but they can't tell me the difference about SNP and Memorandum of Sale (Auction Unit)...so i don't really trust in what they say...mayb they just want to take the money and put into their pocket...

I'm very new to this property investment market...so i do not have any solicitors who i can consult for free...can anyone recommend me some good solicitors who is willing to spend time with me to explain to me the whole procedure of auction property?? I'm in Johor Bahru...thanks in advance

Recently i have met some housing agents...all of them seem very cunning, and only have money in their mind...so whatever they say, i will just give a 50% discount...this is a dog eat dog world..... , so for small dog like me will most likely be eaten by those big bad wolf...so i intend to learn more from all investors, rather than listening to housing agents...

Thanks a million!!!

This post has been edited by BearKing2000: Oct 21 2009, 07:32 PM

PAGING JASONHAN!!!!!




p/s : He is based on JB n he bought auction props before, so he can best advise you, mate.

Saw your PM, I won't know a lot of answers but I'll try my best to answer you.

Most agents only want your money to bid on your behalf, eventhough they are paid by the bank to register their client whom won the bid.
Nothing right or wrong, it's just their way of doing business.

Now before we start off, here is a few serious question that I will ask you before I go deeper. If I am not satisfy, you will need to get it improve.
Treat it as a challenge. Every question has a reason behind it.

1. Why you want to invest in properties?
If your reason is strong, you will find ways to solve your problem. There will be more problem coming up after you acquire the unit.
Having talk to 2 agents had show that you have the innitiative, good.

2. How you manage your finance? How much you put away every month, in dollar and percentage?
This is important, if you mismanage your money. Buying a property will make you lose even more.

3. What have you learn about investings, which books have you read?

Here is a hint how to get started:
Normally banks would put up units being auction through an auction house. Sometimes you can visit these auction website, banks website or even one of the bank's branch.

Now, more than 50% of the properties being auction are bad. You must do your homework and find a good area.
A good agents is not easy to find, I have found her (2nd agent) and she is my dream gal.

There are 6 simples steps to become a succesful real estate investor, that is:

1. Choose to be an investor
2. Select an area
3. Finding an agent
4. Select a property
5. Put the deal together
6. Management

Hi JasonHan,

Thanks for the reply...and here is my answer to your questions...

1.) Why you want to invest in properties?
I have a full time day job, and i trade forex during my free time. I do make money from the forex market, but i feel uneasy when i remember that if i stop trading one day, i will lose the income as well...but with property investment, i'm able to create a stream of income which doesn't require my physical appearance, and the leverage is high...if the bank is willing to take up the 90% risk of us buying a house...that means property investment is quite safe IF we know what we are doing

2.) How you manage your finance? How much you put away every month, in dollar and percentage?
As i'm still single at the moment, i do not have much commitment on my shoulder, i'm able to park aside 70% of my monthly income

3.) What have you learn about investings, which books have you read?
As i mentioned in Q1, i'm currently investing/trading in forex market, and i know the market quite well, i have read plenty of books regarding this topic...and i started looking into the property market after reading Robert Kiyosaki's book, i'm still in the midst of understanding the whole process of property investment, it is a total different game comparing to forex...so i'm here as a noob to learn from the most basic concept

Actually i have done some homework, like viewing some units for sale, rent...talked to a few agents...attend some auction session to get the feel...visited some banks like pbb, scb, UOB, ocbc...i'm understand quite clearly on the sub-sale procedure, but i still need lots of guidance on the after auction procedure...

Hope to get more guidance from you...mind to meet up at a nearby mamak stall for a cup of tea?? haha....

Thanks again!!

Hehe.
Quite impressive with you answer.

I keep looking at deals every week. So I know in JB some areas will be coming up.
Basically the area I invest are in good neighborhood and the rental able to cover expenses with profit. I just intro to a friend yesterday, a deal can get him approx 14% return of his money via rental, Cash on Cash Return (COCR). Also the reserve price is below 25% below market.

Or later we could spend another RM5k to install AC and water heater to jack up the rent, that will increase the COCR to near 30%.

This Sunday I am free, so PM me.

14% return??!! that is a real good deal!
Is this a sub-sale unit or an auction unit??

I have already PM you...i am free anytime after office hours and weekend...call me when u feel like guiding a newbie like me...haha...

Thanks!!

Ah well.
My friend just called and he don't want this 14% deal at Permas.
Had to look for him another one at Tampoi.

Edit:
It's an auction unit.
The problem with auction is when the maintenance owe by the owner could go up to RM10k.
Normally investor have to pay up first then claim back from the bank later.
If cash strap, auction is not the best deal here.

I estimate needing approximate RM30k to invest in auction, otherwise re-sale would be fine for people whom have below RM10k cash.
Normally my agent will check all these and let me know upfront. It's faster this way.

I could do those checks but it will waste a lot of my time, not to mention finding the deals.

This post has been edited by jasonhanjk: Oct 22 2009, 01:54 PM

have question for sifus, if i want to buy auction apartment let say reserve price at 60k, what is the minimum money i shud have in hand? also must i engage my own lawyer for s&p and loan..etc? or we dont need lawyer to execute the sale? let say the previous owner still owe maintainence fee, who will pay most of the time? the bank or me? also what about outstanding electric bill, who will pay as well? sorry for my ignorance. thanks

Wah...dream gal ah....i have yet to meet 1 leh...can intorduce ah?? haha...

How to get agent to check all those outstanding bills for you on an auction property? I met a few agents and they ask me to check myself.....

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Added on October 22, 2009, 7:15 pmThose agents that i met ask me to check for the outstanding bills by myself leh...they say they only get a very little comission from the bank, and not willing to spend too much time on 1 unit...

This post has been edited by BearKing2000: Oct 22 2009, 07:15 PM

To check these basics, you pay them another RM1k to RM2k extra.
If you want them to negotiate with the current tenant to move, another RM1k. These are the charges upon successfully bidding the property.

If fail to get the unit, at most you pay them for their transport and search fees.

If a court order is needed, another few more k. Hopefully you don't go into that.

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Added on October 22, 2009, 10:08 pmFor RM60k reserve price, check you need to put how many % down.
If 10% DP, buy a RM6k bank draft.
If your budget is RM80k, get ready RM2k cash and a few hundred for stamp fee.
Just go to your bank where you create your savings account and buy a bank draft with your savings.
It costs RM5 to buy. To cancel it also costs RM5.

Most of the time maintenance will be borne by the bank but you have to pay upfront first.
Some banks will play dirty and don't want to pay.

Electric bill borne by the new owner except if it's a court auction.

This post has been edited by jasonhanjk: Oct 22 2009, 10:08 PM

thanks jasonhan, do i still need to engage any lawyer? also since its below 100k, loan will be nzec do i still need a lawyer for it or the bank will kaotim seems its the bank auction (my previous loan was done by my lawyer who represent me for subsale)? also i saw liek u are seems to be based in jb. what do you think about bandar seri alam?

Yes you need lawyer for both your SAP and loan document.
You can use the bank's panel of lawyer.
One of my NZEC loan, I uses HXBC lawyer and settle the SAP at the same time.

Having the same lawyer handling the loan and SAP would speed up a bit.
Do beware not all lawyers are the same.

Where is bandar seri alam?

masai area. 5-10min from plentong, half way to pasir gudang lor.

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Added on October 23, 2009, 2:08 pmalso previously i use jal n lim lawyer, office in cs.

This post has been edited by Eng_Tat: Oct 23 2009, 02:08 PM

I am not sure, have you scout that area?

Plentong there is Prima Regency, another auction coming for a 1024sqft unit.


Jal and Lim.
That is a firm that I use too.

This post has been edited by jasonhanjk: Oct 23 2009, 02:09 PM