Hi,

I plan to buy one condo. The selling price is RM220k and the market value is RM250k.
I try to nego with owner so the SPA can go up to RM250k, but owner refused.

This is my question. Since now no more RPGT (Real Property Gain Tax), why owner still refuse ?
Any disadvantage to the owner if SPA top up from the actual purchase price ?

Please advice.

.. what's "market value" in your definition?

Market Value - The higher price can go for this particular unit. I check with valuator and banker, my SPA can
go up to RM250k.

Do you know whats the reason owner refuse?

that's a deceiving "market value" based on hearsay..
most banker that you deal with are simply front-liners.. selling loans

if you really want to know what goes into deciding a worthy loan figure on that property.. go seek out a real banker who approves credit/loan facilities or have a say at credit policies in the bank.. you'd be surprise.

if a valuator "tells" you something.. it's merely hearsay.. pay them a couple hundred bucks and have a copy of valuation report.. and you'll see something interesting.

.. the funny thing is, peculiar rather.. is the reason as to why a person sells below evaluation? you may have found yourself a "pot of gold" there.. either that the market value is illusionary/out-dated.

the more peculiar thing is.. why on earth would you want to topup that figure on the spa? i have a feeling that you're trying to extract more money/cash out from this deal, from the bank.. not sure if this is the best way to do it, but there're other ways to achieve that extraction

This post has been edited by lwb: Jul 14 2009, 02:19 PM

i think due to tax issue

U should ask what are the advantages if the owner top-up SPA purchase price.
Why would the owner do something for the benefit of you if he/she got nothing in return??

Yes. I top up SPA price is because I can get higher loan. Eg. SPA Price = 250k x 90% = 225k loan.
My objective is to extract more money to cover my stamp duty, lawyer fee etc.. By another word, I want
to buy this house without any single cents pay out. Mainly I buy this house for rental return.

Other than top up SPA price to get more loan, any other way we can extract more money ?

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Added on July 14, 2009, 3:11 pmThe owner also not sure why don't want allow me to top up the price. Probably worry for any potential
trouble.

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Added on July 14, 2009, 3:11 pmNow no more real property gain tax. This should be out of picture.

This post has been edited by invest2229: Jul 14 2009, 03:11 PM

... ehehee dirty little bugger (another leveraging to the hilt). no offence, it's a strategic move if you can orchestrate it well.

... but i have a feeling that you're not familiar with the rules of the game (ceteris paribus there could also be a strategic reason as to why your potential seller refuses.. and there's a workaround, hence, the rule of the game to arrive to a win-win situation.)

This post has been edited by lwb: Jul 14 2009, 03:19 PM

Just like trojant said, seller gain nothing in the process so why seller must agree to top up the SPA which is not the actual figure he/she is getting? Bare in mind, top up in SPA figure while actual selling price is different is actually not legal to do so.

This post has been edited by cherroy: Jul 14 2009, 03:20 PM

It is not legal and people are being prosecuted in Singapore.

So far I have not heard any being prosecuted here in Malaysia.

To increase the SPA price would meant more legal costs to be incurred as all the legal cost is tied back to that price.
Unless you're willing to pay on behalf of the house owner the legal cost charged to him.

This post has been edited by b00n: Jul 14 2009, 03:45 PM

*** sorry for ruining the party but since our moderator, cherroy has hinted that this act may be "not" legal, continuing the discussion may cause the thread to be closed and banned by the moderators

To achieve win-win situation, you are saying to nego with seller, overall to compensate owner with extra $$$ ?
Please clarify if I'm wrong..

Anybody here to top up SPA price for property investment ?

i got a feeling that this thread is one step nearer to kena boon-asai..
boon's gonna drop that c-bomb on you.

clarifying with you here will disclose the grey areas of dealings..

This post has been edited by lwb: Jul 14 2009, 03:57 PM

Sorry, I'm not sure whether this is not legal. That wise would like to understand and clarify this strategy over here
and hope expert here to advice.

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Added on July 14, 2009, 4:00 pmHi,

Sorry, I'm totally new to this forum.

Appreciate we can have side discussion. Please drop me your email or MSN, I'm interested to chat with you further
on how I can make that special deal. BTW, my email it_like@yahoo.com

Thanks.

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Added on July 14, 2009, 4:02 pmUnderstood it will incur more on legal cost. But my objective is to reduce the cash out to the minimum possible.

This post has been edited by invest2229: Jul 14 2009, 04:02 PM

boon,

fire in the hole? your precision(timewise) c-bomb got me a on a double-take a few times.. salute you, man! *lol*

Buying from Developer lor...

SPA states RMxxx,xxx but after that develper give 10% discount, thus no need to give downpayment lor...

So consider legal????

This post has been edited by eugene jk: Jul 14 2009, 04:13 PM

of course it is legal as developer will issue a Credit Note (CN) to the buyer.

oh.. is this workable ?