Legal cost may not increase at all.

For my case:

Market rate RM120k
RM100k cost
Loan RM100k
SAP stated RM120k

In the event SAP stated RM100k, tax will still base on RM120k market rate.
Just in case the seller decide to pull something dirty, I got a cover letter stating selling price is only RM100k and not RM120k stated in the SAP.
That letter cost me RM250.

What if I buy from owner and not developer ? I can't giving this 'excuse' right ?

definitely it's more workable than scheming the grey areas.. (but your agenda and brutus's agenda are differing.. so how to close the gap?)

This post has been edited by lwb: Jul 14 2009, 04:25 PM

I wouldn't say whether or not it's legal or illegal.
Again, there could be abuse and dispute in this matter if both didn't really reach a fruitful agreement.

Like mentioned before, to jack up the price in the SPA; the seller would need to foot a higher legal cost. Are you willing to pay on his behalf?

2ndly there might be some implication when dispute arises. Since it's stamped and all, the seller actually have the right to request and demand for the amount stated in the SPA where you're not going to win in such dispute cases.

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Added on July 14, 2009, 4:26 pmaw...jason posted before me while I'm typing while on phone.

This post has been edited by b00n: Jul 14 2009, 04:26 PM

if i put myself in the shoes of the seller, i will do it, only if i am desperate to dispose the property.
like what is mentioned earlier, no advantage to the seller to mark up the price in the snp

Sorry to ks you. (kill steal)

The letter is the prove you might be doing thing dirty/illegally.

Please don't divert it too far, otherwise mod has no choice to close it. Discussion and exploring and knowing what is the issue, still ok, further into some grey area especially can be illegal one definitely no no.

This post has been edited by cherroy: Jul 14 2009, 04:32 PM

But this is protect buyer if playing dirty.

Whether the letter hold ground when there is dispute in court case still don't know/sure.

As the letter can be seemed non-legitimate as well.

The letter if produced in court might worked against buyer as cheating the bank to get a higher loan MOF.
Used the word "might" as we do not know what's the verdict yet.

All being said, it's just how willing are you to take up the risk and cost that is highlighted.

Of course, there is still another way to get a full loan.

Purchase the property with cash and re-furnish the place.
Get an evaluation with a higher price and re-finance it.
Ongkl have done it if you visited his blog, he got the cash by working with other investors.

Do note also, re-financing a property will prevent you getting the tax advantage of counting interest payment as an expense. Also stated in his blog.

Boon, good sharing. Thanks !

My friend just sharing with me, if to extra more cash, another legal way is to refinance after SPA. But
this will incur extra cost (but very subjective, some bank offer zero entry cost). This is legal and can get
extra cash. Any comment on this idea ?

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Added on July 14, 2009, 5:09 pmIf the purchase property below market value, then can consider to refinance again. Not sure anyone doing this ?

This post has been edited by invest2229: Jul 14 2009, 05:09 PM

His property is not purchase below market price but at market price.
He put a lot of money into renovating / furnishing to push the value up.
Hence getting a higher loan.

Zero cost loan maybe the answer but I have not done that before.

This post has been edited by jasonhanjk: Jul 14 2009, 05:45 PM

chief, the above seems bizarre. Whats the point of pushing the value up if he has to put plenty of his own cash as well?


Btw TS, can tell you right away that what you intend to do here is defo ILLEGAL. Should you are caught, implications could be quite severe.

well pai..

this purported deal is 12% off market rate.. (and you still can't believe that a property that sells below market rate?... thus i said "it's a pot of gold" no less.. it may not be 30% below market rate.. but it's still a steal).

.. sometimes.. shit happens and gold's dropped


renovation don't necessarily push up the price of a property.. some can run counter-intuitive to the appreciation of the property concern (furnishing is less likely to affect the price.. the weightage is just too minor)

This post has been edited by lwb: Jul 14 2009, 11:26 PM

Return of Investment of Cash on Cash Return exceeds 20%.
His rental per month increase to RM1300 fully furnish from the normal RM600 non furnish.

I bought the same apartment as his, literally his my neighbor.

The link to his blog.
http://reijb.com/increase-return-investment-property/

mate, its not that I dont believe that a prop can be sold at 30% below market rate, but 30% below developer's price is something that I've yet to see for a good property. That was your earlier claim, right?

in fact 30% below market rate is not uncommon, in fact went to an auction this year for something that is almost 40% below market rate, didnt get it though...

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Added on July 14, 2009, 11:50 pmhm, COCR exceeds 20% is not too bad, but how much was his total acquisition cost + reno + furnishing?

This post has been edited by Pai: Jul 14 2009, 11:50 PM

RM125k cost for the apartment.
Furnishing cost, legal and brokerage fees to RM14,000 and RM5700 respectively.

I did check with my banker about top-up SPA price, and they said nothing
wrong and she told me most people are doing this.

- Bank will most welcome if you take higher loan from them.
- Lawyer will most welcome because they can charge you much base on the price
- Government will earn more on the Stamp duty.

So, seem everyone also happy with this, then why does this illegal ?
Just try to understand more..

On the side note.

Singaporean buyers mark up the selling price so that they can withdraw more money from their CPF. While giving a portion to the agent.

This infuriate the Pay And Pay government.