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Investment Top Up SPA ?

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Pai
post Jul 14 2009, 10:27 PM

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QUOTE(jasonhanjk @ Jul 14 2009, 05:40 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.
*
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? hmm.gif


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.

Pai
post Jul 14 2009, 11:48 PM

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QUOTE(lwb @ Jul 14 2009, 10:52 PM)
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)
*
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... tongue.gif

Added on July 14, 2009, 11:50 pm
QUOTE(jasonhanjk @ Jul 14 2009, 11:15 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. tongue.gif

The link to his blog.
http://reijb.com/increase-return-investment-property/
*
hm, 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
Pai
post Jul 16 2009, 01:02 PM

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QUOTE(invest2229 @ Jul 16 2009, 12:04 PM)
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..
*
I suggest you check on what are the implications that might arrise if the bank discovered that you lied n provide false information during your loan application.

rolleyes.gif
Pai
post Jul 17 2009, 06:07 PM

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QUOTE(jasonhanjk @ Jul 17 2009, 05:08 PM)
Here is another legal method, seller finance.

Normally you as a buyer, would need to fork out 10% and the bank pay the other 90%; to the seller.

What you need to do is ask the seller to pay for that 10% first and pay him back using installment. The SAP price still remain the same but you manage to borrow 100%.
*
jason, how does this benefits the seller? hmm.gif
Pai
post Jul 17 2009, 11:27 PM

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QUOTE(jasonhanjk @ Jul 17 2009, 08:19 PM)
Take a loan from the seller, pay him back in 5 years time with 5% interest or even higher.
It's definitely better for the seller to put the money back in the bank for 2.5% FD and he got his property sold.  rclxms.gif
*
wonder if any seller in MY would take this option.......they must be dem desperate. Need to more for legal fees somemore... hmm.gif
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