hi gurus,

some question that need your advice....

let say....the property that i am going to purchase is 420K from the 1st owner...and the property is going to be completed this year end.

so let say the 1st owner made a clean cut of 30K profit....

so for me, do i loan 90% of 420k from the bank and the bank will repay the profit to the 1st owner?? or i personally have to pay the 1st owner 30k and transfer the ownship to my name?

i really don't know what is the process in involved.

aprpeaciate alll the gurus help here....

quite simply, the bank will issue/approve a loan based on RM420k which is your buying price & owner's selling price..

complicated version, the bank will definitely go through a process of valuation with proper valuer. If the valuer values the house at RM420k or above, you hv no problem getting a 90% loan based on RM420k

but, if the valuer feels the house value is e.g. RM400 (or whatever value) max, you can only get a maximum of RM360k which is 90% of RM400k. you will hv to fork out the remaining balance to pay the owner...that is if you really like the house, the ori owner didnt want to reduce his/her price & you willing/able to pay the balance in cash.

bank will 99.5% of the time go with the valuer's value even though the owner claim the value is higher.

it doesnt matter what 'profit' the seller is making..30k or 300k doesnt matter to the bank as long as bank's valuer feels the seller is selling at market rate.

you can even ask/pakat with the owner to state that his selling price is RM460k (if the market value is ok) but actual selling price is RM420k...so the bank will release RM420k to the owner which is 100% so you dont need to fork out any money to buy the house...can save RM40k for renovation or invest in other property

this is known as sub-sales. you will need to hire a lawyer or use the lawyer your bank recommends you. you will need to pay a deposit, & whatever balance (minus what the bank will pay as your loan) through your lawyer.

bank will release the loan/money directly to the house owners, again through the lawyer and will notify you once money is release.

whole process takes about 3months.

if you need a loan and/or lawyer let me know but i'm not a banker & i will not make any profit from you. i'm just able to help.




This post has been edited by daryl.k: Nov 4 2009, 07:47 PM

If the property is still under construction, my understanding is that the official S&P cannot be signed. You can only sign some document to "fix" the selling price.