Hi guys, i going to auction a property this coming wednesday and i just got the copy of the POS.

I need some advice on this. Been reading through the forum for auction properties but couldnt get an exact answer.

Anyway, the property is without an individual strata title and it is leasehold.

Do you think i got sufficient time to get the loan? How about the title transfer? How long do you think it will need?

It's really a nice investment just that this will be my 1st auction. Afraid i cant secure the loan in time or the title transfer took too much time..

Hope all the sifu sifu here can advise on this.

Regards,
Deux Lai

problem with LH properties is sometimes you requires state consent by land office. That alone can set u back 2-3months..........


Is this a selangor or KL property?

Without strata title (which should mean that it's still under Master title) should mean that you only need developer's consent.
Read your POS and look for the duration given for settlement - usually it's either 90 or 120 days.
I settled everything within 75 days, so its doable but you have put in lots of effort to chase after your lawyer and banker.

Think on the positive site... not many bidder will be bidding this property.

From my experience, it takes about 6 months to get the money release...

What Pai mention is correct, what holds me the longest time is the land office.

Try to check with lawyer and banker. They will give better advise...

Selangor property. May i know how it will affect things?

Its 90 days. Auction by alliance.




And i am supposed to get a copy of the conditions of sale from the auctioneer. Do i call the auction house for this?

Sorry for having so many questions. It's my 1st auction

normally the lelong house is under private caveat by the bank...

so if u wan to fasten your loan process, u better go to that particular bank, so that they can release the private caveat faster instead of others banks....

My 1st property was a LH property in PJ. Took me over 9 months to get loan to be fully disbursed due to :

1. Lawyer inefficiency
2. Delay from developer
3. Concent required from land office. (lawyer told me this was the main reason it was delayed as apparently the dev has submitted application for strata title at the same time)

I nearly lost my deposit and deal due to the delay. But I beleive the main culprit was the lawyer's inefficiency. Get yourslef a good and proactive lawyer else there's a very real chance you'll lapse the 120 days given.

Some Bank allowed to extend the payment period. Again you need a good lawyer.

If not sure which lawyer is good. Go for the one that only deal with property, especially sub-sales property.

thanks for the advice

Will get a very good lawyer as i got quite some friends in this line.



To continue this discussion, i talked with a few banks just now, the loan will be based on the auction value or market value depending which is lawyer. So my question is, how do i buy this property with no money down since the auction value will be lower?


Anyway i can get the loan based on the market value? Or after i got the loan, then re-finance with another bank based on the market value?

From my limited understanding, u cant do zero down on auction properties, well not in the beginning. But like what you've mentioned, refinancing is an option, but mind you its a costly one when you refinance to a new lender after just afew months.

Your best option to a zero down here is go for "top up".

Pai, mind elaborating what's a "top up"?

Hi Pai,

If i going to get and 2nd house, how can i go for "top up"? I think bank will evaluate the market value of the property and consider the amount of loan. Thanks

JCV and Dawson,

Top-up is basically asking your EXISTING banker to give you an extra cash out to your current mortgage. Please note that top-up can only work when the loan you took is less than 90% of the property's currrent market value.

Pai,

It's my 1st property if i am able to get it. So only way might be only for refinance after a year or 2.. haiz... Thought can go no money down on my 1st investment.

I am not sure whether you need to wait for 1 or 2 years for top up... Maybe should ask the banker is there any such rules.

think top-up can be done in as fast as 6 months after full disbursement...

Heard from the bankers said that when refinance, the bank will ask why i wanna refinance. Got such thing? But for re-finance case, i only can get 80% MOF right? Any chance to get 90% MOF?

Just tell them frankly why you want to re-finance. They sometimes afraid you gonna do something silly.

Different bank have different property valuation price.
You just need to check them up.

For example, UXB will give RM72k for one town house.
For the same property, HSXC gave RM80k.

One can apply for extension of payment period.

But the condition is 8%p.a interest (some even 10%) until full settlement.

Can you bear with that?