for under construction property eg property value rm350K.
Eg for example buy 3 rd floor,
90% loan

how much interest alone i kena during under construction?

cause lower floors usually kena more interest.
Got roughly 20-30K a not

This post has been edited by airline: Oct 26 2009, 01:36 PM

There's no such thing.

The amount of interest you pay is dependant on how the bank disburses the loan.

So if the first 6 months of construction, the developer doesn't ask the bank to disburse the loan...then the interest you pay is ...ZERO.

Once the developer asked for disbursement...say 30k from you, then you will pay interest for the 30k. when the developer ask for the next 30k, you will begin to pay interest for 60k...etc.

So for instance SP Setia 5/95, you will never pay interest because the developer only expects the full amount on completion of the property, and while it's under construction you don't have to pay.

Certain banks and developers have tie ups that let you enjoy 0% interest during construction phase.

Most of time though the bank will release money to developer as and when the developer request it. And you will pay interest ONLY for the amount disbursed.

Eventually the bank will have disbursed 100% of the loan amount and you will get your key and your regular loan re-payments begin to repay both the interest and the principal.

This is regular for houses and should be the same for condos, but maybe it's slightly different.

It's also important to note that the development of your property is not linear. Usually the work begins slowly....Rm30k for the first 6 months, then another 30k, and then the remainder 240k in the last 8 months..something like that. This means that the interest you pay is lower than had it been linear.

It's best to check with the developer, what the schdeule for completion is and what is recommended.



This post has been edited by kar2on: Dec 3 2009, 04:58 PM