No DIBS - more genuine buyers, less chance for speculators

No DIBS - developer reduce supply especially those soho/sovo, but releases limited good quality supply at targeted market

No DIBS - everyone pls welcome the entry of a new giant player... PR1MA... govt agency will be more attractive against private developers for entry-level new properties... (without DIBS pr1ma can have bigger market share)

This post has been edited by accetera: Jun 24 2013, 11:34 PM

I thought PRIMA is for low income buyer and one of the restriction requirement is the property bought could not be sold within 10 years

Dibs creating unhealthy trend where everybody kip buying new luanching properties, and developers kip pushing up prices with every new launch...many cheaper gems can be found in subsel, why buy a new RM500k, 600sf studio when u can get a slightly older but cheaper maybe Rm450k 1000sf condo? Wat about those Rm600-700k studio units barely 600++ sf soho vofo sovo toto, who can afford and want to buy when completed??

For middle income or normal income... from income of rm2,500 to rm7,000... lower income is ppr or spnb.

good to see no more dibs

+2

Actually of u try to look around, there are still many few year old condo with nice designs...for me, i would rather sleep well eveynight rather than working like a slave to pay an expensively bought condo that may cost nearly twice as much..dont forget the total interest paid, if u buy at Rm500k u end up paying double if inc the interest

Maaf, apa ialah ppr or spnb?

its getting more challenging every year..

DIBS for first time buyer
No DIBS for property owners from 2nd property onwards.

That would be most ideal.

This post has been edited by urb7: Jun 25 2013, 05:47 AM

Even w/o dibs for some new project, Dev has trick in huge discount. Which mean buyers get to enjoy lower d/p. in subsales, the valuers somehow failed in many cases to match the selling price. If gov force a 30% d/p with no dibs, if possible no discount, then buying new props ll b similar to buying subsales in the upfront payment. Anyway, it's my pov.

+100

I hope no DIBS, no free MOT, free loan legal fees, GRR as this will inflated the selling price and create bubble.

Should also avoid the rebates, discount and credit notes thingy, give a fair chance for subsales market at the same time government can collect fair RPGT.
For example now developer selling RM1000psf, give 20% rebate so actual selling price is RM800psf, when vp, flipper sell RM1000psf, on paper no capital gain so government collect zero RPGT, and at the same time flippers pocket in 20% profit with no tax.

Not all developers provide such flexibility.
And it is not applicable to subsales market

Ideal but difficult to implement.
It is not developer's responsibilities to check who is the 1st time buyer who is not, and how to prove u r a first time buyer?

DF is not mine.
A good project will still sells even without discount.

Developer has imputed DIBS cost into the price. So the current price is inflated.

If no DIBS, the developer has the option to reduce price. And my guess is new launches demand will be lesser without DIBS, so they have to price it lower

DDD camp, is this the start of the bubble burst ?

No dibs no rebates no free mot and all kinds of freebies are among the measures to reduce the artificial or the flippers demand and thus reduces the chances of bubble formation.
So this measurements will not cause the bubble to burst but the other way round.

tell that to the DDD camp and they will think otherwise

Is the rumour only on abolish DIBS, or abolish DIBS + 30% rebates + free mot + etc ? If only DIBS, many people still can afford the interest during construction period. Not much effect to flippers

But abolish 30% rebates + free MOT + etc will turn away the flippers, AND ALSO young first time buyers who still do not have enough savings for the 10% down payment. So it will not help the first home owner who really need a roof over their head

I think it will be better to reduce the 70% LTV to 50% on 3rd house to curb flippers. Then from 4th loan, 30% LTV, or 0% LTV

The posts seem to only emphasize on DIBS. Don't forget this alone is not adequate. The other parts are discount and rebates. But the question is whether can bank negara control discount and rebate? Maybe they just make sure loans are computed after discount or rebate. That will be the way to go about the problem.