I believe the commitment of the individual is more crucial.
Investment LOAN approved - 60% from income?, different from one third? anyone?
Investment LOAN approved - 60% from income?, different from one third? anyone?
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Jul 8 2013, 01:16 AM
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All Stars
10,510 posts Joined: Jan 2003 From: Atlanta |
I believe the commitment of the individual is more crucial.
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Jul 8 2013, 11:06 PM
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10,510 posts Joined: Jan 2003 From: Atlanta |
QUOTE(DrPitchard @ Jul 8 2013, 03:49 PM) I actually strongly disagree on how it has been coined, 'paying for the future price'. When one takes DIBS, the purchase price that he/she is forking out is merely the current price + the interest amount, that's it. You are right for an investor case. Own stay will be as ProperTYcoo mentioned.That means, they are not paying anything extra when they purchase the property through DIBS. It will however inflate the price of the property and the sub sale purchaser will be the one bearing the effect. He/she will then be paying the 'previous current price + DIBS amount + appreciated amount'. That person will be paying for DIBS but not getting any it. |
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Jul 9 2013, 09:03 AM
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10,510 posts Joined: Jan 2003 From: Atlanta |
QUOTE(Fat3Twister @ Jul 9 2013, 12:54 AM) DIBS is a marketing gimmick, it's like you don't have to pay anything until completion to attract buyers especially investors which the interest's already factored into the selling price. I will say DIBS is beneficial to investor. DIBS don't really help people who can't fork out high upfront payment as the interest is to be paid monthly on the loan disbursed which for property under construction, the loan amount is disbursed according to percentage of completion. It's the discount/rebate that matters. Pay 10% (Most cases), sit back and relax with 0 payment, once VP (also means installment start), then sell off the property. So basically it eases an investor cash flow. |
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