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Investment LOAN approved - 60% from income?, different from one third? anyone?

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enriquelee
post Jul 8 2013, 01:16 AM

Don't ask for more, ask for COKE
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I believe the commitment of the individual is more crucial.
enriquelee
post Jul 8 2013, 11:06 PM

Don't ask for more, ask for COKE
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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.

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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You are right for an investor case. Own stay will be as ProperTYcoo mentioned.
enriquelee
post Jul 9 2013, 09:03 AM

Don't ask for more, ask for COKE
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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.
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.
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I will say DIBS is beneficial to investor.
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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