If i were to buy anyaman e.g. rm680k with ready cash, i should pledge my money into the bank as collateral during the 3 yrs period. Let say i have good background with only 70% LTV left..

(1) Which bank offers best?

(2) What ratio of pledged FD amount is likely to be approved?

(3) What else i have to beware?

Thanks for any advise and feedback.

This post has been edited by tangibee: Dec 5 2013, 10:39 PM

if situation not allowed for complete full pledge, i can opt for small loan.

50-100k pledge will be alright, do mind you, the money pledge are unable to withdraw back until full settlement. To comfort the management and banking relationship .

I have a loan that I pledge a FD becoz bank can't give me 90% loan. It's 1:1 and it's 5 years lock in period. I got it from HLBB

do you mean buy prop value snp at eg. RM1 million but after down payment of 30% will have balance rm700k for getting loan.

then i pledge rm700k FD to bank and in return bank pay me normal board rate interest for 5 yrs. (?)

im ok for no FD withdrawal allowed for 5 yrs because all FD amount can cover all 1:1 loan amt.

Will there be any mortgage repayment monthly? If No, what bank earn? If yes, how ?

i need to ask dummy questions bcos i hv zero experience on pledging against mortgage. My question is in view of my condition whereby i have the full 100% cash ready to buy a undercon condo with DIBS, and i cannot benefit from DIBS if i buy cash unless pledging to bank for earning interest purposes only.

The interest earned from FD pledging can be transferred to saving account?



This post has been edited by tangibee: Dec 6 2013, 07:05 AM

If you intend to purchase the property in cash but you want to enjoy the DIBS benefits from the developer, why not you proceed to apply for a bank loan? I believe most DIBS project offers free legal/stamping fees, just find a bank with only has 2 years lock-in period which is also the same duration of the property development.

In this case you can enjoy all the DIBS benefits and when the property is ready, you just settle the bank loan immediately. You do not need to pledge your money which locks your flexibility of investing that money during the DIBS period.

Oh ya, your are right!!

Lock in tenure should be in par to construction period. For lock in 2 or 3 yrs period is reasonable. i was caught in thinking about no RPGT after 5 yrs. Whats wrong me

i still have capability to get m250k loan, i should go ahead to apply loan then my balance cash money can be for other use. when it completed and no more dibs, i reduce principal with the money that i have.

The pledging FD amt will contra oustanding loan amount for the balance of 5 yrs (avoid RPGT).

I welcome any advise. Thanks.

Checked today. left high floor small unit while still got a few big low floor facing out.

imo, many flippers buy bcos many 2nd carpark left for booking. Normally own stay will buy 2nd carpark.

This post has been edited by tangibee: Dec 6 2013, 12:05 PM

What project?

anyaman

How many left units? %? is the project potential? any sharing?

i just counted them from snapshots. left 76 units in total for block A, B and C.

price wise is not exp nor cheap. good buy for own stay imo.

a lot of carpark left shows definately ton of flippers already lock in. own stay will buy 2 carparks.

This post has been edited by tangibee: Dec 6 2013, 08:54 PM

Last time i went there left 60 + units, now increase somemore. some drop out i think. But there are only 500+ car parks bays against 370++ units. Some have 4 rooms. Very unique design

I am also newbie in property investment. Can I ask why bother to take a loan when one has cash on hand? Take loan must pay interests!

M size is nice but their dry-yard is too small. The reast of the rooms are good.

M size is only left 13A floor and above. NEed more than 700k if get one more car parks.

For my case
I pledged FD of 5% of the unit selling price becoz I wanted 90% loan. Banker said I only eligible of 85% due to my current commitment.

You will need to apply a loan and there will be a repayment schedule BUT u don't need to repay anything until VP. Upon VP, you can cancel the FD. Assuming VP is less than the lock in period stated, the facility will automatically void and bank will demand 100% repayment. At this point, ur FD can offset the loan.

Bank will earn
1) interest charges during construction (bare by developer)
2) penalty charges for loan less than certain period (if u have a lock in facility period)

What I will do is get a loan, pledged FD and continue serving the loan until MOT. If you settle the loan before MOT, LHDN will most likely buying u coffee.

good idea if got money, saved and secured.

This post has been edited by yang1976: Dec 7 2013, 01:53 PM

For TS, the property is a under-con project and is DIBS in nature. So the developer is servicing the interest for you during the development period. If you pay in cash, the developer is not going to rebate you the amount of interest that the developer supposed to pay to the bank during the construction period.

So in short, why do you want to help the developer save the money by paying them straightaway even though unit is not ready. You can use that cash to do other investment during that construction period which may bring you better returns to fund your renovation in the future.

Hi, I would suggest to lower your leverage by paying off partially your existing commitment with your ready cash and and increasing your borrowing capacity. This way can enjoy both dibs benefits on under construction property and avoid pledging fd to banks which give u lower returns than ur interest savings.

Jz my little 2 cents. Pm me for more details.