Built & sell property

http://www.starproperty.my/index.php/artic...ajang-05092014/

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Not really  leh!
Because  of the massive  jam during  peak hour i too spend a lot of time & petrol on the road,  eg yesterday  it took me 1 hour 40 minutes just to travel from city centre  to my house though  is mere 12km,  unless  u r talking  about  off peak & Sunday,  with the way new project  every  couples  of months i think in 3-4 years down  the road it will be worse  than Puchong,  if u talking  about  Toll free to KL then i agreed  that's an advantage.

I agreed. If really BTS, developer ll first built in the finance cost + future cost into the properties. DDD buyers how to fork out the money to buy leh? Plus many smaller developers cant finance the project n hence left the big boys to control the supplies of limited houses. The game is tailored for the rich.

Not they dont understand. It is just purely keyboard warrior down syndrome. They cant accept the n admit it since they took their stand at one side n hence tak kira salah betul also must win the argument eventhough it is out right wrong.

yup. this is why sometimes when i say something, someone die die dont agree with me, even said my point is not logical, i just kept quiet already. i shared info based on my experience of buying props. if duwan to listen, its ok. i dont lose anything.

In DIBS, flipper still need to obtain loan to pay for progressive payment, just don't need to pay loan interest.

With 10%:90% payment upon VP, means no interest no progressive payment at all until VP, isn't it greater news for flipper?

I cannot brain how this can be called BTS, as it is already sold once 10% payment is made.

I taught this model is more "advanced" than DIBS.

that is provided developers sold all units out one shot... if developers still hold units.. how you going to flip?

but 3 months before VP..

since you said it is a good news for flippers, shall we start all BTS? since it works better for flippers right?

dunno.. maybe SP setia can start BTS?

BBW, what make you think the developers will still holding the units if they can sell it? Flipping themselves?   

Eg: Developer introduce 300 BTS houses, let say 300 flippers buy the houses by paying the first 10%, then shaking legs to wait the developer to complete the houses 2 years later, and perhaps only 2-3 months before VP, the flippers will seek the appropriate loan.

After getting the loan, then put up a price tag so called 200k extra for the subsale. Isn't this even worse than DIBS scheme on promoting flipping?   

whats is CTB?     

U pour salt to their pets snail lah ! now their dream melted already..lol

CloudAtlas challenge u said there is no Build & Sell project in the market woh, show him the link to spice him up.. hehe

what makes you think they are not holding any units? they going to sell cheap cheap even 3 months before VP?

flippers of course can buy and claimed 3 months before vp straight away can sell, question is?

in normal buy/pay before selling situation:

developers launched in 2014, take camelia residence= 430k

so by the time it finish in 2016= flippers trying to sell 750k ( quality of camelia is better than SP setia)

at the point of purchase with rebates and etc, only bought at 430k, servicing the loans come on 2016 after vp, got good reason to increase the proeprty after going 2 years and vp right? but still not doing good... subsales rates your goodselves know

in BTS,

developers start building now 2014, no price yet coz built and sell,

3 months before vp, you pay 10% and get loan of 90%, you say will flip better?

what is the price the developers going to sell 3 months before vp? 430k? like above, selling prices 2 years before?

so 3 months after you got vp, straight away serve full interest... what makes the price up again 3 months before vp? if you say the same, i.e still got profit the expected profit of rm200k above.. why developers are jot doing BTS and need gov to force them to do?

coz flippers mentality= whether BTS or not, moment they launched still wallop all units...?

by the time you sign the S&P, you pay 10% straight, the lawyers will lodge caveat on the master title.. the bank you borrowing 90% loan will also lodge charge..

you never dealt with sub sales before meh? cannot sell yet? like this ppl pay your agent 2%, you go and sell again, then upon signing S&P you pay remaining 8%, you collected 8% then sell again to other ppl.. can or not?

you never dealt with subs sales before?

BTS seem pro more for buyer/investor/flipper, what do you think developer keen to do that? Any incentive if they do so?   

From the various reports and write-ups since the Dep. Prime Minister Dato Seri Najib Razak announced the new 10:90 concept of house purchase and delivery we get the impression that there are a lot of confusion and misunderstanding as to what the announced 10-90 system entails. The present progressive payment system (sell then build-STB) is generally well understood due to the fact that it has been the mode of house purchase for the past few decades. The build then sell (BTS) system is where developers sell only completed houses. A few financially strong developers with developments in prime locations have adopted the complete BTS system and hence it is not a totally alien system. Housing projects that are build and marketed using the complete BTS system need not comply with the statutory standard Sale and Purchase Agreements. It is not difficult to see the vast difference though.

However, the system that was announced by the government
is not a system that is truly BTS. It is actually a midway between the present progressive payment (STB) and the complete BTS. You may call it a variant of the STB or a variant of the BTS, or 'Deferred Payment' basis, it matters little. We would prefer to term it the 10-90 concept so that it portrays a more accurate picture of what the system entails. What is important also, is to understand the mechanics of it.

In the announced 10-90 system a buyer pays a deposit of 10% and thereafter the balance of 90% will only be payable upon the due completion of the house together with the issuance of the Certificate of Fitness (for Occupation). The 10% is paid to the lawyers acting as Stakeholders and the sale is 'locked-in'. For the house buyers, it is still a purchase based on brochures and advertisement on a concept. The 10:90 system is still a "Sell first then Build" model as homes are still yet to be build or completed at the time of signing of the sale & purchase agreement. However the big difference is that if the developer for whatever reasons fails to complete the project or abandons the project, the buyers are insulated from the disastrous fallout.

Obviously, with the introduction of the 10-90 system, a new set of Standard Sales and Purchase Agreements needs to be put in place. The Legal Committee of the National House Buyers Association have put their heads together and have prepared a copy of our proposed draft Sales & Purchase Agreement to cater for the 10-90 system. We have, during a formal dialogue held with senior officials of the Ministry of Housing & Local Government, presented copies of our efforts to Yg Bhg Dato Ahmad Fuad the Ministry's Sec Gen. We term them the Schedule J & K - Sale & Purchase Agreement 10:90 concept.

To better understand the various existing sale transaction and the payment systems for the different types of purchase; the same are enumerated from this table:

Table1: Comparison on the delivery systems

 
  Completed Properties  Progressive Payment System (Sell-Then-Built)  10:90 payment System
(1).  On the signing of the Sale & Purchase Agreement (SPA)  Pay 10% of Purchase Price  Pay 10% of Purchase Price  Pay 10% of Purchase Price
(2).  Waiting period for Completion of Construction & Notice of Delivery of Vacant Possession  None  Within 24 or 36 months or more upon Architect's Certification of Completion  * Within 24 or 36 months or more upon Architect's Certification of Completion
(3).  Buyer to complete payment/s  3 months from SPA Date (in normal situations)  Progressive payment system (10; 10; 15; 10; 10; 10; 5; 5; 5; 12.5; 2.5; 5 in % (from first 10% payment or SPA Date) while waiting for completion of construction  90% of Purchase Price at 24 or 36 months from SPA Date depending on the regulated contract of sale
(4).  Waiting period for actual occupation with Certificate of Fitness for Occupation (CFO)  None  Within 14 days from Vacant Possession or longer depending on Developers' architect to procure the issuance of CFO.  *Proposed Vacant Possession with CFO
(5).  Waiting period for transfer of individual/strata titles  Varies on whether titles have been issued at the time of signing of SPA  Varies from developer to developer  *Proposed Vacant Possession with issuance of titles
* Proposals made by HBA

As can be seen from the table above, the 10:90 payment system is still a contract to sell (through the signing of the SPA), build then deliver. The term "Built-then-Sell" is hence not appropriate and should not be used in its entirety, when referring to the 10:90 system as the two systems encompass substantially different characteristics.

To avoid further misconceptions and confusions, perhaps we should all refer to this recently announced concept as 10:90 system rather than confusing it as a BTS system.

source:

http://www.iproperty.com.my/news/668/what-...build-then-sell

Isn't it we are talking about that 10%:90% model? that people can still buy with 10%, which is even better as compared to DIBS.

When 10% is made and signed, it is considered sold.

The real BTS is when the property completed, only it is being sold, and receive payment 100% on the signing.

For flipper

DIBS
Pay 10%, and progressive payment but no interest before VP

10%:90%
Pay 10%, no progressive payment no interest before VP

Which is better for flipper?

That's why I said 10/90 is not good to deter flipper, in fact better for them, save up progressive payment.

The good of 10/90 is reducing the risk of abandoned project that half way, whereby buyer/flipper still need to pay the progressive payment.
But nothing good to deter flipper.

The article said is not a truly BTS, but the correct term is "deferred payment" model.

So this topic title is not correct at all as "build & sell".

As it is already sold first (10%) only then built

http://www.iproperty.com.my/news/668/what-...build-then-sell

ask the news.. i didnt quote it..