Hi guys

just want to confirm, if i have a cash of RM100k, and one of my house loan is still outstanding about RM80k.
my house condition is:
1) non bumi lot
2) leasehold
3) master strata - still pending for individual strata

Should i quickly settle off the loan?

or

Should i wait until master strata is converted to individual strata?

my concern is if later on i pay in full but developer never issued individual strata till the end

Interesting topic

I also want to know if we can ask Bank to sue developer if such things happen ?

As far as I know, during disbursement of the loan, bank already paid full amount to developer. So the amount outstanding will be between you and bank only.

In the mean time, settle off your loan quickly can save interest.
For example:
Outstanding 80k, lets say your monthly installment RM 1000 for at least another 8 years to complete = 96k, you can save interest around 16k.

If you keep waiting and lets say the title never issued till the end of your tenure, what you going to do with that ? Hold the payment to bank ? I don't know it is possible or not.
In the end, you pay more interest to the bank, and your title still not issued.

IMHO, not so much to do with the strata title, too remote. It is more of financial planning .

How young are you?
Can you make use of this saving of 100k more efficiently? can you make this 100k grow?
Is your loan flexi-loan? If flexi-loan, park your money there it still save on interest while offer you flexibility when there is an opportunity present to you.

Issuance of strata title - when did you buy the property? Different timing will have different terms on the SPA terms pertaining to the application of the strata title.

Refer to the SPA schedule of payment (bought directly from developer, right?).

i get to know that there is a new strata regulation came into enforcement but that only applies to new purchase
for purchase made before the date of regulation imposed, it doesn't give any impact.
that is why i reluctant to pay in full since if its under bank, bank have their own lawyer to fight with
but if the property is under my name, i might have problem in long term to deal with this kind of thing.
it may cost me more just to fight to get the strata

no, this is my third subsale purchase from owner.
so far all my purchase is not from developer.

one of the reason i concern in this matter, is because i want to let my 100k grow in some other way:
a. pay in full for this house, so that i can reduce my DSR in my CCRIS
b. once i get the title, the property is mine, instead of bank
c. mortgage the title so that i can have lower interest rate in applying new loan for next invest/business

the problem is at ©. if i dont get the strata, i cant't do any mortgage.

This post has been edited by suadrif: Aug 5 2015, 05:39 PM

a. Are you saying that you have 2 loans, settling this will entitle you to get a 90% loan for your next purchase? Otherwise, be it 3rd or 4th loan, it still boils down to the repayment capacity, right? I probably dun get it right, but , how does this help to increase your new loan capacity? Ie, settle 80k so that I can loan up to 300k or I don't settle 80k but I can loan up to 220k.

B. A good reason. But, dun seems to make it grow? But a sense of security. I will do it, especially if this is an own-stay home.

C. So, are you talking about combining b and c together - refinance? How old is you property? You can't refinance without the title means this prop is quite old? Own-stay or investment prop? If investment, could selling be an option to upgrade your portfolio and grow the 100k + this cow?

Haha.... Just m2c. I probably get you wrong. Good luck, bro.

Little bit misunderstood there
Actually my intention is to do A, and then B, and then C
I think u understood it as Option A, Option B and Option C

Haha..

So, my reply still of A and C still relevant... I guess. but not B.

nope
the quantum amount is still the same, if i am applying for rm200k, it still will be rm200k
its not gonna increase to rm280k

my intention is to reduce the interest rate, instead of 4.2% it might go lower to 3.9%
that makes a lot of difference

Reduce interest rate, may be.....

But, you were saying reduce DSR? How does this help to affect your loan profile after settling this and refinance? Isn't this the same eventually? But, interest rate saved, probably and it depends .....

Anyway, you know best. Good luck, bro.

Banks do not concern about the strata title is out or not.
They only concern about you paying the loan or not.

Banks won't chase the developer to do the strata title, as whether the property has been stratified or not doesn't make a difference to bank, as long as you are paying the loan.

If developer never stratify the property, whether it is bank own or personal own, both are same situation aka do not have no strata title.

The loan you have taken, you still need to pay in full one day, the consideration is about cashflow and loan interest aka from financial aspect only.

Leasehold, strata title or not have no implication on the issue whether to settle the loan or not

Yup, thats correct
Thats why bank never concern on the strata title
Even if its not released, if later on have problem, bank will just gonna put it into auction
But different case to the owner. I might having problem later on if till the end I didnt get the strata.
My original intention is to put it as mortgage so that I can negotiate with the bAnk for lower rate

This post has been edited by suadrif: Aug 7 2015, 08:59 PM

If a property that does not come with proper title, don't buy, simple as that. Nowadays developer don't bother to convert the title as they know people are stupid enough to believe the developer will do the job.
In Seremban, there's a flat that already aged 30 years and yet owners still not getting individual title.

Property that does not have strata title after many years may have difficulties to get loan for new purchasers.
but in reality, many properties fall under this category, how can we avoid this?
8-10 yrs to get the strata title is normal is Klang valley.

the delay is to blame our loose enforcement, the irresponsible developers and residents.

Why i said resident also playing a part is many did ignore the notice by developers that when strata title is ready, they need to engage lawyer and paid a sum for the process.
Some developers are smart, they collect those fee upfront, but many residents/ purchaser also don't want to pay 1st....

Some are property flippers, want to sell the house, so drag for few years later only to direct transfer to new owner.

this is the mindset of malaysian.

Yup, is our tak apa attitude that resulting to this

this is 100% correct
in my case, the previous owner only can get master strata for me
individual strata is long way to go
i engaged my lawyer already and filed to the local authority but developer asked for processing fee already

after checking, i realize that the first owner also had paid the same processing fee but not refundable coz the property has been sold
so in my case, even if i pay the processing fee but there is no guarantee that i will get it. there is no deadline.
and if i sell this unit, i didn't get refund anyway
this is the trick by developer

If developer liquidated or no longer existing, owner will have difficulty to sell the property.

This is a risk many not aware off.

Buying a property cost hundred of thousand RM, and doesn't want to do the strata title (to save some lawyer fee and stamp duty), which may be ended worthless (unable to sell the property because of not having a strata title), which is something beyond my understanding...