Guys, I'm not sure whether this has been asked before, but what are the procedures of buying a newly launched apartment without using a bank loan?

The reason I'm doing so not because I have bad credit score but rather saving on the interests during the construction period. Piling stage has not started yet.

Thanks guy!

just tell the developer u're buying with cash. they'll bill u directly that's all. it's nothing extraordinary. there are buyers who pay cash for properties

This post has been edited by cedyy: Nov 17 2015, 08:35 AM

cedyy, thanks for your reply. Meaning they will bill me when they need the example 20% for that particular stage and so forth?

Of course I don't have the full amount to pay fully pay for it. I have 20-30% of that amount only.

U have bad credit score yet u have enough cash to buy property? Serously?
Are u thinking what im thinking u are thinking?
U think a property say 200K and u pay 20K deposit and then every month u only pay monthly 1K until u finish off?

Bro, I don't have bad credit score. Re-read my first post. I just thinking of saving on bank loan interest. What I know is that bank release the funds to developer in stages. Which I can save enough to pay to those stages when needed.

I don't think that developer will let you to pay in stages. First of all, how do they want to record the ownership? What will happen if you don't pay on time? So much hassle to them and they're not going to deal with all the documentation that the bank used to as they're dealing with mortgage.

Actually doing business with cash buyer is way simpler as compared to buyer with bank mortgages.

You still being charged by stages of the construction completion as identical to bank releasing by stages.

No different.

cherroy, I fully understand that. This method saves on the bank interest while in construction stage.

In terms of your view. but in the developer view is much different. They're just focus on developing. When bank mortgage, if anything happening to buyer, the bank have experience on how to deal with it, such as auctioning the props.

if so good can do like this everyone will do it.

Cash buyer, just issue an invoice when due, cannot pay, charging interest, no pay further, just send legal letter to the buyer, and get back the property. (The property is not yet delivered under construction stage, so no title has been issued, so "getting back" the property is not something difficult.

Compared with tedious loan documentation, undertaking that developer needs to scrutinise properly, so that no hanky panky afterwards, which may result a slower receiving payment as compared to cash buyer.

As normally, if the buyer is intend to buy cash in the first place, they have cash ready with them, getting payment may be quicker than through bank loan, that bank need to check every documentation before releasing a loan.

Why I said so, because I went through before the tedious loan documentation, and undertaking issue.

It looks easy in your point of view. But legally, it is not as easy as that to claim non paying client. Usually the progress payment that they get is much more than the progress itself. Otherwise, you not going to hear that got ppl who need to pay housing loan even though their house development is abandoned.

If the buyer is paying full price, then everything is different already.