Hello all,

Do need your help on this. Was looking at a property earlier, so the sales guy did the calculation & such. Just some part i don get it.

Below is the calculation done:

RM 664,800
Size 962 sqft

1. 5% discount(RM 33,240); so the SPA price is RM 631,560

2. 7% Rebate which is RM 44,209.20
- so, my downpayment is 3% (RM 18,946.80)

3. 5% cash back when VP (from SPA price) = RM 31,578


When calculating PSF, he show as RM 664,800 - RM 33,240 - RM 44,209.20 - RM 31,578 = RM 555,772.80

Therefore RM 555,772.80 / 962 sqft = RM 577 psf

Is this correct?

He says, my actual purchase price of house is RM 555,772.80 - is this right?

Why is the 7% rebate included when calculating psf?

My 90% loan is RM 568,404 but my actual purchase is lower than my loan?

Thank you for your replies. I'm getting

i'm afraid that's the new norm from unethical developers.
the developers recognises the upfront cost of purchasing a property and they are trying to structure a package that requires minimal or zero money down for purchasers.
so in theory, it is very possible to purchase a property below the loan amount.
but in the end, you are still paying for the full loan irrespective of whatever schemes that the developer comes up with.
good luck!

the rebate is actually another discount to you except that you don't need to korek from your pocket as its offsetted against the 10% downpayment.

yes, your actual purchase price is lower because you are also getting a 5% cash which is RM31,578 which goes into your pocket.

now why would developers do all this ? - in this slow market they are trying to "help" purchasers who are cash tight to buy their property - secondly
purchasers who are cash tight are more often than not love the idea of them being able to get some "free money" upon VP (of course its not really free
as this amount has to be paid back via the loan).

this is a very bad practice as it artificially inflates the price of a development and its usually used to push products that are not easily sold..

so if you are looking into such a development, you better think twice three times before signing on the dotted line..m2c