I am a ACCA student from TARUC , Setapak. Last week, I went to a kopitiam for breakfast with my bf and heard someone next to our table were discussing property stuffs. "Accidentally , I heard some of their discussion....they are couple and the female was planning to buy a property with her bf at Puchong.

But, they have some debate about it. The case was the woman wanted to invite her immediate sisters to join the "party" and they will sell the property after 5 years or once it appreciated to 20% over the original price. The guy seem have a lot of concerns about this. After that, I quickly finish my plate and pay the bill, as worrying my bf will....


I understand a lot of news and experts saying that 2016 is the good opportunity to purchase a property in Malaysia. All of us want to be part of the "party member", including me of course. I wonder what kind of challenges would a group of 5 peoples( family members or strangers) face if they are going to purchase a property and have drafted an agreement to sell it after 5 years or once other conditions have been met?

1) Loan approval?
2) Loan installment?
3) and what?
4)
5)

Ya, you guys are right and I quite agree with you .I have thought of that, the risk of default and so on. Of course, I do not mean buyers are students. It's a group of 5 adult who earn RM 4 k or above a month.
Non-technically speaking, if I am wrong or if it is not feasible, please correct me . IF there is a legal agreement was set at the outset and lay down all the condition to tackle all the possible risk. For example,

1) If anyone of the member don’t contribute their share of loan repayment for 3 month over the total period of loan repayment, the fella would have to “out of the party” automatically and immediately. He/she can sell “his share of the property” to someone at the amount of he/she had paid or below/ higher than that amount. The person can be from the “insider of the party” or “outsider of the party”.

2) For sure, in order to be the member of the “party”, we would have to filter the applicants’ ability to pay.


3) Agreement also set the rental of the property must be used to pay the loan instalment.
a) The rental amount is set at the market value and would be increase 2 % from years to years.

4) The shareholder couldn’t or could stay at the property provided he/she pay rent.

5) The agreement also laid out the condition to sell, for example :
a) sell the property once it appreciated to 120- 150%
b) sell the property when the shareholder reduce to 3 people
c) sell the property after 6 years no matter whatever the price




From the technically point of view [legal side and the bank (i.e., loan transfer?)],

6)is it possible that an agreement is set to override the S&P agreement for including all the above condition? And,

7}what is the other risks that might cause this investment to fail?

This post has been edited by ZapZapk: May 1 2016, 12:09 PM

Ya, you guys are right and I quite agree with you .I have thought of that, the risk of default and so on. Of course, I do not mean buyers are students. It's a group of 5 adult who earn RM 4 k or above a month.
Non-technically speaking, if I am wrong or if it is not feasible, please correct me . IF there is a legal agreement was set at the outset and lay down all the condition to tackle all the possible risk. For example,

1) If anyone of the member don’t contribute their share of loan repayment for 3 month over the total period of loan repayment, the fella would have to “out of the party” automatically and immediately. He/she can sell “his share of the property” to someone at the amount of he/she had paid or below/ higher than that amount. The person can be from the “insider of the party” or “outsider of the party”.

2) For sure, in order to be the member of the “party”, we would have to filter the applicants’ ability to pay.


3) Agreement also set the rental of the property must be used to pay the loan instalment.
a) The rental amount is set at the market value and would be increase 2 % from years to years.

4) The shareholder couldn’t or could stay at the property provided he/she pay rent.

5) The agreement also laid out the condition to sell, for example :
a) sell the property once it appreciated to 120- 150%
b) sell the property when the shareholder reduce to 3 people
c) sell the property after 6 years no matter whatever the price




From the technically point of view [legal side and the bank (i.e., loan transfer?)],

6)is it possible that an agreement is set to override the S&P agreement for including all the above condition? And,

7}what is the other risks that might cause this investment to fail?

Do you know where I could get the detailed information on how to buy property using company?

I would involve my relatives when it come to money. My family experienced thousand of these kind of shit before.
Set aside the relative part, what would be the case like if it is you, me and other eligble lowyat members?

hahah.Is troublesssssssss.

Ya. I know property is not the only investment opportunity. But , from the conversation I heard and I figure out everyone want to invest in property but they are not able to do so individually. Therefore , I try to figure out is it possible to carry out as what I mentioned and what kind of challenge I would face.

Btw, any other good lobang to recommend?

Yes. Of course , bank won't "layan". I am just trying to figure out how to " work' it efficiently and effectively with bank side legally.

I think we have a bit out of topic. My post was not discussing what investment is a good investment or should I join an investment that was being discussed in kopitiam .

My topic is : is it doable if there is an agreement govern a group of 5 same mindset/goal stranger to buy a property and dispose a property? And, what kind of risk would we face? how could we solve it?

I agree with you that it is the best time to realize the investment when everyone is discussing it.

I think we have a bit out of topic. My post was not discussing what investment is a good investment or should I join an investment that was being discussed in kopitiam .

My topic is : is it doable if there is an agreement govern a group of 5 same mindset/goal stranger to buy a property and dispose a property? And, what kind of risk would we face? how could we solve it?

I agree with you that it is the best time to realize the investment when everyone is discussing it.

Hi cherroy. Thanks you for your reply. Really informative and valuable. That is what I am looking for.

If it's not workable to draft another legal agreement to "force out" any legal owner, is it possible if the 5 people including all the conditions in S&P agreement? (ie: the one who failed to pay the installment have no right share the profit of share and have must sign off the transfer of property when selling the property time?)

How does a company or holding company work to own the property? and what is the different compared to individual?