Investment 5 Strangers Purchase a 700k property, Is it feasible?
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 May 1 2016, 07:50 AM
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#1
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Senior Member
1,307 posts Joined: Feb 2008 
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this is a major red flag
if 5 person's name as the property owner, what would happen is some wants to sell but some not willing? what happens if one person got into financial problem? will all willing to sell in lost or less profit? what if kena bankrupt? what is relationship issue happen? what is someone not able to pay loan? there are just too many factors to coz a havoc |
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May 1 2016, 08:19 AM
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#2
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QUOTE(ketnave @ May 1 2016, 08:08 AM) Will this work ? it cost you a few thousands to maintain a sdn bhd per year. unless one of the share holders is a qualified accountant & company secretary that agrees to do it free or super cheap.1. Setup a co. sdn bhd 2. 5 are director of the co. 3. Buy the prop with the co. The foreseeable challenge would be getting loan under co. to buy the property.  but then if the house is under company then need to check what are the fees & tax rate, it might be much higher. |
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May 1 2016, 12:20 PM
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#3
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QUOTE(ZapZapk @ May 1 2016, 12:10 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. you can have what ever side agreement or even have it drafted & stamped. but those are your closest relatives, do you think if the agreement is used and enforced on them you relationship will still be good after it? your problem now is not just about $$ and the property, its also about your relationships.Non-technically speaking, if I am wrong or if it is not feasible, please correct me . IF there is a legal agreement was set at the outset and lay down all the condition to tackle all the possible risk. For example, 1) If anyone of the member don’t contribute their share of loan repayment for 3 month over the total period of loan repayment, the fella would have to “out of the party” automatically and immediately. He/she can sell “his share of the property” to someone at the amount of he/she had paid or below/ higher than that amount. The person can be from the “insider of the party” or “outsider of the party”. 2) For sure, in order to be the member of the “party”, we would have to filter the applicants’ ability to pay. 3) Agreement also set the rental of the property must be used to pay the loan instalment. a) The rental amount is set at the market value and would be increase 2 % from years to years. 4) The shareholder couldn’t or could stay at the property provided he/she pay rent. 5) The agreement also laid out the condition to sell, for example : a) sell the property once it appreciated to 120- 150% b) sell the property when the shareholder reduce to 3 people c) sell the property after 6 years no matter whatever the price From the technically point of view [legal side and the bank (i.e., loan transfer?)], 6)is it possible that an agreement is set to override the S&P agreement for including all the above condition? And, 7}what is the other risks that might cause this investment to fail? I have been through such shit before and my advise for you is as long as it involves $$ especially huge sum of $$, don't get relatives involvement. the aftermath will be longer and deadlier than your full house long term.  |
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May 1 2016, 01:41 PM
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#4
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QUOTE(ZapZapk @ May 1 2016, 12:43 PM) I would involve my relatives when it come to money. My family experienced thousand of these kind of shit before. well if non relatives, friends will turn to enemies. that would be much easier since you can just stop contacting.Set aside the relative part, what would be the case like if it is you, me and other eligble lowyat members? but then don't forget they could still file a dispute in court and you will go through a long court case with time & more $$ involved. so are you sure your property is going to worth more than that?? from your post I would guess you are still quite young, so not sure if you will have that much $$ lying around to hold on the property and a court battle at the same time. |
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