Hi all, would like to know what are the discounts offered and how does it works?

SPA property price is around 400k.

Below are my questions. Really appreciate your time and help, thanks.

1. Early booking discount 5%. (I was told it was a rebate). What does this mean? Means that I am signing a 380k loan or 400k loan with bank?

2. Can i use this 5% discount to deduct at the d/p, means instead of putting 10% i am putting only 5% of down payment when applying for loan.

3. What about bumiputra discount of 5%, can I use the 5% the same way as at No. 2? Means that 5 + 5 = 10% of down payment without me putting out a single cent for the bank loan, is that even possible?

4. I understand that I can use epf acc 2 to use as d/p, but we have to fork out the monies first before we apply so?

Thanks again grand masters for the help. First time buyer here.

hi, hope im not too late to reply ur question. i noticed this section quite quiet, hope to come help help out a bit

1. 5% early booing is limited offer and prohibited under malaysia law. everything is undertable. yes, SPA still show rm400k but will give seperate letter from developer about the 5% rebate. for loan, depends u get 100% or 90%. once SPA signed, u only need pay 5% if borrow 90%. if 100%, excess will debit back to u.

2. 5% only during sign SPA depends on your loan LTV

3.yes, if bumi is 5% then add on top of it. but bumi unit normally got side issue

4. yes, u apply acc 2 to deposit to your saving account. yes, u need to pay first, claim back later.

thanks for your reply, it isn't late as i am still on my way to get the property.

may i know what issues if i were to apply for bumi discount?

not easy to let go later, limited pool buyer, longer transaction, the allocated bumi lot with bad view, bad floor, near utilities.

developer very bad at allocating bumi lot

even for condo they have dedicated units for bumi? can't we pick from the existing units and then apply bumi status on it?

no, must be specifically allocate out with proper price published and discount given

omg. then i don't see any other benefits of utilizing the bumi discount in this case, other than the initial discount.

if this prop is at prime area, why not? u can get ROI more than 9%

still many hidden gem of bumi lot around kl city. especially ampang. search hard, u might hit one cheap and good return.

bumi lot quite difficult to dispose

Periperi,
Question about SPA.

I made a booking on apt with 10% rebate. In the SPA, it shows full price instead of discounted price. Lawyer says common practice but didnt says illegal. I feel like its risky, cause SPA legally binds me to pay full price? Am I been taking for a ride???

They will have a side paper which states that you get a 10% rebate when you sign the SPA.

Okay. Thanks for info. I'm making sure it's reflected correctly in the Letter of Office/Purchase Form.

As I said, it won't be stated in the letter of offer/purchase/booking forms.

They will offer you another official letter with the developers letterhead and there will state the discount amount provided for you.

If they put it in the booking forms and etc, that's waiting to kena already.

since there is a thread here already

would like to ask on the purchase price / bank loan

agent show me calculation whereby

purchase price - 500,000
car park - 50,000
--------------------
total purchase price - 550,000
--------------------

10% upon SPA - 55,000
8% rebate on unit only - 40,000
balance to pay - 15,000

Nett purchase price - 510,000

when i get bank loan
it will be based on 510,000 right? and not 550,000

if 550,000, then the extra 40,000 for to be paid to developer ?? as downpayment 10%

sorry bit confused xD

SPA will be based on 550,000

The 8% discount they considered it as "paid" already and u just need to cover whatever balance.

No harm to contact the agent to clarify. In any case the amount requested in the loan will be stated out in the Offer Letter

This post has been edited by WhitE LighteR: Apr 8 2018, 08:28 PM

so basically is not a rebate, more like borrow loan to pay the 10 % downpayment

in that case

the price per sqft will be based on 550,000

cos agent used the nett purchase price to calculate the price per sqft
is like RM 560 per sqft

if calculate based on selling price, it will be RM 610 per sqft

or that is not the way to count? xD

you will apply loan based on 550k (SPA price).

if you loan based on nett price (510k), there will be a difference between the purchase price and loan amount (this is what we call as differential sum) as maximum margin for a normal residential loan is 90% (90% of 510k = 459k, meaning u have to fork out additional 51k to pay to developer from own pocket).

if loan based on 550k and u pinjam 90% loan:-
purchase price - 550k
loan amount - 495k
pay to developer = 55k minus 40k (rebate on unit only) = RM15k (all add up to be 10%)

agent will usually tell you the nett price psf (after discount) so it sounds cheaper (and thats what u actually paid for the house).

What does it matter what is the PSF on paper anyway ?