Hearsay the good old days of such method will be over soon. This loophole will be closed soon.
Mark up loan and multiple loan submission normal practice for ppl to get many properties at 90% mof. Doesn't matter which projects. you can even submit loan application to bank for different projects but all around the same pricing.

It's never "illegal". If you are caught, then one of the bank will reduce the MOF from 90% to 70% only.

I also not sure why label this as a con job. You yourself need to be blame if you are taking 3 properties (for example) at 90% loan and now struggle to do the loan repayment. Lol.

All sale agent the same la. Use saliva to sell only. As long as get their commission. You need to do your own research as well. End of story.

As mention, multiply loan submission is a loophole that investor utilized. Take advantage to get 90% MOF 3 or more property using their 2nd bullet. DSR sure burst. And if you go for negative cash flow property sure will bleed until unable to hold. Smart investor will go for 3 X at least break even property.

Refer the above posting. Is latest. Yes still can do be done.

As of today, this method is still a loophole that is still workable.
Let's see able to last for how long.

Here I share with everyone the best real case example of loan compression / multiple loan submission.

4 units buy sekaligus with 4 different banks.
Now all 4 units in lelong market. All under the same owner.

Anyone care to explain this?

loan ability
great. so that uncle aiming big with Velocity 2 and Parc 3.
BBB mode on!!!

You must free up your quota, clear either your first or second house loan.
Nobody do compress loan / multiple submission with 70% LTV. Defeat the purpose.

Buying those 5 houses, if and only if your DSR allow to buy all 5 houses, you still need to fork out more money for the 3rd, 4th and 5th unit.
Assuming developer giving 10% rebate (zero downpayment needed)
1st house - 90% LTV, 10% rebate
2nd house - 90% LTV, 10% rebate
3rd house - 70% LTV, 10% rebate, 20% you need to top up with cash
4th house - 70% LTV, 10% rebate, 20% you need to top up with cash
5th house - 70% LTV, 10% rebate, 20% you need to top up with cash

By doing loan compression, 2 advantage:
1. DSR burst. meaning example ones income maybe can loan max a 600k property only. but by abusing this loophole, he/she now able to loan 5 X 400k to 600k property. Instead of buying 5 X 120k to 150k property.
2. 3rd, 4th, 5th house all getting 90% loan from bank as explain above.

Find a project which offer you big cash back. Yes. Currently got such project. You have to find in the market.
Example newly completed KL Trader Square. Developer units offering huge rebate such as 50k cash back. So you can use the 50k to reno your unit.

But is never free money. You add those amount into your loan and pay back higher monthly loan repayment. Those that didnt count properly will get burnt. Happen to 2 units at Verve Suite OKR. Both units different owner. Bought at Dec 2017. Developer units. 15% rebate. Meaning will get 5% cash out. Unit come fully furnish already. So the 5% you can actually just use to enjoy. Pay downpayment for a new car. Etc. 6 months later, both units enter lelong. Sold at almost 50% off S&P pricing. Haha.

Since we are duscussing about the timing for first disbursement.

How about if one combine subsale and undercon unit buy together?
How things work in this case. As undercon unit will be late by months depending on the progression.

Subsale still need lots of upfront cash. Yes you can mark up to bank valuation but still you need cash first to lock the unit with booking fees. Then the legal fees, stamp duty as well.

Undercon unit is easier entry. Legal fees all developer borne. Stamp duty for MOT can wait upon VP only do. Booking fees 1k for example. 6 units compress = 6k only.

How much upfront cash do you need if you try this 6 units compress via subsale method?

I think the mutiple loan submission unit is not on developer units or undercon projects.
He is doing it in the subsale market. Mark up loan.
220k property mark up to 330k.
90% loan is 297k. (Loan repayment = RM1400++)
Cash out 80k. Per unit.
So total 4 units X 80k = 320k cash out.

Few medium cost apartments got such high bank valuation but low selling price. Namely:
- Flora Damansara
- Mentari Court

This post has been edited by AskarPerang: Jan 15 2019, 04:23 PM

Re-read back again. Still come to conclusion is talking about subsale property.
Initially thought is 4 units at a go. But if 6 is really impressive.

As he mention, no cash out. Meaning he mark up the cost to cover the 30% dp. And need to have rental income before able to increase the DSR back again to purchase another unit.
Is the normal way. Long process. Not loan compression.

But unfortunately the window of opportunity is less attractive now since with 5% RPGT in place. Marking up mean you need to bear this RPGT cost. Every 100k is 5k payment to RPGT.

Low cost is for first home buyer. Income also must not exceed xxx amount. Future sell back also hard to get buyer that meet that requirement. That is why capital appreciation for low cost wont be high. To further collect low cost property, via lelong is the easiest. No restriction.

If can afford, better go for medium cost property.