But there is alot of hidden cost that u never mentioned... Like if u decide to buy the property u need to payback previous progressive interest.. loan legal stamp duty MOT not exempted, just like buying from subsale

The fees that you mentioned only incurred when you decide to purchase the property.

So let's say after 5 years, I wish to purchase the property, the 5 years total cost + fees + rental/instalment, will be much higher than I acquired the unit in the first day right? Or no

Depending how you look at it. If you think 5 years later the property price will be lower than the current price, then you can wait. But if you want to minimise your financial commitments for the upcoming 5 years by having a new property for yourself, then this facility might be a good option. The 5 years rental cost is much lower compare to the rental of the similar property.

Fair enough, but which property is eligible for this?

Mostly overhang property like M Vertica?

there are about more than 20 properties from big developers like SkyWorld, IOI, Mah Sing, entitled for this HouzKey. Depending what you looking for.

So far, from my understanding.

You rent minimum 5years
You pay MOT
You pay maintenance
You pay quitrent
You pay tnb deposit

Needed to pay everything just like usual after VP.

Benefits
1. Can exit without any penalty after 5year renting
2. Can sell out to new buyer with higher price, but nowadays property not longer easy to flip.
3. Save progressive interest, but mah sing is branded property so expected no delay.
4. Cheaper rental rate at 3 to 4% of SPA price

Cons
1. Penalty if doesn't rent for the minimum tenure 5years
2. Might be a loss if not able to buy it or sell it.

Any more information to top up?

Benefits
4. Cheaper rental rate up to 50% compare to the normal rental rate.
5. Can return the property back to the bank if refuse to continue on the 2nd year onwards. Without penalty.
6. If return the property and the market price higher than the SPA price, you earn the price differences.

Cons
1. No penalty within the 5 years rental
2. Might be a loss if the market rate dropped. Don't think affecting for own stay owners and healthy property investor (10 years and above)

Maybank doesn't state can return the property back to bank if refuse to continue on 2nd year onward, without penalty, the houzkey plan is not so transparent if you search their website no clear t&c is provided.

The rental rate won't be 50% less 🤣, it's certain percentage from the SPA price.
If 550k SPA @ 3% = 1375. Usually 550k property market rental price would be around 2000, basically save 625.

The amount 625 - maintenance 250*example = 375 in cheaper.

Upon VP, mot for a 550k property is 10500/12 = 875

Your point 6. : Is quite misleading, you mentioned return? I guess you say return to bank. If return to bank no such thing is earn from bank.
If you manage to sell higher price than SPA to a new buyer then it's possible to earn but as said now days property no longer like 10 or 20years back for flipping.

🤣🤣 Can you share more on the risk that might endanger new property buyer?

So that we wan weight it whether to take this houzkey plan or not.

Since you are agent promoting Houzekey... but your statement is misleading especially on No. 6..... after the 5th year ...buyer need to opt to buy from Maybank based on SPA price (all legal fees by buyer) or sell to others (not to Maybank)... so the situation return to Maybank with higher price than SPA will never happen...

This post has been edited by bigman: Apr 30 2020, 02:07 PM

If so many rent to own units come out, what happened to the genuine investor-buyer who planning to rent out? Rent out at same or lower price??

Different market segment for both.

there are some good ones in Klang Valley. Really depending on your needs.

Sorry if my replies not clear enough and i'm not in a position to argue about this issue. I share based on my experience from my cases. Maybe best idea you can contact Houzkey banker to clarify ya. Great to to hear from you Bigman. thanks

Thanks for your detailed calculations Nickly. I think for ROI calculation, best not to include maintenance cost. You are not wrong if you take those low rental rate than the monthly instalment or without any ROI. If the property with a good rental returns? Yea, I'm not arguing about the rental rate and return as it depending on the property and location and surroundings. Good to learn and thanks for sharing your perspective NIckly.

6. This also best you can clarify with the Houzkey personal themself for more accurate answer. Thank you for your sharing

like i said, this to facilitate for those who no confidence to commit to own a property now. This RTO not new and initiative by the government. On paper the owner not encouraged to buy an co-rent it out.

Actually, I wonder why most of the property agent always push loan related issue to banker. I'm looking a good agent which is helpful in term of assisting in purchasing a property through out the process.

I contacted few agent, they most likely have the same reply as yours.. anyways just my personal view.

Sorry NIcklly if i made you feel that way. If when comes to assisting my client purchasing, i will provide full assistance from start to end. But here in this forum i was told by some so called old timers here that IF i too detailed it's like i'm selling you a product and that's a bad intention. I'm not arguing on that issue too. If i mentioned too detailed , then someone will pop up and said I'm not from the bank and i'm not providing such facts and bla bla bla. But I'm amusing to see different ideas and point of views. No worries Nickily. I understand where you coming from.

Dun just bla bla bal and push to banker... And blame old timers too prickly...

Lol 😅