I found out that this HouzKEY Rent to Own by Maybank quite helpful especially during MCO. For those who considering to invest or get a new property for own stay or investment purposes.

1. ZERO Downpayment
2. ZERO Progressive Interest
3. ZERO Legal Fees
4. ZERO Commitment fees
5. Only pay 50% of monthly instalment

It's applicable to one of the NEW development in KL City Centre area. I think this very helpful for those who looking around with lower risks.

Please share with me what you think

Hi Debrizio Wong. You're from Polygon right?

yes, i am :-)

Okay, since you're an agent.

Your goal is to raise awareness about Rent 2 Own and its benefits in order to increase your sales.

Be upfront about your intentions, nothing wrong to position yourself as an expert in Rent2Own (don't think there are any agents specialising in Rent2Own here yet).

You can start by writing a guide on Rent2Own. I'm sure the moderators will allow it.

I have seen you opening a few threads trying to start discussion of the projects you sell to bait discussion and potential prospects.

We can all see what you're trying to do.

This post has been edited by Zwean: Apr 28 2020, 10:52 PM

no worries. Appreciate Zwean :-)

Any differences between before, during and after MCO?? should be the same thing?? if can apply on 3rd house and onwards, then is better...

same thought here...

Yeah no free died chicken on the road de lar..

The main purpose of this facility of to help those first home buyer or second home buyer with lower risk. I think it's fair if the buyer own less than 2 properties before apply for RTO. Before MCO the buyer need to pay the commitment fee but now certain selected RTO projects the buyer don't need to pay the commitment fee.

But those 3rd house onwards, they might rent out the rest, and now wanted to get one for ownstay... If RTO can apply to them, then is great..
I see, then need to be clear on the differences due to MCO waiver...

Typical agents..
Bait potential prospects by opening many thread...

Anyway I give u benefits of doubt..
See what u have to say about your plans..
The Rent2Own thingy 😁

Wish you a great day ahead

I think it's fair this RTO prioritise for the new home buyers. For more than 2 home owners, if they can settle the the remaining home loans and they can go for this facility.

not all projects eligible for this scheme... cos Maybank wont pick the projects that in high risk (small developer, no demand, overpriced, etc.)

is one of the good option for buyers that really want to buy for own stay but cannot fork out hefty upfront...

anyway... the choices is limited... the projects picked normally is more than 500k...

This post has been edited by bigman: Apr 29 2020, 11:30 AM

True that

house mostly unfurnished right ?

possible buy own furniture, then can sell to the bank if i do not opt to own in 5 years later ?

Since we are at this topic, can u give a complete picture of how rent to own works? What is it that I need to pay 1 year, 2 year to 5 years down the road?

from what i know you don't own the unit until u purchase it. Along RTO period, you are renting from MBB but the property under your name. So you not selling back to the bank if you don't want to resume but you return it back to the bank.

How it furnished, depending on the developer's project and package.

one of the example, first year the purchaser just paying about 2.7% interest of the listing price for the first year. Second until fifth year, about 3.6% of the listing price.

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 😅

lol

Need to rent full five years, otherwise penalty . After vp, must rent for one year, then can choose continues to rent or buy with term and condition, after five years, if don't want to rent or buy, can return back to bank.

I thought you can opt to purchase the property after 1 year instead of renting it for 5 years?

I think the calculation on the administration fee should be disclosed to provide a clear picture for new buyers to manage their cash flow.

Yes, u are right, u can purchase after one year or keep continues to rent

as i understand it is only 30% of the condo allocated for rent to own right? not entire units

agent, correct me if i am wrong

mostly are entire units.

Actually there is a limit. The project I purchased under Houzkey has 30% limits and for condo, if there are 2 blocks, only 30% per block is entitled for Houzkey.

I have a question, how about when we finished 5 years rent and don't want to continue but the market price drop. Do we have to pay the difference price upon exit?

You walk without any obligation if I am not mistaken.

the buyer don't need to bare or pay the differences upon exit.

rent2own is not cheap, you have to pay more, no free lunch.

This post has been edited by kelvinfixx: May 11 2020, 09:29 AM

If comparison, RTO vs Own buy properties. RTO normally those high cost properties, right? Can RTO work for all or selected properties only?

There is some private seller use Maybank RTO scheme, landed / high-rise both available

If i RTO, then i don't stay in the property or might rent to others. Is there any rule & regulation for this?

How much minimum cost for a property with RTO to be eligible?

it range from rm400K onwards.

RTO mainly prioritise for Malaysian first home buyers. On paper you not encouraged to rent to others or turn it into homestay.

not applicable to all properties. RTO specially selected by the bank provider.

Thanks. You are a great guru in your field.

thanks and i'm not a guru. Still learning and sharing.

Hi,yesterday i booked Seiring Residence under houzkey program. Still thinking want to proceed with the loan or not. I'm still researching the pro n cons this project and the scheme.

Question:
1. What happen to our loan if the project is abandon?
2. Do i get the profit when sell the house? Because im only 'renting'.

http://idaman2.kpkt.gov.my:8888/idv5/98_eH...oj_Nama=SEIRING
If is by NPO BUILDERS SDN. BHD., then you are one of first few tens customers. Congratulation!

This post has been edited by icemanfx: Jun 2 2020, 06:34 PM

Please share the package they give u so we can analyse

I'm considering this for my potential purchase of another property too.

Quite a lot of info here:
https://www.google.com/url?sa=t&source=web&...3d02o8QyTfhXaRU

Not sure about question 1, but for 2 yes from what I understand. You pocket the profit, ater minusing agreed property price and all the processing fees, if you decide to cash out anytime after twelve months.

From general impression the main cons will be you're paying more in total, and will miss out on all the rebates from developer as well. But you'll get to manage cash flow and work on increasing your buying power in the first few years (while property is building and during the initial 1-5 rental period). You can also lock in the current property price and buy it years later when you're more ready.

Rookie here so I'm sorry if im using wrong terms.

In the future u will pay more but always RM100 ringgit at 2020 purchasing power is higher than RM100 in 2050

Hell true.. I'd searching detail for a project recently and only found few people discussing here.
Maybe my English not that good and can't bring my meaning out. Then some of them really questioning me said that I'm that 'weird' person just purposely highlight or bring up question for that project cause I want selling the project for what they called "another" way..
I was so shocked and what da hexx.......

Not sure will I benefit from the HouzKey campaign, last time I surveyed some project under HouzKey campaign, the package is very attractive like no need progressive interest, free legal fees no down payment, at the same time when SA told me how am I gain the advantages but I figured out some of the disadvantages.

Here's my thoughts:

-I can pull out anytime within the 2~3years period after I get my units?

SA told me that in this period if you are not satisfied about the unit, since you are still consider "renting" from HouzKey, you can sell it out, get back your rental and get the balance profit when you sell to other people. But who will buy your second hand unit when developer usually will have balance units on hand which is cheaper than your unit, means you will take quite a period to sell out your unit, who will help you find buyer, what if you sold your unit cheaper compare the time when you purchase the unit(like 30k cheaper) cause no way you can instantly gain profit from resell when you just get your unit right?

-Some SA told me developer will buy from you, true or false?

If developer really will buy back from you, if you stay there, when you sell it out you will take back all your previous rental payment, SA say sure profit at least RM20k+ cause save a lot progressive interest ma, if really this good sure will have many people buy and sell when they get the unit right? If many people return their units back means developer have huge amounts of balance units, sell cheaper price to clear stocks, will it affect your future resell value?

And I also realize many project under HouzKey, the main reason is that their selling progress slow down because launching price too expensive, density too high, developer previous background not good etc. Just some of my thoughts, open for discussion.

houzkey owner need pay maintenance fees?

Everything is borne by the owner, from maintenance fees, fire insurance, cukai pintu & tanah and any miscellaneous fees. Also do note that the no progressive interest is not forgiven, but carried forward to be repaid in the future (probably at a higher rate), in return for more cashflow for owners during construction.

If not mistaken, housekey u didn't paid progressive interest during construction. But if u decided to buy after 2-5 years ,u still have to paid back progressive interest, legal fee stamp duty,MOT. Housekey u paid all expense including maintenance cost,fire insurance, utilities deposit,quit rent. But you are renting unit from bank. Rental can be revise within 5 years agreement. Housekey only suitable for people who cant afford buy own property and lock price to buy later. I dun think developer will buy back your unit..As long as the unit sell,they won't care. I feel SA just bullshit to you. Property sell within 5 years won't be good profit nowaday, furthermore you have to paid real estate property gain tax.

This post has been edited by Erictan1981: Jan 19 2021, 12:52 PM

Developer buy back ur unit? What weed are u smoking? Can share some?

That's the point when I saw HouzKey and the way they explained with me, of course just some SA wanna sell the unit so they talking lies make you fall for it, that's why I'm aware for HouzKey project cause like you said I need to pay back the progressive interest, legal fees, stamp duty and MOT, if I decided to buy after 2-5 years later, means I needed to fork out huge amounts of cash instantly to pay back to developer and settle my payment, expected atleast needed to prepare RM40k+. Will it actually benefit for those like you say who can't afford at the moment, you know Malaysia pattern lah, now can't afford doesn't mean after 2-5 years buyers salary can rise much also, still couldn't afford to pay even decided to buy the unit.

Another thing is if I needed to pay maintenance, fire insurance and quit rent almost consider as I'm the buyer for that unit already, I better buy a normal project unit with HOC rather than taking HouzKey, progressive interest before your unit completed only pay like RM200~RM300 depends unit price lah, and if I pull back all my rental will all burnt right? Looks like lack of exit plan.

Read carefully, a SA who served me told me this, open your eyes and read carefully thats why I asking if it is true

It depend term & condition stated on agreement.
I think you can't simple withdraw without full year tenancy.
It must have certain rules at least 1-2 year must bond with contract.
Same though with me, agent just misleading you no progressive interest & low installment.
When talking into details, i still have to paid all expense & progressive interest when i ready to buy the unit.
That is something like you bear all responsibility but in fact house owner is not under your name.
You just delay paid full commitment if you ready to own property.
With HOC campaign & free legal fee, stamp duty, MOT, we should ahead direct own the property if you are affordable for installment + maintenance cost.

Another point is as you mentioned property with housekey usually due to their selling progress slow down, overprice, high density , developer bad reputation. This grantee cannot have good capital appreciation.



This post has been edited by Erictan1981: Jan 19 2021, 04:05 PM

For your information, there is no "withdrawal" in Houzkey. the property is considered sold to you. U need to BUY IT and then FIND A BUYER and SELL IT.

Also need to consider paying the cost for MOT

and cost of double transfer...

Very clear information, thanks for your explanation.

If like this I rather go for those with HOC if my cash power is okay to afford the house since I already paying the maintenance and quit rent, no point choosing Houzkey, troublesome for me to settle the previous payment like progressive interest and legal fees if I really convert my status from rent to own the unit

Dear all,
I am among first batch Houzkey customer. Sign an agreement in 2018, got my house key in 2019. purchase price RM500k. only pay 3 months deposit. Based on agreement, i can convert to mortgage after 1 year tenancy without any deposit and less entry cost.

UNFORTUNATELY, last week i contacted Maybank and had submit applitation to convert the property from current leasing scheme to mortgage. However, yesterday Maybank officer called me and I was told that Maybank no longer can do this. Somehow, they asked me to use typical housing loan application i.e 10% deposit etc etc.

As a customer, I felt like being get con by Top 5 Bank in south east Asia. I have sent an email requesting for further clarification on this issues otherwise if I didn't received any feedback, I will escelate this issue to BNM or any other relevant parties.

Maybank is not wrong here I believe. If previously the when you agreed to purchase via Houzkey the developer did not offer the same rebates for Houzkey as like conventional loan, you are legally obligated to pay the 10% down payment. Sames goes with all the legal fees and disbursement fees, as those offers are usually offered by developers. Read back the terms properly. HOC campaign does not apply for your case as well, as you're not making the purchase directly from the developer.

Developers have been offering rebates to "offset" the mandatory 10% downpayment required when applying a conventional loan. If those same rebates does not apply to you via Houzkey, that 10% you have to cough it out yourself. Make sure you have everything in writing if they do or do not offer the same rebates if going through via Houzkey.

These are the things you have to take not of before buying a property in the first place via Houzkey. What YOU CAN get (once gazetted) is the stamp duty exemptions for MOT and Loan announce in budget 2021, which is supposed to last till 2025.

houzkey many hidden charges, if can get conventional loan approval, why choose houzkey, right? pay now or later, u still need to pay for proggresive interest, and spa and loan legal fee, even mot buyer need to pay when convert the unit after one year from rent

Be aware u need find yr own willing buyer to abort yr houzkey. The key word here is rent to OWN. Not rent to Test test water.

Strongly agree there are many hidden charge.
Some agent just confuse buyer said low installment commitment & no progressive interest.
Some agent will misleading you can have probation period or test staying period within 5 years & return to bank if you dun like the place.

In fact, they just delay the installment and paid later if you interest to buy.

The moment you decide really go for unit, then you still have to paid MOT, legal free, stamp duty, progress interest.
No more free legal fee, MOT or stamp duty from developer.
The good thing is you can lock property price if you not ready for down payment or commitment now.

Dun forgot you have to paid all house expense including monthly maintenance, Indah water, electricity, water, quit rent & assessment.
Why not direct own the unit if you are looking for own stay.

This post has been edited by Erictan1981: Jan 22 2021, 12:19 PM

I have to first be clear and say that I'm neither an agent or a banker.

Don't trust entirely what the people at the sales gallery tell you, because they themselves are sometimes not knowledgeable about this scheme as well. For me, I asked thoroughly through emails and Houzkey's online chat, and they have been very good at responding. You can also ask a Maybank mortgage consultant instead.

What both of you said is completely true, and has been laid on in the product disclosure sheet of Houzkey as well as the lease agreement after application. To me, there is nothing hidden, if unsure, just have to ask. Maybank is not trying to hide anything.

I'll simply list down the pros and cons of Houzkey.

PROS
1. Lock down SPA price for future purchase.
2. Exit after 5 years, at least (because minimum lease tenure is 5 years). Also do note you get your security deposit back.
3. If you choose to buy only after 1 year get keys, you get green lane loan application, don't have to provide any additional documents to build up your credibility. Your credibility is based on your monthly "rental" that you have paid.
4. No progressive interest to pay during construction, but if you choose to but within the 5 years, this progressive interest you need to pay.
5. Extra cashflow for you to save up, in the future if that property you think is still too expensive for you to bear when converting to conventional mortgage, can walk away after 5 years, or try to sell it off, and you keep the profits subjected to RPGT.

CONS
1. In the event you want to sell after 1 year, you have to find your own buyer.
2. Long term, you're paying more to own said property. This is because your monthly "rental" is calculated based on interest. Basically the amount you're paying monthly is more or less like the interest part of a convntional loan.
3. Fire insurance, maintenance fees, cukai pintu & tanah are all borne by you.
4. Currently, you will lose HOC exemptions, because you are not the one who signed the SPA. But for first property, stamp duty exemptions for both loan and MOT (first 500k) was recently announced in Budget 2021, effective till 2025.
5. All legal and any disbursement fees are borne by you in the future, if you choose to buy it in the future.
6. All the fees and stamp duty etc everything you have to pay when you own can be included into your financing, but obviously this would mean you'll have to borrow more from bank, along with the interests.
7. Personal Opinion: Houzkey projects are usually on the pricier side, so be prepared for the installments to go up, as the base lending rate will go up as well, all the marketed low monthly installments through Houzkey are calculated based on the BLR now, which is at it's all time low.


NET NET: Houzkey is a financing scheme which allows you to have more flexibility and cashflow in the near future, but you have to pay more for it in the long run, And your first year of commitment does not contribute to anything, and will be treated as rental and is basically just burnt off.

Wow, you did very good analysis job here.
Yes, whatever agent said just for reference.
We should do own analysis and filtering what they said.

Very sorry to said that, most of the agent is more concern toward your pocket money rather than care about you.
Their job is to secure you make booking & sign SNP. After SNP, they might be disappear in your life.
Of coz can't denial there still an agent provide very good & professional service.

Buying a house is probably one of the if not the biggest purchase by anyone in their life time, were talking about half million worth of money and much more in terms of loan. Do your research, make informed decisions and take calculated risks. There is no perfect home or solution *unless you're filthy rich*.


Those interested in knowing more about Houzkey can always ask me or anyone here with more experience, I spent weeks everyday messaging their online chat to the point they remember who I am already . Whatever financing method you choose, there's always a catch, you just have to look out for it. Don't have to paiseh to say no, just ask, they're job is to answer you anyways.

Hi everyone.

I just want to clarify here that Houzkey scheme 1.0 is different with recent scheme 2.0.

Earlier scheme consists of undercon unit and subsales. For subsales, agent involved and represent seller only. Whereby buyer directly deal with Maybank as 1 single parties.

Leasing etc is between buyer and Maybank. Once lease agreement signed off, both parties are subject to T&C stipulated in the agreement.

That covers leasing duration, amount, conversion to mortgage etc etc. This include exception to pay 10% deposit if buyer wanted to convert to mortgage. Everything is crystal clear in the agreement as well as product brochure.

So I have no doubt and agreed to whatever offer they specified.

Unfortunately now Houzkey team clarify that they are no longer provide those entitlement for Houzkey 1.0 Everything was jeopardize by the management.

I have attached herewith my conversation with Houzkey Officer. She also admit that she doesnt know how to assist and requested me to lodge a report to BNM.

Anyway, any Houzkey 1.0 scheme here? Can we meet up and create specific group to protect ourselves? My no .

This post has been edited by HazriJB: Feb 20 2021, 10:11 PM

Xx

This post has been edited by HazriJB: Mar 6 2021, 07:39 PM


Attached thumbnail(s)

Sir,
I did not buy from developer. I bought directly from Maybank thru their appointed agent..

Hi All,

I just submit my houzkey application for property at cyberjaya lakefront homes. Normally how long is the process?

As I read throguh 5pages, I gain understand and knowledge there is a risk and gain using this kind of loan scheme.

My apologies, if the terms was different back then and if Maybank is not adhering to the lease and terms agreement, I believe you can take legal action.

I'm only exposed to Houzkey last year, and did thorough research about it. I'm sorry if I can't help you out regarding subsales through Houzkey. To provide context I was looking out for Houzkey properties under construction.

No worries.

Anyway if any Houzkey 1.0 customer in reading, pls contact me. Thanks

This post has been edited by HazriJB: Jan 23 2021, 10:48 PM

Bro, for current Houzkey scheme, do you know whether 10% deposit is required whenever buyer wanted to convert to mortgage? This part wasnt clearly specified in Leasing Agreement of Houzkey 1.0.

Interesting to see still got people interested in this

If the rebates and everything is similar with non housekyz project and the project is fair or BMW then can consider but usually no rebates and the project is very overpriced

The Tropika is having different rebates if buy through Houzkey: conventional loan 8%, Houzkey 5%.

Tropicana Metropark projects (Residences South/Paisley) same rebates: 9% (Residences South, Paisley not sure) additional rebates (like 5k developer discount or furnishing discount Houzkey don't get).

Glomac's Plaza Kelana and 121 Residences also same rebate (10%).

Mah sings's M Arisa same rebate same rebate (12 %).

E-Island Lake Haven same rebate (forgot how many %).

Sunway Serene same rebates, but maybe changed cause last visit last year around July.

Will update again the rebate amount once I check back the brochures and quotations I got.

This post has been edited by infernape772: Jan 29 2021, 08:36 AM