Pardon me for my stupidity.

Downpayment is needed as stipulated by you.
So 10% is already at RM42,200
Selling price by u is RM422,000 and launch price is RM480,000 (like you say) thus difference is RM58,000
Minus of the 10% downpayment as a must is only a profit of RM15,800 which is 37% profit....not bad.

But than need to pay you Rm24,240???........

So where is the profit now?!...

When I say it works for you meaning to say you do not need to "invest" the downpayment. Whereas others that deals with you would need to put in "downpayment" as initial investment. Money had already went out. How to "earn" back the downpayment paid by the buyers through your method?!

This post has been edited by b00n: Oct 18 2007, 09:12 AM

bryanyeo87,
i know some relatives that exercise what you are doing here...
i think its the same method... for my case, they grabbed all the corner DSL units in a particular area before even the soft launch... during the actual launch, they sell all of them at developer price making instant profit... no money down... correct me if your method differs

well... you must be part of the developer or at least related in order to make these kind of moves... of course there are other methods... maybe legal, maybe not

This post has been edited by kenji1903: Oct 18 2007, 10:33 AM

byran, u mentioned about worst case scenario that u could get 1k back after all these troubles. but i reckon u gonna need lots of hard sell to push ur unit out if the property dives and crashes eventhough u are selling below market price. probably suitable to those who hold on to their unit (provided that they are ABLE to do that) till the market bounces back and not for those looking a quick profit off the market eh? that's how i think, no offence.

Actually i heard of this story many times...
As for Corner Shoplot it is difficult to get la... anyone experience this b4? a pre-launch price for corner shoplot?

definitely for sure pple has experience such pre-launching prices for shop lots or any other houses area.
For instance, my dad went to enquire for a house in Kota Kemuning last time..and guess what 2 different man came out wt 2 different prices.
One mentioned he was giving the developers price then other one was saying that he gave us the full price..
it was kind of confusing at first; but after reading this thread..it makes sense now ...

something very knowledgeable

It is not stupidity, it is a good that you ask for clarification. After all this is a large sum of investment

You see My price is Rm 422,000
10% D/P To Devloper is Rm 42,200
Loan 90% is Rm 379,800
Total Price for a Unit Rm 422,000 and not a cent more


Launch Price is Rm 482,000 (exactly what is listed now in austral office)

Total Profit is Rm 60,000


This post has been edited by bryanyeo87: Nov 8 2007, 02:45 AM

The other ways are "not safe" meaning that no black and white to backup in the event a legal dispute happens.

and are you strachan?

This post has been edited by bryanyeo87: Nov 8 2007, 02:46 AM

Of course, but the fact is that, you already bought underpriced.

Market crashing is definitely a risk, but if that is the case, why invest in anything else other then FD at all

But that is why, my plan is to minimize your exposure to that risk, which is 4~5 months for ROI of 80%~120%

Yeah, that is why the internal people benefits most, since the corner unit can be sold to kopitiams or mamaks like Kayu nasi kandar at alot higher price

my guess is pretty near then, the power of networking...

i'm kenji, i've seen strachan's nick somewhere before though...

if i'm able to get my hands on a corner shoplot at a good location, i won't even think of selling it... rent it to a bank... fat fat cash cow...

of course, I will contact you next year or keep in touch with me, commercial complex the size of curve coming right up + a maximum of 60 shop units to cater that complex after the closing time


Yumm, yeah cash cow but go for good banks that has good rental payment records la


Kenji, pm me ur name

This post has been edited by bryanyeo87: Oct 18 2007, 06:27 PM

so why help others when you can profit urself? hmmmmm
btw if i wan 10 units possible? and i don't need a loan

like i said lor, im still student -___-" got limited cash mar, can only angkat 2 units, but my entitlement is unlimited units, so I figure out a way to use it lor

Sure, by all means come and we shall discuss

But if you have the cash to buy all 10 units and pay cash full payment, i rather you have a look at another am-el project in old klang road as this Austral is "no kick" as an investment for you

This post has been edited by bryanyeo87: Oct 19 2007, 03:40 AM

how nice can just do investments IF dont need loan or any downpayments.. i will be fatter by then..

something very knowledgeable topic for me to read thru....

doesnt realise this strategy/tactic before...

kuih_tiow, I have to specify many times that this strategy doesn't apply to everyone!
Do your own calculation....whoever wants to buy would need to put down downpayment which TS do not have to.
Yes, TS sells it at cheaper rate with discount; but you wouldn't be raking the profit that he is racking in.
And with all the arrangement and things.....maybe only a 10% or less profit or less than that. But if like TS said for 4-5 months, than 10% is quite lucrative.

@b00n

iirc i know that there are people out there who just pay the deposit during the launching period and wait for the prices to appreciate before selling it to potential buyer who is more interested in staying in those particular property than speculating..... but then im not sure if it's legal

I'm not sure too as the debate had been brought up by Pai too.
All I am certain is when one paid the deposit and signed the S&P, the unit is theirs if they didn't violate what is stipulated in the S&P.
So before completion of property if one decided to sell it off for a profit, technically they would have to pay the full amount of the property or as stipulated inside S&P to the developer before changing hand. Than need another S&P which is now between the seller and the buyer and no longer the buyer against the developer.

So technically while buying first hand, one might not need to come out with the full payment. But by buying 2nd hand; besides putting down the downpayment, one would have to secure a loan (if he doesn't have that big amount of cash) before signing the S&P the second time.

Pai might or might not know better since he's being investing into property market where I only knew the basic. But down part is he only acquires 2nd hand undervalued property mostly for rental income where appreciation profit is a surplus.

Boon, in this particular scenario, Im not sure myself as I've never experience it before ( this poor man got zero connection ). But from my interpretation, to pull this off, the buyer have to :

1. Have enuff $$$$$ to fully pay off the developer as per S&P. In this case buyer need to have at least 450k cash.

2. If buyer do not have the $$$$ to fully pay off the developer, they can still executed this srategy IF they can find a buyer who is willing to buy the property cash. (But this actually kinda defeats the purpose of property investment in the 1st place, to make use of leveraging)

More importantly, one will only make profit WHEN they can flip the unit. Another important point is that even if one bought the property with good discount, one still have to compete with other connected buyers with better discounts like TS. In this current soft market, just be prepared to hold the property a lot longer.

This post has been edited by Pai: Oct 19 2007, 03:14 PM

i think you misunderstood me here..... they paid the booking fees and not the downpayment and then sell it later to someone for a profit...... no S&P signed.....i think it's illegal right?

This post has been edited by Darkmage12: Oct 19 2007, 03:44 PM