First it’s easy to do calculation but it’s hard for u to really estimate...
Y?

Coz the real schedule not really the one given by developer. So timing of developer claiming each stage is more critical for this calculation

Also depending of which floor you buying... lower floor faster claim by developer. Higher floor is slower claim. So actually if the floor price different not too much, perhaps go for higher floor more worth it.

Another factor also based on the BR. Each change will change a lot in ur calculation...

You only can estimate a rough figure but what’s the point?

If own stay, perhaps park more money in the account will do to reduce interest
For investment, just make sure ur rental can cover them it will be good, best can cover more to reduce interest.

What if the project is delayed not completed in time? Do owner have to pay the extra progressive interest ? Let say for months ?

there is liquidated and ascertained damages that should have pay to you in the event developer construction got delayed more than their expected months stated in your SPA..

Delayed is not too bad.

If abandoned , and developer run away, you still have to pay interest every month.

Know your risks!

Maybe you can read this article :

https://hartabumi.com/cara-pengiraan-progressive-payment/

It includes some infographic as well

Read somewhere SD handover Elmina without water & electricity, meaning the 15% being released without following the guideline?

Dear all,

Need some clarification from experts:

1. I was wondering what is the approximate completion rate for 4-year time of under construction project? For 3-year project, we can say roughly 30% for the first year, followed by 30% for the second year and 40% for the last year. Any experience for four-year project?

2. If my loan is fully-flexible without any lock-in period, should I pay in full starting on the first disbursement? Isn't it risky if later the developer abandons the project?

3. In the case of the bank pulls back the loan offer prior to the first disbursement due to some circumstances (bad ccris after second check, having other house loan, resign the job etc), are we able to cancel the purchase of that property or the developer will charge us a penalty until we get a new LO and sign the agreement from other bank?

yes. assume 10% payment (48k) you will need to serve interest 4.45% p.a. aggregate to monthly per month.


when the next disbursement (usually 15%), then the amout will add on to 48k and total will be charged at 4.45% interest divided by 12 months to give you monthly interest payable.

read your spa.

as long as developer provided the hardware necessary for the utilities.

not everything developer can do. TNB and Syabas need to provide the rest.

it has been an issue lately for TNB and Syabas. the reasons given ranging from 'tnb and syabas new to strata title landed' to 'run out of meters'.

all big developers like Sime and Setia have been building homes forever. they cant be negligence on their parts to fail to apply for utilities.

everything in life is numbers related.

think about it.

Don't have Elmina SPA

But thanks for sharing.

Question, if my loan is 500 000, so at the 3rd years, total money disbursed will be around 80%, so is it I need to pay 400 000 *4.5% = 18k per year.

So, it looks like the total progressive interest I have to pay for a rm500k project will be 20k ++.

Is my calculation correct?

Why people keep telling me buying new launching is better than sub sale, can save that save there but I don't see it. The progressive interest might even more than all cost involved for a subsale project.

Correct me if I am wrong.

This post has been edited by warrenbuffett: Apr 1 2019, 09:31 PM

yes you are right above

new launch is 'better' than subsale bcos

1. banyak freebie and lower entry cost, misc fees all pau by developer.
2. you can bet on the final completed price and hopefully it can be flipped for much higher price (only during good times)
3. bragging right for ' new' paint smell.

Buying an under construction property in Malaysia, otherwise known as New Development, means that the development will have a Payment Schedule - unlike subsale developments which involves applying for loans from different banks and property buyers evaluating the properties.

The Payment Schedule is a payment scheme that is applicable only to new and ongoing developments. As compared to subsale developments where the payment goes directly to the previous owner, in the case of new developments, the payment goes directly to the developer.

Depending on the stage of the development, the payment that needs to be made to the developer depends on the stage of the development’s completion. The payments are broken down into 5 main stages:

Signing of Sale & Purchase Agreement (SPA)
Various completion stages of the development (to be elaborated further below)
Vacant Possession
Submission for subdivision of building
Final payments


1. Signing Of SPA
The SPA is one of the first; and most important document; that a property buyer will sign upon purchasing their property. It is the document that dictates the blueprint of the property that the buyer is purchasing, and all the details of the property from the number of parking lots (if it is a high rise development) to the number of power sockets in a unit. These documents are always signed in front of a lawyer, who will explain to the purchaser all the terms.

Upon signing the SPA, the property purchaser will need to immediately make 10% payment on the property.



2. The Completion Stages
Upon signing of the SPA, the purchaser may or may not need to begin servicing their instalment immediately.

a) Ground Level

The payment differs based on the type of property title, whether it's Residential, such as condos and landed houses, and Commercial, such as office buildings and shoplots.

For Residential Title:
If the land is not even cleared yet and piling of the building has yet to begin, and if the property is a residential development protected under the Housing Development Act (HDA), then the property purchaser will not need to begin payment.

For Commercial Title
This is where a residential title and commercial title development differs in payment. While a residential property buyer need not begin payment if piling has not begun, commercial property buyers may have to being servicing their loan immediately - depending on the terms and conditions stated within the SPA.

The payment for both residential and commercial developments are however the same, at 10% of the full instalment rate, once the development begins its piling and foundation works.

Constructing the wall

b) Structural Framework

The structural framework is where the concrete framework and floor slab of the development begins. This is where the actual construction of the development begins. In the case where the purchaser had an 80% loan, they will only begin their loan repayment from this stage. At this point of development, the developer will claim 15% of their monies from the bank.

Thus the purchaser will continue to make the same amount of payment, until the development reaches their floor. Hence purchasers that bought units on the lower floors will need to begin their next stage of instalment earlier than the purchasers who bought units on the higher floors.

c) Walls with Door and Window Frames Placed in Position

This is the stage where the development has reached the purchaser’s floor. At this stage, the purchaser will also need to start paying an additional 10% of their loan.

Roofing for the house

d) Roofing, Wiring and Internal Telephone Trunking and Cabling

When the development reaches the stage of fixing the wirings, the purchasers will then need to up their instalment by 10%.

e) Sewerage Works

Following the fixing of the wirings, the developer will then begin sewerage works on the development. The additional instalment at this stage will be 5%.

f) Internal and external plastering

Beginning the plastering of the development, the purchaser will then need to begin an additional instalment of 10%.

Drainage system by the road

g) Drains serving the building

Upon completion of the plastering, the developers will then begin building the drains that serve the building. Another 5% will be added to the instalment at this stage.

h) Roads serving the building

When the developers begin building and fixing the roads to the development, purchasers will need to begin paying an additional 5% of their instalment.



3. Vacant Possession
At the Vacant Possession stage, the development will be completed. The purchaser will however not be paying the final sum of the instalment yet, until they get Vacant Possession of their unit. At this point of time, the water and electricity supply will also be ready in every unit.

As soon as the unit owners obtain the keys to their unit, they will need to begin serving full instalment to the bank - of an additional 12.5%.

Approximately within 6 months of the development’s completion, the unit owners will then need to pay their Memorandum of Transfer (MOT) fee. After completing the payment of their MOT, the unit owner will then be in full possession of their unit.

just whatsapp your banker to come up with some figures , im sure he will assist u promptly simple + cepat

The last 20% only be payable when yr property is vped.
And the 1st 10% is payable when you sign spa.

Therefore at best progressive interest payment if you are on ltv90 only limited to 70% of the property price.

How do I calculate cost of goods sold for Schedule C?

sch C of what Act?