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too bad, u didn't take my advice, u've to a detour and walk a long way.
Repeat, never never...remit $ to lawyer acct, my 1st property sales woman told me.
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Legal issues/questions - Anything to do with lawyers and banks
- Thread starter wuqi256
- Start date
too bad, u didn't take my advice, u've to a detour and walk a long way.
Repeat, never never...remit $ to lawyer acct, my 1st property sales woman told me.
share your advice again. use big fonts pls. cos didn't see it the first time.
too bad, u didn't take my advice, u've to a detour and walk a long way.
Repeat, never never...remit $ to lawyer acct, my 1st property sales woman told me.
D
Deleted member 80916
Guest
SG Loan of Msian Loan Better ? Hidden Costs ?
Hi,
I'm considering taking bank loan to buy a new property in Johor
#A
SG Maybank offers about 2.2% interest
No Deferred Payment
Instalment kicks in when progress payment starts
No eary redemption penalty
Borrow in SGD,..Maybank pays deveoper in MYR
#B
Msian Bank Offers about 4.2.% interest
Deferred Payment is possible
No need to pay, until property deveopment TOP
Early redemption penalty possible ( bankers not very transparent in this matter)
Borrow in MYR
Would the experts (or those who has gone through this experience), avise - which option is better, in the sense of paying effectivey LESS interest ?
What other points do I have to look out for ?
Thanks
Hi,
I'm considering taking bank loan to buy a new property in Johor
#A
SG Maybank offers about 2.2% interest
No Deferred Payment
Instalment kicks in when progress payment starts
No eary redemption penalty
Borrow in SGD,..Maybank pays deveoper in MYR
#B
Msian Bank Offers about 4.2.% interest
Deferred Payment is possible
No need to pay, until property deveopment TOP
Early redemption penalty possible ( bankers not very transparent in this matter)
Borrow in MYR
Would the experts (or those who has gone through this experience), avise - which option is better, in the sense of paying effectivey LESS interest ?
What other points do I have to look out for ?
Thanks
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Re: SG Loan of Msian Loan Better ? Hidden Costs ?
Hmmm... I thought this is straightforward enough.
#A
Sg bank's Forex rates to the developer would typically carry +/- 300 pips spread. That's roughly an addition of 1.0% to 1.3% loading depending on the SGDMYR exchange rate. However, that's not to say that borrowers with My banks won't be subjected to this, as they also need to transfer SGD across to their My banks.
More importantly, you will be subjected to TDSR for this scenario. Unless you are really well-off financially and young (below 35 years old), TDSR is potentially a deal breaker for many Singaporeans. TDSR is scary for the majority of small-time investors like us, believe me.
#B
As mentioned, you will be subjected to the spread. But if you transfer a large enough amount, the spread will be smaller. E.g., CIMB's TT is subjected to around 100 pips, but it's only worth the trouble if you TT more than SGD20k over, as the bank charges some admin fees.
Next, I'm not sure why you state that My banks aren't transparent on the early redemption bit. I know most state upfront if there's a penalty or not.
Most disadvantageous for this scenario is the higher interest. With a RM640k loan with a tenure of 30 years, the instalment would be around RM3.1k at 4.2%, or RM2.4k at 2.2%. What's more crucial for the difference is that you are paying from around 72% of your instalment as interest at 4.2%, vs only around 48% for interest at 2.2%. In 5 years, you would have paid around RM128k of interest at 4.2%, vs RM66k at 2.2%. DIBS or not, the savings for a lower interest rate is substantial.
However, many My banks allow you to deposit a lump sum in your loan account to reduce the interest. Better still, that lump sum is not illiquidated, as they welcome you to draw that out anytime. Do note the same bit on Forex spread applies for conversion of this lump sum of cash as well.
Conclusion
To answer your question, if you are confident that TDSR will not dent your means to borrow, then go for the Sg bank.
Otherwise, borrow direct from My banks like many My property investors. If you have extra cash at home that you feel will not earn you much interest, then deposit that in your My loan account to reduce your interest.
Hope this helps.
But do note that this is my personal sentiment, as I am not a professional advisor on such matters. Do take this only as reference material.
Hmmm... I thought this is straightforward enough.
#A
Sg bank's Forex rates to the developer would typically carry +/- 300 pips spread. That's roughly an addition of 1.0% to 1.3% loading depending on the SGDMYR exchange rate. However, that's not to say that borrowers with My banks won't be subjected to this, as they also need to transfer SGD across to their My banks.
More importantly, you will be subjected to TDSR for this scenario. Unless you are really well-off financially and young (below 35 years old), TDSR is potentially a deal breaker for many Singaporeans. TDSR is scary for the majority of small-time investors like us, believe me.
#B
As mentioned, you will be subjected to the spread. But if you transfer a large enough amount, the spread will be smaller. E.g., CIMB's TT is subjected to around 100 pips, but it's only worth the trouble if you TT more than SGD20k over, as the bank charges some admin fees.
Next, I'm not sure why you state that My banks aren't transparent on the early redemption bit. I know most state upfront if there's a penalty or not.
Most disadvantageous for this scenario is the higher interest. With a RM640k loan with a tenure of 30 years, the instalment would be around RM3.1k at 4.2%, or RM2.4k at 2.2%. What's more crucial for the difference is that you are paying from around 72% of your instalment as interest at 4.2%, vs only around 48% for interest at 2.2%. In 5 years, you would have paid around RM128k of interest at 4.2%, vs RM66k at 2.2%. DIBS or not, the savings for a lower interest rate is substantial.
However, many My banks allow you to deposit a lump sum in your loan account to reduce the interest. Better still, that lump sum is not illiquidated, as they welcome you to draw that out anytime. Do note the same bit on Forex spread applies for conversion of this lump sum of cash as well.
Conclusion
To answer your question, if you are confident that TDSR will not dent your means to borrow, then go for the Sg bank.
Otherwise, borrow direct from My banks like many My property investors. If you have extra cash at home that you feel will not earn you much interest, then deposit that in your My loan account to reduce your interest.
Hope this helps.
But do note that this is my personal sentiment, as I am not a professional advisor on such matters. Do take this only as reference material.
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Re: SG Loan of Msian Loan Better ? Hidden Costs ?
You need to consider the whole package, not just interest rates:
1. Any compulsory mortgage reducing insurance? Can be very costly, especially if taking appliccant's age into consideration.
2. Medical check ups required for the above. Based on the result, the mortgage reducing insurance may be adjusted upwards.
3. Loan application fees?
4. Cost of valuation by bank - may have to be paid by you instead of the bank.
5. Legal fees may have to be borne by you.
6. Any penalties on early repayment/redemption? Penalties for aborting the application? You may still have to pay for anything already done (not necessarily completed), e.g. Pro-rated legal fees.
Unless specifically stated otherwise in the letter of offer (and the attachments), don't assume anything. In MY, the practice is, 'Didn't ask, don't tell'. And they may want you to sign the letter of offer immediately, without the attachments. Advice: take the letter & attachments home and read it thoroughly.
Hope this helps.
You need to consider the whole package, not just interest rates:
1. Any compulsory mortgage reducing insurance? Can be very costly, especially if taking appliccant's age into consideration.
2. Medical check ups required for the above. Based on the result, the mortgage reducing insurance may be adjusted upwards.
3. Loan application fees?
4. Cost of valuation by bank - may have to be paid by you instead of the bank.
5. Legal fees may have to be borne by you.
6. Any penalties on early repayment/redemption? Penalties for aborting the application? You may still have to pay for anything already done (not necessarily completed), e.g. Pro-rated legal fees.
Unless specifically stated otherwise in the letter of offer (and the attachments), don't assume anything. In MY, the practice is, 'Didn't ask, don't tell'. And they may want you to sign the letter of offer immediately, without the attachments. Advice: take the letter & attachments home and read it thoroughly.
Hope this helps.
Re: SG Loan of Msian Loan Better ? Hidden Costs ?
Actually if you have a lot of advance payment on your loan, you need not close the account. You keep that balance as your spare bullets anytime you need to buy another property.
Actually if you have a lot of advance payment on your loan, you need not close the account. You keep that balance as your spare bullets anytime you need to buy another property.
Hmmm... I thought this is straightforward enough.
However, many My banks allow you to deposit a lump sum in your loan account to reduce the interest. Better still, that lump sum is not illiquidated, as they welcome you to draw that out anytime. Do note the same bit on Forex spread applies for conversion of this lump sum of cash as well.
Conclusion
To answer your question, if you are confident that TDSR will not dent your means to borrow, then go for the Sg bank.
Otherwise, borrow direct from My banks like many My property investors. If you have extra cash at home that you feel will not earn you much interest, then deposit that in your My loan account to reduce your interest.
Hope this helps.
But do note that this is my personal sentiment, as I am not a professional advisor on such matters. Do take this only as reference material.
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Re: SG Loan of Msian Loan Better ? Hidden Costs ?
Consider:
Loan tenure - Difference of 2% will not cause a big dent if tenure not long.
Forex - If you borrow now when SGDMYR is at 2.60 and it goes to 3.00 in future, you will untung under #B. Although borrowing rates will rise during currency depreciation, increased interest will not be as high as savings from depreciation. Of course, SGDMYR can go the other way too.
Consider:
Loan tenure - Difference of 2% will not cause a big dent if tenure not long.
Forex - If you borrow now when SGDMYR is at 2.60 and it goes to 3.00 in future, you will untung under #B. Although borrowing rates will rise during currency depreciation, increased interest will not be as high as savings from depreciation. Of course, SGDMYR can go the other way too.
Re: SG Loan of Msian Loan Better ? Hidden Costs ?
Hi, need advice, I am buying a resale house and already signed sap about 2 months ago but still have yet to receive the sap signed by seller, seller has yet to pay some tax and it is delaying the application for state consent. If it delays till next year can I ask them for compensation because of the new tax or am I spared because I signed the spa early. Also can I demand for the title deed and keys first before paying the full amount. Just worried as they have taken by 10 percent but I have yet to receive a complete copy of the sap. They seem to want all the money after state consent is given too. Using Tea, Kelvin and Kang, my own lawyer as they were recommended by UOB bank. Think I need to email my lawyer but just need advice on what is the standard payment schedule for buying a resale. Can anyone help?
Don't want to be cheated of one million ringgit.
Hi, need advice, I am buying a resale house and already signed sap about 2 months ago but still have yet to receive the sap signed by seller, seller has yet to pay some tax and it is delaying the application for state consent. If it delays till next year can I ask them for compensation because of the new tax or am I spared because I signed the spa early. Also can I demand for the title deed and keys first before paying the full amount. Just worried as they have taken by 10 percent but I have yet to receive a complete copy of the sap. They seem to want all the money after state consent is given too. Using Tea, Kelvin and Kang, my own lawyer as they were recommended by UOB bank. Think I need to email my lawyer but just need advice on what is the standard payment schedule for buying a resale. Can anyone help?
Don't want to be cheated of one million ringgit.
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Re: SG Loan of Msian Loan Better ? Hidden Costs ?
Just to share my experience. Took me more than one month from the time of letter of offer to purchase (from my lawyer to seller lawyer) before I see a draft copy of the SPA. Seller was not registered as owner on the land search and there was also some delay. All these I let the lawyers sort out among themselves; only know the problems from the letters copied to me. I just chase my own lawyer (his office clerk) for the SPA to be amended - lots of typo and other errors. Took a while to get these corrected as well. Eventually see the final signed copy after slightly more than four months from date of offer letter, although the signed SPA was dated two months from date of offer. In short, let the lawyers handle all the sale issues but you must chase them weekly (by phone calls, not emails) for updates, else they conveniently forget!
As far as "compensation" goes, refer to your lawyer for advice. These should be spelled out in the SPA. There are clauses in the SPA to protect both buyer & seller.
Hopefully, you paid the 10 per cent through your lawyers and not to the seller or agent. There should be a receipt or an acknowledgement and a signed letter of offer stating the terms of the down payment.
Since you have your own lawyer, suggest you let them handle the final payment and obtain the title deed & keys, etc. on your behalf. You paid them to do all these. Even after receiving the title deed, they need to check to make sure all are in order. Also, there are other documents besides title deed (change of ownership with town council, caveats, etc.).
Finally, buying a resale property in MY is the Mother of all tests of one's patience. It took me more than 10 months. And I considered myself lucky - at least I obtained the state consent (after six months of anxious wait!). If you read elsewhere in this forum, there are unlucky ones who did not manage to get state consent (i.e. rejected) after waiting for just as long.
Let your lawyer handle the SPA and all payment matters. You just need to pray that you will obtain the state consent.
Just to share my experience. Took me more than one month from the time of letter of offer to purchase (from my lawyer to seller lawyer) before I see a draft copy of the SPA. Seller was not registered as owner on the land search and there was also some delay. All these I let the lawyers sort out among themselves; only know the problems from the letters copied to me. I just chase my own lawyer (his office clerk) for the SPA to be amended - lots of typo and other errors. Took a while to get these corrected as well. Eventually see the final signed copy after slightly more than four months from date of offer letter, although the signed SPA was dated two months from date of offer. In short, let the lawyers handle all the sale issues but you must chase them weekly (by phone calls, not emails) for updates, else they conveniently forget!
As far as "compensation" goes, refer to your lawyer for advice. These should be spelled out in the SPA. There are clauses in the SPA to protect both buyer & seller.
Hopefully, you paid the 10 per cent through your lawyers and not to the seller or agent. There should be a receipt or an acknowledgement and a signed letter of offer stating the terms of the down payment.
Since you have your own lawyer, suggest you let them handle the final payment and obtain the title deed & keys, etc. on your behalf. You paid them to do all these. Even after receiving the title deed, they need to check to make sure all are in order. Also, there are other documents besides title deed (change of ownership with town council, caveats, etc.).
Finally, buying a resale property in MY is the Mother of all tests of one's patience. It took me more than 10 months. And I considered myself lucky - at least I obtained the state consent (after six months of anxious wait!). If you read elsewhere in this forum, there are unlucky ones who did not manage to get state consent (i.e. rejected) after waiting for just as long.
Let your lawyer handle the SPA and all payment matters. You just need to pray that you will obtain the state consent.
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Re: SG Loan of Msian Loan Better ? Hidden Costs ?
I also bought resale. Tan & Lee handled my case, and I regretted using TKK for loan agreement, should have stuck with Tan & Lee to save time and maybe even some costs. Tan & Lee female boss quite power lady sia. We got a runner to speed things up and I got my State Consent within two weeks. Was extremely happy when told the news.
I also bought resale. Tan & Lee handled my case, and I regretted using TKK for loan agreement, should have stuck with Tan & Lee to save time and maybe even some costs. Tan & Lee female boss quite power lady sia. We got a runner to speed things up and I got my State Consent within two weeks. Was extremely happy when told the news.
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Re: SG Loan of Msian Loan Better ? Hidden Costs ?
A Singaporean friend is thinking of buying a small terrace house for about rm300K for his Malaysian mum in JB
Wonder if anyone kind soul can provide some advice on this matters :
Can a Singaporean fund a Malaysian (non tax payer and unemployed), fully or partly, to purchase property? Any taxation implication for the Malaysian part?
Can the Malaysian will her property to a foreigner upon her death? Any tax implication for the foreigner's part (eg estate duty)
Can a Malaysian give her property to a foreigner as a gift ? Any tax implications on the foreigner's part?
A Singaporean friend is thinking of buying a small terrace house for about rm300K for his Malaysian mum in JB
Wonder if anyone kind soul can provide some advice on this matters :
Can a Singaporean fund a Malaysian (non tax payer and unemployed), fully or partly, to purchase property? Any taxation implication for the Malaysian part?
Can the Malaysian will her property to a foreigner upon her death? Any tax implication for the foreigner's part (eg estate duty)
Can a Malaysian give her property to a foreigner as a gift ? Any tax implications on the foreigner's part?
Re: SG Loan of Msian Loan Better ? Hidden Costs ?
I can only answer one of your questions. A Foreigner cannot inherit or receive as gift any Malaysian property that is valued at less than the minimum amount which is now 1M. My friend whose dad is also a Singapoean bought a house 20 years ago which is now only worth 250K, in Kota Tinggi. He is in his 70s and tried to make a will in Malaysia leaving her the house but was told by several lawyers she can't inherit as she a Singaporean. They advised him to give her Power of attorney which will give her the right to manage the property and live there even after his death if they really don't want to sell it.
I can only answer one of your questions. A Foreigner cannot inherit or receive as gift any Malaysian property that is valued at less than the minimum amount which is now 1M. My friend whose dad is also a Singapoean bought a house 20 years ago which is now only worth 250K, in Kota Tinggi. He is in his 70s and tried to make a will in Malaysia leaving her the house but was told by several lawyers she can't inherit as she a Singaporean. They advised him to give her Power of attorney which will give her the right to manage the property and live there even after his death if they really don't want to sell it.
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Re: SG Loan of Msian Loan Better ? Hidden Costs ?
Appreciate some advice here...
Assuming I sell my house in future, instead of taking the proceeds back to Sg., I choose to leave it at the banks to earn fd interest (at the moment the My banks are giving better interest, but do take note of currency devaluation which might happen)as S$ has always been stronger. Is this interest receivable subject to non-resident tax?
Appreciate some advice here...
Assuming I sell my house in future, instead of taking the proceeds back to Sg., I choose to leave it at the banks to earn fd interest (at the moment the My banks are giving better interest, but do take note of currency devaluation which might happen)as S$ has always been stronger. Is this interest receivable subject to non-resident tax?
Re: SG Loan of Msian Loan Better ? Hidden Costs ?
Serious? "A Foreigner cannot inherit or receive as gift any Malaysian property that is valued at less than the minimum amount which is now 1M." In that case, retiree must buy >1 M to order to inherit?
Serious? "A Foreigner cannot inherit or receive as gift any Malaysian property that is valued at less than the minimum amount which is now 1M." In that case, retiree must buy >1 M to order to inherit?
Re: SG Loan of Msian Loan Better ? Hidden Costs ?
This this case, assuming the children are not interested to manage the property, can the old man appoint an administrator to his estate with instruction that the administrator to sell the property upon his death and the proceeding go to his Singaporean children?
If possible, then will the inheritor be taxed by MY?
This this case, assuming the children are not interested to manage the property, can the old man appoint an administrator to his estate with instruction that the administrator to sell the property upon his death and the proceeding go to his Singaporean children?
If possible, then will the inheritor be taxed by MY?
Re: SG Loan of Msian Loan Better ? Hidden Costs ?
Yes it can be sold upon his death, I dont know abt taxes but i assume death duties would apply as its still in his name.The problem in my friend's case is she is single and wants to retire living in that house, she cant afford a house abv 500K much less 1M.So they have to find a way to hold on to it, this seems the only way.
Yes it can be sold upon his death, I dont know abt taxes but i assume death duties would apply as its still in his name.The problem in my friend's case is she is single and wants to retire living in that house, she cant afford a house abv 500K much less 1M.So they have to find a way to hold on to it, this seems the only way.
Re: SG Loan of Msian Loan Better ? Hidden Costs ?
Possible to include his daughter as co-ownership to the property?
Possible to include his daughter as co-ownership to the property?
Re: SG Loan of Msian Loan Better ? Hidden Costs ?
They have asked and answer is No. He bought before the ruling so they cant take the house away from him. His wife is Malaysian but they dont wantt o transfer to her name as eventually they will be faced with same problem, all their chidlren and grandchildren are Singaporean. So if you're Singaporean with a property valued at below 1M now, you will face difficulties leaving it to your heirs unless they are Malaysian.
They have asked and answer is No. He bought before the ruling so they cant take the house away from him. His wife is Malaysian but they dont wantt o transfer to her name as eventually they will be faced with same problem, all their chidlren and grandchildren are Singaporean. So if you're Singaporean with a property valued at below 1M now, you will face difficulties leaving it to your heirs unless they are Malaysian.
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