Newbie questions

[wuqi256]

What is the risk if you sign SPA before getting loan approved?

You risk not being able to go through with the deal if the bank for some strange reason decide not to.

 

[Funniman]

When you sign the SPA, you paid the downpayment of 10%. In some cases, the refund is done with some sort of penalty and in other cases, you say goodbye..to your property and the money paid. It all depends on your SPA escape clauses.
Banks are normally good towards the developer whom they had agreed to end financing terms and will lend to most buyers.
But the loan is between yourself and the bank, so it is the conduct of your financials that is more important criteria.

What is the risk if you sign SPA before getting loan approved?

 

[Stevewish]

Re: johor exco to review foreign ownership of houses in johor

My sense is it is unlikely to be implemented so soon, probably after the election. This could be just election ploy to address local's concern about rocketing property prices.

If it is raised beyond $1mil RM, it will immediately slash property demand in the short term, and many investors and developers will be stuck. This is against promoting Iskandar as an investment hub. What follows is investment and land prices will drop, bearing in mind Johor government is deeply in debt due to heavy spending in the infrastructure (huge infrastructure even in Singapore's context) and need to recoup the investments.

It can just implement it first to test "water" and remove later if not feasible, just like the thumbprints biometric system for foreigner.

 

[wuqi256]

Re: johor exco to review foreign ownership of houses in johor

As predicted, price rises is cause by foreigners.....

It will create a 2 tier market.....

One market for locals (which locals still cannot afford) and one vibrant property market for foreigners above RM1m.

Rich people will find ways to get thru the loophole..... By giving cash back or fully furnish the property and sell above RM1m. Nothing can get in the way of the rich...

Prof, old discourse we used to have. Agree that the properties meant for foreigners will keep going higher but locals wise. I had friends who just bought a 250k condo and a couple in Austin area bought the new terraces (G&G) in that area for way under 500k so for those who are newly graduated, they still have choices. Until today, i still have friends who do not buy into the G&G concept and go for non G&G or condos.

 

[wolverine23]

So the worst that can happen is that if I do not secure a loan, I have to pay cash for all the progressive instalments?

Any other penalties?

When you sign the SPA, you paid the downpayment of 10%. In some cases, the refund is done with some sort of penalty and in other cases, you say goodbye..to your property and the money paid. It all depends on your SPA escape clauses.
Banks are normally good towards the developer whom they had agreed to end financing terms and will lend to most buyers.
But the loan is between yourself and the bank, so it is the conduct of your financials that is more important criteria.

 

[Mingchye]

So the worst that can happen is that if I do not secure a loan, I have to pay cash for all the progressive instalments?

Any other penalties?

As long as you pay the progressive payments timely you are complying with the terms of the SPA. No other penalties unless you pay late lah(covered under the SPA for late payments).

 

[wuqi256]

So the worst that can happen is that if I do not secure a loan, I have to pay cash for all the progressive instalments?

Any other penalties?

Yes but the progressive installments may come either late or all together at once depending on how your developer does things and some folks may only have the minimum and would be unable to proceed. One thing is to sound them out in case the bank delays approval or the securing of the loan and see if they can defer at least part or most of the payments a few months without charging interest or at least halving the interest to be charged.

 

[wolverine23]

ok thanks...I thought there is a payment downdown schedule?

My worry is the impending Johor measures.... thats why want to sign SPA fast to get the state consent faster....

Yes but the progressive installments may come either late or all together at once depending on how your developer does things and some folks may only have the minimum and would be unable to proceed. One thing is to sound them out in case the bank delays approval or the securing of the loan and see if they can defer at least part or most of the payments a few months without charging interest or at least halving the interest to be charged.

 

[ginfreely]

Re: Malaysia water supply - High Cholrine content??

I use the Osim or the Waterpik brands (bought in SG) for my home and business, family/friends/staff/customers health comes first. Most use it from the tap if i am not wrong, lorry or long range drivers use those vending machines with reverse osmosis system for water filtration.

Just be safe, i have a few smart friends who bought external water filtration systems but refused to believe me when i told them(after all what do i know right?) , it filters water from the outside but all those water and rubbish in the water tank on the 2nd floor (theirs are landed property) will still be there unless one clears it first.

One fine day, while they were installing a water pump near the water tank, then they opened up the tank and saw so much stuff still inside it. Finally they understood what i was saying.

Can get contractor worker to wash the water tank before using. I got my water tank washed, hopefully the worker did a good job.

 

[wuqi256]

Re: Malaysia water supply - High Cholrine content??

Can get contractor worker to wash the water tank before using. I got my water tank washed, hopefully the worker did a good job.

Yes, the washing can definitely be done but just pointing out that most didn't do it and were still using the tank. Cigarette butts, etc and other rubbish were found in their ctanks.
External systems have their own strengths but cleaning the tank should be part of the installation procedure.

 

[wuqi256]

ok thanks...I thought there is a payment downdown schedule?

My worry is the impending Johor measures.... thats why want to sign SPA fast to get the state consent faster....

There is a schedule to follow but some developers use it as a guideline and some do delay sending the notice due to legal or other construction matters and then later ask for sums of money at one go, thats when those who did not prepare or only having the minimum amount will struggle. Those who intend to pay by cash should have no issues, just that those who specifically intended to go through banks mostly and then didn't get the loan they needed may face difficulties.

 

[shctaw]

Re: johor exco to review foreign ownership of houses in johor

People whom do not buy property will find all reason not to buy when it is more affordable.
When it get more expensive, they have a additional reason that it is expensive.

Most did not even go take a look at new launches, never ever talk to a banker.

Any curb will not do them any favor, they will buy into a property which is restricted to the curb.

 

[winnipegjets]

Re: johor exco to review foreign ownership of houses in johor

They want foreign investment, yet they want to control foreigners buying properties. These UMNO clowns can't make up their mind.

 

[LeMans2011]

Re: johor exco to review foreign ownership of houses in johor

People whom do not buy property will find all reason not to buy when it is more affordable.
When it get more expensive, they have a additional reason that it is expensive.

Most did not even go take a look at new launches, never ever talk to a banker.

Any curb will not do them any favor, they will buy into a property which is restricted to the curb.

Well said Prof

 

[LeMans2011]

Re: johor exco to review foreign ownership of houses in johor

They want foreign investment, yet they want to control foreigners buying properties. These UMNO clowns can't make up their mind.

Nothing wrong with helping their locals by splitting the market into 2 tier. However they need to rethink the threshold... my guess is the news is election motivated. I would say 700k will be a better threshold if they dont want to create a crash in the sandwiched class... many terrace and clusters are in that region.

 

[wolverine23]

ok noted.

1) So I will go ahead to sign SPA to speed up the state consent process.

2) But I prepare myself for full cash payments in worst case there is no loan approval.

3) If there is a loan approved, I draw on the loan.

There is a schedule to follow but some developers use it as a guideline and some do delay sending the notice due to legal or other construction matters and then later ask for sums of money at one go, thats when those who did not prepare or only having the minimum amount will struggle. Those who intend to pay by cash should have no issues, just that those who specifically intended to go through banks mostly and then didn't get the loan they needed may face difficulties.

 

[tigerbear]

Re: johor exco to review foreign ownership of houses in johor

It doesn't matter if msia going to increase the limit for foreign purchase in Iskandar... look at Penang...most of the property prices are above myr1mi0 and foreigners purchased it for holiday home or just leave it empty, also there is less Singaporean effect in Penang and the property prices in Penang still going higher and higher

However, there is a real demand in iskandar by Singaporean,Malaysia PR and even British and American.

Yesterday Sg government announced another cooling measures which make it very very very difficuly for PRs and foreigners to own a property in Singapore either for own stay or for investment purpose.Hence, Iskandar will be the closer 'home' for own stay or investment now. Like myself, SPR who has been looking to buy in Singapore for own stay,looks like no chance at all to buy now and have to really look into Malaysia. :( :(. :*: I am sad

Don't forget Malaysia banks are still willing to give out cheap loan to finance the property up to 90pct and third properties onwards still can get 70pct! No additional buyer stamp duty too for extra unit! Look at SG , HK and China, low LTV ratio and a lot of restrictions now....

 

[graveyard]

Re: johor exco to review foreign ownership of houses in johor

It doesn't matter if msia going to increase the limit for foreign purchase in Iskandar... look at Penang...most of the property prices are above myr1mi0 and foreigners purchased it for holiday home or just leave it empty, also there is less Singaporean effect in Penang and the property prices in Penang still going higher and higher

However, there is a real demand in iskandar by Singaporean,Malaysia PR and even British and American.

Yesterday Sg government announced another cooling measures which make it very very very difficuly for PRs and foreigners to own a property in Singapore either for own stay or for investment purpose.Hence, Iskandar will be the closer 'home' for own stay or investment now. Like myself, SPR who has been looking to buy in Singapore for own stay,looks like no chance at all to buy now and have to really look into Malaysia. :( :(. :*: I am sad

Don't forget Malaysia banks are still willing to give out cheap loan to finance the property up to 90pct and third properties onwards still can get 70pct! No additional buyer stamp duty too for extra unit! Look at SG , HK and China, low LTV ratio and a lot of restrictions now....

the CM will benefit SG landlords - less rentable property = healthy rent yield

 

[FHBH12]

I would like to know the terms for the following as I need to pay them down the road, using RHB Internet banking (anyone using?). Thanks.

- Water utility
- Electricity utility
- Rubbish disposal and maintenance
- Property tax

Any others?

 

[aztro]

I had to sign my spa before I got my loan approval as well because the developer couldn't extend any later. The law firm didn't proceed with the state consent application until I signed the loan agreement. So it may not be faster. But this could just be for my case. I bought Adda heights.

ok thanks.I thought there is a payment downdown schedule?

My worry is the impending Johor measures. thats why want to sign SPA fast to get the state consent faster.