The situation in Klang Valley is to the advantage of the buyers especially for condos market. Glancing through the local papers, you will notice that there are a number of new high rise condos under construction. Many of the developers are giving offers to entice the house buyers.
Among the offers given to the buyers are:
a. Down-payment assistance - There are buyers who are not in position to obtain the amount to pay for the down-payment. The amount can be in the range of 10%, so for a property valued at RM300,000; the down-payment can be about rm30,000. If you add the other expenses, such as stamp duties, lawyers fees and other fees, the amount can be in the region of rm40,000.
There are a coupe of ways the potential buyers can be "assisted". One of the ways is to get the bank to offer a special personal loan with a guarantor. The most common method is to use credit card to provide the bridging loan.
b. Special interest rate - In present market, the interest for housing loan is below the BLR (base lending rate). Currently the BLR 6.6% and the housing rate is BLR minus 2.45 to 2.5%., so the effective loan rate can be around 4.1 to 4.15%.
c. Furniture offer - There are some developers who offer built-in kitchen cabinets and accessories or appliances such as freezer, ceiling fans or airconditioning equipment.
d. Membership fees - If the developer happen to be the operator or owner of golf club, then it is not uncommon for it to offer free membership fees included in the cost of the house.
These offers to entice the house buyers are becoming a necessary too to get a fast sale. Once the buyers sign the sale and purchase agreements, they are locked in for about 10 years and the cash can flow in for the developers uses.
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