Funny business in property sales
A few of the recent launches are using the "upfront discount" method again so that essentially, it is back to the old 'no money down' model where buyers pay a booking fee and supposedly 'paid' the 10% deposit but the developer gives you back the money via discount.
The bank then gives you a 90% loan but you actually did not fork out any equity.
Now many or almost everyone would say what's wrong with that? But the thing is, you are actually buying an overvalued property.
If this gets to a large scale and you try and offload the property once its built, your potential buyers will know that you bought it through this method and why would they want to pay the premium?
Anyway, I know no matter what I say, this will still go on because people have short memories and by the time the development is complete, who is going to remember? And the cycle goes on.
So the note to myself, in this case, is to stick with my plan to continue in the landed market, buying location location location!
Don't ever be taken in by fancy marketing.
The bank then gives you a 90% loan but you actually did not fork out any equity.
Now many or almost everyone would say what's wrong with that? But the thing is, you are actually buying an overvalued property.
If this gets to a large scale and you try and offload the property once its built, your potential buyers will know that you bought it through this method and why would they want to pay the premium?
Anyway, I know no matter what I say, this will still go on because people have short memories and by the time the development is complete, who is going to remember? And the cycle goes on.
So the note to myself, in this case, is to stick with my plan to continue in the landed market, buying location location location!
Don't ever be taken in by fancy marketing.
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