Buying a Property – How to interpret developer’s offer

If you walk into a developer sales gallery, and  the sales staff told you the price is RM 450 psf for a soon-to-be-launched condo project, with RM 50k upfront rebate and another RM 20k interest rebate to be given at at 50% and 100% disbursement stages, how would you interpret this offer?

The below is based on a real case scenario as I attended a sales launch last Saturday (11 May 2015)

Example – Duck or rabbit in the image below? same_data_different_interpretation_duck_rabbit

Scenario 1

 

Indicated unit price = RM (450 x 1,161) = RM 522,450 After Rm 50k rebate, SPA actual unit price = RM 472,450 Scenario 1 TGT 2

Scenario 2

 

Indicated unit price = RM [(450 x 1,161) + 50,000 + 20,000] = RM 592,450 Scenario 2 TGT 2 Home loan calculator tool above from Loanstreet.com.my

The Effect of Difference in Intepretation..

#1 Downpayment

RM 52,245 vs RM 59,245 –> Difference of RM 7,000

#2 Monthly installment

RM 2,196 vs RM 2,490 –> Difference of RM 294

#3 SPA Agreement Costs

RM 13,780 vs RM 16,370 –> Difference of RM 2,590

#4 Loan Documentation Costs

RM 6,092 vs RM 6,848 –> Difference of RM 756

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Which do you think is the real scenarios I encountered last weekend?

This Post Has 5 Comments

  1. Hi CF Lieu, I think you should have encountered the scenario 2. Is that true?

    1. Hi Benny, yes, you are right. Good guess. Are you based in Penang?

  2. Golden triangle 2 in penang?
    Thought the diff in down payment should be 52245 versus 9245 due to 50k rebate? And total interest n payment should be less 20k for the interest rebate?

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