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

**********

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

This Post Has 5 Comments

  1. Benny

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

    1. ChingFoo Lieu

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

  2. Gt2

    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?

Leave a Reply

HowToFinanceMoney © 2011-Present. All rights reserved.