Recently, a lots of developer providing offer package for discount and rebate of their new projects.

Do you know what is the different between discount and rebate? Which package is better?

Discount Package

Example Project Name: ABC New Condo

Selling Price: RM 800,000

Offer Package: Discount 10%

Selling Price After Discount Package: RM 720,000

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Loan @ 90%

Loan Amount = RM 720,000 X 90% = RM 648,000

Rebate Package

Example Project Name: XYZ New Condo

Selling Price: RM 800,000

Offer Package: Rebate 10% (credit note by developer)

Selling Price After Rebate Package: RM 800,000

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Loan @ 90%

Loan Amount = RM 800,000 X 90% = RM 720,000

From the example package above for discount and rebate, which offer is better deal?

1). Discount offer package will have lower loan amount compare with rebate offer package.

2). Loan installment will be lesser in discount offer package compare with rebate offer package.

3). Rebate offer package will giving credit note/ cash out as rebate for you directly to cover the 10% down payment.

4). Lower RPGT in rebate offer package if you going to sell off within 5 years.

Personally, I think both offer packages do have good and bad, the point is which package giving you most benefit with your strategy plan and able to cover the loan installment. While comparing the above good and bad, the most important is the property value. Is it good market value? Some developer may mark up the value of the property with the actual market value, we need to be extra careful!

What do you think about it? Do share your opinions and comments at below and let’s discuss together to maximize our property investment strategy!