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
———————————————————–
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
———————————————————–
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!
Video Flux
It’s in point of fact a great and useful piece of info.
I am glad that you just shared this useful information with us.
Please keep us up to date like this. Thank you
for sharing.
TT
3). Rebate offer package will giving credit note/ cash out as rebate for you directly to cover the 10% down payment.
HOW CAN WE ENSURE THAT DEVELOPER WILL HONOUR THE REBATE? MONEY GOES INTO THEIR BANK ACCOUNT, ITS THEIR CALL, NOT US.
IS THAT ANY LAW TO PROTECT BUYER ON SUCH REBATE CASH?
Chat Property Malaysia
AuthorNormally there will be separate agreement for this.
Ezekiel Lim
should developer credit the discount price, paid by their own (developer) to HDA account??
Chat Property Malaysia
AuthorI do not understand you question
mr.nobody
I have been wondering about this rebate thing from Developer. I keep wondering how come there is such a good rebate deal to me. My case is as below:
I bought one property with ‘Rebate 15%’ with property value is 900,000. So I got the bank loan based on 900,000 for 90% loan (810,000).
10% downpayment = 90,000.
15% rebate = 135,000
which means, I still have upfront cash from Developer 45,000 (135,000-90,000), which I can use it to pay monthly instalment or some minor renovation.
Sound too good to be true, isn’t it?
I believe the catch of this rebate deal is, Developer marked up the property value & then give you rebate more. Am I correct?
Anyone has this kinda deal b4?