“No-Money-Down” Strategy To Buy Property If you read property investment books, you definitely will come across a strategy known as “No-Money-Down” strategy. In other words, it means you don’t have to pay a single cent to purchase your property. Wait a minute, did I just say “you can purchase a property without paying any advancement or deposit?” This is true considering our government has a scheme known as “My First Home Scheme” to assist young adults in purchasing their first property, by allowing them to get 100% financing from Financial Institution. But what about another strategy where you have the Sale and Purchase Agreement reflecting higher purchase price to enable you to get higher bank loan? Let’s say, you need a 10% deposit for a house priced RM400, 000. You negotiate with the Seller to have the Sale and Purchase Agreement to reflect RM440, 000 as the selling price. Now, you can purchase your property without any money down because the 10% deposit in the sum of RM 40,000 came from the bank for a RM 400,000 property! This is exactly what happened today where we have friend, who came to our office and asked us whether it’s viable to […]
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