In the current difficult times, SP Setia Bhd has come up with a scheme to make it easier for buyers to own homes.
And four local banks – Malayan Banking Bhd, Public Bank Bhd, CIMB Bank Bhd and EON Bank Bhd – have committed more than RM1bil to provide financing facilities to the company’s new 5/95 Home Loan Package.
Under the package, buyers need only make a downpayment of 5% and the balance is payable upon completion of the property.
Under the 10:90 variant of the build-then-sell system, buyers have to make a downpayment of 10% of the property cost.
SP Setia group managing director and chief executive officer Tan Sri Liew Kee Sin said: “We want to reassure buyers that bankers are not shying away from lending.”
Besides the banks’ support, the group also had RM600mil in cash to fund the campaign, he said after the launch of Setia 5/95 Home Loan Package by Housing and Local Government Minister Datuk Seri Ong Ka Chuan yesterday.
The three-month campaign ends on April 19 and is applicable to all SP Setia’s residential properties in the Klang Valley, Johor and Penang.
SP Setia would also bear other entry costs such as legal fees, stamp duty on the sale and purchase agreement and loan agreement as well as memorandum of transfer for purchases under the campaign.
“We believe Malaysians are still looking to buy and have the purchasing power to do so but got shaken a bit by the current market,” Liew said.
He added that the company had received “very encouraging” response from buyers to the promotion it introduced two weeks ago.
Ong said the Government encouraged developers to embark on build-then-sell system.
“As the country faces pressure from the global financial meltdown, Malaysians have become more cautious in spending. By introducing this 5/95 package, I believe SP Setia has managed to work out the right mechanics to offer prospective homeowners an attractive plan that is difficult to ignore,” he said.
However, Ong said the Government could not fully implement the build-then-sell system yet as smaller developers might find difficulty in securing loans from financial institutions to start a housing project.
The Government, he added, would provide incentives including fast-track approval for projects of developers who opted for the concept. - The Star
2 comments
It seems that there are height restriction not more than 2 storey in the development, plenty of squatters to settle, certain part of the project has exceeded the requirements of more than 250 metres above sea level, which will not obtain approvals from state authorities. Can anyone please carify these claims? I am interested in Southbay and also Setia Pearl Island. Due to the level of uncertainty and also a very transparent state government, i would reckon that Southbay may not get approval..replica watches
You have to shop around to find the best deal. Not many lenders offer 100% financing, but it is not impossible to find.Ask potential lenders for closing cost and compare. Rates are changing daily and if you get the idea after talking with couple lenders what rate can you expect, them make decision. Ask your family and friends if they can recommend you somebody if they have experience dealing with somebody specific.
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