PROPERTY SHARING EXPERINCES Presented by Bill Wong

OVERVIEW OF THE RISING HOUSE PRICES FIRST TIME HOUSE BUYERS VERY HARD TO AFFORD TO OWN A PROPERTY PROPERTY DEMAND IS STILL HIGH IN THE AFFORDABLE PRICE RANGE OF RM 300K –RM 500K HOUSES PRICE IN ESTABLISHED AREA WITH GOOD INFRA AND AMENITIES WILL APPREICATE GOVERNMENT COOLING MEASURES TO CURB PROPERTY PRICES MAY BACKFIRE THE RPOPERTY MARKET STRICTER BANK LENDING GUIDELINES FEWER TRANSACTIONS ON HIGH END PROPERTIES

WHY PROPERTY PRICE INCREASE? MALAYSIA IS BOOMING AND DEVELOPING COUNTRY, GOVERNMENTS ETP PROGRAME RISE OF INPUT COST SUCH AS LAND PRICE, CONSTRUCTION MATERIALS, CONTRIBUTION COST TO RELEVANT AUTHORITIES AND OTHERS STABLE POLICTICAL AND ECONOMIC CONDITIONS POPULATION INCREASING STRONG GENUINE HOUSE DEMAND EXCEED SUPPLY HIGH INFLATION RATE DEVELOPERS MOTIVE IS TO MAXIMIZES PROFIT FROM THEIR PROJECTS RISE OF COMMUTING COST DUE TO RISE OF PETROL PRICE MAKES PURCHASER WANTS TO STAY NEARER TO CBD AND AMENITIES. CHEAP PROPERTY NO GOOD, GOOD PROPERTY NO CHEAP

PROPERTY BUBBLE OR FAKE BUBBLE? BANGSAR DOUBLE STOREY HOUSE IN 1970s, THE PRICE OF A DOUBLE STOREY HOUSE WAS RM 20,000. TODAY, IT WENT UP TILL RM 1.3M. BUT NOBODY WANTS TO SELL IT DO YOU HEARD PEOPLE MENTIONING PROPERTY BUBBLE IN THE MAKING IN BANGSAR DUE TO SUPER HIGH PRICE? WHY? LOCATION, LOCATION, LOCATION OWNER FINANCIAL HOLDING POWER DONT SELL YOUR PROPERTY DURING CRISIS TIME PRICE OF HOUSES AT GOOD LOCATION WILL REBOUNCED BACK FASTER AFTER PROPERTY CRISIS

HOW TO WE ENCOUNTER RISE OF HOUSE PRICES? ASK YOUR BOSS TO RAISE YOUR SALARY FIND A BETTER JOB OR PART TIME JOB START YOUR OWN BUSINESS OR BECOME A REAL ESTATE NEGOTIATOR CUT YOUR MONTHLY EXPENSES MARRY TO A SUPER RICH MAN OR WOMAN STRIKE A JACKPOT DONT BUY HOUSE, JUST RENT BUY RURAL AREA HOUSE BUY AUCTION OR DEPRESSED HOUSE REGISTER FOR PR1MA TO BUY AFFORDABLE HOMES LOW COST FLATS IS STILL AVAILABLE BETWEEN 40K-80K IN KLANG VALLEY RULE#1 TO BEAT THE RISE OF HOUSE PRICE, FIRST YOU MUST INVEST IN YOUSELF BY BUYING YOUR OWN HOUSE.

PRO OF DIBS PURCHASER WINS PURCHASERS JUST PAY THE DIFFERENTIAL SUM BETWEEN SPA & LOAN AMOUNT AND HOPING TO FLIP THE PROPERTY UPON COMPLETION FOR A PROFIT WITHOUT HAVING THE PAIN TO PAY INTEREST DURING CONSTRUCTION. DEVELOPER WINS DIBS IS PROVEN TO BE A SUCCESSFUL MARKETING TOOL WHEREBY DEVELOPER CAN SELL OUT ITS STOCKS WITHIN A SHORT PERIOD. WITH DIBS, IT MAKES THEIR PROJECT VERY ATTRACTIVE TO INVESTORS. SAVE ON MARKETING EXPENSES. BANK WINS BANK WILL BE FACING LOWER RISK OF LOAN INTEREST REPAYMENT DEFAULT AND EXPECTING PROMPT REPAYMENT OF LOAN INTEREST BY DEVELOPER.

CONS OF DIBS PURCHASER LOSE PURCHASERS ARE BUYING FUTURE PRICE. IF THE PROJECT IS ABANDON OR DEVELOPER STOP PAYING INTEREST, THEN PURCHASER HAS TO CONTINUE TO PAY THE INTEREST. DEVELOPER WINS DEVELOPER HAS BUILT IN THE PROGRESSIVE INTEREST COST INSIDE THE FINAL SELLING PRICE. EVER HEARD OF THIS WORD: IN THE EVENT, IF YOU DONT WANT DIBS PACKAGE, ADDITIONAL REBATE OF 4% ON 1 ST DRAWDOWN. WHAT DOES THIS MEANS? A FAMOUS CHINESE PHRASE GOATS HAIR COMES OUT FROM GOATS BODY. WITH DIBS, A DEVELOPER RE-PHRASE THIS TO ME AS GOATS HAIR COMES OUT FROM YOUR BODY. BANK WINS DEVELOPER IS PAYING THE PROGRESSIVE INTEREST ON BEHALF OF THE PURCHASER. PURCHASER IS THE ONE WHO SIGN THE LOAN AGREEMENT WITH THE BANK. IN THE EVENT, THE DEVELOPER STOPS TO PAY THE PROGRESSIVE INTEREST FOR WHATSOEVER REASONS, THE BANK WILL STILL GO AFTER THE PUCHASER.

PROJECT ABC (DIBS) VS PROJECT XYZ (NON DIBS) WHICH WOULD YOU INVEST? Both projects is a 1,000sqft, condominium project next to each other PROJECT CONDO ABC DIBS SELLING PRICE: RM 450,000 net PROJECT CONDO XYZ NON DIBS SELLING PRICE: RM 425,000 net

FROM OUR EXPERIENCES PROJECT ABC IS A HOT PROJECT BECAUSE OF DIBS, BUT MOST IMPORTANTLY DO YOU HAVE ANY LUBANG TO BUY A UNIT OF ABC. NEW HOT LAUNCHES WILL BE SAPU BY INTERNAL DIRECTORS, STAFFS, VVIP, BUSINESS ASSCOCIATES, REPEAT BUYERS, REGISTRANTS, BULK PUCHASERS AND OTHERS BEFORE RELEASING IT PUBLIC. YOU MAY NEED TO QUEUE UP EARLY IN THE MORNING ON THE FIRST DAY OF SALES TO BUY A UNIT AT PROJECT ABC, IS IT A GOOD UNIT /GOOD VIEW / DIRECTION? PROJECT ABC WILL SELL FASTER THAN XYZ. ONCE PROJECT ABC FULLY SOLD, PURCHASER WILL BUY PROJECT XYZ. PURCHASER OF PROJECT ABC IS AWARE OF THE PRICE IS HIGHER RM 25,000 THAN PROJECT XYZ, BUT UPON COMPLETION, PROJECT ABC PRICE WILL STILL APPRECIATE. IF YOU CANT AFFORD TO BUY IT TODAY, YOU MAY NOT EVEN AFFORD TO BUY IT IN THE FUTURE.

PROPERTY WORD OF WISDOM Buyer: Bill, How much per sqft? Bill: Sir, Its 700psf Buyer: Are you crazy? So freaking expensive! Bill: Yes Sir, YOU ARE BUYING THE MOST EXPENSIVE PSF NOW, BUT AFTER 3 MONTHS, YOU ARE NOT THE MOST EXPENSIVE

THANK YOU DONT STOP BUYING PROPERTIES PRESENTED BY BILL WONG METROHOMES SDN BHD