ejen harta tanah e (1)1197 presentation by adrian wang managing director copyright 2013 cbd...
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Ejen Harta TanahE (1)1197
Presentation ByPresentation By
ADRIAN WANGADRIAN WANGManaging DirectorManaging Director
Copyright 2013 CBD Properties Sdn Bhd. All rights reserved
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CBD PROPERTIES SDN BHDCBD PROPERTIES SDN BHD
Disclaimer: CBD Properties Sdn Bhd shall not be responsible for any errors if any, on this presentation, which have been compiled from Adrian Wang’s years of experience in the real estate industry & opinion on this topic. CBD Properties Sdn Bhd and Adrian Wang shall not be held liable for any claims, if any, in regards to the information on this presentation.
Developer’s Interest Bearing Scheme
Copyright 2013 CBD Properties Sdn Bhd. All rights reserved
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Copyright 2013 CBD Properties Sdn Bhd. All rights reserved
www . CBD . com . my
DIBS – Developer’s Interest Bearing Scheme
•The scheme was introduced during the 2008-2009 US Financial and Housing Crisis.
•Attractive packages were introduced.
•5/95 scheme, DIBS, absorption of stamp duty, legal fees, rental guarantees, cash back payment, early bird discount, fully furnished packages and etc.
Copyright 2013 CBD Properties Sdn Bhd. All rights reserved
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Advantages
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• Easy way to own a property.• Developers find it easier to sell with DIBS.• No monthly interest payment, good for foreign
buyers.• No hassle to go to bank to make monthly
payment.• Similar to Built-Then-Sell (BTS) scheme, but it is
not a BTS scheme. Pay 10%, then pay nothing until completion.
• Buyer’s cash-flow is in a better position when buying DIBS property.
• If the property is delayed for vacant possession, the developer will still have to pay the interest repayment to the bank.
Copyright 2013 CBD Properties Sdn Bhd. All rights reserved
www . CBD . com . my
Copyright 2013 CBD Properties Sdn Bhd. All rights reserved
www . CBD . com . my
Disadvantages
• Selling price / S&P price will be higher.• Speculation activities increase. Speculation ,
price • DIBS package, the buyer is locked into a loan
agreement.• If the project is abandoned, the buyer will still
be committed to the mortgage.• No transparency in the fixed selling price for
buyer.
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How Does DIBS Affect Developer’s Sales?
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www . CBD . com . my