8 Start a property company or cooperative with family members and friends for deposit.
In this technique, all you have to do is to form a company and pool some funds into the company or cooperative. The larger the fund, the more properties you can purchase. If you purchase under a company, everybody will benefit from this purchase since the property technically belongs to the company and you are all shareholders in the company.
With this method all you have to do is decide which type of property that you want to purchase. Once you have identified the property, you will then own the properties and if you rent out the properties, all the rent monies will go into the company’s account. Hence everything is safely accounted for.
Later, your company will be able to run on its own once you have the income generated from all the properties that you purchase under individual names. The rents will be an evidence of income for the bank to lend your company a property loan.
9. Set the purchase price of the property to be higher to cover for the deposit of the property.
When the property price on paper is more than the actual purchase price, a whole new ball game is at play. What happens is that you are really marking up the price such that the marked up difference will cover the deposit of the property.
Let’s say that you are buying a property at RM 200,000 and the loan offered to you is 80%. Therefore you need to come up with RM 40,000. In this case, in order for you to cover RM 40,000 you need to mark up the property price to RM 250,000. If the bank agrees with the value of this property, then what you can do is sign a sales and purchase agreement at a price of RM 250,000.
The bank will loan at 80% of purchase price of RM 250,000 that is RM 200,000. Now this means that you don’t need to fork out RM 40,000 for the original and agreed price of RM 200,000 right? All you have to do is to convince the bank that its value is worth RM 250,000. This is not easy if the bank does its own valuation.
10 Negotiate for a long settlement
Settlement means that you have fully complied with the conditions of the agreement and settlement date can actually be agreed both by the vendor and purchaser. Hence the keys can be collected on the said date. Please note that settlement does not mean full settlement by full payment. It simply means that the transference of the property ownership into the name or names of the purchaser or purchasers. These terms are usually popular in New Zealand and Australia.
The idea of delaying the date for settlement is so that the buyer can accumulate the deposit money by several means. In other words, the buyer can get some funding from somewhere for the deposit (refer to other methods mentioned previously).
Delaying settlement date may help you accumulate the deposit well within the required amount – if you don’t have the money in the first place. This technique may or may not give you 100% of your deposit but surely it can help you think or strategise about getting some deposits from somewhere so that the time required to actually
