FOLLOWING the footsteps of several developers, Mah Sing Group Bhd and Tropicana Corp Bhd are stepping up their marketing strategies by offering tailored financing schemes to boost sales.

Mah Sing has launched a deferred financing plan under its “easy home ownership” campaign, known as Lock and Roll involving about 10 completed projects located in different parts of the country.

Chief executive officer Ho Hon Sang says the scheme will “allow buyers to remain liquid for a generous amount of time” as buyers need only serve the interest of their loan for the first 24 months. Full instalment starts from the 25th month.

The mechanics of the scheme involves a buyer “locking” into a unit with a RM10,000 booking fee. He then shops around for a loan.

“Under normal circumstances, buyers need to pay 100% of the property value upon vacant possession of a completed property,” says Ho.

This campaign allows buyers to focus their finances on renovation or building their business while paying a minimal amount during the first two years.
[slider id='81590' name='StarProperty' size='full']
“Based on an example where a buyer qualifies for an 80% loan for a RM1mil property, the buyer pays RM200,000 differential sum (or downpayment). The bank will only draw down 50% of the loan amount, that is, RM400,000 of the RM800,000.

Assuming an interest rate of 4.5%, interest payment is RM18,000 per annum. Effectively, the buyer pays only this interest portion of RM1,500 for 24 months, Ho says in a statement.

Full instalment comprising interest and the principal loan amount of RM800,000 starts from the 25th month onwards.

On the rationale of a 24-month deferment, Ho says he expects the property market to recover by 2018.

The Mah Sing group has 46 ongoing projects in different locations from Penang, the Klang Valley to Iskandar Malaysia, Johor. The scheme, launched on Nov 5, concludes on Dec 31.

Ho says: “In our current challenging market, property is still the best hedge against inflation. It is considered as one of the most preferred investment opportunities in Malaysia.”The projects under this Lock and Roll scheme involve retail units, bungalows and high-rise residential projects which are already 80% sold with prices beginning from about RM800,000.

Projects under this deferred payment scheme include serviced apartments Icon Residence, Mont’Kiara, M Galleria retail (26 units) in M Residence Rawang and commercial units in Icon City@Petaling Jaya, near the Federal Highway.

In Penang, the scheme involves condo villas Ferringhi Residence, Southbay Plaza condominiums and bungalows Legenda@Southbay. In Johor, the scheme involves Austin V-Square shops.

Tropicana, meanwhile, is offering a 0% interest plan, where buyers fork out an initial downpayment from as low as 1% while enjoying deferred payments with zero interest instalment for up to 24 months, and zero progressive payments for up to 24 months.

The scheme runs from Oct 21 and ends on Dec 31, 2016.

Demand for developments in prime locations is encouraging, says Tropicana marketing and sales executive director Ung Lay Ting in a statement.

“However, buyers are struggling to secure financing. Our 0% interest plan will ease buyers’ cash-flow burden and overcome down payment issues.”

Its 0% interest plan offers a flexible payment structure for the initial down payment, Ung says.

“This scheme helps homebuyers to bridge the gap in the funds needed for the initial payment with increased flexibility and less worry,” Ung says, adding that buyers can enjoy peace-of-mind as there will be zero progressive payments for up to 24 months.

Ung says close to 3,000 have registered for it. Projects that fall under this scheme includes certain phases in Parkfield and Ridgefield Residences, Kajang’s Tropicana Heights, Bayan Residences and Cheria Residences, Tropicana Aman in Kota Kemuning, Paloma Serviced Residences, Tropicana Metropark in Subang Jaya and Dianthus Serviced Residences and Kota Damansara’s Tropicana Gardens.