Author Topic: Regret buying property via auction, sigh  (Read 14778 times)

Offline RomieTan007

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Regret buying property via auction, sigh
« on: November 18, 2013, 12:58:17 PM »
Just bought an apartment around 900 SF in Klang area through auction last week. Already paid up 10% up front payment as deposit according to Proclamation of Sale.
Now the bank told me got problem on the transfer because I never pay quit rent assessment and maintenance charges which required to be borne by purchaser. How would I know that I need to pay that as well ? Sigh!
The total of quit rent assessment and maintenance the required to be borne is about RM20,000.00 Now I am getting regret buying auction property. Don't have much cash in hand o settle this. Any good option or opinion ?

Offline chrisyen

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Re: Regret buying property via auction, sigh
« Reply #1 on: November 18, 2013, 07:44:11 PM »
 :Blue: :Blue: :Blue: :Blue: :Blue: :Blue: :Blue: :Blue: :Blue: :Blue:

U will hv to pay that for sure...

Mayb u can consider borrowing

At least get the title to ur hand first

Offline David_cheong

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Re: Regret buying property via auction, sigh
« Reply #2 on: November 18, 2013, 07:58:27 PM »
I believe we need to do background work before the bidding.

The last time, I did was just called the maintenance office to find out whats it been owed/outstanding. The outstanding dues was supposed to be cleared by the bank initiated the auctions, there is a clause in the bidder forms, no?

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Offline 7thfort

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Re: Regret buying property via auction, sigh
« Reply #3 on: November 19, 2013, 09:03:28 AM »
Chris, since you are in the property sector, why can't the bank disclose all material information at the auction time? Does this constitute as non disclosure of material information which would influence the decision of a potential buyer?

Offline chrisyen

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Re: Regret buying property via auction, sigh
« Reply #4 on: November 19, 2013, 11:00:19 AM »
Chris, since you are in the property sector, why can't the bank disclose all material information at the auction time? Does this constitute as non disclosure of material information which would influence the decision of a potential buyer?

It's the std practice all the while...
They put there buyer shd to do their own survey b4 bidding...

U bid car also same, can't test drive also, can only see outside...

That's y bankers so rich!


Offline thomasim87

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Re: Regret buying property via auction, sigh
« Reply #5 on: November 19, 2013, 06:43:24 PM »
If you do not wish bank forfeited your deposit...you can try borrow this amount of money from your closest relative or best friend....last choice would be Licensed Money Lender which you need to becareful this "Shark Loan"

Offline 7thfort

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Re: Regret buying property via auction, sigh
« Reply #6 on: November 20, 2013, 08:18:03 AM »
Chris, since you are in the property sector, why can't the bank disclose all material information at the auction time? Does this constitute as non disclosure of material information which would influence the decision of a potential buyer?

It's the std practice all the while...
They put there buyer shd to do their own survey b4 bidding...

U bid car also same, can't test drive also, can only see outside...

That's y bankers so rich!

Thanks Chris. It is literally "let the buyer beware".

Offline hanz079

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Re: Regret buying property via auction, sigh
« Reply #7 on: November 20, 2013, 08:25:48 AM »
If you do not wish bank forfeited your deposit...you can try borrow this amount of money from your closest relative or best friend....last choice would be Licensed Money Lender which you need to becareful this "Shark Loan"

Licensed Money Lender is not Loan Shark.
They have license mah...

Loan shark is those that come look for you with a small card with boxes to tick and sign for every payment made.

Licensed Money Lenders have offices to maintain.
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Offline heilulu

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Re: Regret buying property via auction, sigh
« Reply #8 on: November 20, 2013, 03:33:34 PM »
for me, i would suggest to let the bank forfeit your deposit first lo, cause i think no need to further proceed lah!
other than that, u can ask the lawyer to help and see what u can do, maybe they will refund u if u got good reasons ;)

Offline chrisyen

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Re: Regret buying property via auction, sigh
« Reply #9 on: November 21, 2013, 06:26:44 AM »
Actually if u r buying auction property, u only need to find out few things

1. At the management office, check the outstanding amount for service charges, sinking fund n utilities
2. Land office, to check quit rent outstanding n to search the title to c whether any caveat lodged.
Court can order land office to transfer the title after auction, that's one off... U may still haunt by the caveat after u own it
3. Town Council, check the assessment outstanding amount n also any summon on illegal extension or kind if u found the subject property been renovated

I knew a fren who made millions from these

But the success rate of getting a gd deal wasn't high
In the end is the effort n gain thing.... Like any other investment
« Last Edit: November 21, 2013, 06:29:29 AM by chrisyen »

Offline Empty Tree 8

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Re: Regret buying property via auction, sigh
« Reply #10 on: November 21, 2013, 06:48:31 AM »
Actually if u r buying auction property, u only need to find out few things

1. At the management office, check the outstanding amount for service charges, sinking fund n utilities
2. Land office, to check quit rent outstanding n to search the title to c whether any caveat lodged.
Court can order land office to transfer the title after auction, that's one off... U may still haunt by the caveat after u own it
3. Town Council, check the assessment outstanding amount n also any summon on illegal extension or kind if u found the subject property been renovated

I knew a fren who made millions from these

But the success rate of getting a gd deal wasn't high
In the end is the effort n gain thing.... Like any other investment

And to add on, and I don't mean to be negative, it takes a lot of effort to get ahead of the syndicates at these auctions. The ones that are allowed through by them are usually the not so good or problematic properties. So if you are approached by syndicates, it may actually be a good sign... :Confused:

Offline chickypoke

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Re: Regret buying property via auction, sigh
« Reply #11 on: November 21, 2013, 07:41:56 PM »
 :o Klang area? Im interested. do you still want it ? For me, once u bought a property, please dont simply let it go. Bro, my advise, just go and get more money and settle down

Offline bazaoyu

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Re: Regret buying property via auction, sigh
« Reply #12 on: November 22, 2013, 01:56:42 PM »
dont worry bout the money lah! u can apply loan from citibank, they provide many benefits ler
the interest rate is vy low! monthly instalments just from RM123, so u dont have to worry bout money lor
besides, no processing fee as well
for more u can check here: http://www.citibank.com.my/english/personal_loan/personal_loan.htm?lid=MYENCBGOLMITLCitibankPersonalLoan

Offline el118

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Re: Regret buying property via auction, sigh
« Reply #13 on: November 22, 2013, 03:25:38 PM »
dont worry bout the money lah! u can apply loan from citibank, they provide many benefits ler
the interest rate is vy low! monthly instalments just from RM123, so u dont have to worry bout money lor
besides, no processing fee as well
for more u can check here: http://www.citibank.com.my/english/personal_loan/personal_loan.htm?lid=MYENCBGOLMITLCitibankPersonalLoan

Be careful. For those loan, they tell you interest rate very low which is the flat rate. effective interest is easily double. eg if they offer you 6% flat, effective int is almost 12% which is not low.

Offline AEAhmad

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Re: Regret buying property via auction, sigh
« Reply #14 on: December 06, 2013, 08:31:27 PM »
Sorry to hear that. I have bought 12 properties through auction since 2005. Got hiccups here and there...but net rental yeild so far more than 13% and immediate capital appreciation usally 30%. Now the new bidders are getting excited without properly do their homework. I  advise you to just continue with the purchase if the property is 20% below MV/valuation and has rental yeild more than 10%. You should set aside money for repairs also. Good Luck.

Offline A81

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Re: Regret buying property via auction, sigh
« Reply #15 on: December 10, 2013, 08:17:06 AM »
HI, TS, please read the contract of the auction (proclamation of sale), there may be a clause mentioned that the auction bank will bear the outstanding up to the date of auction, what you need to do is made the payment first and claim for reimbursement from the Bank after completion.

Good luck

Offline zek

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Re: Regret buying property via auction, sigh
« Reply #16 on: December 24, 2013, 12:23:43 PM »
Just bought an apartment around 900 SF in Klang area through auction last week. Already paid up 10% up front payment as deposit according to Proclamation of Sale.
Now the bank told me got problem on the transfer because I never pay quit rent assessment and maintenance charges which required to be borne by purchaser. How would I know that I need to pay that as well ? Sigh!
The total of quit rent assessment and maintenance the required to be borne is about RM20,000.00 Now I am getting regret buying auction property. Don't have much cash in hand o settle this. Any good option or opinion ?

Sorry to hear that….only had experience in brand-new properties

Offline Ian Fleming

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Re: Regret buying property via auction, sigh
« Reply #17 on: December 27, 2013, 09:32:52 PM »
Possible to include this in the hse loan???
But yrs is a auctioned property. Not too sure able to do that.
From what I experienced, you are able to park this into the hse loan. Depending on seller's "cin-cai-ness".

Offline alucard1

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Re: Regret buying property via auction, sigh
« Reply #18 on: March 14, 2014, 01:28:08 PM »
Buying an auction property can be a bargain or it can be a pain in the ass. Important reminder is never rush in for any auction property, gather the information, do a check and make sure it's always at least 40-50% below market price.
Auctioned properties are mostly not in a good shape and often has lots of outstanding payment to be cleared off before you can get the title transferred under your own name.

In your case, if after paying the 20k, the auction property which you purchase is still a good buy, try to obtain some loan (company or personal) to settle it. If after adding up the 20k, the property is around the same or higher than the market price, please just let go and lose your deposit.

Just my 2 cents