Hi Sean, Say if after I get keys I rent out but installment is not good and 5 years later I do not wish to buy it can I just walk away from the deal without any charges/refinancing/penalty?
Based on my current version of Houzkey, yes that’s the deal. But I’m not sure with the updated version of Houzkey as there has been several revision after mine.
Sean this scheme started when the property is completed or still ongoing? If still ongoing, meaning that we rent but cannot 'stay' inside lar..and if we renting other property now, we need pay double..the property we now occupied and the houze key?
On top of whatever Sean has mentioned, in my personal opinion this Houzkey scheme is to cater if you really have the INTENTION TO BUY the house but limited capital for downpayment at that point of time. So if you walkaway after 5 years, I think you are at loss as you already spent that much of money, which is supposed to be your downpayment. Subsequently, should you choose to buy the house and convert the loan, you will pay the loan like any other normal conventional loan. You will not pay the same monthly amount during the Houzkey period. Cause again, this scheme is just to help you on the downpayment part only. If you barely can afford to pay the monthly Houzkey, imagine the full monthly payment after you convert the loan. Whatever it is, spend within your affordability and do your study. Cheers everyone!
i dont think u can "walk away" after the 2nd year rental. Maybank requires u to either (1) to find another buyer (2) u continue rent until 5th year or (3) u take up the mortgage by refinancing
This was the previous edition of Houzkey before the recent updated version Cdisc. Do check the time of upload for this video. Thanks for clarifying anyways hehe=)
Yeah probably there were some changes in the policy. But thanks for the video. Awesome content so far👍🏻 But may I suggest if u could do contents on a macro view. For example like an annual review on the property market on yearly basis, or do u think property price will continue to be stagnant or up in future or has it reached the bottom, or maybe commercial property shud be the way in 2020/2021 and why. These are just some ideas lol
Hi Sean; Assuming bare unit, who is doing the furnishing and Reno if taking Houz Key ? Not practical for me to do Reno when it is not actually my house yet but need to stay there. And to do it later when I decide to buy ? Not making sense to me. And like you say, i lost all the rebates, discounts now. And bank access my loan application now or 5 years later when I decide to buy ? There is potential risk. Still not so clear.
Then just take the conventional loan in your case. First of all, this is designed for people who don't have capital currently and it's by choice for you to apply for Houzkey. Just because you want the flexibility, their requirement is for you to rent a year minimum. And if you're very certain that you confirm that you're buying the unit for sure on year 2, then you can furnish the house from the start. In comparison to renting a bare unit and putting in your furniture, by the end of tenancy you'll need to move all the furniture out and you don't have a choice to own the property at all.
@@vinvin5238 Hence it's just a matter of commitment. Would you like the property now? Or you want to rent a year and decide later, but it's still entirely your choice to decide? Interest topic right hahaha 😂
Many agents/developers nowadays promoting Houzkey...if you are a risk taker...maybe you can rentail your house to cover it but for me this houzkey not suitable for me due our payment did not deducted from total house price...
Hey Sean, do you think is it possible if I take the Houzkey and rent out the unit to someone else to make some extra cash? I'm thinking of doing it for 5 years and then just walk away after 5 years. 😅
Hi Sean, great I found your video, I'm considering Houzkey recently. Yet, I have few questions regarding your video. 1. 7:27 I don't get it why you said the value of property confirm will drop due to it has packacing too many rebate/offer from developer? 2. For example, a property is 500k and developer offer free stamp duty and legal fee (let's say 20k). If we go for mortgage loan then we are entitled for all those exemption and get 90% loan, 450k. While if I go for HouzKey and when I decided to buy, my loan will be 500k instead of 450k? Besides, is the interest rate same for both? Hope can get your reply, thank you!
If the developer offer rebate for the property, then can we use the rebated price to apply with HouzKey? I felt being swindled by my agent and his banker partner saying Maybank will keep the 10% rebate instead of me.
Well it's not dictated by consumer on how the loans work. We cannot be wanting free progressive interest, locked in price, discounts, rebates, and everything else. Unfortunately that's not how things work unless we are cash buyers.
Why would you renovate if you know you're gonna cancel anyway? I guess you'll only renovate once you're very certain that you will buy the unit right? hahaha=) So it's to decide on the intent, whether to stay or rent first. Thanks for watching Bananaa.
Well it depends on your definition of investment, is it for cashflow or capital appreciation. Also, there are several revisions to the Houzkey terms after this video were made. Thanks for watching Ritchie=)
What happen if i decided to walk away after 5yrs renting and the property price is higher than my loan. Can i still get the profit? or vice versa. do i need to pay the difference?
If you decide to walk away, you get nothing. Buy if 5 years of renting later, your property price increased and you wanna make that profit, you'll need to convert into a mortgage loan by Maybank at the current SPA price. Then only you can sell and make your profit...
@@iherng thank you..understand. Another question. 1. When i decided to convert to mortgage loan, do i need to resubmit all the document? 2. What happen to our loan if the project abandon?
@@JeromeAnthonyStudio 1. I don't think so. But it depends on the bank policies as some would be faking their income statements or you're in a industry heavily affected by covid. 2. I think it will be void because you agreed to serve one year of the rental after VP. And if there's no VP, then I guess you can walk away from the deal. *I'm not a banker by the way hahahaha
Hi Sean, sorry I'm still abit confuse after watching two of Ur videos and the product disclosure sheet from maybank, is the rental we paid during 5 years will be converted as payment to our loan after 5 years? If yes, let's say the house is 500k, and our total rental for 5 years is 150k, does that mean the loan is 350k in total after the 5th years?
Got it, thanks my friend, that's really really fast response hahahaha, I'm still scrolling through the comment see if anyone having the same question 😂😂 thank you!!!!!
Hi Sean, If let say for your above example, 700k property, after 5 years, I wanna convert into mortgage loan. What's is the loan amount I need to pay? This is my thoughts, correct? Loan Amount 90% x 700 = RM630k All legal fees = RM40k (Appx) 10% Downpayment = RM70k?
That would be roughly accurate, and now you have 5 years to prepare for it and make careful decision to own the property. This calculation also excludes promotional packages by the developer as well yea=)
@@iherng is that mean, the 5 initial tenure just like pay rental and interest to bank, it doesnt not related our original house price loan, like what u pay it deduct from the 90% loan.
hi sean, can you make a video about the difference of service apartment and condo? and also what is different between ita utility charge for example electricity? cause i heard service apartment is charge on comercial price, while cond charge for resendential charge.
Hi Sean. I was reading abt Houz Key...in their disclaimer, I could be wrong on this but the calculation is based 3% for 1st 3 yrs and 4% for remaining 2 yrs (I supposed then calculate monthly average?). Also is a 5 yr lock-in period with the option to buy or sell aft 1st yr or buy/sell/walkaway aft 5th yr. If should end tenancy before 5 yrs, the outstanding amount must be paid or get another person to rent under Houz Key. In ref to their product disclosure sheet from Maybank HouzKey that I downloaded last month. Hi anyone pls feel free to clarify this? Tq. or for developer units are different calculations?
Hi Greg. Yupe. The annual rental then is divided into 12 months, and there'll be a 3 month deposit as well just like normal tenancy procedures. 5 years is the maximum period, not the minimum based on my understanding. Minimum is 12 months, which means if you decide to walk away at the 3rd month, you will need to clear the remaining rental for 9 months. Please note there are difference between buying from developer and individual yea as both can also apply for Houzkey.
Hi Sean what if I just rent conventionally for a year to try and then decide to buy it after a year, that would give me the same benefit as Houzkey right? Maybe even cheaper because conventional rent monthly payments are lower than Houzkey. The only benefit I see Houzkey giving is the ability to lock down a price 1-5 years before u decide to buy
The different then would be the amount of capital you'll need to fork out. At that time, you'll be renting another owner's unit. In this case would be 15%, around RM 117k in cash. And in this project I subscribed to, the rental around that area is almost double the amount that I'm committed to Houzkey. Another thing is even if you decided to buy, not necessarily the owner wish to sell the unit to you. If the property price increase, you will need to buy at a higher price. If property price, you wouldn't want it anymore right? Great thought process Shahrul=)
Well, this depends on the developer as some choose to absorb the interest as part of the promotion. So its best to put everything into current value and compare. Great point Calvin:)
Hi Sean, I saw an article from iproperty saying that owner can list their properties at houzkey. Is that possible? If thats true, what are the terms and conditions for both owner and buyer?
Yes, it means when the purchaser buys, they have an extra option for their end financing. Erm, I'm not too sure regarding the procedures as I have not sell any properties before unfortunately. Great question Phoebe=)
hi sean, i been followed you for sometime, thanks for the useful info provided. Wish to ask you the housekey loan, do they will calculate our the loan amount approval base on our commitment as conventional loan? or how the judge it?
It's generally a rented house. So I don't think you can structural change to it... Like a tenant would not tear down a wall in a property he rents.. Until you convert into a normal loan after the first year of VP, then you renovate the house then:)
Hi Sean, I bought a unit in Tropika too under Houzkey last Oct 2019. I'd say I have no regret getting it as it does enable me to keep more cash for investment which bring more value as compared to paying interest instead. Also, not everyone is qualified for Houzkey, you must not own more than 1 property to qualify for the application, in addition, Maybank limits houzkey applicants to 30% per block to protect bank's interest, hence, many ppl couldn't get houzkey at the end due to quota limitation. On top of that, my chosen unit is situated at lower floor so interest can be quite a big sum as compared to those who choose a higher floor. The only thing I don't like is the material berjaya used, too plain and lack of creativity/uniqueness but their property is very livable so no complaint. Another aspect is the maintenance fees which is high for me but surrounding condos like Twin Arkz and Link2, even Skyluxe also demanding the same amount if not higher today, hence, making it justifiable for that range 3 years down the road (if property completed in 2023).
@@justinyeow2947 Maybank will count dsr too. Houzkey monthly rental for your unit plus total your other current monthly commitment cannot be exceeded 70% from your monthly net income (base on 3k - 5k income range)..if exceeded you need to add guarantor from immediate family member only.
Hi Sean, wondering whether you could provide some insight on islamic loan? I went to Bank Muamalat and my installment is much lower than the standard 4.45% interest rate. But I don't know whether about the cons with islamic loan. Thanks a lot, Sean.
I just walk away from Houz Key offered bg Agency recently ..I will not get my rental back/ deduct from the house price & I need to pay the old price with other charges..huhu...unless you are very confident you will get the tenants that can cover the installment..keep saving & looking for Conventional
hi im facing dispute issue with houzkey on selling d property, appreciate your experience sharing, do you mind if i can contact you personally? via email or? thanks in advance
![[S02:EP32] You TAK AKAN berjaya jadi influencer kalau TAK DENGAR nasihat ni](/img/n.gif)
Hi Sean,
Say if after I get keys I rent out but installment is not good and 5 years later I do not wish to buy it can I just walk away from the deal without any charges/refinancing/penalty?
Based on my current version of Houzkey, yes that’s the deal. But I’m not sure with the updated version of Houzkey as there has been several revision after mine.
@@iherngthank you ❤
Sean this scheme started when the property is completed or still ongoing? If still ongoing, meaning that we rent but cannot 'stay' inside lar..and if we renting other property now, we need pay double..the property we now occupied and the houze key?
Anyway, there has been a revised version of houzkey after this video was made.
Hi got 1 question, if we walk away after 1 year or 5 years, is there any additional cost that we need to bare? like the 5 years progressive rates?
For the version I signed, there won't be any.
when applying for house loan, can use stock portfolio as collateral?
On top of whatever Sean has mentioned, in my personal opinion this Houzkey scheme is to cater if you really have the INTENTION TO BUY the house but limited capital for downpayment at that point of time. So if you walkaway after 5 years, I think you are at loss as you already spent that much of money, which is supposed to be your downpayment.
Subsequently, should you choose to buy the house and convert the loan, you will pay the loan like any other normal conventional loan. You will not pay the same monthly amount during the Houzkey period. Cause again, this scheme is just to help you on the downpayment part only. If you barely can afford to pay the monthly Houzkey, imagine the full monthly payment after you convert the loan. Whatever it is, spend within your affordability and do your study. Cheers everyone!
Nice ending Izzaz. Thanks for covering that blind spot!!
thank you
i dont think u can "walk away" after the 2nd year rental. Maybank requires u to either (1) to find another buyer (2) u continue rent until 5th year or (3) u take up the mortgage by refinancing
This was the previous edition of Houzkey before the recent updated version Cdisc. Do check the time of upload for this video.
Thanks for clarifying anyways hehe=)
Yeah probably there were some changes in the policy. But thanks for the video. Awesome content so far👍🏻
But may I suggest if u could do contents on a macro view. For example like an annual review on the property market on yearly basis, or do u think property price will continue to be stagnant or up in future or has it reached the bottom, or maybe commercial property shud be the way in 2020/2021 and why. These are just some ideas lol
Hi Sean; Assuming bare unit, who is doing the furnishing and Reno if taking Houz Key ? Not practical for me to do Reno when it is not actually my house yet but need to stay there. And to do it later when I decide to buy ? Not making sense to me. And like you say, i lost all the rebates, discounts now. And bank access my loan application now or 5 years later when I decide to buy ? There is potential risk. Still not so clear.
Then just take the conventional loan in your case.
First of all, this is designed for people who don't have capital currently and it's by choice for you to apply for Houzkey.
Just because you want the flexibility, their requirement is for you to rent a year minimum. And if you're very certain that you confirm that you're buying the unit for sure on year 2, then you can furnish the house from the start.
In comparison to renting a bare unit and putting in your furniture, by the end of tenancy you'll need to move all the furniture out and you don't have a choice to own the property at all.
@@iherng Many new projects now virtually have low or zero down payment if that is the main concern.
@@vinvin5238 Hence it's just a matter of commitment. Would you like the property now? Or you want to rent a year and decide later, but it's still entirely your choice to decide?
Interest topic right hahaha 😂
Is ergohomes and eco forest the same project?
Ergohome is one phase within the masterplan of Eco Forest=)
Many agents/developers nowadays promoting Houzkey...if you are a risk taker...maybe you can rentail your house to cover it but for me this houzkey not suitable for me due our payment did not deducted from total house price...
Hey Sean, do you think is it possible if I take the Houzkey and rent out the unit to someone else to make some extra cash? I'm thinking of doing it for 5 years and then just walk away after 5 years. 😅
Actually that's actually possible and it seemed to be the loophole for the scheme, so the bank actually revised it several time after this video.
Hi Sean, great I found your video, I'm considering Houzkey recently. Yet, I have few questions regarding your video.
1. 7:27 I don't get it why you said the value of property confirm will drop due to it has packacing too many rebate/offer from developer?
2. For example, a property is 500k and developer offer free stamp duty and legal fee (let's say 20k). If we go for mortgage loan then we are entitled for all those exemption and get 90% loan, 450k. While if I go for HouzKey and when I decided to buy, my loan will be 500k instead of 450k? Besides, is the interest rate same for both?
Hope can get your reply, thank you!
If the developer offer rebate for the property, then can we use the rebated price to apply with HouzKey? I felt being swindled by my agent and his banker partner saying Maybank will keep the 10% rebate instead of me.
Well it's not dictated by consumer on how the loans work. We cannot be wanting free progressive interest, locked in price, discounts, rebates, and everything else. Unfortunately that's not how things work unless we are cash buyers.
Can u renovate 1 year houzkey? Else wasted if reno decide to cancel unless full furnish
Why would you renovate if you know you're gonna cancel anyway? I guess you'll only renovate once you're very certain that you will buy the unit right? hahaha=)
So it's to decide on the intent, whether to stay or rent first. Thanks for watching Bananaa.
One question, is Houzkey suitable for those looking for investment?
Well it depends on your definition of investment, is it for cashflow or capital appreciation. Also, there are several revisions to the Houzkey terms after this video were made.
Thanks for watching Ritchie=)
What happen if i decided to walk away after 5yrs renting and the property price is higher than my loan. Can i still get the profit? or vice versa. do i need to pay the difference?
If you decide to walk away, you get nothing. Buy if 5 years of renting later, your property price increased and you wanna make that profit, you'll need to convert into a mortgage loan by Maybank at the current SPA price. Then only you can sell and make your profit...
@@iherng thank you..understand. Another question.
1. When i decided to convert to mortgage loan, do i need to resubmit all the document?
2. What happen to our loan if the project abandon?
@@JeromeAnthonyStudio 1. I don't think so. But it depends on the bank policies as some would be faking their income statements or you're in a industry heavily affected by covid.
2. I think it will be void because you agreed to serve one year of the rental after VP. And if there's no VP, then I guess you can walk away from the deal.
*I'm not a banker by the way hahahaha
@@iherng tq so much for your reply..keep rocking the awesome video.
Hi Sean, sorry I'm still abit confuse after watching two of Ur videos and the product disclosure sheet from maybank, is the rental we paid during 5 years will be converted as payment to our loan after 5 years? If yes, let's say the house is 500k, and our total rental for 5 years is 150k, does that mean the loan is 350k in total after the 5th years?
Nope. It's still 500k.
Got it, thanks my friend, that's really really fast response hahahaha, I'm still scrolling through the comment see if anyone having the same question 😂😂 thank you!!!!!
@@ihernghi bro..how i want to contact you? Just want sharing regarding this issue. TQ 😑
Hi Sean,
If let say for your above example, 700k property, after 5 years, I wanna convert into mortgage loan.
What's is the loan amount I need to pay?
This is my thoughts, correct?
Loan Amount 90% x 700 = RM630k
All legal fees = RM40k (Appx)
10% Downpayment = RM70k?
That would be roughly accurate, and now you have 5 years to prepare for it and make careful decision to own the property. This calculation also excludes promotional packages by the developer as well yea=)
@@iherng is that mean, the 5 initial tenure just like pay rental and interest to bank, it doesnt not related our original house price loan, like what u pay it deduct from the 90% loan.
hi sean, can you make a video about the difference of service apartment and condo? and also what is different between ita utility charge for example electricity? cause i heard service apartment is charge on comercial price, while cond charge for resendential charge.
I've shared that before. And I think it's one of my very first video in youtube hahahaha:)
Thanks for watching khairul
renovation is not allowed but is installing of cabinets allowed?
Hi Sean. I've a question here... fire insurance of a condo unit should be pay by the tenant or owner?
Market norm would be owner. If you want tenant to pay, just include it into the rental when you advertise your property for rent:)
@@iherng okay thank you 😀
Hi Sean. I was reading abt Houz Key...in their disclaimer, I could be wrong on this but the calculation is based 3% for 1st 3 yrs and 4% for remaining 2 yrs (I supposed then calculate monthly average?). Also is a 5 yr lock-in period with the option to buy or sell aft 1st yr or buy/sell/walkaway aft 5th yr. If should end tenancy before 5 yrs, the outstanding amount must be paid or get another person to rent under Houz Key.
In ref to their product disclosure sheet from Maybank HouzKey that I downloaded last month. Hi anyone pls feel free to clarify this? Tq. or for developer units are different calculations?
Hi Greg. Yupe. The annual rental then is divided into 12 months, and there'll be a 3 month deposit as well just like normal tenancy procedures. 5 years is the maximum period, not the minimum based on my understanding. Minimum is 12 months, which means if you decide to walk away at the 3rd month, you will need to clear the remaining rental for 9 months.
Please note there are difference between buying from developer and individual yea as both can also apply for Houzkey.
Is this applicable for the version 4 of houzekey?
Nope. There has been an update to the clause. Let me read up about it yea.
Thanks for clarifying Joyce=)
Hi Sean what if I just rent conventionally for a year to try and then decide to buy it after a year, that would give me the same benefit as Houzkey right? Maybe even cheaper because conventional rent monthly payments are lower than Houzkey. The only benefit I see Houzkey giving is the ability to lock down a price 1-5 years before u decide to buy
The different then would be the amount of capital you'll need to fork out. At that time, you'll be renting another owner's unit. In this case would be 15%, around RM 117k in cash.
And in this project I subscribed to, the rental around that area is almost double the amount that I'm committed to Houzkey.
Another thing is even if you decided to buy, not necessarily the owner wish to sell the unit to you. If the property price increase, you will need to buy at a higher price. If property price, you wouldn't want it anymore right?
Great thought process Shahrul=)
How about the Progressive interest it’s would be more than the 3% right for the 4 Years. Would that make HouseKey better ?
Well, this depends on the developer as some choose to absorb the interest as part of the promotion. So its best to put everything into current value and compare.
Great point Calvin:)
Hi Sean, I saw an article from iproperty saying that owner can list their properties at houzkey. Is that possible? If thats true, what are the terms and conditions for both owner and buyer?
Yes, it means when the purchaser buys, they have an extra option for their end financing. Erm, I'm not too sure regarding the procedures as I have not sell any properties before unfortunately.
Great question Phoebe=)
Thanks a lot for the brief explanation on HouzKey, very useful info!
There's currently new revisions by Maybank of the Houzkey package. So please check with your banker yea!!
@@iherng have watch that too and get the updated info. Thank you once again👍
can houskey sign with two person name ? (join)
Yes, I think so. But do check with the bank officer for final confirmation=)
Now u sweet2 5 years later then u suffer😂
Hi. Can make a review on embayu project by PRG developer?
hi sean, i been followed you for sometime, thanks for the useful info provided. Wish to ask you the housekey loan, do they will calculate our the loan amount approval base on our commitment as conventional loan? or how the judge it?
The calculation used is different from the DSR (debt-service ratio) method that conventional loan use. Hence it's easier to get approval for Houzkey:)
Hi Sean, 1 question. We are not allowed to do any renovation or constructions on the unit as well if it’s under houzkey am I right?
It's generally a rented house. So I don't think you can structural change to it... Like a tenant would not tear down a wall in a property he rents..
Until you convert into a normal loan after the first year of VP, then you renovate the house then:)
Do you have the tabulation on this? Everyone should know this!!
Hi Sean, I bought a unit in Tropika too under Houzkey last Oct 2019. I'd say I have no regret getting it as it does enable me to keep more cash for investment which bring more value as compared to paying interest instead. Also, not everyone is qualified for Houzkey, you must not own more than 1 property to qualify for the application, in addition, Maybank limits houzkey applicants to 30% per block to protect bank's interest, hence, many ppl couldn't get houzkey at the end due to quota limitation. On top of that, my chosen unit is situated at lower floor so interest can be quite a big sum as compared to those who choose a higher floor.
The only thing I don't like is the material berjaya used, too plain and lack of creativity/uniqueness but their property is very livable so no complaint. Another aspect is the maintenance fees which is high for me but surrounding condos like Twin Arkz and Link2, even Skyluxe also demanding the same amount if not higher today, hence, making it justifiable for that range 3 years down the road (if property completed in 2023).
Hi Joanne, may I ask is there a minimum salary required in order to apply for Houzkey?
@@justinyeow2947 Maybank will count dsr too. Houzkey monthly rental for your unit plus total your other current monthly commitment cannot be exceeded 70% from your monthly net income (base on 3k - 5k income range)..if exceeded you need to add guarantor from immediate family member only.
@@hanhan5636 Oh I see, thanks yah
good info.
Hi Sean, wondering whether you could provide some insight on islamic loan? I went to Bank Muamalat and my installment is much lower than the standard 4.45% interest rate. But I don't know whether about the cons with islamic loan.
Thanks a lot, Sean.
👍🏻
I just walk away from Houz Key offered bg Agency recently ..I will not get my rental back/ deduct from the house price & I need to pay the old price with other charges..huhu...unless you are very confident you will get the tenants that can cover the installment..keep saving & looking for Conventional
It's definitely not for people who are looking to rent out. It's a financial products assisting new home purchasers.
Anyway, thanks for sharing:)
hi im facing dispute issue with houzkey on selling d property, appreciate your experience sharing, do you mind if i can contact you personally? via email or? thanks in advance
hi bro, may i know the charges and how much u paid?
Im waiting for this video...... Hahaha
Ta daa.... Hahahaha. Hope it's helpful:)