Well, that is the normal tagline used by Developers in their marketing materials and advertising.
If you are a Bumiputera aka Bumi who plans to buy a Bumi Lot property (5% discounted), with the intention to sell it back for a quick gain, do consider the following.
1. You can only sell your Bumi Lot to another Bumi Buyer during the first 5 years of holding period. Note that the holding period has a different interpretation for a property that is
(i) under construction, (ii) completed but the whole project is not fully sold, and (iii) completed and the whole project is 100% sold. I.e. if you bought the lot in scenario (i) and (ii), the holding period is from the date the developer submit its application to Land Office for sub-division of the Master Title to the disposal date, and NOT from the Sale and Purchase Agreement (SPA) date. For scenario (iii), the holding period is from the SPA date to the disposal date.
2. Make sure the Lot is located in a strategic location with good feng shui. What I meant is, some irresponsible developers tend to allocate Bumi Lots in the not so good location with bad feng shui. For instance, the Lot is near to the sewerage plant, high tension cable, grouped together with other Bumi Lots, etc. Most of the time, the Lot will not fetch a good price in the secondary market.
3. Is the 5% discount worth the risk! Say, you plan to buy a property priced at RM340,000.00. With a 5% discount, you get RM17,000.00 savings compared to your Non Bumi friends. Right after the Occupation Certificate (OC) is issued out, people start to sell their units, your Non Bumi friend sells his Lot for RM450,000.00 and makes a quick gain of RM110,000.00 (gross). You then decide to do the same, hoping to make quick gain yourself. Do you think you can get instant buyer for your lot? Remember that you need to get a Bumi buyer to buy your Lot. You may need to wait longer than your Non Bumi friend…incurring more loan interest.
(This article applies to Bumi property investors, who use bank to finance their property and want to make a quick gain only!)
Please share your views on this article if any.
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