As mentioned in my previous post, property market will be hit in year 2014 and 2015 before it starts to rise back again in year 2016. The next two years are uncertainty periods for the property market due to the recent Bank Negara's action to clamp down on the incentives offered by the developers. DIBS scheme being one of them and it is by far the most popular and innovation scheme bundled by developers across the market to push their sales. Those whom are into property market should know who actually first introduced this scheme back in 2008. In those early days, it was not call DIBS yet which we know now. The term used back then was 5/95. Incidentally, the term was so popular that McDonald borrowed the term as part of the their marketing promo later on.
5/95 scheme is a financing arrangement given by the developers. It was so successful that it helped to bring out the whole property market from depression mode in 2008.
So, who actually was the first to introduce the 5/95 financing package? Yes. It is SP Setia.
You pay 5% as down payment with 95% loan and pay nothing until you collect your house key. Brilliant idea !
Much has changed since then. Along the way, 5/95 scheme was lumped in with other incentives to entice buyers which is generally become known as DIBS scheme. But the scheme has been disallowed by Bank Negara starting 1.1.2014, purportedly to curb speculations and control over rising house prices.
There is still a small window of opportunity to still benefit from the DIBS scheme before it is disallowed by end of this year. Whatever you buy now, keys will be delivered 2 or 3 years later. However, try to look for those that will deliver keys with the longest period, say 3 years. This is because you want to take a long jump into year 2016 instead of year 2015 or 2014. For these reasons, we had bought few properties from SP Setia in recent months.
Why chose SP Setia's product? I think there is no need to tell why. Many people know about the company. I, for one, am particularly impress with their personal touch on everything they do. The above letter from their CEO is one of the many things.
And yes, landed property is always the safer and better bet. Secondly is the developer's brand name. Thirdly, their quality of workmanship and lastly, their after sale services. I must say SP Setia has it all at top notch, as far as my personal experience is concerned since the days I got a taste with their properties in Eco Park @ Shah Alam.
By the way, I am not paid to promote the company. I give credit where credit due.
Some may ask, how about the share price. I think it is not time to invest in their company share just yet. Wait until Liew had left the scene. Why? I leave it to you to ponder.