What is zero down?

Zero down has many definitions. One of the most popular ones is as follow:

- purchase a property with 0 down-payment!

How does one do that? Simple.

- Your 1st or 2nd property.
- Cooperative seller that owns the unit for more than 5 years.
- Seller agrees to value the property 10% higher than actual selling price.
- Bank values the property higher than the agreed selling price.

- You agree to pay the extra / incremental on stamping + lawyers fees for seller due to higher property price.

Example

- Agreed selling price RM100,000.
- S&P prices 10% higher than agreed selling price at RM110,000.
- You pay earnest deposit of RM1,000 (1%).
- Bank loan = 90% of selling price = RM99,000
- Sign S&P without down-payment.
- Bank loan releases RM99,000 to seller (RM1,000 + RM99,000)

Tadaa! This is good for property buyers who could not afford or do not want to pay the 10% down-payment.

For the little details, please check with me.