Many first time home buyers may have been attracted to promotion packages from developers giving high cash back rebates, guarantee rental return, free renovations, free car, etc with only 1 catch – buying at above market value selling price.
Most inexperienced home buyers do not even realise they are buying at above market value price. All these benefits were financed from the higher loan amounts from financial institutions with the developer’s manipulative help.
Many low income buyers rely on faking income documents or going through financial system loopholes to obtain housing loans on these high-risk purchases. They believe there is a high chance property appreciation is always faster than their overpriced purchase. Unfortunately, most of these speculators are not so lucky. They cannot afford to pay the monthly installment and become motivated sellers even at a loss. Many of them cannot even sell because of redemption sum issues and face bankruptcy at a young age.
Real estate agents should be conscious to advise these inexperienced buyers to avoid these kinds of traps. Advice them properly to gain their trust for repeat sales and referrals.
