newbie11
08-05-12, 14:54
http://forums.hardwarezone.com.sg/homeseekers-homemakers-74/truth-behind-absd-fv-3718866.html
Truth Behind ABSD & FV
I've recently bought a PC (first time private buyer) from Far East. It's quite a learning experience and I thought to share.
Unlike other developers, FEO offers stamp duty and furniture rebates on top of an array of discounts. So instead of having an upfront discount on the purchase price they want you to pay first and then reimbursement comes later. Furniture will come in after TOP and stamp duty 14 working days after payment of the full 20%.
First up was banks factoring the "discounts" which you will only receive in future as part of the purchase price. So instead of being able to borrow 80% of the full purchase price (i.e what you need to pay) they will only lend 80% of purchase price minus future discounts. And I was promptly offered crap advice by my lawyers to "give up" the discounts to borrow more... aka a really quick way to get poorer.
Then came the rebate. It states 14 working days after they received the "stamp duty" receipt. 1.5 mths later, I did not receive the rebate. According to them, their lawyers never forwarded the documents to them... But they magically got it from them the day I complained and so had to wait 14 more days.
It is now almost 3 months since I've walked into the FEO showroom and signed on the dotted line. And to date I have not received a dime from FEO.
So lesson is for potential FEO buyers or any developers who doesn't give upfront discount on the purchase price... Have enough cash to cover the discounts and the corresponding decrease in LTV before even signing.
Lucky I had enough buffer for all this convenient misinformation. I can only imagine what will happen to a buyer with lousier cashflow and lower cash on hand.
The promised discount is essentially an interest free loan to developers (and for me to one of the fattest developers) indefinitely with no stipulated term. Words cannot describe how disgusting the whole scheme feels.
Truth Behind ABSD & FV
I've recently bought a PC (first time private buyer) from Far East. It's quite a learning experience and I thought to share.
Unlike other developers, FEO offers stamp duty and furniture rebates on top of an array of discounts. So instead of having an upfront discount on the purchase price they want you to pay first and then reimbursement comes later. Furniture will come in after TOP and stamp duty 14 working days after payment of the full 20%.
First up was banks factoring the "discounts" which you will only receive in future as part of the purchase price. So instead of being able to borrow 80% of the full purchase price (i.e what you need to pay) they will only lend 80% of purchase price minus future discounts. And I was promptly offered crap advice by my lawyers to "give up" the discounts to borrow more... aka a really quick way to get poorer.
Then came the rebate. It states 14 working days after they received the "stamp duty" receipt. 1.5 mths later, I did not receive the rebate. According to them, their lawyers never forwarded the documents to them... But they magically got it from them the day I complained and so had to wait 14 more days.
It is now almost 3 months since I've walked into the FEO showroom and signed on the dotted line. And to date I have not received a dime from FEO.
So lesson is for potential FEO buyers or any developers who doesn't give upfront discount on the purchase price... Have enough cash to cover the discounts and the corresponding decrease in LTV before even signing.
Lucky I had enough buffer for all this convenient misinformation. I can only imagine what will happen to a buyer with lousier cashflow and lower cash on hand.
The promised discount is essentially an interest free loan to developers (and for me to one of the fattest developers) indefinitely with no stipulated term. Words cannot describe how disgusting the whole scheme feels.