The payment methods commonly used when buying a house are cash and mortgage. However, besides that there is also another method known as gradual cash. This house cash payment is also called periodic installments. Unlike payment by mortgage, this method of house cash payment is carried out without the involvement of the bank in it.
As the name implies, payment using this gradual cash method does not burden prospective buyers who have to pay 100% directly. This method can be a solution for buyers who don’t want to use bank mortgages. The process of buying a house with periodic installments or cash in stages is of course different from the process of buying a house with hard cash or better known as paying cash. Even so, both have their own advantages and disadvantages.
Before studying the procedures and examples of a cash home sale and purchase agreement letter in stages, here are the benefits you will get if you make gradual cash payments.
Some of the Advantages of the Gradual Cash Payment Method
Interest-free house installments
Generally, this method of gradual cash payment is offered directly by home / individual developers, where the buyer only needs to pay in cash installments on the house according to a predetermined agreement.
Meanwhile, customers who take advantage of the home loan facility from the bank are charged an amount of interest or profit margin. That is why the payment amount is more expensive than the original price of the house. You will not find this when buying a house by way of gradual cash payments.
Get a Developer Discount
One of the advantages of paying by cash in stages is that there are promos that are usually given by the developer. The promos that are given are generally in the form of a discount on the total cost of the applicable house.
Another advantage is the bonus given by the developer. You can find out what bonuses are given by the developer. Usually this bonus is in the form of household appliances such as TV, stove, refrigerator, air conditioner, and so on. In essence, the developer tends to provide more benefits to buyers who use cash payment methods in stages or in cash.
No Need to Take Care of Home Administration
Another advantage of buying a house on a cash basis is that if you don’t need to spend time and energy taking care of administration. You also don’t need to pay additional fees for administration, bank interest, and others.
Losses Pay Cash Gradually
Meanwhile, you also need to know what are the disadvantages of this gradual cash payment method. Unlike bank credit, the nominal DP when buying a house in cash is usually larger. Usually the bank sets the amount of DP at 10% to 20% of the house price. Therefore, people need to prepare quite a lot of money in advance if they want to pay it off using this method.
Very Short Repayment Time
The term of the gradual cash payment is shorter than a home loan through a bank. This of course makes buyers have to prepare large amounts of money to pay each month.
Procedures and Examples of Gradual House Sale and Purchase Agreement Letter
After you know the advantages and disadvantages of making payments using this method, then what are the procedures and examples of a cash home sale and purchase agreement letter? How to buy a cash home in stages is actually easy. You only need to ask the developer or home seller whether the house you want can be purchased with this method or not. Generally, home developers provide a gradual cash payment option.
Actually, the timeframe needed to pay off the payment by means of cash in stages is according to the agreement with the seller, either an individual or a developer. Even so, please note that the period of gradual cash payments is definitely shorter when compared to credit payments.
Like credit, the gradual cash payment method also requires the property buyer to provide a down payment. The amount itself is uncertain, which means that it is in accordance with the initial agreement of the transaction. As for the rest, it will be divided equally according to the payment period agreed upon at the outset. Keep in mind, however, that there will be no interest at all in the payment.
There is one thing that is very important to note, namely making a written agreement. Since gradual cash payments do not involve banks, buyers should be more vigilant. Make sure that each payment is completed with written evidence that is held by both parties. Another thing to note is that the buyer has the full right to immediately save all files from the property when the down payment has been paid.
As previously mentioned, one of the procedures for buying a cash house from a developer with regular payments is an agreement made. This is of course the most important, because it only involves buyers and sellers. Therefore, make sure you make a written agreement for each agreement made. This agreement should also be discussed in advance to avoid unwanted things in the future.
If you buy a house with gradual cash payments through sharia-based developer services, the sales process usually applies the pivot method and the type of contract used is the istishna contract. Namely, a sale and purchase agreement in the form of ordering a unit with certain criteria and conditions agreed upon by both the seller and the buyer.