What developer would participate in a scheme where he may receive only 80% of the house price?
Probably one who has unsold units. If it is an unsold unit (other than due to market conditions reason), can it be easily sold in 5 years’ time? What is the probability of it appreciating?
Another scenario is, in order to recover the 20% upfront, will there be an incentive for the developer to mark up the house price?