just wondering what was the highest -BLR that bank has ever offered in history? i dont know much about it, but i'm thinking, if for example BLR is 9% set by bank negara, and if would bank offer up to -6.00%? then when it comes to time like now (BLR 5.55), does it mean no need to pay interest? this might sound a bit noob, but please enlighten me

There wont be so high blr -6% unless that the bank have 0% borrowing cost. Its just spread out in the borrowing cost in the long and medium term and they match old borrowing with old cost and new borrowing at new cost.

The most I saw is blr -2% or less than 3% . More than that, something wrong or they manage to secure cheap cost of borrowing

hope the bank negara dont revise upwards the BLR or else will see alot of people selling property due to high interest. property price will then fall for sure especially those with high borrowing, paying high interest and not even touch the principal. those bought a few property for investment eg high interest loan, tax on 5% property gain etc

eg 1mil loan 4% interest = rm40k interest alone (paying interest only per year).each month RM3k++. compounded interest

as seen this new year alot of thing or price will go up eg sugar, food, fuel, toll, electric, water etc this is not a good sign. our country need $$ badly as price going up slowly one after another.

chain reaction of prices will go up whereas fuel price goes up

This post has been edited by lowyat888: Jan 14 2010, 11:56 AM

Waiting for that to happen . Then can pickup some cheap auction property since the property market now is overheated. In fact China yesterday just raised the bank reserve by 5%, to curb the overheated market. BNM also have asked the bank to stop zero cost mortgage plans.

BLR is an ever changing figure. If you sign a 30 year contract with BLR - 2.0, then the interest rate you are paying will fluctuate over time and you will be paying at the prevailing rate. If the current BLR is 5.5% then you pay 3.5%m if BNM revise the rate to lets say 9%, you will be paying interest at a rate of 7%. So in a nutshell the higher the BLR, the more interest you pay.

this year is the year of the tiger, the tiger now is resting and using the tooth pick to dig its teeth waiting for the kill especially after CNY

telling people to buy more properties and get more loan, when they are stuck, then the kill comes in . wait for their expected target quota to hit then

increase BLR


for those just serving interest, in the long run their properties will be triple the property purchase price when their loan is up/over, whereas even bought the property at a high/peak price will eventually lose out terribly. only the bank earns as the property owner indirectly working for the bank serving interest only

This post has been edited by lowyat888: Jan 14 2010, 12:11 PM

if it is the case then people should go for fixed interest rate loan or capped ceiling rate (aka Islamic banking) instead of those follow BLR rate.

so the increment of BLR should not really be a dilemma for people to buying properties.

This post has been edited by lamode: Jan 14 2010, 12:59 PM

case study
=======
loan: 250k
tenure: 30years
total installment: ~1100
only interest: ~750
rental: 1350

if those people who is only paying interest, it isn't he still earn 600 every month (1350-750)?

Aiyo, why never do Google search?

Then you might have found this link: http://hometrik.com/index.php?option=com_c...story&Itemid=29

Secondly, if the BLR shoots up unlikely the bank will discount up to -6.00%.

so anyone wanna predict how would be the next adjustment?

Hahaha, now sitting on a mountain of cash... waiting for cheap property when the BLR is high, then can buy cheap cheap.

but looking at the history of BLR, not likely it's going to rise too much, too soon

for people who buys to flip and the property will only be ready in 2-3 years time... i really wish you good luck

mind to justify?

I am an opportunist investor, so I have a lot of patience in waiting for 3-5 years without much action. 2001 & 2008 is a fantastic year for me when the whole world is panicking, now waiting for the property bubble to burst.

This post has been edited by gark: Jan 14 2010, 06:29 PM

why not ask your best friend www.google.com.my

and check history www.blr.com.my

as till now houses or apartment is not cheap, talking about Rm300k above or even RM500k to RM800k double storey or even condo cost almost rm500k above at good location, the loan amt at least RM300k to RM400k.

even a double storey is just renting at Rm1.5k for whole house, plus have to take into account of wear n tear, repaint, hidden repair cost, accessment, quit rent, cukai tanah, monthly service charges, fire insurance,renovation etc,. is it enough to cover the interest? dont think so

the BLR GOES UP AND DOWN

alot of hidden things, initial deposit compound interest if put in FD, lawyer fees, stamp duty, adminstration fees, agent fees, advertising fees etc

as if really detail calculate, if sell the property in the long run wont gain much just a force saving indirectly. the bank majority gain in the long run

This post has been edited by lowyat888: Jan 14 2010, 11:48 PM

if stated as such, property investment for rental doesn't seem so fun anymore...

renting property is never fun, if the tenant leaves, the house/condo have to clean, repair, repaint (dirty how to rent out), advertise, agent fee etc. what if few months nobody rent out, have to dig from own pocket the monthly installment,monthly service fees etc

if have few properties nobody rents lagi teruk, when month bank installment comes, big hole in the pocket.

when accessment , quit rent, cukai tanah,insurance comes lagi worst

This post has been edited by lowyat888: Jan 15 2010, 12:05 AM

er .... lowyat888 ... you seem to dislike property investment alot

Want to earn $$, nothing is easy... no free lunch in this world... only those who learn, experienced, believe and endure will get thru and succeed.

If its that easy, everyone is rich

This post has been edited by eugene jk: Jan 15 2010, 03:27 AM