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 higest BLR bank has ever offered

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TSvdfoo
post Jan 14 2010, 11:33 AM, updated 16y ago

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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 tongue.gif
TSvdfoo
post Jan 14 2010, 02:07 PM

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QUOTE(lowyat888 @ Jan 14 2010, 12:00 PM)
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
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case study
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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)?

TSvdfoo
post Jan 14 2010, 04:28 PM

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so anyone wanna predict how would be the next adjustment?
TSvdfoo
post Jan 14 2010, 05:20 PM

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QUOTE(gark @ Jan 14 2010, 04:59 PM)
Hahaha, now sitting on a mountain of cash... waiting for cheap property when the BLR is high, then can buy cheap cheap.  drool.gif
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but looking at the history of BLR, not likely it's going to rise too much, too soon
TSvdfoo
post Jan 14 2010, 05:55 PM

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QUOTE(bteoh @ Jan 14 2010, 05:22 PM)
for people who buys to flip and the property will only be ready in 2-3 years time... i really wish you good luck
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mind to justify?
TSvdfoo
post Jan 14 2010, 11:49 PM

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QUOTE(lowyat888 @ Jan 14 2010, 11:46 PM)
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
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if stated as such, property investment for rental doesn't seem so fun anymore...
TSvdfoo
post Jan 15 2010, 09:14 AM

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i appreciate lowyat888 pointed out so many cons in the reality of property investment, but thats kinda discouraging isn't it...

 

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