hmm.. this sounds logic too .. but we as buyer.. will be burdened lo T.T

As expected, banks are announcing BLR revising to 6.05% effective monday.
http://starproperty.my/PropertyScene/PropertyNews/4601/0/0

but i guess its good news for those with many many money in FD

its the exact opposite

Mind to elaborate? Thank you very much

Yalor, i would think so too, isn't it? Normally FD rate is about half of BLR rate. So if BLR goes up, doesn't the FD rate move in tandem as well? Giving depositors a higher return. (Although never enough to beat inflation ). In theory at least, that should be better for depositors?

The answer lies in the following :

1. Find out the reason why BNM raises OPR
2. Look at performance of KLCI and property markets in the past 12 months VS FD.

Personally, I felt that ppl with huge proportion of their net worth in FDs has always and will always be the biggest losers.

Contrary to most people belief, the decision by MY government to increase the interest rate mean the economy is on recovery path. Actually, interest rate decreased -> economy bad; interest rate increased -> economy good.

Do not worry that BLR will be increased to a very high level. It won't be.
If BNM keep on increase interest rate, it will attract a lot of foreign hot money to MY. And since FED won't increase its interest rate for a long time, I do not think BNM has much room to increase interest rate.

The keyword here is "normalizing".

Because of wasted opportunities to strike when they could, and their bullets grow rusty?

I thought I was the only one with the same thought

---

Added on May 17, 2010, 5:34 pmAlmost there. Compare all diff asset clases VS FD, u'll get the picture

This post has been edited by Pai: May 17 2010, 05:34 PM

latest news....6.05 ^^

latest meh ? ald confirmed on that since last week x.x

to him, that is the latest news. ppl just simply posting and increase the post count and never read the previous postings

i joined in since 04

if i wan to increase my count post, now edi few k

noob

This post has been edited by maru: May 18 2010, 11:26 AM

BNM already announce it will at least increase until 1% since March 2010. means from 5.55% - 6.55%(EXPECTED BLR) in the year end of 2010. the next committee meeting will be on JULY 2010. it will keep increasing. Based on the average 20 years BLR in AIA report is 8.77% and highest is in 1998 12.27%.

Eg.
Loan Principal RM 100,000
Tenure 30years
BLR 5.55%
Repayment RM 568
increase a 0.25%=5.80%=you have to pay another RM 15,904(interest)
increase a 0.50%=6.05%=you goin to pay another RM 36,920(interest)
increase a 0.75%=6.30%=you goin to pay another RM 67,592(interest)
increase a 1.00%=6.55%=you goin to pay another RM 118,144(interest)

Aih, just saw the increase of MLR at ocbc's website. I wonder if there is gonna be another increase in these couple of months?

wonder how will those people who have over committed in their housing loan fair

i know people who claimed himself "i buy property more than you buy shoes", hopefully he he is not in a bad condition now, may god bless him....

lol may I know who that person is?

hahaha.. unless he pay cash. if he haven settle the loan, the property is still own by lender. haha.