heh heh

I think there are other more effective mechanisms as i have mentioned earlier than just capping the 3rd prop like debt gearing ratio or even NAV using a valuation approach than to dismiss everyone on their 3rd purchase as fueling speculation. A good policy have to make provisions for the interests of all affected groups not just the popular considerations. Your first proposition for "genuine upgrader" sounds plausible. Your 2nd scenario is not pertinent to the 3rd prop cap discussion.

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Added on November 4, 2010, 2:26 pmI like u. U've a great investor's mindset & have read the situation correctly.


This post has been edited by Daryl Teo: Nov 4 2010, 02:26 PM

yea, then i should have refer to - those who r not that rich.

I almost bought one of the Condo's near Subang Parade...
I guess it's no-no for me now. (own > 2 prop)

I do support the idea though.

Sure, there will be debates on the plan...and how it can be better implemented
but the truth remains that this will curb speculative buying
and stabilize property price.

I guess i will go buy a car now.

This post has been edited by shchoy: Nov 4 2010, 02:29 PM

great minds think alike!
but after listening to what others says, can sense that Zeti is indeed having success in curbing spculators like myself liao lor. haha.

I think for all the same reasons, now i understand why so many have failed to get onto the r.e game. Many have failed to understand the difference between speculators, margin punters & the long term genuine investor who's into real wealth building.

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Added on November 4, 2010, 2:36 pmLuckily i've stockpiled my inventory into a very comfortable level. Will also wait & see how the market reacts in the next 6 months. Meantime will focus more into managing my portfolio for the longer investment horizon. Would expect higher witholding costs in lieu of this policy, wonder how it'll pass down the market.

This post has been edited by Daryl Teo: Nov 4 2010, 02:36 PM

Exactly, im not only saying those who really sapu a few floors. but also those edi bought 2 - 3 properties! if genuine upgrader, sell the 2 u bought and upgrade, by this means u'll have the 30% of d/p. if ppl holding 2 - 3 properties as investment, doesn't that lead to increase of property price because of demand more than supply? of coz, in here im saying MANY ppl, not only 1 person.

There is talk about RPGT of 30% during last 1 to 2 months. Maybe announce later.

If you're using debt gearing ratio it's inaccurate as your total equity is affected by speculative prices. Also using this method actually favours speculaters and flippers as, if the price of their property increases due to speculative activity, their debt gearing ratio drops.

bro daryl,
healthy comfortable inventory? wow! i just breached the threshold only. no way near the 'healthy' level yet. how i envy you. guess now i won't be joining you on this bandwagon liao. so sad.

others:
sale! sale! sale!
apartment for sale in PJ
condominiums for sale in KL
landed terrace for sale in Shah Alam.
any takers??!! lol

One always speaks of quantitative methods for fair valuation; sentiments & speculative asking prices are just noise. Debt gearing ratio only takes in their taxable incomes; speculative gains are not taken into the equation, rpgt can be imposed at the tail end to mitigate that.

I guess i will go buy a car now.-- yes,

maybe go get proton inspira

This post has been edited by airline: Nov 4 2010, 02:49 PM

Dude i started early & maybe i had a bit of luck. But recent BNM measure would effectively curb speculative activity unless if u're a cash rich investor. Even then u would have to worry about offloading your inventory on a cash strapped market due to the cap on LTV. It bites u on both ends! Doubt the high end market would be affected too much although prices would be less bullish. The mid end below 500k would be the most affected with a shrinking pool of cash ready buyers. This market would stagnate if sellers expectations don't meet buyers loan abilities.

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Added on November 4, 2010, 2:55 pmU may have stumbled onto a truth, in pure economic terms, consumption products & consumables are the preferred market movers, not property loans.

This post has been edited by Daryl Teo: Nov 4 2010, 02:55 PM

different ppl have different interests, u just cant make everyone happy.

I guess u're right. Let's just wait & see if the boat rights itself up or otherwise. Msians afterall have a great way of working around things!

heh heh

Third property onwards per household or third property onwards per individual ? If per individual, then haha, no effect, 'cos Msians are smart - can use the wife's name.

That is why in a neighbouring country, it's always tied to per household, say for a HDB flat.

But I applaud the Financial Capability Program - to raise the financial literacy level of our people in Malaysia. Singapore has had that for many years, even private individuals are chipping-in to help in this effort.

Then no more blaming the Gov't if non-authorised deposit-taking organizations run away with our money, or blaming the Gov't when housing projects are abandoned, etc.

Shhh.......don't let them know that we know what they think we don't know!

Can use wife's name, can even use brother,mother,father,grandfather but the problem is the loan will be based on that wife's ability to pay not the husbands.

Well, that's the exact thing I have in mind - the pool of sub 500k properties will definitely stay stagnant in terms of pricing due to the LTV which in return will benefit the 1st time mid-end buyers who would prefer to have an decent investment of properties for atleast 5-10years...

we got to give some time for the market to absorb such LTV rullings
absorb the shockness

chaos everywhere! I wonder which banks will post a provision for toxic debts that will hit them in 1 year's time.

Yummy.....good pickings coming soon.