i am wonder... how about i submit loan on yesterday.. pending approval.. still 70% ? on my godd... how come (this is 3rd property).. pity

BUT,

i am sure the developers & the banks will find ways to solve this:-

1) Developers will further inflated the property prices, then give you say 20% discount, end up you only pay 10%...

or

2) Banks will give you housing loan 70%-LTR + personal loan 20% at the same lending rates

I wonder how BNM will tackle this?

Many sohos/studio are under commercial title, so it is considered non-residential, BNM policy of LTV 70% applies on 3rd house (which is residential), this is the doubt that need to be clear....

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Added on November 3, 2010, 10:31 pmVery unlikely this will happen, bank negara may not smart but they are not stupid. I am sure there will be a measurement and control to stop this from happening. Most of the developers are public listed companies and subject to auditing, if they try to be smart and do something funny and against the BNM ruling like creating thousands of credit notes (as rebates to home buyers) they will be in the trouble. I dont think these big names like SP Setia, Mah Sing, I&P, Sime Darby will take risks and play funny with BNM.

On the bank side, all commercial banks licence are controlled by BNM, and subject to BNM annual audits..

This post has been edited by cheahcw2003: Nov 3 2010, 10:33 PM

The govt has already given sufficient warning during past 1 to 2 months. So no surprise here.

Only today it is confirmed. They should have confirmed during budget day.

Wait for another surprise ie. increase in RPGT.

actually the RPGT are in place, just timing not right now
with GST also in the pipeline, dun play play

I mean RPGT of up to 30% for first year instead of 5%.

Govt also talking about this during past 1 to 2 months.

RPGT nx year thingy...

and use family name how about he/she just sell the house and walk away, you lose you downpayment and appreciation on price.

use close family members only lar. parents bro sis. and if you have trust should be ok.

sometime family also hard to trust when there is money involve, and what can you do to them when they sell the house, it is perfectly legal, they own the house.

different family different circumstances lar. some ok some better not to involve in money.

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Added on November 4, 2010, 12:01 ammay i ask if the buyer already have two property finance with 90% loan, and if he sell off one of the property. is he able to get 90% loan for a new property??

This post has been edited by pinkdevil88: Nov 4 2010, 12:01 AM

robertngo, i think u misunderstood me. or perhaps i misinterpret wht u trying to say.

anyway, im saying that its not an easy task for ppl who think they can just simply use their siblings name to purchase a property. alot of problem will arise later on. Like i sed, if ur dad use ur name, then later when u graduate and want to buy your own house, u will not get the 90% loan becoz ur dad applied earlier using ur name. thats what im trying to say bro.

understand bro

Looks like the statement issued by BNM is still a bit unclear. need to wait and see the implementation from the banks before we can conclude the impact on property prices.

from my interpretation of the statement it seems that if a buyer previously apply for loan to buy two property(say 10 years ago??), and later on sell it off due to personal financial circumstances. he is now currently not able to have another 90% loan to buy a new "third" home. Sounds a bit unfair to me. What do you guys think??

i think it is fair, most people will not be changing to third property unless they have increase income or for investment.

from my example i said that what if the person need to sell of the previous two financed property due to poor financial circumstances??

say that when his company is making good money, he bought two property using financing.

after few years, the company business went downwards and bankrupt. he is forced to sell off both properties and rent a flat.

now with this implementation, he will need to have 30% downpayment before he can buy a "third" home for his family??

I could imagine how a under 30 middle exec getting easily tangled up in the 70% LTV restriction. He could have purchased his first investment prop for rental & a second apartment in which he's staying now. And he wants to buy a landed prop now as he anticipates starting a family. So effectively this is his 3rd purchase! So unless if he disposes of one, most likely the one he's occupying in, as the other (1st prop) makes for a better investment play both in caps & yields. So what is this chap supposed to do if he doesn't want to fork out 30% d/p?? He has to sell the apartment he's staying in to qualify, which also means he has to wait for his 2nd loan to be fully redeemed for the records, by which time he would probably has lost the opportunity of buying the 3rd (landed prop) he's been eyeing! Or at least he would he would lost the opportunity to lock in the purchase at the earlier asking price (that's assuming ceteris paribus that prices are on the constant uptrend). It would also mean that he has to move out of his 2nd prop to facillitate its sale before he purchases his 3rd!! Phew! What a cock up of the whole chain of events for that young exec! He'll probably just give up & settle for his 2nd tiny apartment at the end of the day despite planning for a growing family. Think the policy would have made more sense if the LTV cap would have been on the 4th prop purchase or at least clearcut guidelines are made between investment props or props meant for self occupation!

if i'm your bro ..I also don't let you to use my name. not because of money or what...but one day I also have to buy house for myself.

Well, your explaination does sound viable but bear in my mind that the 1st time home buyers are those that are suffering more at the moment with all the hiked up property prices. At such, I think it wouldn't be fair to look at the example situation that you have mentioned above - if a person can afford to purchase 2 properties before he hits the age 30 and still has the onlook for an 3rd, I would say he is quite steady financially and at such the 70% LTV does works in its interest.

U may be right. I may have been speaking for the under 30 high achievers. I assure u that it wouldn't have been very difficult for young execs to hit 2 to 3 props in the last 2 to 3 years of easy credit, dibs, no d/p schemes.