The BNM should define what it means by third property. The launch of the policy creates a lot of confusion. Even banks cannot answer.

Well said. 3rd property can be
a) currently holding 2 properties and plan to get a 3rd one
b) 3rd time buying/investing in property regardless whether you still hold any properties at that time

There is always a loop holes for ppl to explore. You can always use your wife, son, daughter name to buy/invest, but in actual fact, you are the mastermind behind.
Motive is good but I doubt the implementation.

Chief u've read the situation correctly! Somehow i had an inkling that there is more to the measure than meets the eye. Unless if u're a cash rich investor who doesn't mind a receding COCR & high caps, u'll probably not take the plunge in the next 6 months, to see which way the market turns. Who knows? Perhaps the measure is really out to encourage foreigners' participation in our local property scene as there are little by way of restrictions on the type of properties they can own. Many locals caught by the LTV cap would find it hardpressed to cough up the requisite 30% for props now, perhaps we'll see more iranians, koreans, chinese or even africans flushed with black slush, stepping up to put up white picket fences as neighbours in our nice little kosher neighborhoods now!

If the situation holds past 24 months, margin flippers who banked on dibs & 5/95s will definitely be begging u to put them out of their misery, especially taking stock that impending rate hikes just round the corner. Hopefully by which time too, i would not have taken flight from the property market locally, to capitalize on the situation. In the meantime i'm thinking of relocating to a life of a country gentleman in Kiwiland! On reverting back to the full rpgt regime i've my qualms too, cos by which time i've just warmed up to my new multinational neighbours, they would be at an askance again at this flip flop of policies & will take flight to investor friendlier real estate destinations! We have an inefficient but sentiment efficient market!

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Added on November 7, 2010, 3:18 am The prelude to the measure.

Sep 8, 2010
Chor: Cap may dampen property market

KUALA LUMPUR: Any move to cap housing loans at 80% instead of the current 90% can dampen the property market in the long run, said Housing and Local Government Minister Chor Chee Heung.

He added that he would leave the decision to Bank Negara.

“We will give input if asked,” he said during a briefing on the Zephyr Point project completed based on the build-then-sell concept yesterday.

Chor said a large percentage of purchasers were genuine buyers and Bank Negara should consider the suggestion that the 20/80 proposal be imposed only on houses costing more than RM500,000.

The Star on Monday reported that several groups, including the National House Buyers’ Association, cautioned that a proposal by banks to cap housing loans at 80% would turn out to be a burden to potential house buyers.

MCA president Datuk Seri Dr Chua Soi Lek on Tuesday suggested that the 80% proposal should only be imposed on houses worth more than RM500,000 – to allow more buyers the flexibility of choosing which loan amount best suited them.

http://www.starproperty.my/PropertyScene/P...yScene/6930/0/0

i've got one small, overpriced apartment that i bought purely for investment and renting it with a very good return..i'm myself renting in another condo...however, i fully support this measure and topping it with 30% RPGT will surely make this a very good policy....

for me...house is a basic necessity first and investment tool second...we must prioritize to protect the buyer that buy a house to live in it..not buyer that buy a house purely for short term gain...

the news that have been quoted above was for 80% loan only..it doesn't mention about 3rd loan...if that's the case, yes i would be worried...but this is for 3rd loan? Malaysian normal non-investment buyer will normally only buy 1 house and be done with it...they will rather buy a 2nd car or make-up their car kaw2...

the only reason i got into property investment in the first place was because i'm seeing the price of property in Malaysia escalated to the unthinkable...imagine..4 years ago, 2-storey terrace house in bandar kinrara only cost 300k+...now the new launch cost more than 1 million??? ....i don't think 2010 should be the year we are seeing 2-storey house reach 1 million...heck i even thing 600k is overpriced for double storey terrace house..that should be semi-d price house..so the only way for me is just join in the game..rather than cursing without any effect....

i think the argument that the rich are the one that will benefit from this one is a valid but weak argument...yes they can switch from high-end market to middle-end market..but they'll now have smaller pool of buyer and might need to wait longer for a really good ROI...as they said...time is money...so for the rich that want a quick gain..they need look for other investment tool that can give them better return in quicker time than property investment...

yes...there could be loophole...eg: flipper that will use brother/sister/father/mother/wife name but at least, this move will prevent those flippers that have no siblings/parents/single...

I don't know why you guys keep on assuming use brother/father/baby name cause when you use your son's name the son is liable for the loan and not the father. If you put you son's name , then your son must show that it have enough income to pay for the loan. You cannot pay for the loan and put only the son's name in the house. The bank will not allow that.

I don't know why you guys keep on assuming use brother/father/baby name cause when you use your son's name the son is liable for the loan and not the father. If you put you son's name , then your son must show that it have enough income to pay for the loan. You cannot pay for the loan and put only the son's name in the house. The bank will not allow that.

i've got one small, overpriced apartment that i bought purely for investment and renting it with a very good return..i'm myself renting in another condo...however, i fully support this measure and topping it with 30% RPGT will surely make this a very good policy....

for me...house is a basic necessity first and investment tool second...we must prioritize to protect the buyer that buy a house to live in it..not buyer that buy a house purely for short term gain...

the news that have been quoted above was for 80% loan only..it doesn't mention about 3rd loan...if that's the case, yes i would be worried...but this is for 3rd loan? Malaysian normal non-investment buyer will normally only buy 1 house and be done with it...they will rather buy a 2nd car or make-up their car kaw2...

the only reason i got into property investment in the first place was because i'm seeing the price of property in Malaysia escalated to the unthinkable...imagine..4 years ago, 2-storey terrace house in bandar kinrara only cost 300k+...now the new launch cost more than 1 million??? ....i don't think 2010 should be the year we are seeing 2-storey house reach 1 million...heck i even thing 600k is overpriced for double storey terrace house..that should be semi-d price house..so the only way for me is just join in the game..rather than cursing without any effect....

i think the argument that the rich are the one that will benefit from this one is a valid but weak argument...yes they can switch from high-end market to middle-end market..but they'll now have smaller pool of buyer and might need to wait longer for a really good ROI...as they said...time is money...so for the rich that want a quick gain..they need look for other investment tool that can give them better return in quicker time than property investment...

yes...there could be loophole...eg: flipper that will use brother/sister/father/mother/wife name but at least, this move will prevent those flippers that have no siblings/parents/single...

i think for now, even bankers are not so clear with the ltv thing, cut off timing..esp for loan application submitted before that..

The BNM should define what it means by third property. The launch of the policy creates a lot of confusion. Even banks cannot answer.

Well said. 3rd property can be
a) currently holding 2 properties and plan to get a 3rd one
b) 3rd time buying/investing in property regardless whether you still hold any properties at that time

There is always a loop holes for ppl to explore. You can always use your wife, son, daughter name to buy/invest, but in actual fact, you are the mastermind behind.
Motive is good but I doubt the implementation.

@cherroy,
Lol.. looks like U been doing all the reading.  So, assuming I've a total of 3 properties but 0 loans, it means this new ruling shouldn't affect me?  And it will only affect me after my 3rd loan with the bank?