of course there are still ppl buying.
but the point is become "less".
which will cool down the market.
especially for over priced new launches.

with all the developer's DIBS thing around us, there are ways to curb the 70% issue

lol, BNM trying to curb overheating property market and you are trying to curb 70% LTV

@tinkerbell,
you only can own 2 concurrent property. The 3rd one and onwards will be effected by the new LTV.

correction, should be 2 loans

With the current house price and current salary level, paying for one or two is already very headache, if the normal salaried flippers can't release the properties, they will b suffering very much.

Unless u have > 8k, but how many people can have more than 8k?

buy only when u can afford..

now i know why many people chose to buy a 100k+ low cost flat and enjoy their life..

when u buy 450k for 35 years, u r going to pay total of 750k at the end, which will dry you up.

i have 1.5 houses. (one in kl, 0.5 at hometown)

don't buy if u cannot afford. OR just buy something reasonable.

@almeizer,
Lol.. I've no intentions of making another property purchase; maybe I'll strike LOTTO and be able to pay off the current loan, then I can think about the next purchase

@epalbee3,
You're right - but i think the importance here is that, one shouldn't buy if they can't afford it; as in, don't buy something that's out of budget

there will not be any bubble forming if everyone thinks like you do. most people buy beyond their means. some gamble all out flipping knowing 'for sure' property price in certain areas will go up 30% in one year.

*no doubt though a lot of people made insane money these few years.

Measures in Promoting a Stable and Sustainable Property Market and Sound Financial and Debt Management of Households

Bank Negara Malaysia wishes to announce with immediate effect the implementation of a maximum loan-to-value (LTV) ratio of 70%, which will be applicable to the third house financing facility taken out by a borrower. Financing facilities for purchase of the first and second homes are not affected and borrowers will continue to be able to obtain financing for these purchases at the present prevailing LTV level applied by individual banks based on their internal credit policies. The measure aims to support a stable and sustainable property market, and promote the continued affordability of homes for the general public.

Source : http://www.bnm.gov.my/index.php?ch=8&pg=14&ac=2159

My intepretation :

1. 3rd House Financing - 3rd Property Financing to be taken with any financiers. Financiers can check the financing via CCRIS which will report under House Financing. I believed it will be irrespective under Single or Joint. So as long as 2, 90% and 3rd falls into 70%.

2. Borrower term is subjective, could be individual or company. Best singled out both - 70% if 3rd property but Company, not sure if check Directors too.

Should be clear in few days time, as usual govt loves to give out vague guidelines.

If the properties buyers have lot of cash, whether they invest/stay/flip or not, generally BNM won't care.

The fear is flipper/speculators use the properties for speculation purpose, he/she is not able to service the loan in the first place and rely on properties price appreciation afterwards to get rid of the properties, or solely rely on tenants to service the loan for short term. Or just hold for few month, the loan is temporary financing only.
The buyers don't need to fork out a single cent or as little as possible already can own several properties to play around.

If everyone doing it, then just a minor shock can lead to the system collapse, as there is little room for error, just like what had happened on US subprime crisis.

If one has lot of cash, at least those properties won't be fire-sale, foreclose as easily as one doesn't afford in the first place, if anything happened.

The measure doesn't prevent flipper or speculation, it just mean sending warning message to flippers whom are or want to over-commit themselves.
If BNM want to clamp down speculation or flippers, RPGT is the tool,

low cost flat 100k+ ? where do u get them?

Similarly, i also wonder why people keep on thinking this is not possible...if your father/children doesn't have income, doesn't mean other people father/children doesn't have income as well...same as if your father/children not willing to use their name, doesn't mean other people father/children not willing too..well let's look at it using other way.. if relatives/family can be persuaded into some shitty MLM scam..why they can't be persuaded into lucrative, real and legitimate way to make quick money (flipping)


i always want to upgrade but can't find a decent good deal yet..of course i'm complaining..BK is just an example..what about Alam Impian? what is so strategic or prime about it but look at the price escalation..everyone sure want to dwell in strategic location..i don't care if it's prime or not..and everyone have their own meaning of strategic location but the concern it seems is that the increase in income doesn't seem parallel with the increase in price of housing area...

yes the rich can still invest but at least, this measure i guess can weed most of the pretender investors (over leveraging/buyers who bought more than what they can afford)....of course whether it will work or not, my guess is as good as your guess..if we let the market correct itself..isn't that what happened to US sub-prime crisis?? and in the end, they did bail-out their company..so much after criticizing us...

yes your point is also valid but that's the point. Most of those who do not agree/hate this new rules are investors/flippers and of course most of those who agree are aspiring first home buyers. we can't satisfy everyone but for me, genuine non-investor home buyer should get the priority...





yes agree

@cranx,
Lol.. I guess I never saw myself as a big risk-taker *grins*. A 3-year car loan seemed forever; can't imagine a 30-year housing loan *gulp*

Problem is, like my mom I get "attached" to things I purchase; no good for "investment"

@cherroy,
Sigh... Y can't money just drop on my lap?

Duh, if you already paid full cash for the other 3 properties so banks no longer hold any risk, it doesn't matter.
The ruling is to get rid of those high risk flippers who does not have the financing power. Those are the people who are not able to pay the loan when they're not able to sell the house.

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Added on November 9, 2010, 10:23 amThey're able to do that but their money will be stuck in the house, their gains will be reduced and the risk is higher for them. It's just whether it's worth it or not.

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Added on November 9, 2010, 11:04 amCan, the person that you put the name into must be qualified for the amount of loan. If say your son is not working, how is the bank going to approve the loan based on your son's name if he's not qualified at all to get the loan? Or if you plan to borrow 2 million and put your sons name, but your son is only earning 3k/month, he still won't qualify for the loan.



This post has been edited by Drian: Nov 9 2010, 11:04 AM

I thought it's obvious...if you want to apply for a loan:

A : you must qualify before you can get a loan....if you earn 3k/month, you can't qualify for 2million loan

if you use your son name, which mean your son is applying for the loan, just change you here to your son:

B: your son must qualify before your son can get a loan....if your son earn 3k/month, your son can't qualify for 2million loan

Directors does not matter, the loan is based on the company's name.

when apply loan under a company especially a S/B, directors(shareholders) will be the guarantor... hence bank will check the directors as well...

however a question here, if company apply for the 1st time but director got 3 loans on hand, then how will bank treat it?

just knew from AmBank officer, this policy only apply at the loan on house but not "property", so shoplot/office will not be considered, u can still get max 80% as usual...

Because some people here seem to think that they can apply loan and put son's name to escape the ruling without realising they can't do that.

no single method can curb the speculation by 100%
so at least it is 1 of them

a lot of ppl tot open a sdn bhd company and u can do things without affecting personal finance, company bankcrupt and no affect to personal finance,
they did not know that a lot of sdn bhd when buy things like machinary, invest to bigger factory and etc, personal quarantee is always needed.