One fine example of why the 70% LTV will benefit the general public who are sorting to buy their 1st property and also how it may affect the speculators.

http://forum.lowyat.net/topic/1634377

Company cannot get a loan without directors personal guarantee or having some collateral for the loan. You need either one.

If can, everyone just open up a sdn. bhd. then take a few milllion loan, then tapau the company, viola got a few million already.

Wah... you are damn mean... hahaha... that guy's face must be green when BNM announced the new ruling... It took him a week in deciding to let go... lol....

hahaha
good one...

Interesting points from both camps ( against vs agree for LTV 70% ). However, i have to say, once again our gomen came up with something half baked, just like when they impletemented the new RPGT ruling late last year. ( i still getting conflicting information if the 5% is for Gross or Net profit )

Anyway, for me, this rulling would have been much more effective if it was in place for purchases from developer only. Most of the speculators works hand in hand with the developer to artificially inflate the 1st phase of launches. This of course directly affects the secondary property market as well. I wouldn't mind seeing a 50% or less LTV implemented for such circumstances.

Additionally, I agree 100% with the comments here that this move will most likely affect the middle income/working class property investors rather than the cash rich datuk/datin/uncle/aunties. This budding investors probably work overtime, take a 2nd job,drive a piece of junk, using nokia 3210 to save money in order to improve their future. Think of that before categorizing those hardworking ppl affected by this move as GREEDY/PADAN MUKA/etc.

What to do bro, rich become richer and the rest you know by yourself.

2-3 units is moderate. For 10 units and some more for a banker, don't you think this is over?

heard from a friend that if cant get 90% loan,
some banks give a personal loan instead for shortfall
bank is RHB bank. gave 10% personal loan

other banks doing the same?

This post has been edited by airline: Nov 12 2010, 10:09 AM

bank can give and the purchaser can take...
but guess at the end who is winning and who is losing?

time to buy more bank's stocks?

OCBC give 10% home loan Xtra... cheaper than personal loan

i believe kamaljit9 is speaking for the bulk of middle income/working class property investors instead of singling out that specific banker from the other thread...which imho represents one of the best examples which contributed to the implementation of 70% LTV by BNM.

like u said...3 units is considered moderate for today's middle income standards. i believe earlier on, another forumner illustrated an example with a young chap purchasing a mid-cost apartment for staying, another one for investment and looking towards upgrading to a landed. however, this LTV implementation only allows for 2 loans at 90% LTV. although concern definitely needs to be focused at those ppl intending to purchase their first home, however i'm not in full support of this implemention coz the wrath of this policy, imho is targetted at the wrong group of people (which is precisely those outlined by kamaljit9 above). cash rich aunties / uncles would still be able to buy (no more BBB but a single B ) with this 70% LTV ratio but genuine middle income homeowners looking for an upgrade would be hindered.

a more tasteful approach to curb incessant price increases and encouraging home ownership for first-timers would be reintroducing RPGT (although rumours have been going around for some time but nothing concrete has come out of it so far) or perhaps introducing LTV ratios on a staggered approach (80% for 3rd house, 75% for 4th house, etc). this will help curb price increases and flippers so newbies can have an opportunity in purchasing their own home...and at the same time discouraging ppl from buying in bulk too (like ehem...10 units at a time!)

This post has been edited by babana: Nov 12 2010, 02:56 PM

It is time to introduce HDB in Malaysia. Everyone have a roof on top and freedom of speculation on non-HDB property. Everyone happy.

no one can stop cash rich investor doing anything...no one

got already lar... what do your think those dbkl flats are? unfortunately, different 'feel' compared to the sg hdb flats... also, don't hope to get a unit...

Dear all, finished reading first page and last few pages.

My personal opinions:-
1. 70% capped, < mid-segment home buyers to be badly affected! High capital required for million dollar house will switch investor/speculator focus to this segment.
2. RPGT is the tool to reduce speculation effectively, but they chose to cap LVR. Simply to deter over-committed bunch. BNM has some of the smartest people there, whether it will cool-down the speculation or affect property prices, it is not even a question/topic at all because there was no intention to do so. The recent budget indirectly telling us Gov want us to continue to buy, within your means.
3. Comparing to many countries with similar per capita income, Malaysia houses are still relatively easy to own.

It is a weekend, lazy to type more...

This post has been edited by niel: Nov 13 2010, 02:25 AM

Agreed!

Niel, good statement. many thanks for sharing.

It is totally 2 different concepts. HDB is not the same as low cost flats. You do not understand the whole concept of HDB and why Singapore government implementing HDB.

i don't think RPGT alone is enough...seller will just add the RPGT into the selling price...RPGT + LVR 70% is the way to go...