I guess lar.. it may be counted as third house; if not, everyone will go find their mum/dad/son/daughter as co-borrower.

u c, it is easy to put another name, just my guess.

I think it is good to have this policy of 70% LTV.
And we have 100% of LTV for first time buyer < 220k houses.

I have already secured my house in KL and has no intention to buy the third one...

The LTV will stop the speculation activities for those highly speculated area.

One day I drove through some so-called high class condo > 500k, what surprises me is only 20% turns on the lights.
The move will help to save innocent investors from loan default later..

Actually I am happy with the policy.

But I think the flippers are now very anxious of their speculations..

The poor people are happy with cheap house and 100% loan..

---

Added on November 5, 2010, 1:14 pmby limiting everyone only have 2 houses, then the left over few houses can be distributed to those who own nothing..

the richest people will have 1/3 capability now to push the property price high. In this case, the left-over 67% houses are now free from speculations.

So... now poor people with low capacity can buy cheap houses now.. it is indeed a good news..

The loan policy has sided the poor and press the rich ones.. don't u see it?

---

Added on November 5, 2010, 1:18 pmThere are 3 groups of people now:

Poor: get 0 entry to the property market < 220k
Medium: get 10% entry to property market > 220k - 500k
Rich: get conned and have to pay 30% to enter the investor market..

The new policy sided the poor (70% of people are < RM3000).
Smile is for the poor..

This post has been edited by epalbee3: Nov 5 2010, 01:18 PM

you should think like this, previously the rich people is able to speculate on 3 properties of 350k, now they only able to speculate one.. so the house prices will be affordable. There are 1/3 number less speculators everywhere..

if 1 million property cannot be cooked, they will drop to original value of 600k then continue to push the lower level houses. SO it is still better for the poor.

Less speculative loans are released to the RE, so the real buyers can buy the house with real prices, not the speculated one.. That is what i think...

Now speculators has only 1/3 x of their previous speculation powers for all levels.

that means for every level, there are three leaving to the bottom level while another one enter the current level.

See the following figure assumption,

speculator who want to stay

High range: 1000 ---> 10 1000 ---> 1000

Mid range: 5000 -----> 1000 5000 ---> 5000

Low range: 10000 -----> 5000 10000---> 20000

(Another 10k speculators lose their speculation powers)

With less speculators (who bought > 2), and more real buyers, the re market will be more healthy and the prices are determined by the genuine buyers. THe above is just example, from 1:1 ratio to 0.2:1.

SO in this case the speculators have little power to control market, the poor will win.

So I am happy with the policy.

There are still liquidities provided by genuine purchasers, those liquidities from speculators will reduce to 33%.

In term of liquidities, I think speculators are not that dumb, they usually focuses on the high density areas which has no liquidity problem; what speculators did previously in these areas is to instead resist the liquiditiy by holding a lot of units and create a sense of little supplies. The genuine buyers were not able to buy at the genuine price.

That's why I think the speculators HAS NEVER CREATE LIQUIDITIES, but they blocked the liquidities.

So I support the gomen this policy. Good move.

third house financing facility

How to read this? may be "financing facility of the third house"..

don't be too happy now.

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.

RM3800 for RM6k owner is impossible.

Imagine that after deduction, u get only 5k, then after this you only have RM1200 for spend.

Unless u r already rich and cash free then u can hold it for a while.

but this kind of investor usually is flipper, and must flip within shortest period...

well.. if this cannot be done, the consequences are very deep for him..