Yesterday, it's my first time heard my colleague (foreigner) said Living in Malaysia is damn EXPENSIVE...LOL

This post has been edited by kh8668: Apr 13 2011, 11:58 AM

malaysia was a relatively cheap place to live until recent times, despite subsides on essentials.
it is now "expensive" not because petrol or nasi lemak prices are priced high in an absolute sense, but is the low and stagnant income levels.

in the previous page, someone asked how was income and house prices 30-40 yrs ago compared to now.
if not mistaken, back 30 yrs ago, a new terrace house in PJ cost <100K, fresh honors grads get paid 1.5k.
today, same new house in klang is priced 400-500k, salary 2-2.5k, with exceptions, of course.
the same thing happend to cars, healthcare, etc.

how young people buy homes and cars these days? debt and more debt.
until real income levels rise, more young people will leave for better pay jobs overseas.
until real income levels rise, more debt will pile up - and this is not sustainable.

This post has been edited by AVFAN: Apr 13 2011, 12:26 PM

agree!
Due to that, Malaysian especially chinese community has been trying to accustome themselves by reducing the size of the family, average young family has 2 kids only and I forsee it will keep reducing to a stage where majority are bachelor.
Singapore did a survey in 2008, among 10 women, 6 decided not marry, out of 4 marry, 3 decided dun want to hv children, remaining one only want 1 child. So the summary is every 10 men & 10 women in S'pore will produce 1 child. (20 vs 1).
I can see the are small portion of the houses being the contribution fr the parents savings, the participation of family members (bro & sisters) to jointly purchase a property is unavoidably.
If not marry, owning a property can be omitted (renting not too bad)
My 2 bakuli

Hmm... just ate my lunch with a friend of mine working in Public Bank.
He told me at the moment Public Bank (his branch perhaps) withold and stop giving house loan.
Reason is because that particular area residentials' price surge up to fast and high. Only can start giving the loan again with the permission from the superior.
Nowadays even public bank not giving loans cause they are worried on the escalating property price vs ppl income. They are worried on the abillity of the people to serve the loan in future.
I'm wondering now, does this indicate something bad gonna happen soon?

I worked in PBB b4 also, PBB and Hong Leong style are like that one, very careful and Kiasi, that's why theirs' NPL are so healthy, last year I also told by UOB that they stop giving loan but now buka paip besar-besar...
Very hard to judge fr the movelah

yes i think now very easy to get loan
hv a friend just bot a new launch at bt jalil
her salary is like 6k, buy a 600k unit
but just need to downpayment 20k
no need instalment before VP
loan repayment 2.8k
she has car loan some more
dont know how come can get such a loan approval
i tot malaysia is very strict and no need to worry about finance credit crisis...

Our banks are one of the most conservative bank in the world, Only these few yrs they are a bit flexible, but still limit to 90%, unlike US, 100% or more, in 2006, my fren who work in Shenzhen say China really jialat, salary 15K reminbi can get loan approve for 4 condos worth 1.5mil reminbi each, buyer can factor in the future rental into the current earnings, many middle income group has everage 2-3 mil renminbi housing debt. Our situation compared to China is kacang putih

This post has been edited by UFO-ET: Apr 13 2011, 02:29 PM

dont misunderstand. we are praying for a price adjustment of 15-20% or at least stagnant increase for awhile. some places the price increase by 20k in two months, how hard we work also cannot catch up la. nobody wants an economy crash. that would be bad news all over

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Added on April 13, 2011, 2:47 pmwahh...... that aggressive? then our banks are very very careful d

This post has been edited by cleo87: Apr 13 2011, 02:47 PM

Can see from this chart




Approval of loan application is actually gradually dropping from 60+% in previous years to approximately 50% in 2010.

is that why the banks are so aggressive in offering loans? meaning they aggressively pursue but the approval rate is stringent?

And banks value houses lower then buyers.

They have to fight to maintain the market share and profit. How do u think they declare billons of dollar profit every year? From your interest and using them to diversify and make more money.

Please recheck ur math too.

30k in 40yrs become 800k.

6.7% x 2 = 13.4% increase per yr?

8.55% per annum ler

http://www.moneychimp.com/calculator/disco..._calculator.htm

no ler... said bought subsale at 60k. not 30k.
my math ok wan...
the point is... residential houses is not that great as investment except for certain periods.

This post has been edited by AVFAN: Apr 13 2011, 08:20 PM

banks calculate base on 2/3 of a person income. If the total debt repayment is not more than 2/3 of a person income, the mortgage seller can get the loan approve. some more nowadays can pay until 60 - 65 years old. The monetary system is still very loose. Even if it is loose, M'sians are generally very prudent.

So we are still far away from property bubbles like in the US.

at that time there are no such 90% loan, the most is 50%-60% if approved. 30k downpayment at that time is like 300k now. Not many ppl can have that much cash reserve.

We work hard, unfortunately not paid accordingly or proportionately.

And I sense most of you are paid handsomely in this thread ?

This post has been edited by eastern: Apr 13 2011, 11:13 PM

you guys are great !!!
gonna book mark some post of yours...

Post #865
Post #867
Post #934
Post #894

Very quotable quotes

Malaysia house prices to rise 10pc: SP Setia http://www.btimes.com.my/Current_News/BTIM...l#ixzz1JQ3KiEZ3