I was just re-reading this article from the Star last year
http://thestar.com.my/news/story.asp?sec=n.../nation/6900694
Sunday August 22, 2010
Car loan takers top bankruptcy list
By LEE YUK PENG
yukpeng@thestar.com.my

PETALING JAYA: At least 500 people who take out hire-purchase loans for vehicles are declared bankrupt every month.

The majority, comprising 37% (950) of the 2,565 cases in the first five months of this year, were aged between 35 and 44 years. (See Table)

.......
Ok, car loan not same as housing loan. But, worrying trend?

People will only throw properties if there's massive unemployment ala Greece and US. Last year , 80,000 business closed shop in Greece. If they don;t turn it around, they expect 180,000 businesses to go bust in the coming year. Could be another Zimbabwe in the making.

2 alarm bells.

First alarm bell - Loan consultant?!

Second tinkle - more buying power now compare to the previous generation - how does one explain the exponential growth of household debt? Yes, I admit there are many hidden treasures/ dragons in MYS - but still, explain the high household debt?

Everyone is just guessing, but the one that holding may not have good sleep these days. The greatest kl project is on going and awarded. So are we going to face crisis soon?Government boosting the economy with mega projects, developer growing with new mega project launching. I saw these projects @ Ecocity, kelana jaya, opposite western digital(mah sing), IRDA, ROL, do we have sufficient fund to loan these projects???

Then why some listed company at PN17 status which debt is abt hundred millions!!!these so called the project director do not cater their funds? No funds, some authority still can call for tender. Not sufficient funds also can get loans because they claimed my company is big mah, instead empty shell inside...

Wondering then why got abundant building with yet completed? I presume the procedure follows as what u mentioned, then why?

http://www.cnbc.com/id/42794269/Low_Intere...ubble_Economist

Some analysts are crying for bubble in SG even though their household debt is quite low (relatively to the rest of ASEAN country) in our region. His argument is, 1% rise in interest rate will increase debt-to-income ration by 3.5%. Just wonder, if SG is considered to be in bubble, what about us in general ? Maybe time to invest in SG property instead ... haha

Depend to area, some area still can get below 400k...

Wow, Mr. Sulifeisgreat, appreciate your lengthy research!

When the 30-year old US treasury bond bull market collapses, follow by the collapse of the US dollar system, you will see the money flow to the tangible commodities, gold and silver. We had a similar scenario in the 70s, but the US dollar survived by raising interest rate to 20%. They can't raise the rate to 20% now without defaulting their government debt.

I told you the precious metal market is rigged, Comex just raised the margin requirement for gold and silver in order to smash the price. Just pull out a 10 year chart for gold and silver, then you will know they have lost control.

In the short term, everyone is rushing to the "safe heaven" US dollar and treasury. But look at their balance sheet, without printing money, there is simply not enough money flowing around to buy the US treasury bond.

Throughout history (last 5000 years), every fiat paper currency will return to its intrinsic value, which is zero. This paper money system has been around for 40 years, this time is different? When it will collapse? Nobody knows, maybe 5 or 10 years, at that time you will rather hold tangible gold, silver and commodities.

We can see the sign of world currency chaos... it will lead us to currency crisis... and if history is any guide gold standard is the only way to solve it .
Seriously, I'm not sure why you keep saying the privately owned Federal Reserve is a conspiracy theory. The FED was created in 1913, and the largest shareholder is the private bank JP Morgan Chase... we would all be sheeple if we chose to believe the official story.

I think we are having solvency problems. What if PIIGS default (they will eventually, if we are bankrupt we can't borrow more to fix the problem, they are just buying time), and what if the EU disintegrates?

People will be rushing to US dollar/bond for sure in the short term, but if you included the US government's unfunded liabilities such as social security, medicare and medicaid, the US debt to GDP would be well over 300%! The US government is borrowing 40 cents for every dollar their spend, the Federal Reserve is buying over 50% of the US government bond.

Countries with trade surplus are reducing their exposure to the US bond, that's why the FED has to step in and fill the gap.

The central banks of the US and EU are printing funny money to buy their own government bonds. It they stop printing, they will default, world depression/deflation, US dollar and Euro collapse. If they keep printing, tremendous inflation if not hyperinflation worldwide, US dollar and Euro will lose their purchasing power significantly. They are more likely to print...

There is no shelter for the collapse of paper money other than gold/silver and tangible commodities in the longer term. Say if ringgit had become worthless, you would be better off to stockpile some rice or sugar (commodities) at home, at least rice or sugar can hold its value until it rots...

cn rich ppl is very rich... poor ppl is very poor.... once usa cut spending next year... really dun know what will happen to cn factory... middle class will be  ...

i think their bubble is still under control and not as serious as in my.. hehe.. 

maybe another few more months later will be cheaper..as i heard that property sales not so good recently...bank also more strict to approve loan...

Received this email from an agent!!See how sad is MK now   

Co Broke Unit:-

Urgent Sale !!

    Kiara 3 Condominium, Mont Kiara
    Built-up: 1597sf
    2 carparks.
    Purchase price from developer is RM608psf
    Asking sale price: RM620psf neg (Offer To Purchase)
    Asking rental: RM4,000 neg (Offer To Rent)
    The unit is brand new
    Key can be picked up from me anytime.

Don't miss the opportunity !!

One real example is my friend who is applying for this first house, an apartment and he got rejected by some banks already. He is a professional and earn decent monthly income and has been working for many years. Maybe the reason is that project not 'good'. But, I think could be due to the market sentiment also.

bank is very sensitive... if u got pending h/p n tel bill, water n electric bill, cc bill... for more then 2 months unpaid... all kind of loan will be rejected!!!

Not all time low, but very significant drop.

no la, he got no credit card one.

Buy GOLD with your both hands now! It's a gift at this price. The west can drive down $200-$300 with paper naked short in few short days, they have done this for so many times in the past.

In the long run, they simply can't manipulate the price.

Pull out a 10 year chart then you will know what I'm talking about, average 20%/year gains in the past 10 years.

If we don't understand the currency crisis we are headed, we will simply look at GOLD as useless lump of metal.

I've been saying this for a while, our paper currency system is collapsing. It's up to you to act now or not to act...
"Gold plunge yesterday to all time low right?" It was US$250/oz back in 2000, US$35/oz back in 1970, and today is US$1640/oz... all time low?

Bro, I'm not trying to argue with you guys, and I'm not asking you guys to accept my views either.

Property market based only on borrowed money but not income in the economy won't be sustainable... nobody would stop anyone to buy property if he/she wanted to, everyone makes their own decisions.

We have had so many paper currency collapses in the past, have a look the link below,
http://en.wikipedia.org/wiki/Hyperinflation
The world reserve US dollar is headed to this path (go google the US money supply chart), and the whole world currencies are based on the US dollar system... where are people going to seek shelter to protect their wealth? It's up to you to act now or to be ignorance.

I believe we are heading to world deflation - stocks, properties, commodities would go down from now, and then the central planners will step in and launch huge money printing program... just my 2 cents

His prop is below 300k and salary more than 3.8k for sure.

It is an apartment in KL.

Yesterday my friend who work for bank loan also said the sales rate people apply loan also lower recently and bank tighten the approval, fear or bubble.

Do update us, if it was approved/rejected.