Wait and see whether Bank Negara will hike the OPR and SRR this coming saturday.

i've noticed that prices for the condos i've been monitoring have stopped going up, hopefully a 10% adjustment will be seen in the coming months.

This post has been edited by godutch: Jul 5 2011, 12:07 PM

OPR remained unchanged, but SRR inceased 1% to 4%.


i believe this is the correct answer

prody's first explanation (from the net) is something like an academic/formal answer to SRR, while cherroy gives an example to explain prody's explanation.

but prody's example is not correct. It is impossible that the banks can loan out money based on your formula.

This post has been edited by godutch: Jul 7 2011, 06:16 PM

i think will only hv a slight increase.

remember the last round when OPR increased 0.25%, SRR +1%, BLR increased 0.30%. increase in SRR increases cost of banks, so it all depends on how banks wanna recover the additional cost, maybe BLR-2.4% only for loan amt > RM500k ??? let's wait and see

it's like the example given by cherro ealier on.

SRR 4%, means banks must set aside (save with BNM) 4% of its eligible liabilities (see the link provided by prody for all definition of what makes up for banks' eligible liabilities), which a big portion consists of deposits from customers.

inflation inflation inflation!!! Why dont' charge to the Independent power producers ?!!!!!

http://www.btimes.com.my/articles/REfund/Article/


Levy on heavy power users from January
By Ooi Tee ChingPublished: 2011/07/13Share PDF
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The levy money will be used to reward green energy producers through the feed-in tariffs.




Kuala Lumpur: The government will impose a levy on heavy electricity users starting January 2012 and use the money to remunerate green energy producers under the Renewable Energy Act's feed-in tariffs (FiT).

"Green energy producers will be rewarded via the feed-in tariffs. The funding is derived from polluters-to-pay concept," said Energy, Green Technology and Water Ministry's deputy secretary general for energy sector Badaruddin Mahyudin.

He said the Sustainable Energy Development Authority will set up the Renewable Energy Fund in September 2011 to collect the levy and oversee the implementation of the FiT.

"Those who consume more than 300KW (kilowatts) per hour will be considered heavy energy users and they will be taxed. We estimate Tenaga Nasional Bhd (TNB) to collect RM300 million per year on behalf of the government to fund the green power producers.




"Please note, household customers consuming 200 units of electricity or less will not be affected by the renewable energy levy," he said.

"Our ministry has, so far, received a RM189 million loan from the Finance Ministry to kick-start the Renewable Energy Fund," he added.

Badaruddin was speaking to reporters after launching the pre-show guide of POWER-GEN Asia 2011 here yesterday. The regional conference and exhibition on power generation, transmission and distribution will be held at the Kuala Lumpur Convention Centre from September 27 to 29.

It was highlighted that manufacturers, which make up 40 per cent of TNB's clientele, are the likely target group to be slapped with the renewable energy levy.

Badaruddin said the government is aware that the largest contributor to the levy will be from the industrial sector. He gave an assurance that the 1per cent levy on the bills of heavy energy users will only minimally impact the industry's manufacturing cost.

Moreover, the industrial sector may want to offset the incremental electricity cost by being more energy-efficient at their factories or even generating green power, thus benefit from the FiT.

To date, TNB's small renewable energy programme is only applicable to those generating up to 10MW. Come September 2011, the FiT will raise the bar to 30MW.

Power is generated from sustainable sources that include hydro, solar, biomass and biogas.

The FiT essentially guarantees green power producers a premium selling price over that generated from depleting and finite sources like oil, gas and coal.

The FiT could, on a cumulative basis until 2020, facilitate avoidance of about 46 million tonnes of carbon dioxide emitted from conventional power generation. This is achieved if and when Malaysia generates at least 3,000MW of green power.

hi, i think it is how the power unit is called, kilowatt per hour (kWh), so it is 300kWh, that means households with monthly eletricity bill of above RM70-80 (can't remember for sure the price now after the hike) will be affected.

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Added on July 14, 2011, 4:45 pmthank you for sharing.

really not sure this whether another round of QE will scare investors to flee emerging market or not? coz really the impact of QE so far only to creat assets bubbles in the East.

any tycos here got info to share?

This post has been edited by godutch: Jul 14 2011, 04:45 PM

I tthought many are already experiencing the "tough time" with all the prices of daily neccessities going up crazily since last year

but yes, i agree that tough time is ahead of MY. that's why am at a difficult stage thinking whether to buy or not to buy my first condo for own stay purpose (currently living with family) .

no offence, but how reliable is your insider info, has BNM issue any kind of guidance to banks on loans to individuals? Coz i heard that when people argue that Malaysians' debt are still not too high compared to savings, the ratio actually takes into account monies in EPF and we can't use (a large portion). This worries me.

recently i feel that the property market has cooled down abit, not as crazy as months back, anyone got the same feeling ah?

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Added on July 22, 2011, 3:32 pmMaybe i am coming from the buying side (for own stay) and hope prices could be more reasonable, so i would think that the cutback of property loan to 60-70% will make speculators panic wanting to sell fast, coz not many buyers can afford to fork out 30-40% cash as downpayment.

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Added on July 22, 2011, 3:39 pm haha, can't help but to laugh and feel sad at the same time. You are so right, we should compare apple to apple. Malaysia's financial industry is >10years behind S'pore, maybe more relevant to compare S'pore property prices 10 years back ?

This post has been edited by godutch: Jul 22 2011, 03:39 PM

so, developers are throwing in freebies and giving discounts already?
bursa FS dropped below 1500 today

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Added on August 8, 2011, 12:49 pm1) as soon as the price is adjusted
2) 20% defintely grab, 15% also will grab
3) not at all

This post has been edited by godutch: Aug 8 2011, 12:50 PM

BNM proposal could hit property buyers, says RHB

YES, PLS DO IT FAST, IT'S LONG OVERDUED.

http://www.themalaysianinsider.com/malaysi...buyers-says-rhb

KUALA LUMPUR, Sept 5 — A change in the way mortgages are calculated might slash the amounts that the public can borrow for property purchases by as much as 37 per cent, said RHB Research Institute in a report today.

RHB said that the proposal to change the computation of property mortgages — to be based on net income rather than gross income — is currently on Bank Negara Malaysia’s table for consideration.

The change comes as the central bank attempts to reign in household debt that, as a percentage of gross domestic product, surged to a record high level in 2010 due to low interest rates and easy financing schemes.

As a percentage of GDP, Malaysia’s household debt increased from 66.7 per cent in 2004 to 76 per cent in 2009, which is uncomfortably close to the levels seen in the US prior to the 2008 financial crisis.

Household income is one of the key guidelines in credit evaluation for banks and mortgage instalments are now typically calculated at one-third of gross income.

A move to calculate mortgages based on net income could reduce the threshold for mortgage instalments and thus impact residential property prices.

RHB estimated that the proposed measure could lower affordability by 14-37 per cent and the impact would be most severe in the high-end segment.

“For example, assuming an individual’s gross monthly salary of RM5,000 and if mortgage is to be calculated on net pay basis, the house value that one can afford will be reduced to RM231,000 from RM300,000 (or RM277,000 from RM360,000), using the rule of thumb of 5x (or 6x) of gross salary per annum,” said RHB.

“If supply is to match with demand, it implies that prices will have to correct by a similar (or smaller) percentage for the supply to be absorbed, or developers will start to slow down their launches to limit the supply in the market.”

RHB added that apart from the calculation of household debt on net income basis, RPGT (real property gains tax) has also been speculated as one of the possible measures that the government may impose in the 2012 budget.

“We believe RPGT is a more meaningful measure to curb speculative purchases in the property market,” said RHB. “We expect, if it is to be imposed, the tax rate to revert to pre-April 1 2007 level or slightly lower.”

RPGT has been set at a five per cent flat rate for any properties disposed of within five years of purchase while prior to April 1 2007, it was 30 per cent for disposal within the first two years of purchase and progressively lower for disposal of properties in subsequent years.

RHB added that the recent sell down in equity markets is expected to increase economic fears and could also hit property buying sentiment.

It noted that in the 2008/2009 global economic slowdown, property sales stalled and fell 30-40 per cent year-on-year and prices dropped 10.6 per cent in Kuala Lumpur.

“As we only expect a slower economic growth, property sales and prices may experience some minor corrections of 5-10 per cent,” said RHB.

Putrajaya introduced a 70 per cent loan-to-value mortgage cap on third properties last year in response to complaints that property prices had spiralled out of control due to rampant speculation.

A housing affordability chart carried in the The Edge Financial Daily on August 15 showed that property prices had risen from 5.9 times income in 1989 to 10.9 times income in 2010.

The share of household loans to total bank loans in Malaysia, meanwhile, rose from 35.2 per cent in 2000 to 55.5 per cent in August 2010.

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Added on September 6, 2011, 6:51 pmI can tell you that most of the genuine buyers (especially those who are looking to buy for own stay these two years but failed by the ridiculous pricing) like myself will definitely BUY.


This post has been edited by godutch: Sep 6 2011, 06:51 PM

Of course 300K at 8-9% are better, Is is How much you Owe the bank that matters the most. when one declares bankrupt, banks will go after the amount owe, if one buys the property at a low price, chances for the reasonably price property to be auctioned at close to reserve price is higher than the overpriced property.

Furthermore, it you are buying for own stay, interest rates fluctuates, can always refinance.



This post has been edited by godutch: Sep 6 2011, 07:15 PM

i doubt any genuine buyers from s'pore will buy properties in Iskandar, talk to 100 s'poreans, 100 will tell you they scare to enter Johor due to the high crime rates. so, why happy knowing speculators are attacking our property sector trying to make quick bucks from our genuine fellow malaysians?

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Added on September 9, 2011, 10:00 pmthank you for sharing,

good to see more and more mid-to-high end properties going on auction

This post has been edited by godutch: Sep 9 2011, 10:00 PM

it is interesting to see those so called investors (speculators) to always tryng to lure others into buying property.

they always claim that prices of m'sian properties are well below prices of properties in other markets (like china, hk and s'pore) so m'sian property prices can only go up.

but when news on drop of property prices in china came out for example, they are so quick to jump and say M'sian property market is DIFFERENT from other markets. m'sian properties will continue to up up up up up up and forever up ...

interesting huh?

This post has been edited by godutch: Oct 29 2011, 05:00 PM

m'sians on AVERAGE have RELATIVEly higher saving rate, but what is more relevant is ARE the so called investors (speculators in disguise) have high saving rate??? they always leverage and borrow to the max ,no ?

as far as i know, rural people generally don't borrow, they build their houses using cash on their own land. and is i am not mistaken, the savng rate includes money that we have with EPF where the large part of it can only be withdrawn after we retire

This post has been edited by godutch: Oct 30 2011, 05:55 PM

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Added on October 31, 2011, 12:53 am

We don't know how many % of current property buyers are actually full or over-leveraged speculators.

But at least our banking giving loan time, is not as relax as subprime. This is the crucial part of preventing a big collapse of properties.
May be late few year is more relax than previous, but it is not the like subprime, can easily get a house loan if you wish to.

Even out of the speculators, some may come from rich background, which can reduce the impact of fire-sale.
Also, we have a lot of cash rich company around that I had seen they bought a lot of properties to hold, to rent/invest to generate income, instead cash money that sitting in banks that earn pathetic interest rate.

Properties bubbles and big collapse always associated too lenient practice of giving loan previously.

Properties correction, I would say big possibility, but collapse, I don't think so or high probability.
Remember we are facing inflation problem, not deflation, which is also part of factor that supporting properties price.

[/quote]


Dont just listen to all what bankers and the central banks are saying. Are you 100% sure there's no subprime in M'sia? all these subprime blaming news only came out AFTER the market collapsed. people are good at pointing fingers but never learn from experience, that's why technical analysis works, history repeats itself.

What i am saying is that kampung people's savings were also taken into consideration in the calculation of the AVERAGE Msian saving rate and i don't deny the fact that they are Rich speculators around us, but many are not as well. We just need a single digit default to have the prices fall.

This post has been edited by godutch: Oct 31 2011, 09:47 AM

Dont try to mislead.

My Question was: How many so called Investors (speculators) have High savings?

if you care to read my posts properly, u wud noticed i never denied Malaysians have relatively high saving rate

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Added on October 31, 2011, 6:02 pm just be patient to wait for those projects launched in 2009-2010 to be completed next year and 2013, we shall see how sustainable is it.

This post has been edited by godutch: Oct 31 2011, 06:02 PM

no need to jump so fast and so high.

i was just trying to tell genuine investors not to be misled by info such as our savings rate is relatively high. i never deny that could be rich speculators around, but we just need a small portion of the over stretched speculators to fail to see prices coming down.

i just hope genuine buyers to think first, ask around because once committed its usually a life-long commitment. It is our hard earned money with sweat and blood just to exagerate a bit . I personally know a few individuals who managed to borrow up to 12X of salaries waiting to flip their properties in 2012 and 2013. Now everything seems ok coz no need to pay interest during construction. Just imagine a RM1m loan at 4% interest rate means 40,000 interest a year, more than RM3000 a month, how many can afford? Rarely we hear projects launched over the past 2-years require interest payments during construction right?

This post has been edited by godutch: Oct 31 2011, 07:03 PM

i think these are speculators waiting to flip and just to find out that they are trapped.

maybe the malaysian speculators in LYN should share with these chinese speculators to "Live by the sword, Die by the sword"
Why turned amok when things dont go their way? isnt this just pay back time.?

btw, came across this announcement on Bandar Raya where rating agency said its financials weakened due to slower sales. Any one has idea how is sales of it Verdana at Dutamas?

http://www.ram.com.my/pressreleaseview.asp...7d-fcf7ebec64ed

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Added on November 2, 2011, 12:09 pmi heard from a local (beijing) that it's actually easy to own a property in Beijing so long as you are originally born in Beijing coz they get subsidies to own a prop (can get a prop at as low as 10% of the selling price, just need to wait for the allocation fm govt) that's why these group of Beijing people are not bothered at the soaring prices and they welcome it. Only foreigners and people from other states in China migrated to Beijing are affected. any one can verify this?

This post has been edited by godutch: Nov 2 2011, 12:09 PM

i am 100% with you. to those speculators that turned amok, i wud just say serve them right. when they are squeezing the sweat n bloods (the hard earned $) of genuine buyers, they never complain and always think they are smart and the others stupid. We hv more social problems when those who think they are so "smart" start to take advantage of those allegedly not so smart group.


Exactly the point, it is just impossible for someone who has interest in the prop to say negative things which is like a suicide. can u imagine what will happen if mah sing or sunrise come out and say : we are doomed ?

just stay put genuine buyers, and let the speculators to continue to buy and sapu... we shall see what will happen next 1-2 years. if i remember correctly, US prop prices peaked in 2006 and crisis kicked in only >2years later in Nov 08. Greece is in trouble, but the 10X bigger trouble (italy and spain) is looming, emerging countries start to feel the pinch of the slowing demand from the West.

This post has been edited by godutch: Nov 2 2011, 01:59 PM

i salute you and cant agree more

the so called "rich" are just using the "taking risk" as an excuse to cover their GREED.

when there's social unrest, big one, we shall see who has the most to lose.