bubble only affects investors la...
home buyers for own use while benefit if bubble really burst

anyway, if the bubble burst, your telor also will kecut... that time you will think of saving for the rainy days in case poop drop from sky...

so if you buy now you pay more if you buy after bubble burst, chances also you can't find one or your telor still kecut...

its a freaking loan, not asset.

lot of people still rich? how much is the median income in malaysia until you said a LOT still rich.

once the price reach a point high enough where MOST of the people can't afford their rent, BOOM.

let say b4 bubble burst, house worth 500k, loan granted by bank is 500k

after burst, house worth 300k

then owner default payment, bank auction the property for 300k.

the difference of loan given and auction price is, 500k - 300k = 200k.

bank ask owner to top up the 200k or more to recover their loss.

optional:

owner no money but got another property worth 200k , fully paid up.

bank force owner to sell the property and take the 200k.

owner left with no money and no house.

bank might include the clause in the agreement.

they will build their own rumah papan

it is the 500k loan la. you refuse to sign then no loan given lor. 

from http://www.hba.org.my/faq/on_housing_loans.htm

Q: What can the financial institution do if I do not make repayments?
A: If you fail to make three consecutive payments, the financial institution will take the necessary actions to recall the loan. In the worst case scenario, the financial institution will foreclose the property and sell it to settle the loan. The borrower would still be liable to pay the difference between the auction price and the loan amount outstanding. 

they force you to sell whatever you have la.

we are talking about people who're still on loan tied to their bank's house.

why so butthurt?

let say b4 bubble burst, house worth 500k, loan granted by bank is 500k

after burst, house worth 300k

then owner default payment, bank auction the property for 300k.

the difference of loan given and auction price is, 500k - 300k = 200k.

bank ask owner to top up the 200k or more to recover their loss.

optional:

owner no money but got another property worth 200k , fully paid up.

bank force owner to sell the property and take the 200k.

owner left with no money and no house.

I'm not talking about you, you no need butthurt

The person who will benefit are those with cash to spare, not the ones who pay through their nose. The only worrying thing now is the possible interest rate hike.

thats y the strategy is to keep as much cash as u can (of course invest it for better dividends) so dat when the time comes, u can use it to pay about 30-40% of the house price. This will reduce the total amount of interest u need to pay to bank..

it is nonsense only when you are butthurt

yaa... and gomen just wanna look good on FDI, allows forigners to buy property i mahresia... so their higher buying power will make us local chokes and gags to buy a proper house

did i say that? go read and think again. stop acting like a brain damaged here.

let say b4 bubble burst, house worth 500k, loan granted by bank is 500k

after burst, house worth 300k

then owner default payment, bank auction the property for 300k.

the difference of loan given and auction price is, 500k - 300k = 200k.

bank ask owner to top up the 200k or more to recover their loss.

optional:

owner no money but got another property worth 200k , fully paid up.

bank force owner to sell the property and take the 200k.

owner left with no money and no house.

I believe you said the bank will force the borrower to sell of his fully paid house 2 to pay for the loan outstanding for house 1 after auction.

Which ..kenji is right..the bank cant do so.

House 2 is not part of the colleteral of loan 1. Hence bank has no power over house 2.

Its an option for borrower whether to sell house 2 to cover loan for house 1. If he dont want to ..bank just declare him bankrupt and its up to the OA to sell the house to cover all liabilites of borrower.

There...settled.

Next...

Seriously.. i also damn worry the way he 'spread' that kind of inaccurate information.. where did he get it from? Goosebump cause the example given sounds like me.. wtf 

you read again properly what he wrote lar.

say, john already got a property worth RM200k, loan settled.
he go and buy a house worth RM500k, for example, some how he get 100% loan, get RM500k loan

then bubble burst, house value drop to RM300k
john default loan payment, bank auction house for RM300k, but john still owes bank RM200k.
bank demands RM200k + interests from john.
john not enough cash to pay the RM200k

bank sues john for bankruptcy

does the bankruptcy act allows bank to force john to sell off his existing RM200k house (loan already settled) or not?

in that case, john better transfer ownership of the RM200k house to his waifu or others.