There have been a number of cases that; seller showed tenancy agreement with long term tenancy period and high rental to justify for higher than market price for the property. After the property is transacted, the tenancy agreement is terminated after a few months.

"There's a sucker born every minute"

If loc is gd, it doesnt matter the current twnant goes away. Tats y loc is very important in prop.

Same reasons why genneva gold buyers didn't see the train that hit them.

Bro, you compare the economic numbers listed by tikaram with a fraud case like Genneva kah ? Give some face to tikaram lah

Don't you agree genneva gold buyers were blinded by greed?

Half knowledge is worse than ignorance.
-- Thomas B. Macaulay


This post has been edited by icemanfx: Jun 30 2013, 09:41 AM

Yes, tenant can be found eventually but at what price? Before new tenant is found, the buyer is out of pocket.

🎥🎥📺📺🔍🔍🔍💡💡

What is the impact of DIBS removal on property market ?

See below, Reported in the Star on 29 Jun 2013 below:



By LEONG HUNG YEE hungyee@thestar.com.my

THE potential move to impose curbs on the Developer Interest-Bearing Scheme (DIBS) by Bank Negara may be negative for some developers in the short term and has little effect on banks.

StarBiz had reported that Bank Negara was studying the risks arising from the DIBS, with a view of potentially imposing curbs on it.

Basically, if you purchase property from a developer who offers DIBS financing packages, then the developer would bear the interest for the loan during the construction period.

In other words, you don't have to pay anything to the bank until construction is complete. You only start paying the bank instalments after the property is fully constructed.

DIBS has become a popular and easy financing package offered in joint-promotional activities between banks and developers in recent years.

CIMB Investment Bank Bhd research head Terence Wong said if the move by the central bank were true, then it would be "negative" for developers in the short term, although not entirely unexpected, as speculation on such a move had already surfaced in May.

"Although such a policy would have a negative impact on speculative demand, we believe the impact on earnings would be muted, while creating a healthier property market led more by fundamentals," he said, adding that he had heard whispers over the past few weeks on the possibility.

"We remain overweight' on the property sector, with Mah Sing Group Bhd as our top pick, and robust sales and earnings growth as sector catalysts. Any weakness in property stocks is an opportunity to accumulate, in our view," Wong added. Industry players are still awaiting a formal announcement from the central bank, if any.

Mah Sing's group managing director and chief executive Tan Sri Leong Hoy Kum pointed out that there has been no announcement on interest-bearing schemes thus far.

However, he hopes that any implementation would take into consideration the industry's feedback and the current market condition.

In addition, Leong said the lending environment was generally still conducive, with financing liquidity still attractive and interest rates still low.

While Mah Sing offers DIBS packages for some of its projects, it does not offer the scheme for its industrial, commercial and landed residential projects.

Hong Leong Investment Bank Research, meanwhile, believes that developers with a high concentration of high-end, high-rise developments such as Eastern & Oriental Bhd would be the most severely affected.

However, it reckoned that other major developers within its coverage would not be as badly affected, given their exposure to this policy shift would comprise less than 50% of their sales.

Kenanga Research analysts said there was market talk that Bank Negara might want to do without the easy financing packages as part of the property lending curb.

However, they say quick checks with developers under their coverage indicated that the developers were not extending this scheme to many projects at the moment, as banks were also discouraging developers from undertaking the scheme because of speculative activities.

"Notably, Hua Yang Bhd's and Crescendo Corp Bhd's projects do not use this scheme, so they would be least affected in terms of demand. So, in terms of fundamentals, it should not hurt demand too much, particularly for the bigger developers.

"It would affect stock sentiment in the short run, so do expect further sell-downs if the curb on DIBS materialises not even the high dividend-yielding ones would be spared," they opined.

In the medium term, Kenanga Research does not expect prolonged sell-downs, as the Government was already talking about implementing the build-then-sell model, which would restrict future supply and lend strength to demand and larger players such as SP Setia Bhd, Mah Sing, IJM Land Bhd and UEM Sunrise Bhd.

"Currently, our sector is under review. Our existing call is overweight' and we are likely to maintain this, but with a more selective or buy-on-weakness stance. We are likely to continue promoting affordable developers like Hua Yang and Crescendo due to their resilient demand-based profile. We also like Johor-based developers like UEM Sunrise, as we believe there would be more positive news flows towards the year-end, for example, the Malaysia-Singapore Rapid Transit System, the listing of Iskandar Waterfront Holdings Sdn Bhd and more strategic tie-ups," they added.

Concurrently, Maybank Investment Bank Research said assuming DIBS packages were banned, it estimates the worst-case scenario to be a marginal 0.7 percentage point to be shaved off its 2014 industry loans growth forecast of 10.5% to 9.8%.

"We believe domestic banks have been more tempered in their exposure to the mortgage segment, and channel checks point to limited exposure at this stage. We maintain our industry loan and earnings forecasts for the individual banks for now.

"We remain overweight' on the banking sector, with our buys' being AMMB Holdings Bhd, RHB Capital Bhd, BIMB Holdings Bhd and Hong Leong Financial Group Bhd," Maybank said.

It explained that general guidance was that such loans had made up 15%-20% of new mortgage loans over the past few years.

Thus, some dampening effect was to be expected.

"Nevertheless, we believe the impact is likely to be contained by the fact that the housing loan growth of the Big Six' banks has been measured and such loans account for less than 5% of total residential loans for the big banks."

U r not ready to b in rental play. Or r u a full time flipper??? Onli flipping??? If cant take risk in prop rental play, the best short cut is dun do anythg. Dun buy, no eye see no worries. Tat ll b very ideal.

This post has been edited by ManutdGiggs: Jun 30 2013, 10:49 AM

Don't do anything only no worries for short term..... After a few yrs, when they see the prop price getting higher, inflation keep going up and etc..... They'll be even more worried.....
That's wat we seeing some, if not, a lot ppl already worrying now.... All because they not doing anything few yrs ago......

This post has been edited by AppreciativeMan: Jun 30 2013, 11:45 AM

Developers could repackaged DIBS to meet BNM guideline, old wine in new bottle.

DIBS encouraged marginal buyers become flippers on multiple properties is not dissimilar to sub-prime lending in the U.S. prior to 2007.


This post has been edited by icemanfx: Jun 30 2013, 11:59 AM

I suppose tis strategy ll suit him well. After price increase like hell, keep whining blaming cursing and take 0% risk in prop market especially rental play due to tenants might move away. So end up the cycle ll repeat again just like prop price ll drop or b adjusted 1 day which ll 1 day oso prove them rite. So keep himself away and tok more of gst with full of confident but limited knowledge might provide satisfaction to him. Dun do anythg in props. Its for ppl fr mars.

I thought a better strategy he shld migrate?..... To US, Spain, Brazil...... Since opportunity is there as claimed.....

As long one has a roof over his head, property market in Malaysia is not the only place available for investment.

You don't need to migrate to the U.S, Spain or U.K to invest in property there. What you need is a good and trust worthy renting agent.

If one bought property for over Euro160k in Spain, is entitled to Spain PR.

This post has been edited by icemanfx: Jun 30 2013, 12:09 PM

Yes, agree with you genneva people were blinded by greed. Those blinded by "guaranteed return of 24%-36% pa" and "the scheme is actually sustainable". But in property investment, there are no such claims. It is a free market which you could make profit, or loss. Risk of investment is totally understood as there is no guarantee return like Genneva. Willing buyer willing seller basis.

Your previous comment sounds like you are saying what tikaram said is a pyramid scam scheme What tikaram said is facts, while Genneva is scam. So I ask you to give face to tikaram

Friend, sub-prime lending, as already suggested by its literal meaning, is lending to borrower who is "sub-prime". Meaning their credit rating is not good.

In Malaysia, it is very strict in lending lah. There are so many rejected application since last year. If you can't afford to pay installment, even with DIBS + zero down, bank won't lend you money. Eg If you earn RM10k per month, and you already got loan installment of RM5k, bank won't lend you.

That pretty much sums up many people who missed the boat. Some pragmatic ones like tikaram and tat3179 has already board the boat. Others still can't accept the fact and keep waiting for the cheap boat, but don't know when the boat will come

It doesnt matter cheap boat or expensive boat, if u looking for a boat that wont sink or guaranteed safe....impossible la...

Great analogy. Apparently they choose to walk. It is the safest. But you will never reach the other side of the ocean.

And in the forum they tell people riding a boat is risky ! Who didn't know there is always risk in investment ?

In chinese, 便個吾知佢老母係女人