there is always ppl want to buy....house is a minimum human right needs. It was just...can you able to get a loan for it?

This post has been edited by Steven83: Jun 5 2013, 04:29 PM

When banks start calling back their facilities, the market will crash.

Not necessary. If price to high. I can still rent. If I feel that next year will have a property crash. You think it is still wise to buy even for own stay?

dont u think it is already bad enough now that banks only give LTV70% for 3rd house onwards? Still I dont see the aftermath effect just yet. If LTV70% is lifted, all hell will break lose on prop appreciation.

Don't have the data to check. You could check 1997-1998 against 1987-1988.

Nobody knows.

Banks should put more restrictions in place. My wishlist:
1 Higher RPGT
2 Lower LTV, maybe 4th house 50%, 5th house 30%, 6th house and above 10%.

1997-1998 is definitely higher than 1987-1988

boss, if you feel property crash happening next year, you may choose to wait.
but, please do consider the following:
1. would the crash provides sufficient savings to you against your current expenditures awaiting the crash (if you are presently renting)
2. would the crash provides sufficient savings to you against your potential 'income' from rent or potential capital appreciation from today until the day of the crash (if you are looking into investment)
but since you mention own stay, then option 1 applies lor.
more importantly, would you be able to secure the margin of finance you intended for in the event of property crash.
or in the event of property crash, what would be employment risk factor then?

of course, the ever crystal ball question of, if property crash does not happen next year, what next?
factor in your 'losses' of another year's rental into the property crash value before you make your move?

how high do you wish for rpgt?
anyway rpgt still means profit to the investor. unless he's selling at a loss.
and some tricky bastards do have creative accountants working for them.
if set too high, might damper growth.
perhaps more viable to lengthened the period? say 10% or 20% until 10 years?

lower LTV?
again, some creative investors can always opt to free up their liabilities through transferring 'profitable' assets into a company account, and they are able to reset their LTV quota.

for me eventhough the price is up every year, if it is up with a precentage lower than inflasion, then it should be considered as down.

First 5 years 50% will do. 10 or 20% is too low.

It's no problem to hamper growth. Growth because of extreme housing price increases is not real growth anyway.

I know some people will get around rules, but not everybody will. There will be some effect.

Yes, a boring 3% a year housing price increase is good.

based on cocr or through absolute amount of property?
if cocr, should be able to achieve easily.

if based on amount, not just property investment, a lot of investment also hard to beat inflation.
all savings even in FD would be considered down.

tough standards you set there but good for you.

btw, if someone buys at RM100k the first year.
upon VP is RM150k.
he rents out at say 5% of ori price = RM5k/annum.
adjusted to present price is only 3.33%.
so consider beat inflation or not?

think 3% p.a. increase not enough to cover bank loan interest which is around 4.2%

This post has been edited by ngaisteve1: Jun 5 2013, 05:06 PM

that might work.
i have no problem with this.
at least reduces flippers.

There's no problem with that for me.

Might? LOL

3% p.a. on property price is good enough for me.

yeah lah.
but so many creative people at work nowadays.

5 years? sap sap sui.
there's launches stretching to 48 months delivery now.
so only need to hold one additional year.

some also allow free maintenance for 2 years.

coupled with DIBS, renovation loan, blah blah blah.
the average joe can still leverage to the max.

may i suggest:
1. no dibs (goes together with no creative financing nor funny rebates)
2. 20% downpayment ... period (no financing, no rebates, no discount, etc). if insist on discount, pay 20% of absolute final price. no subsidy into mark up price