Blaader,

My neighbour house rented out to a family for 900, bare unit, she works in singapore, market price 550-600k. Does it make any sense to buy it if you are staying there?

This post has been edited by KLsooner: Jul 15 2013, 12:58 PM

See those that bought for own stay will be facing higher interest rates (i.e. higher monthly installments) and therefore under pressure to sell if they can't continue paying... Those who bought for investment will see their paper profits diminish as prices remain stagnant (due to lack of demand resulting from peaked out prices and restrictive credit policies) until a point where they are back to square one, break-even... so then the decision is do i exit at a small profit now, or take a gamble and ride out the period of 2, 3 years of continuous monthly payments... Mind you, all this is happening with the possibility that the market is selling like crazy... My view is, these guys are going to exit... Only ones that will hold on to their properties for dear life are those that need a roof over their heads... local demand is shrinking... with more attractive returns from an improving US, foreign investors are going to cash out... hmmm.... but really... is that a trap as well?



If you think those at RM400psf still okay then please go ahead... that's your decision, others may think RM500psf okay, some RM300psf okay... But I'm greedy, example instead of getting one unit for RM400psf I want 2, at RM200psf... hehe...



This post has been edited by Rooney1985: Jul 15 2013, 01:02 PM

Even the Malaysians can afford higher interest rates, with the currrent unhealthy property market that buyer needs "lobang" with developer in order to get VVIP status to attend the 'pre-pre-preview', do you think this is fair to all Malaysians?

That's why sometimes I don't agreed with people here asking other people to buy according to your affordability, when we look into a bigger picture, it's not fair as just putting a statement "buy according to affordability eg. RM220k at outskirt areas".


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ya .. ya, it is always not fair ... but you wan a house or not?

The example that I gave previousy of a 100k flat in the heart of the city is a good question for you Debbie. Now do you want to live there? That is the question.

Look it up Jalan Perkasa Taman Maluri. It is not in an outskirt area.

600 sq feet. Like pobably 30+ year old flat. The flats has been there for so long. Again do you want to own a flat in such condition?

Now, Would it be fair if anybody wants to devalue an apartment that is recently built in heart of KL for 400k at 700 sq ft?

This post has been edited by AmayaBumibuyer: Jul 15 2013, 01:12 PM

hey, you just get your husband worry abt this la. why worry when men are supposed to provide the roof?

problem is now days, most men can't afford to provide roof on their own without help.. so women has to worry as well

I like the term Blaader haha.

Anyway which area was that? landed property right? In some places like Malacca or smaller towns like Kapar and so on.. Yeah... rental is much adviseable man.. Take for example Kuantan. A new house in Air Puteh cost RM480k.. but if you rent a double storey 20x70 in that area.. It's just RM650.. For such cases renting is definitely better la.

Can't argue much about that.

Blaader, you haven't tell your place where 250k apartment can rent out for 1.5k. PM me la I wanna invest.

me too!

Me three, four and five... sounds like a very good deal...

That's the whole point! Or else how can there be so many couples using 2 names to buy a property?

If you rent = pay 1 000 per month
If you buy = pay 1 200 per month

People say buy better because the house is yours at the end, so ? not like you gonna sell it and enjoy all the cash, even if you do that you still need to buy a house to live

If you buy you stuck at the same place like forever despite the fact you stuck with debt with the bloody bank forever, if rent you can just move out if the housing area no longer suitable

Problem with rental is if the owner increase the monthly rental while housing loan with bank you pay same amount until you died



This post has been edited by Sifha238: Jul 15 2013, 03:04 PM

May I know the monthly commitment will not be change if they did raised the interest but the load payment period will be increase to cover the interest?

past 2 weeks or so, the BNM busy intervening the market to maintain the rate. Mind you, active intervening isn't without a cost.

current bond yield has near pre 2008 era and the mortgage rate back then was around 6 - 6.5%....

borrowers owe their gratitude to BNM....

Wei Kawan.. Already mentioned up there la. go check back my post. Anyway my condo here you can't find anymore @ 250k and 265k la. You are 18 months late. lol

Should be stated in your loan/ facility agreement. Bank's have the right to adjust your monthly repayment OR loan tenure OR both. Please bear in mind current tenure cap of 35 years.

So look like either way also will be a problems to the buyer and affect the market.

I think although those who applied for loans before July 2013 may obtain loan tenures > 35 years... if BLR increases, 110% its going to be pure increase in monthly payments for these loans (i.e. remaining tenure >= 35 years)



This post has been edited by Rooney1985: Jul 15 2013, 03:38 PM

FYI,

For every 1% increase on 100K loan balance, monthly payment increases by at least RM60 per month (exponential component of 2-3%). So if your loan balance is:

100K and BLR increase 2%, that's additional RM120 per month.
500K and BLR increase 2% (BLR 8.6%), that's additional RM600 per month.
500K and BLR increase 4% (BLR 10.4%), that's additional RM1200 per month.
1M and BLR increase 4%, that's additional RM2,400 per month.

People talk oh 1% I can take it la so small, but painting out the monthly payments gives a clearer picture... no?