Same la for the worst thing that will be happned for both is undergone to public auction if one failed to pay promptly.

Real estate somehow can expect for capital appreciation but car definitely depreciate in value.

Lets say the house with loan 15 years and the market value 500k. One failed to pay at year of 8. The market value if lucky with minimal appreciation of 5% pa. Roughly 150k up from 8 years ago. The auction price starts from 650k. If lucky again, many bid for it, call price will be above 650k as happened since 5 years ago.
If not lucky the bid price will maybe minus 10% from market value 650k.

All stated above is only assumption. Find your real case study.

15 years loan, paid back at year 8, the loan amount also starting reduced. Equity has been built up then.

since you can get other asking price of RM280k, why not you go for them instead of this unit 325k?

Ya, that's what I'm planning to do now...

Wow, the difference is so much

Your case is not new. Have been hearing it since late last year that the banks are giving lower valuation than market.

It shows the BNM is wary of the hot market and trying to reduce speculation. Cooling measure is good. Controlling the size of the bubble is better than letting it continue to inflate until bubble burst. But it will affect the genuine buyers' ability to buy property.

If the bank valuation difference is more than 50K, then u better forget it especially in Damansara Perdana where there is a glut. Areas like DP, MK, etc will be hardest hit if property market crashes or drops. Always be a smart investor.

You have too much worry, what a typical mindset of down camp, that's why we have so many down camp here, scared this and scared that, keep waiting until price went up, then complain price unrealistic and hope for price drop.

I agree with this cooling measure....but also make the rich become richer, bcos only cash rich ppl able to grab the good subsale

Only if extended housing loan is the only liability but people who stretched on housing loan is likely to have 9 years car loan. People who have 9 years car loan is likely to max up their credit cards.

People who have extended car loan e.g. 7+ years are more likely to be behind in installment even not in recession.

Bull market is the worst time to invest. As income didn't increase in tandem with property price, the current property price is unsustainable.

This post has been edited by icemanfx: Jun 17 2013, 11:55 PM

agreed 100%.
the rich will continue to buy all the new launch or subsales and wait for next round of boom.

i have seen china, singapore who adopt cooling measures but oni make the rich become rich.

Bro not all la. My fren who is previously the very high management c*o of a bank bot houses and cars with max loan tenure reason being the value of RM ll b peanut in future as he claimed. So try to explain his hypothesis??? A very high ranking person in banking industry saying tis n dun mind paying interest due to his pov of RM. is he not able to repay loan or oledi max the cc???

I blif there are many rich guys max the loan to keep liquidity in hand to invest in sthg which he is capable of generating beta return against the interest charged.

Car is 100% depreciable expense. So, car loan 100% sure lose money. Property is appreciable asset in long term. So, property loan most of the time make money given time

But there are people who drive luxury cars and live in small DSL. The cars are worth more than the house. No right or wrong, just different people different preference.

Haha, as said previously, one day, property price will come down. Normal cycle for every commodity. The question is WHEN will the property market come down ? I have asked, and you don't even dare to give a range of dates

Those who see property price coming down in the next 6-12 month can wait. Those who think still got 3-4 years to play can still buy and make enough money to sustain the price drop in 3-4 years

Did I said all?

Bubble always burst unexpectedly early else they won't be fire sale, bankruptcy, recession, and can't see how the current price could sustain for another 3 to 4 years.

This post has been edited by icemanfx: Jun 18 2013, 08:07 AM

No worries. Just discussion. No need to b too defensive. Soli if u r offended by some facts.

No problem bro

Are u sure?
Boss Tikaram, pls confirm?
14 bijis x RM 400K = RM 5,600,000-00 book value...

+2.5 mil in bank. Pls dun quote him too many time. Bolehland security is in red now. Hehe.

No right or wrong. This is personal preference.
He has his point and is called 'prudent concept'. This is a typical traditional china man style. He/She won't collapse in hard time but this limit his ability to earn more.