I believe BNM should impose different level for different income.

Below 3k - 50%
Below 5k - 60%
Below 10k - 70%
More than 10k - 75%

Any opinion on this?

Let's say u earn 20k nett income, 25% disposable income (after imposing 80%) is still a cool 5k leftover for every month.

May b shud take into account living area also. 2k permonth in kl may hard to survive but it's more than ok in some state or rural area.

It was never ever 30%. Lots of people get confuse with the 'rule of thumb - 30% of your gross income'. It's just a guideline that your housing loan shouldn't exceed 30%, considering that one will also have other debts such as credit card, hire purchase loan and personal loan.

Ya I used to confused w dat too. But ur explanation make it very clear now so

The rule of thumb 30% is for HOUSING loan alone
70% is referring to TOTAL debt include housing loan, car loan so on.

Correct?

I believe now is 60% of NET income is the rule they will follow from now on and this is include all your whatever loans... Big hit to property but I think this limit our fellow Malaysian only...

Better keep your property and don't sell, after you sell it, very hard to buy back... My 2C... Hehehe...

Yes, that is correct. 30% is the rule of thumb for housing loan itself.
70% is the normal limit of total debt including housing loan, car loan and so on.

But again, it depends on case to case, and there are cases where people can drive it to even 100%!!! It totally depends on what you have.
For example, if one is planning to buy at RM1mil house and wants to take a RM900k loan. By taking this loan, his monthly commitment will be 100% of his gross income. If he can produce supporting documents that he has a RM2mil fixed deposit locked in for 5 years with the lending bank, the loan will be approved.

Keep the properties and don't sell ? Then agents will be out of job !

Too bad already... I am keeping mine for rental. Don't think can get loan easily now.. hehe..

Good also ma.. is time to eliminate those unethical agents.. Good, ethical and responsible agent will survive.

How does a slowing market affects unethical agents? It is most likely responsible agents will be flushed out.

/
U means the agents in our market now is all con man??? Haha

I think bank negara should consider about DIBS and also BLS
control this two can prevent bubble burst property.

if b4 this banks simply give out loan without the 60% check - We will have a big problem.

hmm I think this shouldn't affect anything or changes everything.

it's standard practice that 60% of clean income is made to be your commitment for your property.

the only thing that affect is 35 years maximum

(I have 2 housing loans 40 years)

DIBS isn't the main that is causing the rise in property take up and thus, the prices. People are buying more than they need, a few properties. While some might argue that they are merely investing for the future, it also means that they are buying additional property which is more of a desire than need.

Thus, I think the government should impose a cap for the margin of financing for the 2nd property onwards, instead of the current 70% for the third property onwards. I am one of those investors who have 2 properties under loans, and have taken advantage of this, with plans to get a 3rd by year end. Maybe a margin of finance structure of:

a) 90% for 1st property
b) 80% for 2nd property
c) 70% for 3rd property
d) 60% for 4th property
ed) 50% for the 5th property onwards

DIBS is necessary especially for consumers buying their 1st home and can't afford the down payment. I think it's important we assume and allocate that each person should be entitled to purchase one property comfortably but anything more than that, should be quite a burden, since the aim is to afterall make profit. The way profit is made in real estate is quite cruel, as it jacks up the price of properties out of the reach of those who need it as their 1st home.

Another direct way to prevent flippers is to jack up the RPGT. I think it should be equivalent to the max cap of 26% for transactions within 5 years from S&P, just like the ceiling rate for personal income tax. While 5 years might be really long, as compared to the current 2 years, bear in mind, for the construction of a high rise residential, 3 years is the norm. Thus, the 2 years will have no effect as people only tend to sell once the property is completed. That's where the bulk of the appreciation kicks in, once the risk of project incompletion has been removed.

Just my 2 cents.

*By the way, I'm happy if government doesn't implement the above. So I can continue abusing the current system.... :-)

Hi there, I don't think its about abusing. DIBS is about property developer selling their property at Future Price (Property Value + Total Interest)

People used to call it (Indian feeds the Angmo), so that doesn't make any difference but eventually these property are sometimes overpriced.

No doubt DIBS helped people who couldn't fork out High upfront payment, but they're actually paying for the Future Price.

+1

I like this idea. It should also restrict DIBS to first time buyer only so it can still somehow reduce (even not able to prevent) speculative market.

i think the culprit is low interest rate.

Coupled with relatively loose lending.
People say banks take into account the borrowers income but bank operations also have quotas to meet at the same time. It's a vicious cycle of self interest.

Get yourself into one... then you will know how to live ...