That's a very interesting statement (Bold sentence)... Let me ask u a question, how long is the usual housing loan take up by most people? 20 - 35 years? Maybe for the next year or so, the interest might stay low but how if it increases just by a 1- 2% n stays tat high for the remaining years.. I guess the damage for the next coming years will be much higher.. So suggesting buying property based on current interest rate might nt be such a gud idea... However for own stay it shouldn't b an issue if u buy within ur capacity now... if u stretch too much, even for own stay might end up in deep shit..

I like ur take on the matter... But wat I am more worried about is "Wat happen in 2008"... All this while I am attached to big MNC's, wic r making hell a lot of money, but back in 2008 everyone was having the same thought as you increase salary that we should be expecting as the years gone by but ended up, 2008 no bonus and no increment .. then the worse was in 2009, salary cut, and many job was slashed especially those earning close to 5 figures ... Many of them had to find job with low salary which basically means they went backwards n lost all the increments wic they worked their ass off for, couple of years worth of increment ... n things continued up to 2011.. Only 2012 we got back the increments but again nt great and 2013 is a gud year.. The lesson here, dun take everything for granted n assume things gone be fine..

Most of us when we take loans, we assume everything gone be fine n work as usual so we tend to over leverage and when things go the other way round, we might end up at the wrong end... I am nt married so im nt sure on the wifey thing but most of my friends, their spouse own separate property... so it really depends on the situation I guess...

This post has been edited by all blacks: Jul 28 2013, 03:31 PM

Im talking bout 2008 bro... Im from IT/Consulting background n would say most of the US based multinational companies suffered badly which indirectly hit UK companies too as business was quite bad since most of the revenue was flowing from US region.. Tats including semiconductor field as well as my frens were working in that industry.. I am assuming u r attached to a local bank? or even if an international bank I guess ur KPI would be based on ur regional or maybe only Malaysia performance? if tats the case u wouldn't have felt it.. Thanks to our weak RM, even though we were doing quite well here but the revenue was too small n even that went to 0 when local based MNC companies started to feel the impact..

This post has been edited by all blacks: Jul 28 2013, 09:49 PM

Why do u think thats nt the case in Malaysia? There was once nt long ago, just couple of months before GE a couple of banks offered loan at 90% margin up to 50-70%% of my gross income... If I accepted the loan, I would definitely end up eating roti daily.. Luckily the deal fell through though... BNM have to play hardball on this matter n should constantly monitor these so called "controls"..

I am afraid there will be more bankruptcy cases if the interest rate is increased, as I can observe that there has been irregularities in bank practices which allowed too many people to leverage on cheap credit and push it to the max.. The slightest increase could push them out of window n we need to bear in mind, it's easier to sell a car but nt a house..

House transaction takes a very long time, thus for someone to bail out within a short period of time is quite challenging.. Luckily not many lock-in type of loans anymore..

This post has been edited by all blacks: Jul 30 2013, 03:44 PM

Thats crazy..

This report doesn't sound so convincing, RPT-Fitch revises Malaysia's outlook to negative; affirms IDRs at 'A-'/'A' ...

What I meant was, some bank willing to offer up to 50% of my gross salary n some were up to 70% of my gross salary.. If I accepted the one with 70% of my gross salary I sure makan roti la.. If my gross salary is 5K, juz imagine paying up to 3.5K housing loan.. Remember I still havent include my car monthly installment.. Another RM600.. Do u think u can have a decent life? if u can then bravo..

Previously Std Charted indicated increase of interest rate around Nov... but if current situation continues, should be sometime soon...

Nope.. Bank of sotong didn't include my car loan when they came out with the 70%, if im nt mistaken + car loan it was around 75%... Well there is something called as "over leverage", u can go for a hse which is worth around 7xxK for full tenure of 35 years n previously 40 years... n ur installment will be around 3.1-3.3K monthly.. Thats the reason I mentioned "cheap credit", so easy to get loan for first hse? I did mention about some FD btw, but can that boost my chances of securing higher loan by tat margin?

But in my case monthly installment should be manageable since I will be living with my brother so he will chip in some money monthly, but when I am buying a property they are solely assessing my capabilities in paying back.. So in my opinion that percentage is ridiculous.. Im nt sure wat happen to the 30% margin (Total loan, car + hse)...

Again thats my point... "not too advisable for someone who is merely making rm5k" but doesn't stop me from taking up the loan right?

BNM should never allow such scenarios at all.. Btw so many juniors in my company purchased 5xx-6xxK condo recently n their salary is less than 4K.. Tat shows how flexible BNM has been..

Most of them took 90% loan somore.. but DIBS + discount assisted them too, since many of them spend less than 40K for dp..

This post has been edited by all blacks: Jul 31 2013, 02:46 PM

No wonder... Never knew FD plays such a big role.. I actually submitted only my base salary and that also can lepas dy, but per annum salary is higher due to bonuses..

Btw they did offer the reno loan which follows the BLR rate + x.x%.. but than I decided to drop the deal n yes, it was a double storey..

I juz found it nt worth it n too much of a risk.. The launching price, few years back was 50% of the current price n the owner actually wanted even more... Paying so much for a sub sale unit which also needs quite a bit of reno work wasn't a gud choice... Family advice me to pull off n I did...

But im nt sure if it would have been a smart move to take up a fixed rate loan through insurance company... Since they are offering lowest ever fixed interest rate n it's kind of immune to interest rate inflation..

4.8 nt tat bad rite? No CC and no loan with bank also is considered as an issue

I actually tried couple of the banks and the worse was the famous P.. B la.. the rest was all around the same amount.. For sotong bank few branches quoted the same amount initially (Mostly PJ n few in KL).. But in my case I produced a letter from the company which states per annum salary for this year which includes bonuses n so on... So nt an issue la since my EA form can back it up...

But again the 70% was from my base salary.. If they check per annum then its only around 50-60% which the officer didn't noe when I approached him.. The funny part is that, he mentioned to me that if u r degree holder + professional job the cap is higher which was 7x% percentage of ur gross salary.. I can't see how it actually helps..

Extra RM150 isn't tat bad since u can worry less but how much was ur loan bro? I was calculating for 650 - 800K loan n the additional amount was quite high.. My dad always push me to take fixed rate since it's safer... n since he took Government fixed loan previously.. But if u take loan from the insurance company, then need to pay loan agreement fee + MRTA.. Thats the downside, but with banks u can include it into ur housing loan..

Agree.. Both Anon and agentdiary has been posting some gud stuff... Facts, graph n proper analysis...

Rather than up/down team never ending debate..

Different risk appetites..