Our ringgit is badly devalued now, Singadollar already at 2.6 if nothing been done late 90's will revisit,  if currency keep only falling many investors will cabut.

BLR is definitely expect to increase,  just matter of time.

BTW no need yi lou mai lou, jual minyak, we wasn't born yesterday, we know what happened in late 90's.

what will happen if BLR increase? bank will change the monthly payment amount? or extend the loan tenure?

your mthly payment will never change. this is new rule from BNM. but with higher OPR or daily interest. your principle reduction will be much lesser. hence your loan tenure will be extended to so many years to come...

for home loan, every ringgit outstanding is calculated in daily interest.

if u want to pay higher mthly installment. you need to go to your bank headoffice and apply.

your mthly payment will never change. this is new rule from BNM. but with higher OPR or daily interest. your principle reduction will be much lesser. hence your loan tenure will be extended to so many years to come...

for home loan, every ringgit outstanding is calculated in daily interest.

if u want to pay higher mthly installment. you need to go to your bank headoffice and apply.

your mthly payment will never change. this is new rule from BNM. but with higher OPR or daily interest. your principle reduction will be much lesser. hence your loan tenure will be extended to so many years to come...

Are this going for apply for the term max loan of 35 years? let's said what happen if some just get a loan approved at 35 years max and the next month BLR increased?

but this will make our loan neverending rite? If payment amt < interest charged so loan balance keep increasing.

Oh no......Are you sure even with interest rate increase by >3% ?

If like that, flippers will not be affected. So no more dead chicken even if interest rate increase 

your mthly payment will never change. this is new rule from BNM. but with higher OPR or daily interest. your principle reduction will be much lesser. hence your loan tenure will be extended to so many years to come...

for home loan, every ringgit outstanding is calculated in daily interest.

if u want to pay higher mthly installment. you need to go to your bank headoffice and apply.

Sure got this new rule?  When I took a loan last year with 18 years tenure (max because of my age), the bank manager warned me repeatedly that if interest rate goes up, my instalment will go up also. They will not extend my tenure because oledi max out.

Sgd 2.6. Hav u make a move??? In fact I did. Anytime is a gd time to buy currency. I started bout 10 yrs ago. So I'm pretty happy to hav sgd even at 3.5. Huat ar.

Btw, anytime is a gd time to buy prop too. I started 20yrs ago. Tats y I ll b happy if prop hav another round of boom. BLR increase??? Np la. More than half of the props r settled with rental >10% on cost price.  Best 1 slightly >20%. New 1 of cos not so high but it's taken care of by rental in the whole portfolio.

Bro, no need to b afraid of Econ up or down. Trust urself, do it ur way. U ll feel beta if u dun think too much. 

And tat doesn't mean u can do silly thingy la. 

Sure got this new rule?  When I took a loan last year with 18 years tenure (max because of my age), the bank manager warned me repeatedly that if interest rate goes up, my instalment will go up also. They will not extend my tenure because oledi max out.

we wishes BNM not to raise the BLR nor delaying it.

when times are desperate and there are shortage in cashflow. BLR increase is beneficial. in a way they banks increase their cash reserve for loans. it encourages saving when ppl knows bank are offering good FD at 7% - 10% per annum. in order for banks to repay their depositors with sustainable profits. they needed to charge higher lending rate on loans more than FD rates.

2014 is bad year most ppl will be tightening their belts due to many uncertainties. well drastic measures comes to drastic action. eventually BNM will increase the BLR due to preassure from many quarters.

so it boils down to how the ruling govt manage the nation financial affairs. with the ever increase in cost and the drastic need to supplement budget. this is danger for house owner, businesses and investors.

the thing is when the owner cannot paid up. they financial sectors involved have rights to forclose their properties/commercial premises and sub-sale with auction. ppl will get laid off from thier jobs. multinational companies will move away from our beloved malaysia. more bankcruptcy that comes along with NPL that inturn affect the banking sectors ans socio economics of the nation.

it is also an acid test for najib's administration. hence we should look forward what's next in 2014. the discussion should be base on current real time issue how it will eventually affect us all.

Sgd 2.6. Hav u make a move??? In fact I did. Anytime is a gd time to buy currency. I started bout 10 yrs ago. So I'm pretty happy to hav sgd even at 3.5. Huat ar.

Btw, anytime is a gd time to buy prop too. I started 20yrs ago. Tats y I ll b happy if prop hav another round of boom. BLR increase??? Np la. More than half of the props r settled with rental >10% on cost price.  Best 1 slightly >20%. New 1 of cos not so high but it's taken care of by rental in the whole portfolio.

Bro, no need to b afraid of Econ up or down. Trust urself, do it ur way. U ll feel beta if u dun think too much. 

And tat doesn't mean u can do silly thingy la. 

20 years ago is a good time to buy property. U made the right move and you are earning the rewards from it. But the issue here now is, is it the right time to buy now when it is in skyrocket high prices. Would you buy the same property that you own now at the price you planned to sell now (in a situation when you don't own the property and is just earming just enough to feed your family).

Are you sure we need not be afraid whether the economy goes up or down? Are you in business? If economy suffers, so will your business. If economy is bad, who would be able to afford to buy or even rent from you? Would you be rather keeping your unit empty while generating no income?

There a a lot if implications from the economy . A lot of people would suffer when it goes down. Think again.

what toh2020 said is true, case by case basis..

some bank will notify borrowers, while mostly dont..

i obtained 2 loans during 2009 when BLR was all time low.. since BLR has increased last few years, my repayment has not been revised, meaning more towards interets and less paying down the loan.. its not entirely bad news if you buy for rental income as cashflow and COCR remain positive and good..

but not good for those ownstay, meaning your repayment might be never ending.. borrowers have to keep track with BLR themselves and notify bank to revise the repayment..

For flippers, good news and not too good as well.. good news is that it will not affect your holding power if bank didnt revise your repayament, you still pay same amount everymonth... but your prospect buyer might have difficulty in getting loan due to higher BLR rate.. end up you might need to hold longer, and service more interest..

cheers..

Boss to answer some of ur Q, yes I ll stil buy props similar to my previous purchase 20 yrs ago. In fact I did for the factory next to my biz add and tat answered ur next Q. Econ down not necessarily put u on grd if u r well prepared. Biz slowdown is a norm as I have been thru 97, 02, 07. Biz itself went thru even 84. So gd or bad u need to overcome. And actually u learn to defend it after every crisis. If one is not ready for it, the onli word to tell is sorry.

I'm practising buying props every now n then. It might not b accurate to follow my pov of buying even during bad time but it does proved a bargain buy for 3 of my 97 purchase n 2 of my 07 purchase. Hard to get loan but higher down payment does help. In fact with lower down payment now u ll find it scary to service the installments cos the figures r much higher and if u look carefully the interest part is not encouraging. So advance payment is a must with discipline to make sure the tenure is shorten. Tats my 2 cents.