the effect of increased BLR i think like this to rentals, business you renting and etc..

after the announcement of Blr, there was a short conversation between bearbearwong( BBW), Manchester United (MU), showtime (SH), gogo2 (gogo) , Zuiko (ZK) at a cafe shop. below are merely illustrative purposes and do not reflect the actual conversation..

BBW: eh.. eh.. ello.. ello brother MU so free to visit me? how are you?
MU: I am fine, no lar i purposely come to the shop unit i rent to you to taste your Singapor Char Bee Hon, drool.gif and also the tenancy expiring maa, going to renew.. i brought along bro SH also.
BBW: Very good, so fast tenancy end meh? sad.gif
SH: Dun waste time, fast bring your singapore char bee hon leh
BBW: Okok, wati bring 2 plates of Sing Ka Po char bee hon for these 2 boss. Brother btw i got news leh very in one..
MU: what news oh BBW? you bought 1 units of luxury condominium in Orchard Road Singkapore after frying so many sING -KA-po cahr bee hon? rclxms.gif
SH: hahaha
BBW: Walao eh.. brothers, you joking meh, linpeh KL high rise also cannot buy how to buy Singapore oh? Teasing me.
MU: Okok lor.. what news you have?
BBW: Eh you know, that Bank Negara sipeh Jialat lehh.. they just increase the BLR from 6.6 % to 6.85% wor..
SH: haiya relax lahhh, 25 basic points only.. 100k increase around RM20 monthly... keluar masuk starbucks already RM20 maa.. why worry
MU: oi, apalah you, me loan this shop 1.5 million wor.. rent to BBW also reduced rental coz rental cannot cover loans maa.. how much like that?
SH: Errr.. RM20 monthly for 100k, so 1.5 million is around (15 X RM20). Around.. 300 lor
MU: wah 300 ah monthly... i got few properties sumore lehh, luckily BBW rent this unit from me
BBW: brother, so how my rental rates? increase RM300 monthly ah? Bank negara want to increase on September another 25 points wor.. like that BLR is 7.1%
MU: Brother you sure or not like that very jialat, suddenly RM600... then i have to increase RM600 lor..
BBW: wah... suckk blood mehhh... taukeh how many Singapore Char Bee hon i need fry oh
SH: Ya wor... RM600 dun pray pray.. Toyota vios 1 unit gone
MU: Aiyo, BBW why so hard.. my rental RM600 only maa.. i also service the bank one.. is justified one for the increase...
BBW: bro, business bo good leh?
MU: BBW you got learn taichi before or not? Let me teach you... I increase RM600, you increase your Char Bee hon another RM0.50 each plate lor.. easy maa, you can profit too.. customer ask you say rental increase, they ask why rental increase, you say bank negara increase BLR lor..
BBW: Thank you bro MU and SH... good idea.. like that many other tings will also increase lor.. all sure take opportunity one maa.. car interest leh? personal loans?
MU: That one you chap sang... hehehe
SH: yum yum

on another table bro ZK

ZK: Oi, bro Mu u lucky lor got ppl rent, my unit bo lang rent suddenly need to fork out RM600 extra sipeh jialat.. mad.gif
MU: Investment maa... thumbup.gif
Gogo: Hey bros... apalah you guys havent calculated GST yet...6% next year leh

ZK,MU,BBW, SH: Jialat lorrrrrrrrr...

in this exercise rentals shall increase to cushion the BLR increase, and thus price related to it will increase further..thus the buying powers of purchasers further deteriorate , with current condition subsales already so low, with this coming in and rental yields failed to cover loans and further making the range to cover loans bigger causing investors to fork out more money to service loans.. low end flippers might face problem if bank negara increase again after 2nd increase, after GST.. more bleeding.. as we can see.. units are not sellable..

mana pergi, nak pergi mana, BLR will increase again in Sept , now dunno will 3rd increase before GST or not..

sure at friendly price... hahaha

these banks is not profiting... use better f\phrase is called merger.. actually merger refers to companies of equal strength, money and influence... these banks merge or take over are weak and got financial problem one..

where got share holder like to merge one... once merge share dilution, meaning smaller power in board of shareholders.. dividen also lower..

haizzz... our moneis , fd , investments...haizzz

my opinion is residential mass units i.e condos, service apartment and landed prices are still below 1 million median price is around 400k to 600k, with this, the said interest rates even after September were merely on RM200 monthly taking 500k..

rm200 extra you can choose either swallowing it, getting lesser profit which is highly unlikely.. or increase the rental another RM200 to compensate the increase but run the risk of tenants going off.. even thou you break down to 3 tenants around RM70 per person assuming 3 room apartments/condos, the tenants will face increase in foods such as business renting are taking more rentals after owners need to service higher interest..

as such, tenants may just opt to other units which is cheaper, given the mass units of high rise which all are competitive with LRT, MRT, LRT extension, KTm, all investors will be renting the standard price anyway everywhere as long as there are these along..

so matter of choice and living cost.. car loans might be affected too, personal loans, constructions loans, renovation loans..

my 2 cents..or try increase 100 and swallow 100, that is reasonable.. but for older properties especially those below 400k BOUGHT pre 2010, this effect are not severe, worse they just swallow with lower profit, these older prop rental yields can cover loans, other than this rental yields if (rented) also cant cover loans and further burden by increase in interest...

couple with GST coming in, which surely cost increase across the board, tenants/buyers are cautious, waiting scene for purchase are sure to come all the way

Link please.. hehe.. now we wait september... 2 months count down..

btw blr increase 6.85% we still get minus 2.4% or more?

bankruptcy is the best idea if you hold too high a debt.. after 5 years following Bank negara instructions, you can discharge from bankrupt.. but loan ability and all credit related are gone case , no bank will ever borrow or even approached you if you are a bankrupt.

looks like US going to increase interest as well dunno how it impact Malaysia later

http://www.thestar.com.my/Business/Busines...rate-increases/

guys OCBC increasing as well:

http://www.thestar.com.my/Business/Busines...rate-increases/

This post has been edited by bearbearwong: Jul 14 2014, 11:58 AM

worry my friend? come one 0.5% at max increase .. look so many ppl invested, i show portions of project in klang valley:

Expected vacant :

Semenyih- 90%
Cheras- You city- 70% Vp
Cheras- Maxim Mall & Residence- 70% above
Cheras- You Vista- 70% above
Cheras- Altitude 236- 70% above
Cheras- Vyna- 70% above
Cheras- Nine 9 Residence- 70% above
Cheras- Green Residence- 70% above
OUG Parklane- 80% above
Cheras Imperial residence- 60% above

Currently vped and vacant

Cheras green terraine- 85% vacant (post 7 months vp)
Cheras Amaya - 60% vacant (post 8 months vp)
Cheras Seri Puteri Condo- 60% vacant (post 8 months vp)
Cheras Connought avenue-30% vacant (post more than 3 years vp)
OUG-Surtera Maya -90% vacant (just vp mb 2 months)
OUG -Tiara Mutiara 1- 70% vacant ( post vp 3 months more)
Kajang-Tiara Park Homes - 80% vacant (post 5 months vp)
Kajang-Pearl Avenue- 50% vacant
Cheras- C180- 70% vacant
Cheras Pertama Residency- 70% vacant ( post vp 1 year plus)
Cheras- Mahkota Residence- 70% vp (post 7 months Vp)
Cheras- Suria Residence- Both phase 95% vp (just vp)
Cheras - Sky Vista Residence - 95% ( 1 moths post Vp)
Segambut/Kiara - Seri Putramas III- 80% Vacant ( post 3 months vp)
Setapak 222 residency- 50% vacant
List of all the PV suites (Platinum victoria)
Sg Besi Midfields 1- 50% vacant
Pandan-Axis atrium60% vacant
Pandan-Nusa Mewah Condo 100% vacant
Seri Kembangan -One South phase 1 (70% vacant) post 1 year Vp
Mont Kiara- Villa Orkid 80% vacant ( post 1 year vp)


Unknown status but launching/completing

Cheras- Cloud tree
Seri Kembangan- Dream city
Seri Kembangan- Univ 180
Seri Kembangan- SK One residence both phaase
KLCC- Star residence
KLCC- the mirage
KLCC-the residence
Seri Kembangan- Diamond Residence
Balakong- One almerin mall & residence
Balakong- the silk residence
Balakong- silk sky
Cheras- The Emeralk residence
Cheras- Pertama Residence
Sg Besi- Mid fields 2
OUG-the petalz
Old klang road- saville
Kajang- Saville @ Kajang
Pandan- 28 boulevard
KLCC- Faber Antara Condomimium
Shah Alam- Ken Rimba
OUG- the yarl residence
OUG- Tiara Mutiara 2
Bangi-Uni park
Bangi- BSP SKYPARK
Bangi- Evo ,bangi
Kajang- Symphony reisdence
Bukit Jalil- Andes
Shah Alam-Cube@ one South
OUG-Riversville
Jalan Ipoh- Lvke ville residence
Putrajaya- Shatfbury residence
KLCC-Madge Mansion
KLCC-The Mews
Mont Kiara- Icon residence
Bukit Jalil-Aurora residence
KLCC-sT mARY RESIDENCE
OUG- Serengin residence
Damansara- the Arie residence
KLCC-Suria stonar
KLCC- Dex residence
Mont Kiara -TWY
Mont Kiara- Concerto (north kaira)
Melawati- Nadayu 62
Jalan Ampang- M city
Sungai Besi- The centrina
KL- Kl gateway premium residence
Maluri-Sunway velocity- v residnesi 2
Maluri- Sunway velocity- v residnesi 1
Sungai Besi- Anyaman Residence
Padan- cENTRIO sUIT
Bangsar- saville 2 Bangsar
Kenny hills- Arata residence
Ampang- Rimbun residence
KL- Tribeca suits
Mont Kiara- Residence 22

joking ah? it is a BBB year ahead man.. Siakap Sinohong Gelama Ikan Duri, Bercakap Bohong Lama-Lama Mencuri.. mana ade BBB berpadalah pada namanya

This post has been edited by bearbearwong: Jul 14 2014, 08:08 PM

karang i send Neymar pergi terus hatrick..

more depressing news on BLR increase:

http://www.thestar.com.my/Business/Busines...al-house-buyer/

An informal poll with property professionals, potential house buyers and a lender on the various issues in the property market today, including the BLR increase and lending based on gross/net selling prices and the effects on mortgage payments.

AND so the much-anticipated increase in the overnight policy rate (OPR) of 0.25% came. And with this increase, so will the base lending rate (BLR) on which mortgage rates are based, moving from the previous 6.6% to 6.85%. But this week’s increase in the BLR is not the only issue affecting the current property market.

There are other concerns, starting with the most recent. According to an informal poll with four property professionals, this increase of 0.25% is “marginal and will not impact mortgage payments significantly.”

Nevertheless, it is best not let our guard down because any increase, however small, impacts one way or another. The OPR resembles a set of tentacles that reach far into the nooks and corners of the economy – and our pockets. The OPR is the rate at which banks lend to each other.

Changes in the OPR invariably and inevitably are passed to consumers through a series of changes in the BLR of commercial banks and financial institutions, be it personal loans, mortgages and, hopefully, in the fixed deposit rates.

Henry Butcher Marketing Sdn Bhd chief operating officer Tang Chee Meng, on the current round of increase, says the Government will “not want to spook the market.”

Another round?

So the increase will be “gradual”, he says.

“Whether there will be another round later on depends on the economy,” Tang adds.

To really comprehend the significance of this round of increase on the property market, it is pertinent to consider the various anti-speculation measures imposed this year. These various measures work together to impact the market.

As it is, the various anti-speculation measures have already taken effect, as seen in the slower sales today.

Savills Rahim & Co managing director Robert Ang says: “Sales have been slow since this year. This increase in BLR will make property investors think twice. It will be translated into a higher investment cost.”

Ang says this marginal increase is “psychological”. There may be another round of increase before the end of the year, he adds.

Insignificant an increase of 0.25% may be, a total increase of 0.5% over the longer term will be significant.

Says a 40-year-old home buyer who is mulling a purchase: “I am not so bothered by this increase in BLR. I am more concerned about the goods and services tax (GST) which comes into effect next year. That will be far more painful for me, which is why I am thinking of buying now.”

Tax consultants are already holding interviews and talks on the effects of the GST on the economy. Although the residential segment of the property market is GST-exempt, there are concerns about its impact.

Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector president Siders Sittampalam advises caution.

Net and gross price

“It will have an impact on prices and value. The GST is imposed on construction materials. The whole value chain has to bear it. When the price of the final product is calculated, for example in a developer’s launch, the developer will factor in the GST that he has paid into the launching price. There is no way a developer will absorb the GST that he has paid. He will not take a hair cut.”

Siders says he expects developers to put launches on hold, which reduces supply. With the drop in supply and demand remaining the same, the price goes up.

Besides the BLR and the GST, another current issue besetting the housing market are the marketing strategies developers employ which invariably raises the price of housing over the longer term.

A property consultant who wants to remain anonymous says a package which comes with air-conditioners, electrical products like washing machines, refrigerators and “free” legal fees increases the overall house price.

“This happens in the primary market when a buyer buys from the developer. The selling price is a package comprising a discount, electrical products and legal fees. The buyer thinks the legal fees are being absorbed by the developer. In reality, all these products and fees have already been factored into the price of the house,” he says.

Based on two different examples, a condominium and a double-storey landed unit, the source says a closer examination of both reveals that the extras tend to push up prices (see chart).

“Buyers are happy when they are given a discount. But this discount is actually factored into the price of the house. In the sale and purchase agreement, the price of the house is stated as RM800,000, the gross price. He gets a loan based on this gross selling price. He will be paying less if the loan were to be based on the net selling price,” he says.

Consider scenario 1 for a double-storey house. The house is sold for RM800,000. If the free stuff and discount were to be removed, the net price is actually RM756,500, a difference of RM43,500.

The monthly mortgage payment under a BLR of 6.6%-2.4% is RM3,369. Under the new rates, it is RM3,762, a difference of RM393.

If one were to take a loan based on net selling price under the new rates, he will be paying RM206 less, that is RM3,556.

Under scenario 2, the net selling price of the house is RM797,100, a reduction of RM43,900 from its launching price of RM841,000. The monthly mortgage payment is a difference of RM207. Over a 35-year loan tenure, these differences in BLR and gross/net selling price calculations will be considerable.

The basis of selling a house based on gross price, instead of the net price, results in the next launch being priced higher. It has a snow-balling effect for subsequent launches.

yup, BLR affect those too?

i try my best on occupancy rates...

Project vacant/vped

PV20- 70% vacant (post 1 year vp i guess)

sorry..

PV= Platimum Victoria (in setapak area)
PV 20= 20th phase
each PV phase are around 800 units plus?

there are 20 phases of condominuums in setapak.. PV20 just vp 2 months and only has less than 30% occupancy..

http://www.propwall.my/setapak/platinum_lake_pv20

tiger i think you know these area right?

PV is very famous one all UTAR students (most agents source are from there one)

see ah..

PV1 to PV 20
PV nice one big sq minimum 1.3k sq onwards to 1.8k sq, 4 rooms sumore 2 bathroom
each PV= 800 units
20 PV = 800 units X 20 =1600 units

still lack 4 times behind OUG parklane, OUG record holder 4450 units by September hand keys...

This post has been edited by bearbearwong: Jul 15 2014, 10:48 PM

yaya.. got time go Setapak gai gai.. see all the PV's list.. there are other projects as well like MKH saville@ melawati..

no talk cock one OUG parklane.. Dr Pitchard is pro..

haha see lehh.. many Old Klang road developments lehh... some launching, some finishing.. those finish vacancy dunno oh.. OKR famous scott garden

This post has been edited by bearbearwong: Jul 15 2014, 10:51 PM

MKH cannot help too many projects high rise only few identical

Saville@ kajang
Saville@ cheras
Saville @ melawati
Saville at OKR
hillpark 3 @ sementih
kajang bolouvard@ kajang
pearl avenue@ kajang
etc
etc.

seri kembangan taikors:

SK One residence phase 1
Sk one residence phase 2
Diamond residence
Univ 360
Dream City
3 elements
springville residece
forgot di

see to much will head pain one, i lucky grandmother and gf sister stay those areas in equine park and seri kembangan only easy to recognise..

Like dis how?.. I got frw more projects to update oh.. just got.. more jialat

Pv more non working residents.. most UTAR TAR students.. and pak negros.. and etc..

if you know the figures tell.. so far no see any BBB mention anyting bout vacant units or projects.. really.never encounter mehh.. investors wor dunno meh which projects jialat which one not..

I non investors also know.. haizz

oh ya good.. then ur properties is either outskirt in KV or other states lor.. okoko

Wahhh...400k to 700k..75% appreciation.. good ah..of course can after 15 years of purchase 750k also can..

and provided got ppl buy ur unit...