Interest rate is confirmed to rise in July and followed by another rise in September this year.

So I hope everyone is ready for the ride up!!! 

http://www.themalaysianinsider.com/busines...debt-risk-grows

Collapse is difficult.. bit correction deoending on location could be as high of 30% from the asking price not the original purchased price..

all in still untung margin low.. for subsequent subsales purchase price stagnation confirm there for 5 years at least especially newly vp by 2012 onwards .

wow 1 million loans... me and my gf jointly qualify more than this but we felt this is going to be burdening.. why ? 100-150(per house) increase of course ok.. for loans only and for the remaining 6 months of 2014.. other increase such as goods, necessities,, each categories of necessities increase 100-150 monthly and coupled with GST.. easily hit 1k per person one..

you also notice hire purchase interest also naik di.. 2.7% or 3.1% per annum

when it is alone, of course not going to affect, but when all are bundle together and in numbers, you will see the effect..

right?

i opined increase in installments.. otherwise why bother increasing the interest?

unless market is made up of cash rich and strong holding power ... majority correction/drop is sure to hit...

What u mean cool market = time to let go?

If property market collapse and interest rate at 12% u think ddd dare buy?
This is not sarcastic statement but I really interested to know ddd dare to shop that time?

Let say 1 mil prop now drop to 700k , interest rate at 12-13% , will they commit?

u sure the 25 point increase and other will stagnantly maintain? up to you men.. if i were you, 150 per month increase not even worth my time commenting right?

before you draw the conclusion "This 0.25% rise has negligible effect on property market",
have you consider 0.25% of 3% equal to hike 8.3% of interest?

  Malaysia 2013 GDP ~US$312.44 Billion. ~86 GDP house household debt ~US$268.70 Billion.
do you still believe 8% interest hike no impact?

lets hope so.. if not 4 folds from what i calculated:

http://www.thesundaily.my/news/988884

An analyst with a stock broking house told SunBiz that generally, if the OPR is increased, banks will pass on the cost in the form of a higher base lending rate (BLR) to consumers.

"In the past, banks have also passed on the basis points (increase) or in a similar quantum. If it's a hike of 25bps, banks will raise about 20bps to 30bps," said the analyst.

For example, if there is a 25bps increase in OPR, and assuming that banks follow suit and change their BLR by a similar quantum, consumers will see the BLR increase by 25bps (0.25%) from 6.6% to 6.85%. If there is a 50bps hike, one can generally expect that BLR will increase from 6.6% to 7.1%.

According to financial comparison portal iMoney.my, a mere 0.5% increase in BLR will result in a 14% increase in total interest paid over the loan tenure if one currently has a floating rate home loan. This is based on the example of a RM500,000 home loan of 30 years. (see table)


The BLR is at 6.6% currently but the prevailing interest rate charged by most banks is 4.2% to 4.9%. In view of this, BNM is proposing a new reference rate framework, which will be determined by the respective bank's funding costs that reflect its specific funding structure and strategy and the statutory reserve requirement.

we confirm going to hit 5% for some borrowers.. that means 100k, per year, 5%=5k, monthly=416.667

500k X 5% X 30 years= 750k

aiya tipu one... DSR was introduce last year arpund september.. so many pl buy di without DSR... less than 1 year after DSR bank negara cannot tahan di increase OPR..

you know why with DSR, these smart flippers go take renovation loan, personal loans, and other lap sap, mark up lahh price cheat banks, finance legal fees and etc so effect like no DSR, end up worse coz personals loans & constructions loans are higher in interest.. but bank side laugh till cannot see teeth.. i did so many of this...

adui normal rates i have now... after second OPR increase in September and after GST, i confirm bankruptcy increase 200%..

btw, you know as bankers, RHB, CIMB,MBSB, and OSK mergin.. meaning CIMG sapuing all of them... CIMB (NPL loan the most), MBSB (kwsp simply give loans before DSR), RHB memang going to die soon, see bank also cannot tahan di..

tell me is merging a good ting or what? i can only see share holder diluting their shares when merged... shareholder voice will smaller coz shares smaller.. sooner later majoprity share holder CIMB sure tapao all minority shareholder..

of course we can see that.. that is 6% coming, Government is BSing that it will benefit public, like some jokers in RWI, aduii champion GST is good... that 6% come in, every corner of expenses also naik.. couple with OPR, BLR, rentals confirmed kena hit .. rental hit, shop increase price... and transfer burden to public...

super inflation coming... btw i remember you mention to check after Q2 or 3, how is/will the market goes? poised to increased sumore kah? 2015 interesting oh.. developers have to built and sell..

brother you already know, at the end the housing products are meant for locals, foreigners money i.e hot money were just fast investment, better harp on local demands rather than foreigners.. not only our country is the place for investment, we already badly hit sumore GST mari.. other countries still many choice... please BBB more.. now is the time buy before GST, sure HUAT....

ceh insurance companies also merged alot and been take over what, i lazy to list, why merge or take over.. oh ya insurance paid out a lot on claims like medical cards, general insurance (motor insurance), very high salary coz executive sapu insurance money and etc..

3 rotten apples... i can confirm if they wanted to take over easy, they sure can make it through if they want... question is after merger who is major shareholder, i say CIMB cum PM siblings lor.. blind also can see... and the effect having lesser banks... with BR on 2015 depending on banks performance, lesser banks lesser competition, thus no more good offers..

btw CEO is not the same as shareholder right? CEO someone runs the company, shareholders are the taukeh behind... because it is public listed companies, you cannot become CEO & shareholder at the same time, public monies is involved, safeguard is separate both positions..

khazanah? i read papers first.. confirm

Hot money coming in?

You always bet wrongly one leah.

Really want to revise meh? Few pages back, some people said 0.25% not much. Revise for what? 

Before this,  i already eat roti kosong.

now i need to order half roti kosong lio.

no idea of i household DSR.. i only heard DSR before

but hosehold debt= 86.8% , means once salary nett out say 3k, 86.8% of the said salary already used to pay commitments such as car loans, credit cards, personal loans, construction loans, housing loans and etc. and out of the 86.8% the largest portion goes to housing loans(aka flipped properties for home owners, and invested properties for flippers or investors), in this case the housing loans itself could 70%. how to survive with remaining

100%-86.8%= 13.2% for the whole month? food? petrol other miscellaneous? car repairs? GST? increased BLR of merely RM200 monthly for 500k loan? hehe

surely not enought for the month, how? then delay and non prompt payment, use credit cards cover last months debt, dun pay all commitments till very last minute, service housing loans first...