Malaysia got 3 models of delivery

1) the Normal Sell Then Build - Deveoper can sell after obtaining APDL without building anything. 99% of the time, it goes right but sometime things can go left like Bukit Tak Untung

2) The total Sell Then Build - ala See Hoy Chan @ Bandar Utama. Developer sell after CF is obtained, WHSIWYG

3) The Hybrid model by National House Buyers Association (HBA), called 10:90 Build Then Sell.

Developer can sell after APRL but buyer only pay 10% DP

60-days before estimated completion of construction, Developer will inform Buyer to get his Loan ready. Buyer takes Loan and pays 90% on completion.

A bit puzzled with the Goodview Heights project /enterance.

This is the project beside the Silk Highway from Kajang towards Sg Long right?

How many enterance / exit will they have. If I am coming from Kajang, taking SILK highway is quite convenient but what if I am coming from Sg Long, is there an alternative enterance / exit?

Bro, which part of Kajang Seminyeh highway.

I live in Kajang and I have not see this sign board.

I am familiar with Kajang Cheras Highway @ Grand Saga and also Sg Long.

Its just that I wonder how to get to this Goodview Heights other than SILK Highway from Kajang to Sg Long.

Perhaps need to wait for the other enterance to be opened

Thanks for the detailed Map to Goodview heights. Can visualize it better now.

Property prices are a function of demand and supply.

Where there is excess demand and with limited supply, prices will increase.

Places that are Chinese centric attract a lot of demand (and speculation) for their own reasons, hence the steeper capital appreciation.

But not everyone enjoys living in such JAM areas such as BPP, Kuchai Lama, etc.

The reverse will hold true, with limited demand and excess supply, prices will Fall. - Bukit Tak Untung and even some places in Puchong developed by Talam.

Officially and I note officially, BNM has said that MRTA is optional. However Banks can use it's discretion in giving better interest rates for customers who take MRTA as the risk to the Bank has been lowered.

Now unofficially, banks have actively promote MRTA, and some SA have even said that the Loan will only be approved if customers take MRTA.

But I doubt that anyone is stupid enough to put in writing. Definitely, the officer or manager could be fired for putting such thing in black & white.

MRTA useful for own stay or perhaps long term investment. Short to mid term, of less than 10 yrs, not necessary.

I dare say if anyone has in black and white, that they were asked to take MRTA, else the Housing Loan will be rejected, please PM me.

I will assist in ensuring that your complaint reaches the right person at Bank Negara.

Offer Letters are also standardised these days, to say.

If financing includes MRTA, customers must pay for any excess or loading imposed by the Insurance company.

So the key is why did the customer buy MRTA:

a) cos he kiasu / want to ensure his family is covered if he die

b) he was told he can get better interest rate by the SA

c) he was told Loan will only be approved if he take MRTA.

The key is to obtain proof of © above. If have, I am quite sure that BNM will take action.

Very difficult to post using a HP. was typing almost 5 para, browser shut down. So bear with me as post para by para.

I do have any Circular from BNM but I have heard from the officer at BMM that MRTA is strictly Optional.

As I said, banks are free to offer better rates when the risk is lowered and MRTA does reduce the risk to the Banks cos they do not have to auction the unit to recover balance of Loan if borrower died.

Banks are also allowed to reject loans where the risk is too high.

As example, if a Borrower is 60 years old and wants to apply for a 10 yr housing loan @ 90% margin of financing.

Even if the borrower income can sustain the Loan instalment, the risk is still very high.

Yes, the risk can be lowered if the borrower takes MRTA. But, is this the business model of the Bank, to get paid from MRTA proceed when the borrower dies.

A lower and better risk mitigation is for the borrower to take only 20% financing if the borrower is so rich and can afford higher downpayment.

Hence, banks cannot reject borrowers on basis of not taking MRTA as it is not the Banks business model to get paid from MRTA proceeds.

Banks must mitigate risk through other means.

If a Borrower income, credit profile and age is of the right risk, the Loan should be approved. Of course, the property value and location is also part of the risk assessment.

Ok, the end.

This post has been edited by cfa28: Sep 13 2014, 12:40 AM

I have also stated many times that banks are allowed to offer better rates when the risk is lower and MRTA does lower the risk to the Banks.