Ok.. on a serious note la..

i am seeing 5.5 to 6.5%

2016

If u are seeing 5%.. tat means a lot of loan will be seeing effective rate of like 5.5% already, for mortgage as an example.. p loan and others will be even crazier

huhu

This post has been edited by Bonescythe: Jun 8 2015, 11:28 PM

if 5.5 to 6.5%, better put in FD than buying dividend stock

Yea.. but it is a 2 way game..
when the dividend is not attractive.. the price is low lo.. u can capitalize on low price and wait for future capital gains opportunity.

if looking for current income.. of cuz money market fund like FD looks good at 5% to 6%

Property market will collapse for sure..

This post has been edited by BoomChaCha: Jun 8 2015, 11:54 PM

well if u say 6.5% FD, then the loan % rate would even be higher

U see.. the reason for the high rate is because of the basel III requirement.. BNM wants bank to have 100% LCR rate gradually..
starting 2015 = 60%
2016 = 70
2017 =80
2018 = 90
2019 = 100

Yea.. a lot of bank is reporting on a healthy buffer, some are above 100%.. but that had not been factor in on the loan that had been lock in however yet to be disburse out.. for example, undercon property.

with more completion, more loan disbursed out in gradual stage.. so the 100% now that the bank is sitting might not be enough in the coming days.. hence, the race towards steady fund from the retailer (FD) is intensifying upwards..

So the requirement is a push factor.. couple off with the lower extra income nature (due to higher cost of living from gst n etc).. that makes $$$ even tighter..

well.. above just my opinion..

Good. Then I can buy house. House is damn freaking expensive. Rm500k+ for double storey house in klang valley. Last time was just RM300k+. Still can afford.

There is no reason for BNM to raise OPR rate to 6% from currently 3.5%, unless

1) we have red hot economy that we need higher rate to put a "break" on the economy

2) Have serious outflow problem and currency depreciation that need higher rate to attract fund, just like what happened during 97.

3) Inflation running wild, need higher rate to cool down.


For 1) the chance is remote, we are talking potential slowing down how much, instead of red hot economy.

For 2) Current account still in surplus, trade figure is still at surplus, RM depreciation against USD, SGD is in tandem of other currencies, not RM weakness alone. Foreign currency reserves still at comfort zone.

For 3) Inflation is rather at average level, with oil price lower, commodities price hovering at low level, slowing down in property market, interest rate hike is not needed, as interest rate hike only can cool down demand pull factor inflation, while currently many goods price rising has a lot to do cost push factor.

Instead we may see lowering OPR is the economy slow down too significantly.

So at the moment, locking down higher FD rate at longer term seems more a wiser choice. (if there is no major event or change issue)

Good scenario.

i am seeing malaysia heading for scenario no.2

Most of the banks will give us the interest up to date of withdrawal (without penalty for early withdrawal) if same is used for purchase of UT
I experienced before HSBC RM offered to pay for loss of interest from early withdrawal of FD from another bank in exchange for purchase of UT

I got el-cheapo recycled bag with a plastic food container and pen holder.

Good opportunity to 'pick on some dead chickens' should this happen

You are right, people who deposit with MBSB should be concerned. Recently it was reported that their last quarter profit took a dive compared to previous quarters.

And it is no surprise why the above is so.... BNM have taken steps make it more stringent for people to get Personal Loans. People who has money in BR should be equally concerned.

Those of you who are now aware how bad MBSB was in 2008 -2009 should go find out. They only managed to turn around because there were allowed to milk dry civil servants with Personal Loans. If we face another Recession, I'll be worried if I have money in MBSB.

Talking about Economy Collapse, go google "Shemitah Years". And if we do face another Recession, Cash Is King!

Thanks BB and CC............BoomCC and BBgoat.....I will drop this opttion...

But if it reached the level of Japanese Banana money of WW2 or Argentina peso, cash is no king then.

Interesting idea ! Looking back, time flies. If I have placed some of my FD at 5 years and getting a higher FD rate, I would have got more interest out of there. Note I said SOME, not all FD's.

I also did not get any. What gift, umbrella ?

If ever this happens, BUY ........................

Few months back I lock down some 3 years FD in AmBank at 4.5%. Now looking at 5 years. But may have to look hard, looks like 2 choice which are not favorites here ............................

This post has been edited by bbgoat: Jun 9 2015, 08:20 AM

Mind to share which Affin Bank branch?

Which part of KV?

Just realized that u guys have flurry of discussion on interest/OPR last nite !

OPR going up is good for me ! But I am also looking at possibility of it going down by putting some FD at 3 years and looking at 5 years.

Wow, before going to rev 9, you came out with BB & CC !!

This post has been edited by bbgoat: Jun 9 2015, 08:48 AM

In Penang, landed property especially new ones are going for >1 million already ! I though KV also similar ?

This post has been edited by bbgoat: Jun 9 2015, 08:45 AM

Good Morning Ah Sir...
I said the same thing too before I placed my 5 years FD few years ago..
But Captain said watch out BR & MBSB wor...


I asked for it, but the staff said no..


If this happens, cash is king

Ya loh, I missed this AmBank at 4.5% because I did not have any extra money at that time...
Quite Sad lah..