Thinking seriously to buy another property now.

Mainly for own stay and current property for stay to rent out.

Any sifu got advice?

Good time to buy?

compression.

they apply from different banks for each application. 5 different houses, 5 different mortgage applications, from 5 different banks

The banks think these applications were all for 1 single house

erm wasn't passing around/up the CDO one of the issues that led to the sub-prime crisis in the states? They kept selling and selling them to the point it burst in their face.

What is "parcel out" in this context means?

Cdo is not practiced in this country.

Given rising number and amount of npl in residential property, eventual npl in residential could be bad.

This post has been edited by icemanfx: Apr 26 2019, 06:17 PM

ok so if the buck stops with the banks that gave out these loans... are these banks going to die with the NPLs?

If banks followed bnm guidelines, they will not die but certainly will take a impact.

okay suppose the banks followed BNM's guidelines, but BNM and the guidelines have no way of anticipating (or at least they did not) issues such as loan compression. Now the banks that financed these properties would have to eat up all these losses when the borrowers are declared bankrupt.

The guidelines clearly did not provide or recommend any technical means to stop loan compression. Won't this affect the banks in the end when shit figuratively hits the fan? The bankers are greedy, loan approvals are being bushed despite the banks themselves making it more difficult for loan applications to go through, bankers keep finding ways and loopholes to maintain their sales numbers and earn those commissions.

Btw, when caught with 5 unpaid loans applied unfaithfully through compression, can the borrower be charged as a criminal - for lying to the bank?

When there is amber liquidity, banks are "pressured" to lend. Top management tend to close one eye as it is the middle management that will take the downfall when loan turned sour.

Unless is pressured by bnm, bank is unlikely to sue borrowers for loan compression. On the other hand, it was bnm guidance or encouragement to ease credit /loan growth during 2011-2014. Again, as far as to banks, bnm is never wrong.

This post has been edited by icemanfx: Apr 26 2019, 07:30 PM

Oh noooo...brancrupt forever is quite a horrible place to be

he median multiple for Malaysia hovered between 4.0 and 5.0 from 2002 to 2016, exceeding the 3.0 threshold for housing affordability. The country’s overall housing affordability worsened significantly between 2012 and 2014, increasing from 4.0 in 2012 to 5.1 in 2014. The median house price for Malaysia increased at a compounded annual growth rate (CAGR) of 26.5% over the stated period from RM175,000 to RM280,000. Meanwhile, median household incomes grew significantly more slowly at a CAGR of 11.7%, less than half the rate of increase in house prices.

Home ownership still prevails as a primary tenure choice for Malaysian households with a national ownership rate of 76.3% in 2016.

Data from the Construction Industry Development Board and the National Property Information Centre indicate that house prices in Malaysia have almost doubled since 2008 while construction costs—labour, material and machinery, and equipment—have increased only slightly in the same period.

Notably, transportation costs in Malaysian cities are also considerably higher than in other East Asian cities.

19.6% of households in Malaysia rented in 2016 and the majority of them could be from low-income households. 23.0% of the B40 and 21.5% of the M40 rented in 2016.

The government has committed to provide one million affordable homes for both income groups by 2018 with 653,000 units targeted to be built under the 11th Malaysia Plan.

http://www.krinstitute.org/Publications-@-...nd_Society.aspx

From the above paper, property price will remain suppressed longer than most expected.

A large proportion of >RM500k property for rental will likely remain untenanted.

If the gomen fulfilled to build one million affordable homes, there will be more homes than household.

This post has been edited by icemanfx: Apr 27 2019, 10:11 PM

TOKYO -- As Japan's population ages rapidly, a record 13.6% of housing stands empty nationwide while developers shrug off flat demand and continue their building spree.

A record-breaking 8.46 million residences were unoccupied in 2018, according to a twice-a-decade housing survey released Friday by the central government. The number has grown by 260,000 since the last survey in 2013.

https://asia.nikkei.com/Economy/Aging-Japan...nd-stashed-cash

During Japan property bull run end of 1980's, how many have thought there will be excess of home in Japan? unless there is a change in trend (which is unlikely) of demography in this country, similar issue could occur.

What scary is not about the excess supply, but the subsequent lost decades of stagnancy and struggle.
A quick death and subsequent recovery is better than a slow one.

I understand that many buildings are aging and crumbling for the next Tokyo Olympics as they are build in the 80's, now almost 2-3 decades since.

Unfortunately, local culture don't and gomen lack political will to accept quick death. next downturn could prolong longer than most expected.

KAJANG: The year-on-year residential overhang in Malaysia increased to 32,313 units valued at RM19.86bil in 2018, an increase of 30.6% in volume and 27% in value, according to the Valuation and Property Services Department (JPPH).

In its Property Market Report 2018, JPPH said high rise units formed the bulk of the overhang units, representing 43.4% (14,031 units) of the total.

Read more at https://www.thestar.com.my/business/busines...mWPiGbYjDfUJ.99

JPPH number is on primary market, overhang in secondary/subsale market is estimated over 3 times more. expect property overhang to worsen before narrow down.

This post has been edited by icemanfx: Apr 30 2019, 01:30 PM

Americans did for the quick end of Freddie Mac and Fannie Mae, hence quick recovery of the last depression despite the massive scope.
While Greece and Spain is still lingering.

So it is true that many ppl has been doing this for a while ...those that borrow alrdy knew what they up to ..its just how you used the funds in ur hands to grow ..

People never handle $100k is unlikely able to handle $500k.

No matter how much amount, like Warren Buffet said, "Don't lose money."
If you have to lose money, then cut lost fast.

Not many could cut lost fast.

This post has been edited by icemanfx: May 4 2019, 07:06 PM