No, what I mean is doesnt mean OPR low not you listen to people thinking interest is low. Interest is variable subject to OPR and will cost you more later.

Example. Every RM1 million loan for 20-30 years, 0.5% is worth RM270/month interest. If OPR go up, you need to pay extra RM270 in proportion of RM1mill.

We were talking about interest rates and its relationship with deflation.

Don’t switch the matter at hand to deflect the fact that you still need more to fully understand.

I see, since OPR has been cut from 3% to 2%. We should calculate what the bank offered loan will be at after increasing it by 100 points ya? Else later really increase back to 3%, then effective rate is more than 4% or higher, jiaklat

The facts remain economic outlook is bleak for next few quarters.

the perfect storm will be when myr depreciated sufficiently to cause inflation e.g over 50% of foods are imported.

This post has been edited by icemanfx: May 6 2020, 12:43 AM

So I guess you missed the news that fed rates are close to 0?

You think u.s fed almost zero rate and unlimited qe could turn around u.s economy like previous economic recession? Do you realize bnm has significantly less tools and rooms than fed.

This post has been edited by icemanfx: May 6 2020, 02:18 AM

No I wasn’t relating it to turning around the recession.

Read again.

If u.s fed couldn't turn around the recession, could bnm?

US got hit badly by subprime when malai props was preparing to fly 😊

It's not entirely apple to apple comparison but it somehow related. Just the effect differ.

A silly comparison. Superman can fly n captain America kenot fly but both saved the world.

Soli ya cmco tokok a bit.

Try to keep up with the matter discussed without deviating.

LOL, some always see half water cup, is always half empty. Even the cup is 80% full, it will be labelled as 20% empty. And even 100% full, see the only way is the amount is going to reduced as it can go more than 100%, only will be less.

So, the logic becomes,

1. Interest cut 0.5%, see economy is so bleak, BNM needs to have big cut. So property price is going to tank due to bleak economy.

2. Interest rate rise, see borrowers need to pay more month repayment. Property price is going to tank as borrower cannot afford to pay or more lelong.

3. Interest no rise no cut, see economy is stagnant, so does property market outlook.

Half empty theory is always powerful, you can't win against it.

Well.. She thought that lowering interest could cause devaluation of a currency.

Just pointing out that fed's lowered theirs to 0.5%.

People need to wrap their minds completely around the subject matter with less google kungfu and deflection.

Until today, many still don't realize kv property bull run 2011-2014 was a fallout from u.s. qe.

every economic recession is different; tools and methods to resolve is different too.

the economy and poorperly market will be in doldrums for a few years. until overhang is reduced substantially, price will remain suppressed.

This post has been edited by icemanfx: May 6 2020, 11:11 AM

Yes ma'am

Explain why US QE would affect our property prices and specifically KV in particular? Your correlation seems off to me.

You’re assuming the government will sit on their hands while property market is stagnant?

If I told you that they’re gonna lower RPGT as well as create HOC v2 in 4Q2020/1Q2021 where do you think property market will be heading?

omg, withdrawing money from my Flexi account

Guess you are late to the game or living inside the coconut shell. have explained qe thingy numerous time before and tired to repeat again.

whatever it is, until overhang is reduced substantially, price remain suppressed.

This post has been edited by icemanfx: May 6 2020, 01:25 PM

So disappointed
Tot govt is reducing new property loan to induce spending

It is reduced.

LOL I call BS. I've seen your posts around here and its all half-assed to be quite frank from a macro/micro perspective, including your QE argument.

To everyone else reading this, property prices increased from 2011 till 2014 purely because of property speculation. BNM introduced DIBS/DIRS in 2009 which reduced buyer's progressive payment/downpayment for undercon project but increased overall price of unit which drove surrounding prices up (hence why KV properties were main beneficiaries).

In 2014 Budget, BNM disallowed this practice hence market cooled ever since. Nothing related to QE AT ALL!