Agreed. If buy with the intention of ownstay mindset, maybe wont so heartpain.

I have same thought process as yours. But since I dont have enough cash, then no choice, make use of rebates offered + 90% loan. Otherwise, I would go for subsale too if available and suit my preference.

If you are in poorperly market would know; there is price difference between developer and subsale of older unit of similar size in the same area. during bull run, subsale may track new launch price in the vicinity but not current market sentiment, and price different could be significant. for reasons, subsale poorperly transacted price will remain largely stagnant for the next few years.

There is no free lunch, legal fees, etc is included in spa price. if one couldn't save enough for down payment and legal fees, ze shouldn't be buying poorperly of that value. if one die die must buy overpriced new launch, no one could stop him.

leverage amplify profit as well as losses. for reasons, why many flippers are financially stressed.

This post has been edited by icemanfx: Nov 4 2022, 10:48 PM

If highrise, you may consider minimumly 1) use that rebate cash value (or allocate some) to pay up for piling and structure stage drawdown. 2) if you stop there at structure, for subsequent stages drawdown, pay up its incurred progressive interest till you commence your 1st instalment.

There are reasons for this outlay.


This post has been edited by jojolicia: Nov 5 2022, 12:09 PM

very simple, you got money u go buy subsale
u got no money then buy overprice new launch, since rebate, legal fees & furnishing already factor in

difference is you wan pay the upfront cost now or pay by installment with interest

one could pay by installment (buy new project) and put the remaining saving into epf

If one couldn't save enough for 10% down payment and legal fees, could be stressed to make loan repayment.

In an ideal world, buying subsale from someone who has fully done up the place and is still quite new could be a good buy. But as pointed out, the bank loan process doesn’t really support this.

But the virgin complex is still very strong with local buyers and there’s many cashed up buyers who still opt to buy under con things.

Rate keeps going up, make sure to consider this. Ensure if you need to repay immediately from subsale, then consider rm200 to 300 extra per mth on top of your bank loan. If not u die standing later. Many only consider bank loan as mthly commitment but forgot to consider rate can go up and mthly installment will go up.

That is why now plenty auctions for just VP and rather new units. If i were u, i consider auctions now, easily 30 to 40% below market. Some even below developer price. Just make sure to use proper agents to check all backgrounds before bidding.

Buying within own affordability range will not normally lead to any serious financial implications.

If at all the country facing financial crisis, majority will be affected ... doesnt matter good or bad buying decision.

In worst scenario, if borrowers suffers TPD, mrta will kick in, provided ada beli and the correct amount coverage.

This post has been edited by mini orchard: Nov 5 2022, 07:12 AM

Best time to buy is now. Jusr dont over commit to the loan

Higher home loan repayments may see OPR hike become an election issue
Jason Thomas -November 5, 2022 7:00 AM

Borrowers will now pay more for their mortgages, which is not a good idea given the economic challenges, according to economics lecturer Goh Lim Thye.

PETALING JAYA: Bank Negara Malaysia’s (BNM) decision to hike the overnight policy rate (OPR) by 25 basis points (bps) to 2.75% yesterday may affect voter sentiment at the upcoming general election (GE15), especially for those struggling with the increased cost of living.

In a bid to address rising inflation as the country’s economy emerges from a series of Covid-19 lockdowns, BNM has increased the interest rate by a total of 100bps since May from a historic low of 1.75% during the pandemic — driving mortgage payments sharply higher for property owners.

Speaking to FMT Business, Goh Lim Thye, a senior economics lecturer at Universiti Malaya, said Malaysians may be agreeable to the rate hikes if the economy was booming, prices were stable, and they had additional savings that could be pumped into repaying the higher mortgages.

“But people are struggling to make ends meet and prices don’t seem to be coming down at the moment. I am definitely not in favour of policymakers increasing rates at a time like this,” he said.

“They should be thinking about what they can do to lessen the burden of the people who have to deal with higher prices in addition to the interest rates… instead of OPR hikes, which do not seem to be effective right now.

“I don’t think the timing is right based on the current economic and political sentiments (and) it may lead to anger, thus affecting voters’ sentiments,” Goh said.

On Twitter, licensed financial planner Hann Liew explained that a 25bps increase amounts to an extra RM35 per month for every RM250,000 of a loan’s principal.

The rate hike, which is BNM’s fourth in a row, also comes as the ringgit ended at an all-time low of RM4.74 against the US dollar yesterday, thus increasing the cost of imports.

This is key considering how the country’s dependence on food imports has been rising. Malaysia imported RM17.8 billion worth of food products in just the first quarter of this year. The food import bill amounted to RM63 billion the whole of last year.

The central bank said on Thursday that the latest OPR adjustment would “pre-emptively manage” the risk of excessive demand on price pressures.

Facing criticism over the hikes in September, finance minister Tengku Zafrul Aziz then said that the government does not intervene in OPR decisions as they are determined by BNM’s monetary policy committee, adding that the country’s OPR before the Covid-19 pandemic was at least 3% since 2013.

Although he didn’t think the OPR hike would be an issue at the Nov 19 polls, Center for Market Education CEO Carmelo Ferlito described Zafrul’s statement that the government had no hand in the rate hikes was “only partially true”.

Ferlito acknowledged that while the government does not interfere in BNM’s decisions to raise or lower the OPR, he said the current rate hikes were aimed at addressing inflationary pressures that were created in part by the government’s RM530 billion worth of economic stimulus packages during the Covid-19 pandemic.

“We have inflation pressure because of the excess of money in circulation at the moment (due to the) mix of different packages during the lockdown (and) money creation, money printing, money borrowing and extremely low interest rates,” Ferlito said.

“So what Zafrul is saying is only part of the story. The rising (OPR rate) is a reaction to past decisions for which both the government and BNM have a (shared) responsibility,” he added.

After ge15, bnm opr rate will likely rise higher else RM will devalue further and inflation rate remain at elevated level.

Hmm during pandemic, government want to stimulates the market and bnm reduce the interest rate not only want to help people who are struggling, but also attract the winner (certain industry) to spend more. But the lowest opr rate also trigger the purchase desire for those who are normal status (not affacted by pandemic but not get benefit from pandemic industry). So the struggle one for sure will not buy property during lowest opr period, the winner industry buy alot buy it's ok. The opr hiking cause those normal status people struggle now. Opr increasment not only can't defend the inflation, at the same time opr increase the living cost.

I believe now is only a start point. The real economic recession will come when the opr rate come higher than 3.25 (which is highest point during 2019 march ore pandemic period)

Increase opr is one of the very few tools available to bnm to tame inflation. If opr doesn't rise high enough, RM will devalue further and inflation rate will remain at elevated level.

This post has been edited by icemanfx: Nov 5 2022, 01:30 PM

This, agree.
Another way, increase income.
Don't be mistaken as given income (demand) but instead Gov to create income generation down the value chain. Not ekonomy kangkong

This post has been edited by jojolicia: Nov 5 2022, 03:18 PM

One quick way to increase disposable income is to reduce taxes and red tape.

Much as we’d want to go up the value chain, it seems the opportunity has come and gone. Why hasn’t MAlaysia been able to secure much of the contract outflows from China? It’s all primarily gone to Vietnam and Singapore as HQ.

Why fdi need to face many restrictions, unfriendly posture, expensive opex, etc.

Agree. Red tapping cost, it sure is.

I know increase opr is a tool to control inflation, but at Malaysia it's situation is very special. RM devalue further is not the issued ready care by majority of the citizen, but living cost is.

Example, a plate of chicken rice. Before MCO opr rate is 3.25 per pax is around Rm6

During MCO it rise to Rm 6.5, during the time opr rate is 1.75

and post MCO it rise to Rm 7, opr increase at 2.75

Why this happen? Refer to cooking oil price and raw chicken price. Because government setting the maximum price and reduce the chicken farm subsidies. So the chicken farm have a small period have shortage issues. Then government start to restrict export chicken to Singapore. But the real issue is, if sell to Singapore the chicken farm can still get profile dur to currency but sell to local is rugi money.

Chicken rice, coffee, sugar etc is the thing Malaysian eat a lot, it ready affected Thier living. So from this situation you can see. The increasing of opr was increasing the people burden. And I believe chicken rice will never drop to below rm7 anymore. (For example scenario, I believe some seller want to do clarity or certain rural area still sell cheaper price).

Not ever gonna happen ........ in fact public sector employees will keep expanding until we become Sri Lanka #2 or #3 😵‍💫