1.  In my humble opinion, it's never about the location.  Remember that.  And it's never about timing or mid 2009! hahahaha.  But, I'm glad the majority of people don't think the way I do! works in my favour! For further, details - that's another long post and a story for a different day.  Or maybe, i'm just teasing a little?

Hi Looqs and everyone,

Merry Christmas, by the way! and to all the other members of this forum too.

Was out having a teh tarik discussion with some friends....Always the common topic - how to make more money! haha

I'll attempt to answer your queries.  Nevertheless, please do correct me if I'm wrong.  Again, this is only my analysis of the situation because areas like Mt Kiara are out of my target areas. 

1.  On a macro scale - our secondary market is in trouble.  I'm a retired banker, and have many friends still in banking.  Banks have tightened their credit policies......It is a fact.  CIMB Bank used to do 1 billion in approved sales per month.  Today, it has dropped by more than 50%.  Some banks have also tightened their MOF to 70%! That's downright draconian.  My prediction - risk based pricing will become an industry norm soon.  If your CCRIS is less than ideal, if you're from a young age group, etc. - be prepared to pay a higher risk premium for your financing.  Board rates will be a thing of the past.   

Hi Danny,

Which Mortgage Broker do you belong to? I'm quite familiar with a few myself.  Well, I think you should be more familiar with the current rates than I am .......but in general, the local banks are still more inclined to follow the "board rates" style of pricing....Notable exceptions are like CIMB, with their well intentioned, but feeble attempt at risk based pricing.  Your foreign banks like Stan Chart seem to have their pricing mechanism in order.

I hate to say this - as forecasting is not something which I purely believe in.  But if u want to leverage - i'd go all out NOW.  Seeing signs that the party is going to end soon.  I don't think banks are going to care about helping the government in their whole expansionary fiscal policy propaganda.  In the end of the day, they have to protect their own arse via dynamic pricing.  People that go delinquent will be priced at BLR + 4%.  Let's enjoy the show.

A few questions if u don't mind - Which areas are the "hot areas" which u are witnessing from transacted sales at the moment? How's the approval to acceptance rate? Noticed any signs of defaults yet? Reliable sources have quoted that auction volumes have risen by approx 20%. You don't quite agree with dynamic pricing?

Cheers.

hmnnn, interesting point....

but may I offer my theory?

Before the handphone was created - we got by just fine without it.  Today, without a handphone - we feel that we are walking around without our underwear on.  (forgive the crude analogy).  Don't you think this is a form of "societal brainwashing"?

Similarly, the whole existence of BLR, and how it benefits us in a recessionary period is part and parcel of "societal brainwashing".  I think we have to understand the whole purpose of financing....which is for the purpose of leverage and predictable cash flow mgmt.  However, noticed that many people in our industry (government & bankers included) seemed to have forgotten about the importance of cash flow mgmt

If I borrow say 100K from the bank - do u really think the borrower really wants to deal with another dynamic variable of whether BLR goes up or down? I think our society is really dysfunctional if they hope to "gain" if BLR goes down.  Conversely, does this mean I want to be screwed if BLR goes up?  I hope you see where I'm coming from here...

If you are a speculator - that's a different story alltogether....But I'm going to assume most people borrow from a bank to put a roof over their heads.  And these guys would rather have a competitive fixed rate over the next 30 years - without gaining or losing due to BLR fluctuations.

Don't you ever wonder why only AIA or ING can offer fixed rates? Even then their rates are not really competitive.  Why can't our banks do it? What's stopping them from giving 5% fixed for 30 years? That is another story for a different day.....

I'm just a retired uncle that's talking a bit loud here and there.  Too bad I'm not in the Ministry of Finance.....those guys can't even get our property financing market in order.....let alone run this country's economy.

Good discussion going on here.

This is directed at our Dr. RE,

1) Is there a conventional figure for finder's fees? Or arbitrary based on case-by-case basis agreed by the agent and buyer?

2) what are your suggestions on how to utilize rental income?

To Danny,

What are these safe investments that offer 6% returns?

Hi Danny,

Think these r OK prospects, but at todays pricing, it doesnt fit my "demand VS supply" test, so personally I'll give it a pass.