i heard from my public mutual agent that the BLR is going up...so just make sure you can commit on the repayment should the BLR goes up again..

seem like ur loan having trouble...

mine apply CIMB, Alliance, HLB & PBB...
Alliance, Hong Leong and PBB 3-4 working days inform me my loan approved,
so i wait for offer letter around 5-6 working days for PBB...
i signed offer letter after 1 week i submitted my documentation...

I brought house at Butterworth Penang, expected to be completed by end of next year 2009.
But now I'm worried this project will suspensed because of raw materials price all went up 30 - 40%.

Hope this will going to happen. Thanks.

In terms of property prices, based on history, in a recession, prices drop due to lack of demand. All goes back to demand vs. supply thing. If everyone is getting jitters on committing to a property during uncertain times, it means demand drop. High home loan and strict application guidelines means less and less can afford a house, means, those on the market will be price pressure downwards to get the few buyers to snap them up.

So.. I think best to wait a while for the property market to soften over the next few months and then pick up your unit.

dont scare me lah, just submited 4 working day ago.

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Added on June 30, 2008, 5:03 pmbut the current inflation is not due to demand but more because of rising cost, when building material cost more, you cannot expect the developer to sell at cheaper price even is sales is slow.

This post has been edited by robertngo: Jun 30 2008, 05:03 PM

this depend on the developer whether they did "good homework" before they launch any house...
as what i know, developer will "lock up" the price of raw materials with all the suppliers before launch new house...
so if sudden price hike occured wont effect much since the price locked for certain amount of raw material amount...
that is how all of the QS work in developer company... calculate the correct amount of material and order from suppliers...


no scare u lah... hehe... u should call ur banker now to know ur loan status... dont sit and wait till last minutes...

yeah... upcoming new house price will increase because the cost of raw material and operation...
But we can get house with cheap price if economy recessions striked in malaysia bcos no demand and ppl forced to sell house asap to cover the loss... but at the moment getting the house with cheap price, i believe bank will package very high interest's package also... unlike current BLR-2%, maybe that time will BLR-0% or BLR+1%, bank also need money to ensure their operation still in normal condition when recession striked... so actually no much different between expensive house with low interest or cheap house with high interest... just depend on our luck how cheap the sellers going to sell their houses...

my loan go problem at bit with valuation last week, but now seem all the bank can get the value now so should be a few day before approval is know. you guys have problem with bank valuation before or not?

Robert, you just doomed yourself Never apply up to 7-8 banks. They'll all think you are desperate and have something to hide.

i dont have issues at all i think...
1st, my banker calculated my income able to afford the houses 80%+ my loan can be approve...
2nd, i have 99% clean CRSIS record...
3rd, my salary bank-in into the particular bank saving account (so bank can auto debit from my salary)

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Added on June 30, 2008, 5:55 pm
but i think banks dont have the relationship with each others right?
unless they can record the loan application into system (something like CTOS/CRSIS) and able to view by every banks...

This post has been edited by gkl83: Jun 30 2008, 05:55 PM

I think Robert meant some valuer valued his property at substantially below market price. It happened to me before. Some valuers are idiots.

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Added on June 30, 2008, 6:01 pmYes, every single of one your application is on record. Banker from Bank A can even find out what is the margin of finance you asked for from Bank B and Bank C and Bank D. If the first bank to give an answer rejects your application instead of approving it, you'll be in trouble

This post has been edited by Moneylust: Jun 30 2008, 06:01 PM

u means the valuer are the bank's staffs?
i know that bank will check the house market value and the provide the loan according the house market value but no the selling price from sellers... i asked a banker and he said house price can quote below market value, maybe that house extremely poor condition? impossible poor condition house but still have to follow market value...

hm.. no wonder got a bank no giving me any news since 3 banks approved my loan...

This post has been edited by gkl83: Jun 30 2008, 06:13 PM

from my experience, valuation is only done after offer letter is issued. their margin in the offer letter will be based on s&p price or valuation, whichever is lower.

unless of course your property is grossly overvalued from the start, then the bank will be suspicious.

My prediction would be the housing market may be soften in the next 12 mths. Although raw material cost increases, but because the demand for houses may be lowered in view of the current economic and political instability. So demand low, supply high... what you guys think on the prices? ))

robertngo,

<< you cannot expect the developer to sell at cheaper price even is sales is slow.>>

Who say so?? The developer is borrowing money from the bank to build the house. They pay interest on those loan. Every day that they do not sell the house, they lose money. Ditto on every single business that has inventory. It is a question of who has more staying power.

It is the same as people that who lost their job and has to sell their house. They have to do it even at a loss. Or else, they will go bankrupt.

Dreamer

if demand low, supply low?

if demand low, why developer going to launch new houses that may cause the loss for themselves?
rather that they invest the money on another sector instead...

if sell the used house when low demand period
they may reduce the house price if they desperate to get the cash asap...

the valuer is not working for the bank, some bank can use the same valuer, the problem with my unit is the owner spend more that 60k on the renovation, one stupid valuer not ask about renovation first value it at 260k, come on lah, my unit is on high floor corner unit the original price with not renovation already 288k, and with some many renovation done. he just pick the last transacted unit price for the condo.

apply for too many loan can hurt my chances? i dont know about this, last week straight after pay deposit i contacted several bank and some banker even call me proactively, i not working that two days so send my application to all the banks, cannot do like this meh?

They can see from CCRIS how many loan application you have applied for.

This post has been edited by cblau: Jun 30 2008, 08:17 PM

the agent tell me they need to get the value first before getting approval, if the property is overvalued the manager will not approve the loan.

Yes this is only true if developers have thin margins and can no longer absorb the cost of raw materials. But in Malaysia, its all speculative and greed and margins are BIG in property development. We get indons and banglas to build houses at dirt cheap unskilled labor cost but our homes can cost as much as developed countries where they use skilled labor at AUD or USD 15 per hour.

today several bank approve my loan, right after bank negara make anouncement it will hold rate at current level at this month meeting, is this connected?