NOT WORTH IT.

they are trying to make a killing !!!

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Added on October 13, 2010, 1:27 amyes its highly possible... not difficult.

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Added on October 13, 2010, 1:28 ammany ppl have got the perception that having more property will lead to higher tax.

this is not true

This post has been edited by 106127: Oct 13 2010, 01:28 AM

http://biz.sinchew-i.com/node/39708
Anyone read this? I think all are bullshits! And I doubt the correctness of the provided data/statistic. Some might be true like the comparison price of properties in MY, SPORE, and HK. But the rest all bullshit!

Budget: Expect Tighter Regulations For Credit Card & Property Sector

KUALA LUMPUR, Oct 13 (Bernama) -- The Government is expected to adopt tighter regulations in the 2011 Budget to curb potential dangerous run-up in consumer credit card spending and speculative activities in the property market.

"We believe Bank Negara Malaysia (BNM) is focusing on tackling household debt in 2011 to promote healthy credit card spending," said Kenanga Research.

In its 2011 "Wish List", Kenanga said the central bank should consider imposing tighter borrowing limit for the property sector to avert potential over-leveraging on the household segment and speculations.

It said bank loans should be lowered to between 70 and 80 per cent value ratio for third mortgage, it said.

Bank Negara should also consider capping maximum of two mortgages for each borrower, it said, adding that such a rule would slow down housing price appreciation rate, going forward.

Should tighter borrowing rules be enforced in 2011, it would not have any impact on loan growth this year as borrowings are anticipated to remain strong till year-end, it said.

"But we are cautiously optimistic on business loans as businesses in the next six months may be negatively impacted by global economic turmoil and Malaysia's economy is not immuned from moderating global growth," it said.

The research house said it was cautious for the second half of this year due to healthy loan growth but increasing risk on slower growth in the business segment, namely manufacturing and exports.

"Profit margin squeeze is directly triggered by the wave of intensely- competitive pricing, moderate growth expectation and possibility of a slowdown on mortgages if 70 per cent to 80 per cent loan-to-value ratio (LVR) is implemented.

"We see the implementation of a blanket 70 per cent to 80 per cent LVR cap as a real challenge to the industry's loan growth next year and could put pressure on retail banks," it said.

However, strong asset quality suggested lower credit charge-off, going forward, compensating net profit for the lower top line growth, it said.

As for credit cards, Kenanga said new measures should see tougher limits on the number of cards a person could hold and lower credit limit on each card.

Bank Negara should restrict a consumer to own only two credit cards from two banks of their choice and allow people with an annual income of above RM24,000 to own a credit card from the current minimum requirement of RM18,000.

The central bank should also reduce spending limit by 1.5 times their monthly salary (currently 2.5-3.0 times), set at the bank's discretion for first-time applicants.

"In our view, stricter credit card rules are prudent and limit the risk of rising household non-performing loans. It will curb spending-spree cultures that have surfaced in certain segments of the population recently," it added.

-- BERNAMA

The writing is on the wall, implementation is the challenge however it will curb lending. I believe the most important line is the one related to Malaysia not be immune to the global economic downturn which in reality has not happened yet given QE for the last 2 years.

I repeat, there will be a correction in KL and parts of KV upto 30% based on loose policies and speculative purchases. It will work hand and hand with the global downturn being the catalyst!

It's not if but when!

Are they the real property gurus ? or just people who hang out at property auctions trying to pull some fast deals ?

Malaysia is expected to adopt tighter regulations in the 2011 Budget to curb potential dangerous run-up in consumer credit card spending and speculation in the property market.


“We believe Bank Negara Malaysia (BNM) is focusing on tackling household debt in 2011 to promote healthy credit card spending,” said Kenanga Research.

In its 2011 “Wish List”, Kenanga said the central bank should consider imposing tighter borrowing limit for the property sector to avert potential over-leveraging on the household segment and speculations.

It said bank loans should be lowered to between 70 and 80 per cent value ratio for third mortgage, it said.

Bank Negara should also consider capping maximum of two mortgages for each borrower, it said, adding that such a rule would slow down housing price appreciation rate, going forward.

Should tighter borrowing rules be enforced in 2011, it would not have any impact on loan growth this year as borrowings are anticipated to remain strong till year-end, it said.

“But we are cautiously optimistic on business loans as businesses in the next six months may be negatively impacted by global economic turmoil and Malaysia''s economy is not immuned from moderating global growth,” it said.

The research house said it was cautious for the second half of this year due to healthy loan growth but increasing risk on slower growth in the business segment, namely manufacturing and exports.

"Profit margin squeeze is directly triggered by the wave of intensely- competitive pricing, moderate growth expectation and possibility of a slowdown on mortgages if 70 per cent to 80 per cent loan-to-value ratio (LVR) is implemented.

“We see the implementation of a blanket 70 per cent to 80 per cent LVR cap as a real challenge to the industry's loan growth next year and could put pressure on retail banks,” it said.

However, strong asset quality suggested lower credit charge-off, going forward, compensating net profit for the lower top line growth, it said.

As for credit cards, Kenanga said new measures should see tougher limits on the number of cards a person could hold and lower credit limit on each card.

Bank Negara should restrict a consumer to own only two credit cards from two banks of their choice and allow people with an annual income of above RM24,000 to own a credit card from the current minimum requirement of RM18,000.

The central bank should also reduce spending limit by 1.5 times their monthly salary (currently 2.5-3.0 times), set at the bank’s discretion for first-time applicants.

“In our view, stricter credit card rules are prudent and limit the risk of rising household non-performing loans. It will curb spending-spree cultures that have surfaced in certain segments of the population recently,” it added. -- Bernama


Read more: Tighter BNM rules on property sector likely http://www.btimes.com.my/Current_News/BTIM...l#ixzz12EW1LxQ8

never a big fan of paying anyone to learn something, but if one has money to spare but no time to self study I suppose one should put the following into consideration :

1. If what the fella teach can shorten your learning curve. Time is money after all. If u have the dilliigence n aptitude to really learn, you can definitely save the 5k and use it as a d/p instead.

2. Some additional benefits given on top of the learnings. (maybe network, deals, valuable contacts etc)

3. Make sure these so-called guru share with you their complete portfollio before you decide. This is to ensure that you learn from those who know their stuff, and the claims they make are genuine.

And lastly, must apply what you learn else the expensive fee will be a complete waste of money......

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Added on October 13, 2010, 7:21 pmat 80%, it'll be BAU.

at 70%, wouldnt rule out a short term crash followed by stagnating prices for years to come.

This post has been edited by Pai: Oct 13 2010, 07:21 PM

financing at 70% is more applicable rather than 30% rpgt.but it only applies on the third house.

"It said bank loans should be lowered to between 70 and 80 per cent value ratio for third mortgage, it said."

Bank Negara never mention about joined name

if joined name consider 1/2 mortgage?


my thought:
Similar to our long distance Bus services
Wanted to impliment black box... but what happen then???

This post has been edited by cody99: Oct 14 2010, 12:31 PM

we will wait for the announcement tmr

True ...wait until the announcement. Everything still can change in the last minute. Hahah....

The property bubble will burst if the government make it to, in other term ' over-react ' , i believe it is still rather a small and healthy bubble compare to US case, where ppls there can simply walk away or default the loan when they house value drop, the worst bank take over the house and sustain the loss itself, scenario here in Malaysia is very much different , where greater responsibility toward the owner if they default payment.

control is good and a gentle measurement is also good, too drastic change on RPGT and tighten loan did not help to grow the economy.

Plans for national REIT body and withholding tax removal likely
PETALING JAYA: The Malaysian real estate investment trust (REIT) sector is likely to get a boost soon, with firmer plans for a national REIT company and a reduction or removal of the withholding tax for REIT investors, sources said.

The national REIT will likely include a number of assets belonging to the Government and government-linked companies (GLCs).

“There is a huge potential for “REITing” these government properties in a similar way Singapore did,” said a source.

In the 10th Malaysia Plan (10MP), there was a proposal for Pelaburan Hartanah Bhd to set up REITs to facilitate bumiputra investment in commercial and industrial properties and benefit from property appreciation.

It is likely that Pelaburan Hartanah would be used to set up the national REIT, drawing from the experience of Singapore.

There the government had made available a vast array of properties to be put into REITs such as those run by CapitaLand.

“The Singapore government wanted to turn Singapore into a REITs hub and has achieved much success with attracting capital to its market,” explained a REIT expert.

The expert added that in Malaysia, there were a vast array of properties still being held primarily by GLCs which could be put into a REIT.

There are 14 listed REITs on Bursa Malaysia with a total market capitalisation of slightly over RM10bil. In comparison, Singapore’s REITs’ market capitalisation is more than RM60bil while Japan’s stands at around RM100bil.

In another effort to boost the REIT sector and to move it on par with markets like Singapore, the Government is likely to reduce or remove entirely the withholding tax for REIT investors. This is something that REIT players had been lobbying the Goverment for the last few years to no avail.

“The aim is to bring it in line with markets like Singapore and Hong Kong where individuals and institutional investors do not pay withholding tax on REIT investments,” said a party familiar with the situation. Both local and foreign retail and institutional investors in Malaysia now have to pay a 10% withholding tax, which had already been reduced from the 25% tax rate previously. The withholding tax rate in Malaysia has not been adjusted since 2008.

ECM Libra head of research Bernard Ching said a reduction of withholding tax for REIT investors would be a major boost for the sector “as the effective dividend yield to shareholders would rise, which would translate into higher capital values for the REITs.”

Analysts have said that REITs in Malaysia had traded at a discount to those in Singapore and Japan in terms of yields and their price to net asset values.

The analysts have said that while factors such as asset and liquidity played an important role in determining valuations, the tax regime and REIT guidelines imposed by governments and authorities in individual countries also affected the attractiveness of all REITs.

Another analyst, however, said the Government may be hard-pressed to reduce the withholding tax, considering that it just postponed the implementation of the planned goods and services tax.

But it is understood that the REIT withholding tax waiver would not seriously dent the Government’s coffers in terms of the total amount of lost tax revenues from this sector. Furthermore, the last tax waiver proposal is believed to be only for a three-year period.

It is understood that these proposals may appear in the soon-to-be- announced Budget 2011.

By The Star

again, for Malaysia the correction will come with the unhealthy downturn of the US market coming early November. Remember the "Recovery" only happened through money printing (QE). This has only delayed the inevitable and the REAL DOWNTURN is coming.

You are looking at the issue with Non Recourse Loans incorrectly. Non-Recourse loans in the US gave you the opportunity to walk away and still the country is in dire straits. Those countries with Recourse Loans and in bubbles right now, Canada, Australia, Hong Kong, SING, China and to some extent Malaysia will get absolutely hammered when the next leg down in the US, UK and EUROZONE occur.

You will be happy when a property in KL or selected highly speculative KV locations drop 30% as you still may be able to manage to service the loan. Those in other countries will be on the streets and paying for their speculation likely the rest of their days.

Our government is only trying to regulate and curb things as they know it's coming. They want to reduce the major losses to the banks however when the US sneezes we all catch a cold and this is how the last downturn in Malaysia was felt (not due to our goverment policies) and secondly, this time it will be on the back of a US Dollar which is dropping like a stone, driving up the MYR and killing our exports and GDP.

There is a wicked storm coming...you better be ready....liquid!



This post has been edited by Onemorething: Oct 15 2010, 02:28 PM

I still believed in terms of property. Malaysian still can hold on to it as Asian tend to have more savings for the raining days.

Price drop how much after budget announcement today ?

when come to money, you want to save yourself or you want to save the bank or country? Non-recourse loan have directly encourage those owner to walk away so they can stop they loss immediately, i believe HK, and SG bubble will not lead to burst stage since their government has impose some extend to control it, and most are well aware of it, not like in US , where so much sub-prime loan is given out and eventually affected the prime loan market where all those who is capable to pay also choose to default when the property value drop below the loan amount, this chain reaction has trigger the crisis.

i really cant see any of the do fault by the US government in our country now, where bank still careful in approve loan, and the most root cause, the buyer, those younger generation buyer which at their mid 30 are now pretty highpay, and what more most of them are double income family, husband and wife both work, where they can easily get a 600-700k house and pay their installment comfortability everymonth, ofcourse i believe this group of ppls significant contribute to the hiking of property price now.

i am optimistic on local property market, i think the most it will stagnant when price reach to one stage, whether there is REAL DOWNTURN to come, that's external factor which laid greatly on US gov.

just my piece if opinion.

from my look at the budget, it will boost the property market and drive price higher

+1

short & simple

as i have commented earlier..
the prices is not coming down... its going up...

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Added on October 15, 2010, 10:10 pmBudget announced!

Property prices will continue to climb

This post has been edited by 106127: Oct 15 2010, 10:10 PM