Interest rate increase affect many many things.

You imagine, if the interest rate increase a bit, every home owner's pocket reduce a bit, but the reduce in cash means people will spend less and the economy will slower.

when everybody spend less you know the effects la......basics of economy is MONEY SUPPLY AND INTEREST RATE

High MS + Low IR = BOOM
LOW MS + High IR = BUST

think twice if the property is ur asset in disaster times, example australia.

http://www.chinapress.com.my/content_new.a...art=0114p01.txt

ur property could jump to Zero value...

if u are talking about mother nature...yes
how about any other assets or money during a war

Oh, the other day watched Historical Channel reminds me the same.

http://www.google.com.my/imglanding?imgurl...ved=0CDUQ9QEwBA

Nothing is eternal tat's include ur properties, stocks, funds, estate, cash, blah blah, oh boy your life too!

So buy breads and store for raining days!

war is something predictable... it could be opportunity for certain ppl to build asset, like oil biz.... but it is definately not the play ground for us, it is betweeen country and country matter.

This post has been edited by sampool: Jan 14 2011, 10:03 AM

good 1

some people see opportunity and grab it after considering the risk involved
some is considering the risk too much and could never invest in anything

a 50% hike in BLR for a house owner (buying for own stay) should be manageable, just spend less, shop less to mitigate the impact.

But i think 50% hike could be substantial for those who refinanced their homes over the past two years to the max to withdraw money and bought other properties to flip. So i think the adjustment will definitely dependent on the holding power of the so called speculators/investors.

for very high end properties (>700K) i would think that most of the owners are those with stronger holding power but for the middle-high end condos, while the middle class is struggling to get on to move to the wealthy class, they could have taken the unnecessary risk over the past two years. No many born rich rite?? so maybe these properties will be adjusted sooner ?

http://biz.thestar.com.my/news/story.asp?f...92&sec=business

although OPR may only increase in the later part of the year, but BNM could increase the SRR, doe anyone know the impact of SRR on BLR? i think a hike does increase the banks' cost, so the increase could be transferred over to customers (meaning you and me)? Experts pls enlighten.

meanwhile, with neighhouring countries increasing interest rates (unexpectedly) there seems to be more pressure for Malaysia now

This post has been edited by godutch: Jan 14 2011, 10:38 AM

i dun think 50% hike....its 50 points hike.....dun get confused between % and points
which normally translated:
current blr 6.3% to 6.8%
for me personally...it is still managable

Agreed
we're aiming to speculators but not aiming for those who buy for their own stay
get more properties ~

This post has been edited by CKHong: Jan 14 2011, 10:43 AM

it is 50bps or 0.5%, thanks

yup, i do agree that they are smart middle class investors who did not stretch to the max over the past two years. But i also believe that they are many who did.


btw, came across this news:

http://biz.thestar.com.my/news/story.asp?f...36&sec=business

the target market is definitely for the rich. so, is it a signal that property price appreciation in M'sia is close to the peak and the rich starting to look overseas??? experts pls enlighten

SRR never affect the BLR, higher SRR is to reduce excess liduidity out there, aka lock up some money out there.

SRR does increase the cost of bank's liquidity, so probably you see previous package of BLR -2%, become like BLR -1%, something like that, but it won't affect BLR.

simple calculation will do

per 100k loan for 30 years with -1.8 blr(current rate by some banks)
current blr @ 6.3
6.3 - 1.8 = 4.5% monthly installment @ rm 506.69

forecast 50 points hike will increase blr to 6.8
6.8 - 1.8 = 5% monthly installment @ rm 536.82

so its only rm30 hike per month for 100k loan

For your reading pleasure. Just read it with a pinch of salt and don't get too greedy

http://www.starproperty.my/PropertyScene/T...ghtBox/9559/0/0

quoted from the article:



which is the RM2500psf new launch?

now property prices is like sky high.. wonder how to get to buy a decent house!!!!!

huhu good investment for properties nowday probably shud get those house near urban area. kl keep expanding

Well.. I think this is not the best time for property investment in KL. Prices shoot up too steep.. and I wonder these prices is real or mostly the agents and owners trying their luck!

Attended CIMB mega auction yesterday, the bidders bidding like NO tomorrow, some hot properties end up >2x from the original reserved prices. I think BBB euphoria will last few more years.

just read a long stockbroker report on commercial land/projects. they think the billions to be spent on mrt-lrt will jack up very high the commerical land price around those areas, so commercial props directly linked to the hotsopts will gain. i suppose residential units linked to these hubs will do relatively better than "remote" ones. maybe better buy these dev stocks rather than props!



This post has been edited by AVFAN: Jan 17 2011, 06:38 AM

haha, like +1. This is something I have observed as well, ppl bidding like no tomorrow to a point that auction property is not really "below market price" anymore...aiyoo aunty uncle....