y no war fight la! ok la, since its cny, wish all forumers Gong Xi Fa Cai & may your wish come true this rabbit year

yea but youngsters nowadays max the loan tenure to reduce their payments per month, so ROI from rent can be maximised and not because they cannot afford higher repayments to the bank. Most of them are unlikely to hold the property for long term or will refinance once the lock-in period is over to buy other properties

i disagree with 2 generation loans as it will just burden other family members.

Baby born first day already in debt.

This is a crazy suggestion, our property not reach that level like Japan or Hong Kong, price 15x-30x much more lower.

With this kind of property price, already go for 2nd generation home loan, if 10 year later economic boom up as Hong Kong, u think how many generation home loan to be taken???

I only know that if Wawasan 2020 really can reach at 2020, there is 4 group of people still can live in KV.
a) Political
b) Rich family
c) Foreigners
d) High income group (RM30k/mth and above)

10k-30k/mth group will start move out from KV to outside KV.
5k-10k/mth group will move to next develop city like Ipoh, Alor Setar...and so on.
3k-5k/mth group will move to kampung...
500-3k/mth group.......dun know where they needed to move....

With this kind of Ministers in the country, who needs another crisis. My SPM-fail-to-graduate multi-millionaire friend can give far better insights than these 'top guns' or more like 'lose cannon'.

Tat why we need good education but most importantly people with sense of responsibility and integrity to lead in the next era. Can't wait for another 50yrs by then might bankrupt by typical minded ministers as above.

i beg to differ master cherroy.
there's many advantages to streching the loan tenure.
generally, income for salaried workers will gradually increase over the years while loan repayment is supposedly fixed (unless major corrections to the BLR).
sample case:
X want to buy a landed unit at say RM1mil. but X can't afford it based on current income. let's assume X is earning RM5k and gf earning RM5k. both are say late twenties. but if bank allows them to stretch the loan to say 40 years, they are able to purchase it now.
fast forward 10 years, X and wife now commands RM8k each. they now find it 'affordable' in their unit.
fast forward another 10 years, they more or less settled their housing loan due to increase in their salary again. and of course, the unit should worth more than double liao?

i for one opt to max out my loan tenure and grew a habit of settling whenever i have surplus cash (with cash back out options, of course).

I agree with 2 generation loans coz not all the rakyat is rich. sumore their salary will never keep up with inflation
dun all of u insured ur baby when he born first day the earlier start the better, otherwise premium is mahal!
presuming u & ur spouse oso insured, most likely u all wun last till the next2 generation, once u expire, then the kid get the insurance la

if u can't beat the share market, if u takut to invest in property, then at least let those 'professional handle it for u'
eg. endowment, once it matures, it is normally double, but u lose the opportunity cost to get higher return
but if u dun even know how to extract higher return, then better dun do it, can u even beat ur ins co endowment performance?

if u want a combination of both, there is the inv link, less headache, but tis 'inv link' word is a magnet for war
if u got some excess funds, can let other professional handle for u, ot liao
https://www.poems.com.my/

anyway, tis 2 generation loan is use to buy those fancy show off aksyen house / rental income?
since the loan amount is fixed, the property value got chance to ride inflation better & rental charges can be increased

This strategy also works but subject to few points:-

i. Cash flow, how well you manage? If either one loss their job, would they loss their home also?

ii. Location. Wat if bought wrong locations with inflated price like Bukit Berugi or Lembah Berapi, cry 10-15 yrs also no tears liaw.

iii. What you do with your surplus cash due to longer loan? Buy debts (cars) or buy assets/invest?

In general KV and some Penang properties can apply to this strategy but not other states.

Ok, assuming this Datuk Wira CCH Minister is correct, correct, correct with 2 generation loan strategy in this developing country (still cheap not even cp with Jap, HK, Spore already 2 generation loan) ... what is the same minister gonna tell the 3rd generation 20yrs down the road. Go take 3 generation loan, good luck, I'm not around liaw? Short sighted minister giving short term solution to long term trouble.


This post has been edited by Bobby C: Jan 28 2011, 01:46 PM

nolah, only the politicians and monkeys around by then, which means it is a gd sign, back to the old jungle days, property price will drop, will drop

Maybe you guys can help me out... i have a friend with a net salary of RM10k after minus the epf, tax and other expenses.. should he buy a property or just invest in ASN/unit trust/FD with return income of between 6-8% on average a year..

He told me that if he buys another house at most the value will be up RM100K after 3-5 years (maybe!).. so he's not sure to either keep his salary instead which is less risky or just buy another house, and houses nowaday are very expensive

btw he has a condo already...

++ baby/babies, edu & insurance... haha, ++ furniture, after 10 years to change car. ++ petrol, food

This post has been edited by sampool: Jan 28 2011, 03:41 PM

2 generation loan is crazy.

If our parents did not give us any burden and already we need to apply for a 2 generation loan, then what about our kids? Ask them get a 3 generation loan? lol.

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Added on January 28, 2011, 3:44 pmand yes. Never count the bonuses and future income. The bank doesn't and for a reason. You are only taking a risk. What if things do not turn out the way you planned it?

And as sampool mentioned, there are alot of unforseen cost of living, I such as child support, (milk, clothes, toys, school accessories, school fees) even if you don't have children now, you can't say for certain you won't have one within 10 years time. It happens even if you're trying not to have.

This post has been edited by TheDoer: Jan 28 2011, 04:03 PM

he can either
1. buy a low cost apartment/condo (mostly subsales) and collect rental with good yield , some can earn >10%
2. invest in unit trusts. (buy REITs if he like property)

option 1 is harder work but u can see return ($) immediatly.

since the fren is indecisive, means he expect prop price drop & not a risk taker, better put in fd, less stress
after 3-5 years, can come back here to update us which was the right decision
there r 2 camps here & await further opinions from next camp

of coz got lots of unforseen cost of living, tat is y live within ur means & aim for the tree, not sky

opinion is like azzh01* everyone has one

wat the fuss is all about? 2 generation loan is just alternative product.
Is government making it compulsory for everyone?
If you dont need it then x take la... i just x get it why ppl so pissed off?
Or did i missed anything important?

maybe they afraid 2nd generation home loan will drive the property price higher

the introductory of 2 generation loan is an indication that the property price is so high that an average malaysian cannot pay off their mortgage in their life time, therefore need to pass down to 2nd generation.

as far as i know, 2nd generation loan has been around for a long time. If not mistaken is by MBSB... however is not popular... coz i check the rate before. SiBe expensive compare to normal 30 years loan.

However because of recent property price appreciation, some banks think its a good opportunity to introduce 2nd generation loan as some claimed that price is too high....

Concerns:-
1) Drive property price higher :- Depends what rate they are offering, the last time i check with MBSB is not attrative at all. Thus will not attract much "speculator" to use it. Maybe more for those low income family.

2) Indication of property price too high :- Well possible, but seems like not just Malaysia problem. Almost everywhere in Asia Pac you heard of property price escalating. Perhaps it indicate our income too low (including me of course)

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Added on January 30, 2011, 1:19 pmIs there a limit to buy ASN? If not mistaken i was told there is some limit... unit trust and FD no limit of course

This post has been edited by novabankinghall: Jan 30 2011, 01:19 PM

Yes, it is another product, but seriously this is not something very encouraging and healthy one.
This is just like a modified subprime loan

It is just like you only paying credit card the minimum payment every month, and let the credit passed to second generation.

Just my personal view.

It could drive the properties price further higher only.
As previously not affordable people now becoming affordable due to 2 generation loan.

But if properties price goes reversed time, or interest rate become higher time, the 2x generation loan could induce another RE crisis and might as well threatening the financial system just like what had happened in 2008 financial crisis.
And how about no offspring?
Or the child refuse to pay the loan?
The whole financial system can be affected as well.

Seem like the lesson of 2008 crisis is totally forgotten.

1. I wont agree on such product being re-introduced in Malaysia again, Its a disease of taking loan-ask-someone-suck-it-up-for-you-
2. again, the Idea having it as mortgage til 2nd gens is pretty wrong if you got a high property price > small house > not going anywhere price > cramped > 8 people live in one house?
3. most land title`s given by council isnt a free title, most also under leasehold type.
4. alot issues with such stupid product to come up. The only way to deal with it is real estate recession, that will help to restore the right supply & demand.