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.

In the context to this country, first they wanna rescue is the political party, forget abt bank, rakyat want ever. Political top reason for policy implementation. Just see how the screw our education system and our future generation. $%#!

Tat's why the gomen always missing the point one. Do they care abt globalization? Do they care abt country competitiveness? Only recently they woke up from their wet dream started talking abt it.

Someone in the forum keeps referring to US. Think missing the point all together. Yes, US sneeze the rest catching cold, we have been hearing the same over and over again.

Question:- Have we ever recovered from Asian financial crisis? After Asian crisis, dotcom burst, then SARS, then 911, then gulf/Afgan war, then oil crisis, then US crisis, then euro crisis, H1N1 ..... bad news aft bad news but life goes on. Unless you intend to go hiding under cocoon resulting unemployment rate shoot up to 10% watever. Property/stock still go up wat even during crisis after crisis! 

Have we ever experience property/stock boom in 2008? Apparently global and Asian market having good time prior to the Olympic? Malaysia market, gloomy and boring all the while.

Might turns out to be good thing if US slowing going down, more foreign funds shifted over to Asia, incl. Msia hopefully.

Election coming to town, die die they will keep stock and property up. 1Malaysia mah. Let's all give them Mother of 1Finger in return in the coming election.

my view on: 100% loan for below 220k properties - it is a policy that appears to be helping the lower income group but if we dig deeper, this doesn't do anything helpful

if a person is not able to save up a minimum 10% for the down payment, it is very obvious that the person is not financially ready to commit to a mortgage. gov is optimistically hoping that the person who bought a property at 100% would amazingly come out with extra RM600 - RM1000 for monthly installment. on the other hand, if a person who is able to generate extra income of RM600 - RM1000 at will (through MLM, freelance, etc) that person would not belong to income below RM3000 per month.

secondly, the biggest problem that the lower income group facing right now is NOT because they cannot come out with the 10% down payment. the problem is the affordable units are sold before they can take a move. a lot of insiders, group purchaser, through relationship, aunty uncle who are usually way richer than the lower income group have grabbed the affordable units before the lower income group can make a move.
i'm referring to new launches here, because for MOST people the first property that they want to buy, they do desire it to be a new one, rather than getting it from sub-sales.

if the gov insists this is a very helpful move, i can only see that it works in sub sales market which the first time home purchaser is very reluctant to go in.

Malaysia has never experienced a property market crash, even in 97/98. Putting all hopes on a market crash, as some forumers seem to be doing, might not be the best move 

30% is wrong figure already.

if a property that worth 100K, with now 70% means 70K loan can get. In order to get back 100K loan, jack up 30% is not enough.

30% = 130k x 70% = 91k, jack up not enough.

Must jack up >40%, or 43%.

100k x 143 % = 143K x 70% = 100K.

So let's jack up 43%.   

Don't be foolish, banker's valuer is not stupid...

You say jack up 40% then jack up 40%, then bankers are the one left with all default loans   

this time bank won't join the party anymore, let see developers can use their brain juice more on develop new trick