Bro,

Can't you refinance now? Read your contract. You may have to pay penalty but do your P&L and Cash Flow. You might recover after 2 years.
The banks are offering BLR - 2.2% now.
It would not be that level for long, probably until end of this year.
I got a good deal. I refinanced at 3.88% first year and subsequent year of BLR -2.45%.
BLR is expected to increase to 7 or 8 percent apparently. Lets see what the Central Bank does!

so rich man got 2 cars & staying in flat??

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Added on August 4, 2008, 8:02 am
Can tell us which bank give free car? We all wanna join that bank Better if can get free petrol too

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Added on August 4, 2008, 8:10 am
Pai,

good comment but you are really in your own world

Just read the latest news in the star today

Malacca Building Contractors' Association chairman Liw Chong Liong said the current crisis was even worse than the last recession.
“Previously, we had recession. Now it's stagflation."

Read another news about car sales in the star

"THE motor vehicle sector is bracing for tougher times as demand for cars and commercial vehicles may falter on concerns over high inflation and weak economic growth."

Motor vehicle sales trend are monitored closely as a gauge for consumer spending.

RHB Research Institute, in an update on the motor sector last week, said consumers would likely hold back big-ticket purchases, including new cars, amid increased inflationary pressure.

A car is probably the second most expensive purchase for most households in the country after home mortgage.

The consumer sentiment index tracked by Malaysian Institute of Economic Research (MIER) plunged to an all-time low in the second quarter after the Government in early June raised petrol and diesel prices by 41% and 63% respectively.

Rising grocery bills and steeper petrol prices, coupled with weak stock market and stagnant wages, had, for most people, translate into lower disposable income.

If BLR goes up they still pay the installment as per letter offer.

Klang valley property price is dirt cheap compare to tier 1 cities in China today. Those so-so location, 1000sqft apartment is average about 2 mil RMB (Shanghai average 3.5 mil, Shenzhen 3 mil and beijing 2.8 mil) considering fresh graduate in China only get pay 3k RMB. Most China graduates can only afford to buy in kampong only even that will cost them 600k RMB.

If those purchasers come from wealthy or rich group, then we won't have the crisis as what happened on US.

So far, at least here, banks are not extending loan to so called "sub-prime" area.
Housing loan mostly still giving out based on 1/3 of loan takers income aka you still need some proven income before bank willing to give out loan.