In my opinion,Bank Negara is wasting its time and effort in implementing this ruling as it does not help to COOL the local property market. In order to avoid a collapse of the property market, Bank Negara should imposed a loan to value ratio of 75% on the purchase of a SECOND property in which bank can only finance 75% OF THE VALUE OF THE PROPERTY FOR THOSE WHO BUY A second PROPERTY.
Thus,this ruling will not penalise the FIRST TIME BUYER and it will cool down the current hot property market to AVOID A SUB-PRIME in Malaysia.
I have a property developer friend who is selling 3 blocks of Studio Apartment totalling 1080 units of 650 sg ft for RM 360,000 each in Jln Kelang Lama.Even without Launching, SEMUA HABIS DI JUAL,all the 1080 units fully sold .
His marketing strategy is that the purchaser only pay RM 5000 on booking. On signing of the S & P agreement, the purchaser need not pay the 10% as required as he is given a 10% DISCOUNT and the balance 90% is finance by the bank and all the legal chargers,stamp duty and other expenses are covered by the developer. The purchaser will start paying the bank when he or she receive the keys to the apartment. The RM 5000 will be use to pay for utilities deposit like water and electricity.
All the purchaser needed is to come up with RM 5000 and this encourage a lot speculators for this property and when the apartment is completed,the value will go up and they will be a lot of speculators ready to SELL for a profit
They are a lot projects in the Klang Valley which is selling like hotcakes and this is due the speculators who are able to get cheap and easy financing from the banks.As the bank have a lot of liquidity,they just lend to cover their interest cost and if Bank Negara is not tough in using its monetary policy to control this HOT property market,Malaysia will face a sub prime mortgage problem like the US.
To all my loyal readers,if you want to purchase a property,make sure that you are investing or staying and NOT SPECULATING as I strongly belief that if things are to continue like this ,our property market will collapse in SEPTEMBER 2011.