tag:blogger.com,1999:blog-6297413898275266606.post5251491589588549749..comments2024-03-27T18:15:59.096+08:00Comments on Economics Malaysia: This Is NOT How To Finance Affordable Housinghishamhhttp://www.blogger.com/profile/06265308095732759923noreply@blogger.comBlogger14125tag:blogger.com,1999:blog-6297413898275266606.post-55281888069503559802016-09-26T09:28:05.755+08:002016-09-26T09:28:05.755+08:00@William
1. I don't agree with multi-generati...@William<br /><br />1. I don't agree with multi-generational loans because you are saddling children with debt for an asset that may or may not keep its value. It's one thing to save for the children, it is another to put them under an obligation they did not consent to. Moreover, Malaysians are having fewer children, and a significant number will never even marry (marriage rates are hishamhhttps://www.blogger.com/profile/06265308095732759923noreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-44111683233992385752016-09-21T16:42:07.585+08:002016-09-21T16:42:07.585+08:00#Hisham
Just read the BNM report regarding finance...#Hisham<br />Just read the BNM report regarding finance not a problem.<br />Extra cost is the cost of money and the individual himself evaluate whether it is worth stretching the tenure paying extra for the cost of funding. <br />The age of 25 as a start point is more of theory and not realistic because at that age, a career just started and very few exercise the saving discipline at that point Williamyapfchttps://www.blogger.com/profile/11234364610028370729noreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-15330852416331332842016-09-21T14:08:07.751+08:002016-09-21T14:08:07.751+08:00#Hisham
My comments are as a concerned citizen wit...#Hisham<br />My comments are as a concerned citizen without the actual economic knowledge to compare historical statistics of the past and neither am I involved in banking or housing.<br />It is commendable that BNM review the loan tenure. If you read into my thoughts, I raised the subject of joint application for eligibility in the form of husband and wife or direct blood ties. <br />The direct Williamyapfchttps://www.blogger.com/profile/11234364610028370729noreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-68674744189467433492016-09-21T09:26:14.675+08:002016-09-21T09:26:14.675+08:00@William
BNM issued a press release yesterday on ...@William<br /><br />BNM issued a press release yesterday on your idea of extending loan tenures:<br /><br />http://econsmalaysia.blogspot.my/2016/09/affordable-homes-finance-is-not-problem.html<br /><br />Basically, it doesn't really work. The difference I think is that because the loan tenure is so short for car loans, increasing it has a dramatically larger impact on monthly installments. hishamhhttps://www.blogger.com/profile/06265308095732759923noreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-31972280893992497612016-09-19T20:53:06.738+08:002016-09-19T20:53:06.738+08:00When the market demand was for under 200K dwelling...When the market demand was for under 200K dwelling, why were approvals given for projects consisting so many units above that value demand. Where did it go wrong? <br />Vehicle installment have repayment stretching many years making repayment easier. Likewise if housing also extend the stretched, repayment can be more affordable. <br />This doesn't mean individuals automatically qualify. Williamyapfchttps://www.blogger.com/profile/11234364610028370729noreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-44646844748317224402016-09-19T20:51:49.204+08:002016-09-19T20:51:49.204+08:00When the market demand was for under 200K dwelling...When the market demand was for under 200K dwelling, why were approvals given for projects consisting so many units above that value demand. Where did it go wrong? <br />Vehicle installment have repayment stretching many years making repayment easier. Likewise if housing also extend the stretched, repayment can be more affordable. <br />This doesn't mean individuals automatically qualify. Williamyapfchttps://www.blogger.com/profile/11234364610028370729noreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-44361188943218336172016-09-14T17:44:44.323+08:002016-09-14T17:44:44.323+08:00William,
I'm still having trouble seeing how ...William,<br /><br />I'm still having trouble seeing how your proposal will work.<br /><br />The issue at heart is that regardless of who provides the financing, the people being targeted simply can't afford that bridge finance (yes, I understand it's only the difference between the LTV provided by the bank and the house price). That's why the banks are only providing 80% LTV or hishamhhttps://www.blogger.com/profile/06265308095732759923noreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-38140521988160814602016-09-14T16:33:23.724+08:002016-09-14T16:33:23.724+08:00Proposing EPF as the conduit is for the sole purpo...Proposing EPF as the conduit is for the sole purpose of bridging the 20% downpayment gap not the entire loan. <br />Developers will be generous to accomodate the downpayment shortfall interest bearing gap. At 12-18% this won't pose a heavy burden since that portion could be deffered profits now bearing interest. Investment see returns.<br />Companies operating procedures differ and different Williamyapfchttps://www.blogger.com/profile/11234364610028370729noreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-71670941531631631922016-09-14T15:17:51.779+08:002016-09-14T15:17:51.779+08:00@Unknown
Absolutely. But given the dynamics I des...@Unknown<br /><br />Absolutely. But given the dynamics I described in the post, we can infer a few things:<br /><br />1. A developer loan will always charge a higher rate than the prevailing bank lending rate;<br /><br />2. At the very least, it would be at least equal to (but not less than) what banks would grant for unsecured personal loans, since developers would face a higher information hishamhhttps://www.blogger.com/profile/06265308095732759923noreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-25353847563959133082016-09-14T14:44:01.921+08:002016-09-14T14:44:01.921+08:00Capped at 12% means 0-12%, not 12-18%.Capped at 12% means 0-12%, not 12-18%.chinhttps://www.blogger.com/profile/11959658195383056566noreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-10038853578436481802016-09-14T09:55:21.009+08:002016-09-14T09:55:21.009+08:00@Williamyapfc
Your proposal is similar to what Si...@Williamyapfc<br /><br />Your proposal is similar to what Singapore's CPF does. I'm not keen on it because of the same issues it causes in Singapore - people could end up having their retirement savings trapped in housing equity and won't have sufficient funds to actually live on.hishamhhttps://www.blogger.com/profile/06265308095732759923noreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-86557961372346646512016-09-13T18:35:34.464+08:002016-09-13T18:35:34.464+08:00The minister wasn't thinkingThe minister wasn't thinkingAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-74727025820043300552016-09-13T13:55:51.294+08:002016-09-13T13:55:51.294+08:00What on earth is the Minister thinking?What on earth is the Minister thinking?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-37371009926980192632016-09-13T11:52:47.294+08:002016-09-13T11:52:47.294+08:00A tall order to service two loans on a piece of pr...A tall order to service two loans on a piece of property. <br />There's nothing to stop a developer and buyer from an agreement on the 20% difference in loan. <br />#12-18% on 20% additional financing, the amount on default accumulate at tremendous pace on compound interest. <br />The burden is on the shoulder of the buyer and instead of a nest may end up on the street.<br />Property price Williamyapfchttps://www.blogger.com/profile/11234364610028370729noreply@blogger.com