property Tag

Posted On October 12, 2017By BlackbeardIn News

Here’s Why Malaysians Can’t Afford a House

Malaysia’s central bank has a response to those saying it needs to do more to spur home loans: houses simply aren’t affordable. Bank Negara Malaysia has created a website packed with data aimed at debunking the “myth” that access to financing was deterring home ownership, showing that loan approvals for key cities are near 70 percent or higher. The central bank has resisted calls to loosen mortgage lending, instead saying the property industry should boost efforts to cut costs and accelerate supply. Rising home prices have added to the grievancesRead More
Twenty years after the Asian financial crisis and a decade since the global credit crunch, the region is swimming in debt. The debt binge is spread across companies, banks, governments and households and is inflating bubbles in everything from the price of steel rebar in Shanghai to property prices in Sydney. As the Federal Reserve raises borrowing costs, that means debt is again a concern. Exposure to China’s slowdown, fluctuating commodity prices and currency volatility are just some of the risks. S&P Global Ratings estimates that of the almost $1 trillionRead More
KUALA LUMPUR (April 10): The property sector is envisaged to remain sluggish this year, checked by depressed consumer sentiment and selective lending by banks, said RAM Rating Services Bhd. As such, transaction volumes are likely to stay muted, it added. “Nonetheless, the availability of affordable housing has been gathering momentum. Depending on the speed of the roll-out of homes under the 1Malaysia People’s Housing Programme (PR1MA), RAM estimates that the new, more accessible end-financing scheme for PR1MA units could contribute about 1–2 percentage points to the banking system’s overall loan growthRead More

Posted On March 15, 2017By HoudiniIn News

Short-term money goes out of Malaysia

PETALING JAYA: Foreigners have sold RM21.71bil worth of government bonds in the last three months, reducing their share of holding in the debt papers to 28.7% as of end February from a peak of 34.7% last year. According to Bank Negara, 70% of the debt papers that were sold by foreigners have less than three years to mature and the bulk of them will expire in less than a year. bond“The selldown was largely due to the unwinding of the NDF (non-deliverable forwards) positions by non-resident financial institution investors,” saidRead More
SYDNEY nurse Damien Davis, 30, considers himself “really lucky.” In the city’s east, where he grew up and now rents, that equates to living in a tiny unit with four bedrooms, five people, one toilet and a cramped kitchen. They rent privately off an old lady for $900 a week, which they split up between them (“a score,” he says). It’s agitating at times, especially after a nightshift dealing with aggressive drunks and drug addicts, but he refuses to complain. “For me, I’ve been happy. The place has been greatRead More
Tenants in Canada and Spain devote a big chunk of pay to housing, too. The make-up of a country’s housing market is decided by a wide variety of factors, including history, culture, and financial regulation. In the Netherlands, for instance, roughly 30 percent of housing stock is owned by nonprofit cooperatives, while the hallmark of a U.S. home and the erstwhile American Dream is the 30-year mortgage. In countries such as Italy and Spain, it’s common for multiple generations to live in a family home. While the ways in which people lay claim to their abodes variesRead More
PETALING JAYA (March 8): The rejection rate for housing loans is as high as 60%, causing property sales to remain sluggish, says the Real Estate and Housing Developers’ Association (Rehda). “Banks and developers have different sets of statistics. From what we have heard, the rejection rate is as high as 60%,” said Rehda patron and past president Datuk Ng Seing Liong. Banks, however, have said housing loan applications have a success rate of 80%, noted Ng, adding this could be because banks filtered the housing loan seekers before even receivingRead More

Posted On March 3, 2017By HoudiniIn News

All that glitters is not gold at PR1MA

IF there is one thing the global financial crisis taught us, it is this: When you lend money to cash-strapped individuals, time bombs can and do explode. Another lesson? Property values do not rise year in, year out or as surely as night follows day. We wish that they did, but they do not. One more? Exotic financial engineering cannot mask a poorly devised plan, however far you push the consequences. Yet, these assumptions are exactly what policymakers have taken as a given with the introduction of the PR1MA MalaysiaRead More
A number of commercial projects around the nation resemble ghost towns, with swathes of vacant shop lots. Besides being an eyesore, they also serve as breeding grounds for mosquitoes and other unsavoury activities as well as reflect negatively on economic growth. MALACCA: Rapid development here has led to a glut of commercial units, particularly shop houses, which are mushrooming into swathes of vacant shoplots. A registered valuer, who declined to be named, said sluggish development of existing large scale projects in the heart of the Malacca city have thwarted theRead More

Posted On February 27, 2017By HoudiniIn Articles

Housing loans are not always productive debt

IT is better to invest in property than buy a car, which depreciates in value. One should also spend within one’s means. What’s often unsaid in these old adages is that one should only borrow what one can comfortably repay, even when it comes to “productive debt” for an appreciating asset. Defaults on housing loans, for instance, were the top cause of bankruptcies in Malaysia in 2012. The 5,341 cases made up 27.3% of the total of 19,575 bankruptcy cases that year, which means 15 people were going bankrupt everyRead More