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Prior to Budget 2014 (to be tabled next month), speculation has rift up on a few proposal to tighten the rules, especially on property sector. Following the outcry from public stating the alarming high property prices, measure should be taken to tackle the issue before bubble was formed. The Bubbling Biz... Among the measures being proposed were: Non-other than Real Property Gain Tax (RPGT) Higher Stamp Duty : ~ 5% of purchase price for 3rd property ~ 7.5% for 4th property ~ 10% for 5th property onward Loan-to-Value ratio reduce to 60% for 3rd property onward While the above info need to be ascertained further, some banks already implemented their in-house ruling. What's that? It was to limit the maximum term for refinancing of property to 10 years . Yes. Sooner or later, all of the banks will follow. * Please note that the above 3 rules need to be ascertained further. Stay tune!

Hot from oven. Bank Negara Malaysia (BNM) today announce some measures to address the alarming household debt among Malaysians. As reported, household debts have continued to increase at a strong pace, averaging at an annual rate of 12% over past 5 years. While this has been supported by positive income and employment conditions, in the more recent period, there has been a growing trend in the offering of financial products that are not in the long-term interest of consumers . What does this mean? This includes extended financing tenures of up to 45 years for house financing and 25 years for personal financing!!! Wow... Is it too long the tenure? While this may reduce the monthly repayments, in the long run, this increase the overall debt burden of households. If we don't stop this kind of practice, it will encourage excessive debt accumulation by households and increase the vulnerability of this sector. Hence, BNM has to take actions... The implementation of a set of measures ...

Everyone is buzzing about SRR lately, since Bank Negara Malaysia's statement which stated its intention to raise SRR in the near future. Actually, what is SRR? And, what is the effect of higher SRR imposed? Why BNM using SRR right now? Finance Malaysia hopes to clear everyone's doubt and would appreciate if you can share this out. What is SRR? Statury Reserve Requirement is a monetary policy instrument available to Bank Negara Malaysia (BNM) for the purposes of liquidity management. Effectively, banking institutions namely commercial banks, merchant/investment banks and Islamic banks are required to maintain balances in their Statutory Reserve Accounts (SRA) equivalent to a certain proportion of their eligible liabilities (EL), this proportion being the SRR rate. Why BNM uses the SRR as its "tool"? Since SRR is available to BNM to manage liquidity and hence credit creation in the banking system, it was used to withdraw or inject liquidity when the excess or lack of...

Once again, to address the affordability issues of properties, MyFirst Home Scheme (My1st) was launched by government on 8th March 2011. Thanks for addressing the problem faced by young Malaysians working adults. But, does it really worth to even think about the scheme? Of course, owning a house at young age is a good start to family planning. In fact, we're living in a society where buying a new house tights closely to starting a family. But, this is not necessary a MUST to everyone of us. We must do proper planning before committing for such a long-term loan with such huge amount. Buying a house is not buying an iPad or iPhone. Only apartments are likely with less than RM220,000 price tags in Klang Valley now Highlights of My First Home Scheme... For those earning less than RM3,000 monthly Working in private sector Confirmed employees with a minimum of 6 months in the job Joint applications are allowed (both in private sector and are family members) 100% loan financing for f...

By Finance Malaysia, Driven by better economy prospects, Malaysia successfully escape recession two years ago, particularly March 2009. Strong GDP growth and numerous government's initiatives is the main reason why local market experiencing a spectacular run-up since then. Today, our KLCI break another record high , by closing at 1551.89 points. So, what is the outlook for Malaysia in 2011? Maybank expects KLCI will hit 1,700 mark in 201 1 KLCI The Malaysia Index will continue to perform in line with the overall economy. More IPO will be issue. More merger & acquisitions activities will be seen. KLCI will be driven by the following factors:- Improving sentiment Follow through momentum from all time high Hot capital inflows Improving liquidity Boost by plantation and oil & gas heavyweights, such as IOI, Sime and PetroChem Preferred sector(s)... Finance sector will continue to do well in line with the economy 2011 will be a "Grammy Awards" show for construction ...

In Malaysia, property investment is gaining momentum since last year. And, the property sector seems unstoppable with record breaking sales. New launches are fully taken up within few hours. Speculators are becoming greedier than ever. Calming down, figuring out, is it so attractive after all? Let's have a look at the 3 big wrong perceptions … Wrong perception #1:  Malaysia's properties still attractive? No doubt, many analysts and researchers comment that the local market price is still low if comparing to regional markets, such as Singapore and Hong Kong. This was wrong because we cannot simply compare with islands, where land is limited . We cannot simply compare with China, where billions of people chasing for limited supply of houses. Wrong perception #2:  KL Developers are going high-end? Yup… KL developers are focusing at launching those high-end residential units. But, do not come into conclusion just that. First, we must look into the locations of these new launche...

On 3rd November 2010, Bank Negara Malaysia wishes to announce with immediate effect the implementation of a maximum loan-to-value (LTV) ratio of 70% , which will be applicable to the 3rd house financing facility onwards taken out by a borrower. Financing facilities for purchase of the 1st and 2nd homes are not affected and borrowers will continue to be able to obtain financing for these purchases at the present prevailing LTV level applied by individual banks based on their internal credit policies. Why? The measure aims to support a stable and sustainable property market, and promote the continued affordability of homes for the general public.  At the national level, residential property prices have increased steadily in tandem with economic development and the rise in income levels.  This aggregate growth trend remains largely manageable and has not deviated from the long term trend in residential property prices.  In the more recent period, ...