Financial Talk

Properties, stocks and etc becomes more affordable with the current economic outlookwhich is far from rosy. Worldwide interest rates have been cut, for instance Malaysia with the overnight policy rate revised with the reduction of 150 basis point in just four months. Most banks offer base lending rate (BLR) at 5.55% now. Thus, it’s a good time to refinance.

Check out for the offers from various banks focusing on the interest rates, packages available, terms and conditions involved, and hidden charges. Given that most banks offer the almost similar interest rates, look out for their services whether it is customer friendly, their internet banking facilties, and any other added value services.

Zero moving cost could make you saving upfront fees such as stamping, legal and valuation fees and instead using it for home furnishing. But a word of caution, always look out for long term interest savings as the bank tends to charge you higher interest when they offer zero moving cost loans.

A fixed rate home loan suits customers who are less tolerant to interest rate fluctuation. Basically, these people wanted a fixed amount for the whole tenure to help them to plan for their finances better. These loaners will not benefit from the dips in BLR. Most people now actually prefer floating rate as they predict further drop in OPR. Even if it goes up, it will not be a drastic increment too.

Thumbs up for the flexibility offered by flexi loan that allows you to offset the interest rate when you have additional funds on hand. You can prepay an amount you want and withdraw any amount you have preaid. A true full flexi loan features a current account and works like the overdraft. The withdrawals can be made via cheques. The interest rate charges will only be based on the net outstanding fund. Flexibility always comes with a price. Some banks may quote higher interest rates for flexi loans.

House owners may sometimes find searching for suitable loans in town too hectic and time consuming. You may also find it hard to allocate time surveying espcially during office hour. No more worries as we are here to provide you with free mortgage services as we deliver the best loans from any banks to your door steps. Free consultation on various products offered by different banks, with time saved, you make better comparison with the best decission. We prepare, propose, discuss, and compare with you. Feel free to call for mortgage consultation.

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Property investment is no magic wonders, it is just inflation vs time. Be a contrarian by buying during a property market crisis and selling during the boom time.

• It is very important to purchase your property in the right location preferably near the direction of growth.
• With the strong Chinese belief, chose a location with good fengshui and neighbourhood.
• Rather than venturing into a completely alien market, the success factor will be higher if you buy in a familiar locality.
• Take up loans with the highest tenure in order to be able to diversify into other potential properties.
• Be sensitive to bargain buys especially those which were sold 20% below the market price. Take note on the Malaysia’s property market cycle of 13years.
• To avoid unnecessary complications, one should ensure the property can be easily financed and transferred.
• A successful property investor must have a holistic property investment plan for the children’s education, retirement and a balanced life.
• It is essential to have a personal strategic property investment plan that takes into consideration one’s age, current financial status, current stage of the property cycle, possible economic scenarios, viable investment strategies, and personal vision and goals for the development of one’s own 20-year property investment strategy plan.

With the gloomy economic outlook, more and more housing units were abandoned.    Would this affect potential buyers or due to the economy crash, will buyers grab the opppotunity to start their investment in properties?

With the claim that merely 2% of housing projects are abandoned, which means that for every 100 buyers, 2 are facing the devastating effect of the ghostly properties. A dream to enjoy your home sweet home somehow turns out to be a little bit bitter.

The cries of the properties owners..

1) The are inexperience developers who have failed to manage their construction and cash flow causing projects to be abandoned.

2) Even if your project has been completed as promised, the whole original concept and amenities that are vital for the success the project were not fulfilled.

3) Laws in Malaysia do not favour victims of stalled projects and investors might be fighting for years to revive their ghost town.

4) Contracts made between developers and house buyers do not involve the ministry. The ministry only play the role of a mediator  and their power are limiting regarding abandoned projects.

5) Even if u end up in an abandoned property, purchasers must make loan repayment to the bank with interest charged.

6) Social problems are common due to the lost in properties investment such as suicide, heart attacks,..

7) Distressed owners who are not fully advise by their lawyers may want to sue the development. Even if u have won in court, the developer may not have the money to pay you. You will also be subjected to legal fees which can be quite unreasonable.