My only concern hopefully MY dont built so many houses too fast at Iskandar less it will be over glutted.
-
IP addresses are NOT logged in this forum so there's no point asking. Please note that this forum is full of homophobes, racists, lunatics, schizophrenics & absolute nut jobs with a smattering of geniuses, Chinese chauvinists, Moderate Muslims and last but not least a couple of "know-it-alls" constantly sprouting their dubious wisdom. If you believe that content generated by unsavory characters might cause you offense PLEASE LEAVE NOW! Sammyboy Admin and Staff are not responsible for your hurt feelings should you choose to read any of the content here. The OTHER forum is HERE so please stop asking.
New developments to share
- Thread starter wuqi256
- Start date
My only concern hopefully MY dont built so many houses too fast at Iskandar less it will be over glutted.
Iskandar so big, three times the size of SIngapore, should not get overcrowded so soon.
PRs r coming to buy or rent in JB.
Thanks man. Gd to know how the various areas are doing in the secondary market. Unlike SG, there's an acute lack of info on resale prices! Am a bit surprised at the relatively low prices for Sutera Utama, given the high prices in the primary market. Maybe bcos the older Sutera Utama houses are smaller...
From the data, the resale price increase is actually strong in Q2 across southern Johor. It has to be supported by good demand.
It is fine. Next time if I sell my houses then I will just keep MYR in Malaysia bank accounts and retire there. No forex risks.
GST might be coming to Malaysia next year.
Malaysia may include sales tax in Oct budget to trim deficit-report
Published August 28, 2013
[KUALA LUMPUR] Malaysia's government may include a 4 per cent goods and services tax (GST) in its upcoming October budget to tackle a fiscal deficit that has widened to 14.9 billion ringgit (US$4.5 billion), a local newspaper said on Wednesday.
The Malaysian Reserve newspaper quoted the Finance Ministry's secretary general, Mohd Irwan Serigar Abdullah, saying several economic reforms to bolster the country's fiscal position were being discussed.
"I am not ruling out (GST), it is in the pipeline. But let us wait for the budget. It is a whole package for everybody," Mohd Irwan was quoted as saying.
He added that the fiscal policy committee is exploring several measures including rationalising subsidies and curbing government spending.
"These are some measures that are in the pipeline. The prime minister will announce them in the coming days or in the budget," he was quoted as saying.
The implementation of GST could help the country broaden its tax base and reduce the government's reliance on dividends from state oil company Petronas or Petroliam Nasional Bhd.
Malaysia runs relatively high government debt of 53 per cent of gross domestic product and one of Asia's highest household debt levels.
Ratings agency Fitch cut its outlook on Malaysia's A-minus sovereign debt to negative from stable in July, citing a lack of reform to tackle rising debt. - Reuters
http://www.businesstimes.com.sg/bre...s-tax-oct-budget-trim-deficit-report-20130828
Malaysia may include sales tax in Oct budget to trim deficit-report
Published August 28, 2013
[KUALA LUMPUR] Malaysia's government may include a 4 per cent goods and services tax (GST) in its upcoming October budget to tackle a fiscal deficit that has widened to 14.9 billion ringgit (US$4.5 billion), a local newspaper said on Wednesday.
The Malaysian Reserve newspaper quoted the Finance Ministry's secretary general, Mohd Irwan Serigar Abdullah, saying several economic reforms to bolster the country's fiscal position were being discussed.
"I am not ruling out (GST), it is in the pipeline. But let us wait for the budget. It is a whole package for everybody," Mohd Irwan was quoted as saying.
He added that the fiscal policy committee is exploring several measures including rationalising subsidies and curbing government spending.
"These are some measures that are in the pipeline. The prime minister will announce them in the coming days or in the budget," he was quoted as saying.
The implementation of GST could help the country broaden its tax base and reduce the government's reliance on dividends from state oil company Petronas or Petroliam Nasional Bhd.
Malaysia runs relatively high government debt of 53 per cent of gross domestic product and one of Asia's highest household debt levels.
Ratings agency Fitch cut its outlook on Malaysia's A-minus sovereign debt to negative from stable in July, citing a lack of reform to tackle rising debt. - Reuters
http://www.businesstimes.com.sg/bre...s-tax-oct-budget-trim-deficit-report-20130828
Increase in Real Estate Property Gain Tax is also announced to be in the pipeline. With the Syria war now looming, weak currency, taxes lagi...the going to be very tough.
If Ringgit continue to drop, for sure the interest rates is going to rise next year. lagi teruk.
Malaysia weighing hike in property gains tax to stabilise housing prices: report
Published August 27, 2013
[KUALA LUMPUR] Malaysia's government is exploring the possibility of hiking the real property gains tax (RGPT) to rein in rising housing prices and curb speculation in the market, state news agency Bernama reported on Tuesday.
Bernama quoted Housing Minister Abdul Rahman Dahlan as saying current property tax levels had failed to stabilise house prices with the house price index continuing to rise.
"As far as I'm concerned, we're studying the possibility and if it can cool down the market, it would be on the table," Mr Abdul Rahman was quoted as saying.
The minister declined to confirm to Bernama if the tax proposal would be included in the 2014 budget which will be unveiled in October.
Malaysia last raised the RGPT in 2012 to 15 per cent from 10 per cent for properties sold within two years of purchase.
It also raised RGTP to 10 per cent from 5 per cent for those sold between two and five years, which analysts had called "too feeble" to cool a jump in housing prices.
Mr Abdul Rahman said the housing price index recorded the highest increases in 2011 and 2012 over the past five years, especially in some states in peninsula Malaysia and in Sabah state in Borneo island.
Analysts have said another hike in RPGT could dent property counters from UEM Sunrise to Mah Sing Group, who are exposed to the high-end and luxury segments targeted by property speculators. - Reuters
http://www.businesstimes.com.sg/bre...s-tax-stabilise-housing-prices-report-2013082
Published August 27, 2013
[KUALA LUMPUR] Malaysia's government is exploring the possibility of hiking the real property gains tax (RGPT) to rein in rising housing prices and curb speculation in the market, state news agency Bernama reported on Tuesday.
Bernama quoted Housing Minister Abdul Rahman Dahlan as saying current property tax levels had failed to stabilise house prices with the house price index continuing to rise.
"As far as I'm concerned, we're studying the possibility and if it can cool down the market, it would be on the table," Mr Abdul Rahman was quoted as saying.
The minister declined to confirm to Bernama if the tax proposal would be included in the 2014 budget which will be unveiled in October.
Malaysia last raised the RGPT in 2012 to 15 per cent from 10 per cent for properties sold within two years of purchase.
It also raised RGTP to 10 per cent from 5 per cent for those sold between two and five years, which analysts had called "too feeble" to cool a jump in housing prices.
Mr Abdul Rahman said the housing price index recorded the highest increases in 2011 and 2012 over the past five years, especially in some states in peninsula Malaysia and in Sabah state in Borneo island.
Analysts have said another hike in RPGT could dent property counters from UEM Sunrise to Mah Sing Group, who are exposed to the high-end and luxury segments targeted by property speculators. - Reuters
http://www.businesstimes.com.sg/bre...s-tax-stabilise-housing-prices-report-2013082
i saw that report a while back ..so the data is probably not for this quarter.
Last edited:
This will slow down condo psf increase as there are many many speculators here.
Landed will also slow down. speculators there also.
It's probably none of my business but I just wanna share my story.
Had a beer with a few banker frens last week so decided to pick their brains for info.
Ever since the US Feds talked abt QE tightening, US and SG govt bond yields have gone up by 1%. What that means is that, in theory, ALL LOANS should go up by 1% NOW, ceteris paribus.
MY housing loans are quoted based on a floating rate less a discount; i.e. the discount is fixed but the overall interest rate FLOATS. current mortgage rates are abt 4.2% after discount but since many of us are on DIBS scheme, it doesn't affect us till completion, 3 years down the road; which could be 5% or 6% or even 7%. Don't tell me it's impossible to reach those heights. Let me assure you, it is very possible. Because in theory, current mortgage rates should already be 5.2% - in theory at least. Just a friendly reminder for fellow forummers to factor in possible interest rate hikes into their cash flow.
Another thing - this climbing interest rates and weakening MYR is worrisome. We should all fear it - especially those who bought off plans. Developers almost never fully self finance their projects. This is a finance issue - to increase their ROE/ROI. What this means is that they usually borrow from banks to buy the sand, cement, glass, steel, etc. So when their borrowing costs goes up, their overall costs goes up and this cost can be significant! I dunno abt MY financing regulations but in SG, developers can borrow up to 70% of the project! Also, the weakening MYR - some raw materials must be imported. MY doesn't produce everything. If the developer did not lock in the raw material costs before hand, this eats into their margin again. Even if they did lock in, their supplier may go bust and they still need to source for new suppliers. Buyers of cheaper projects and projects from weak developers have more to fear, because margins are thinner and financial strength (of the developer) is weaker. The subsidiary created to develop the respective project can always choose to go BUST when COSTS are greater than REVENUE. The parent company, in theory, is not liable for losses incurred by the subsidiary. I know there are housing laws that supposedly safeguard the interests of home buyers, but is it enforceable?
And this Indian Rupee fall - it could be a sign of potential disaster. Remember the Asian Financial Crisis began with a small Thailand. And with this QE pullback, emerging mkt currencies are all falling. The Rupiah, MYR, etc. Even the SGD has fallen against the USD and Euro even though it is a developed economy. I am NOT saying that a financial crisis will happen. I am saying that it may happen and in the event it happens, make sure you have made provisions. Having a good paying job is NOT making provisions because you can still be retrenched. Stocks while liquid, can fall in value too. Make sure you have some cash.
You have to make your own decision on how much cash you wanna hold and how much you wanna leverage. We are treading in very dangerous waters under very interesting and exciting circumstances. Personally, I will be deleveraging a little by 1Q2014. I have a child now. Some prudence is necessary.
OK! that's it from me. I have some time in the office today so I thought I would write something a little less notti. Have fun boys and gals!!!
Had a beer with a few banker frens last week so decided to pick their brains for info.
Ever since the US Feds talked abt QE tightening, US and SG govt bond yields have gone up by 1%. What that means is that, in theory, ALL LOANS should go up by 1% NOW, ceteris paribus.
MY housing loans are quoted based on a floating rate less a discount; i.e. the discount is fixed but the overall interest rate FLOATS. current mortgage rates are abt 4.2% after discount but since many of us are on DIBS scheme, it doesn't affect us till completion, 3 years down the road; which could be 5% or 6% or even 7%. Don't tell me it's impossible to reach those heights. Let me assure you, it is very possible. Because in theory, current mortgage rates should already be 5.2% - in theory at least. Just a friendly reminder for fellow forummers to factor in possible interest rate hikes into their cash flow.
Another thing - this climbing interest rates and weakening MYR is worrisome. We should all fear it - especially those who bought off plans. Developers almost never fully self finance their projects. This is a finance issue - to increase their ROE/ROI. What this means is that they usually borrow from banks to buy the sand, cement, glass, steel, etc. So when their borrowing costs goes up, their overall costs goes up and this cost can be significant! I dunno abt MY financing regulations but in SG, developers can borrow up to 70% of the project! Also, the weakening MYR - some raw materials must be imported. MY doesn't produce everything. If the developer did not lock in the raw material costs before hand, this eats into their margin again. Even if they did lock in, their supplier may go bust and they still need to source for new suppliers. Buyers of cheaper projects and projects from weak developers have more to fear, because margins are thinner and financial strength (of the developer) is weaker. The subsidiary created to develop the respective project can always choose to go BUST when COSTS are greater than REVENUE. The parent company, in theory, is not liable for losses incurred by the subsidiary. I know there are housing laws that supposedly safeguard the interests of home buyers, but is it enforceable?
And this Indian Rupee fall - it could be a sign of potential disaster. Remember the Asian Financial Crisis began with a small Thailand. And with this QE pullback, emerging mkt currencies are all falling. The Rupiah, MYR, etc. Even the SGD has fallen against the USD and Euro even though it is a developed economy. I am NOT saying that a financial crisis will happen. I am saying that it may happen and in the event it happens, make sure you have made provisions. Having a good paying job is NOT making provisions because you can still be retrenched. Stocks while liquid, can fall in value too. Make sure you have some cash.
You have to make your own decision on how much cash you wanna hold and how much you wanna leverage. We are treading in very dangerous waters under very interesting and exciting circumstances. Personally, I will be deleveraging a little by 1Q2014. I have a child now. Some prudence is necessary.
OK! that's it from me. I have some time in the office today so I thought I would write something a little less notti. Have fun boys and gals!!!
It's probably none of my business but I just wanna share my story.
Had a beer with a few banker frens last week so decided to pick their brains for info.
Ever since the US Feds talked abt QE tightening, US and SG govt bond yields have gone up by 1%. What that means is that, in theory, ALL LOANS should go up by 1% NOW, ceteris paribus.
MY housing loans are quoted based on a floating rate less a discount; i.e. the discount is fixed but the overall interest rate FLOATS. current mortgage rates are abt 4.2% after discount but since many of us are on DIBS scheme, it doesn't affect us till completion, 3 years down the road; which could be 5% or 6% or even 7%. Don't tell me it's impossible to reach those heights. Let me assure you, it is very possible. Because in theory, current mortgage rates should already be 5.2% - in theory at least. Just a friendly reminder for fellow forummers to factor in possible interest rate hikes into their cash flow.
Another thing - this climbing interest rates and weakening MYR is worrisome. We should all fear it - especially those who bought off plans. Developers almost never fully self finance their projects. This is a finance issue - to increase their ROE/ROI. What this means is that they usually borrow from banks to buy the sand, cement, glass, steel, etc. So when their borrowing costs goes up, their overall costs goes up and this cost can be significant! I dunno abt MY financing regulations but in SG, developers can borrow up to 70% of the project! Also, the weakening MYR - some raw materials must be imported. MY doesn't produce everything. If the developer did not lock in the raw material costs before hand, this eats into their margin again. Even if they did lock in, their supplier may go bust and they still need to source for new suppliers. Buyers of cheaper projects and projects from weak developers have more to fear, because margins are thinner and financial strength (of the developer) is weaker. The subsidiary created to develop the respective project can always choose to go BUST when COSTS are greater than REVENUE. The parent company, in theory, is not liable for losses incurred by the subsidiary. I know there are housing laws that supposedly safeguard the interests of home buyers, but is it enforceable?
And this Indian Rupee fall - it could be a sign of potential disaster. Remember the Asian Financial Crisis began with a small Thailand. And with this QE pullback, emerging mkt currencies are all falling. The Rupiah, MYR, etc. Even the SGD has fallen against the USD and Euro even though it is a developed economy. I am NOT saying that a financial crisis will happen. I am saying that it may happen and in the event it happens, make sure you have made provisions. Having a good paying job is NOT making provisions because you can still be retrenched. Stocks while liquid, can fall in value too. Make sure you have some cash.
You have to make your own decision on how much cash you wanna hold and how much you wanna leverage. We are treading in very dangerous waters under very interesting and exciting circumstances. Personally, I will be deleveraging a little by 1Q2014. I have a child now. Some prudence is necessary.
OK! that's it from me. I have some time in the office today so I thought I would write something a little less notti. Have fun boys and gals!!!
thks for the kind and well written reminder
thks for the kind and well written reminder
Old man here had gone through 6 recessions before in my lifetime. It may look all rosy with this DIBS but once the recession sets in next year which is very likely, many people are in trouble. Recession usually last 2 to 4 years. By that time the projects we all bought would had been completed. Rental will fall and servicing loans is tough. Banks might even recall loans. You get into a situation called "negative equity". Then you have this bankrupcy thingy hanging over your head.
Advice is cut loan exposure and repay as much as you possibly can. It would be advantegeous if you got a fully flexible loan. You just dump all you have into the loan and the excess payment can be withdrawn later if needed. If not, you do not need to service your loan until that excess runs out. Hopefully that would buy you the 4 years of slow growth. Another way is to save as much as you can. FD rates is sure to rise during recession as liquidity runs dry. I remember in the 1997 time, the FD rates from Maybank went up to 10% pa. That's my 2 sen worth.
Last edited:
This is one big worry for many of my friends too.
With the RM weakening so rapidly now, who knows what is going to happen in 2 to3 years time when some of the project starts construction
For most of the projects especially for high rise ones, construction can only commence after the piling completion.
What if the RM continues to weaken and in 2,3 years time when construction begin for some of the projects, the developers will be suffering a double whammy -
the sales value had devalued substantially while the raw material will cost more with the weaker RM and this can wipe out their profit margin or worse, run into deficit.
Thats why huge projects like the Country Garden where construction can only begin earliest about 2, 3 years later has this risk.
What if this scenario really happen, what remedial actions can the developers take in order not to fold up??
Johor's construction, retail and service industries seem to be able to weather any minor slowdown. In fact the talk is about labour shortage in Johor and Singapore at the moment. As long as jobs are available, I find it hard to believe recession is coming next year and will affect property prices. But you are right that we should cut our exposure to loan.
Last edited:
Similar threads
