Sunday, October 24, 2010

100% Loan - Episode 2


This is the update for earlier post on Loan of 100% of Property Value.

The PM has agreed to revise the household income to individual income, i.e. individual with income RM2,999 now can apply for 100% even his/her spouse has income. Better right?

The housing minister, YB Chor Chee Heung proposed the threshold for property value be increased from RM220,000 to RM350,000 (in line with the 50% stamp duty exemption). What a wonderful suggestion.

Click here for news in the Star on 24.10.2010.

Lets analyse the situation based on above installment table. How to apply for loan when your income is RM2,999.99 and property to buy is RM350,000?

It is impossible for someone with RM3k to buy at 100% a property value RM350,000 - After deduction of income tax, EPF and term loan, how can one survive in this a high living-cost country?

Will the increase in threshold to RM350,000 helps to push the property price up and form the bubble?