Monday, November 15, 2010

The U.S. property crash – could it happen here?

Key reasons for US property crash:
  1. Low Interest Rate (Yes, BLR-2.3%, that is why Bank Negara increases BLR 3 times this year)
  2. High loan margin (Yes, 90%++, that is why Bank Negara impose 70% LTV for 3rd house purchase, but the guideline is not clearly defined as at today)
  3. Flexible mortgage (Yes, check Maybank offer)
  4. Questionable borrower (No, so far not yet)
  5. Current owners treating their houses as ATMs (automated teller machines) (No, not seen yet)
Yes, you have made a huge profit if you have property(s) in PJ or other hot areas since 3~5 years ago but it is still a paper profit until you sell it can get the cash (and laughing all the way to the bank), else, it is still a paper profit.

Further reading at source: The Star 8 Nov 2010, by Azizi Ali.

Azizi Ali runs property seminars in Malaysia. For more information on his upcoming seminars, call 03-7880 1051 or visit