To curb speculative pricing of the property markets, the Government of Malaysia has capped loans for 3rd property to 70%. It looks like this has got little impact on property prices and in fact, it has remained speculative and in some cases continue to rise to unaffordable levels for many home purchasers. Does this mean, punters in Malaysia are really that cash rich that we can afford 30% downpayment every time we purchase?
Well, rumour has it that the government is going to get tougher on this. Apparently, a new policy will be revealed soon - there will be no loans for 4th properties onwards. Hopefully this will help to cool down the property market. But will it kill off property speculation? What about those Developer Interests Bearing Scheme (DIBS)? This means, punters with more than 3 properties won't be able to benefit from DIBS and as of now, punters buying their 3rd property and up only get to enjoy DIBS on 70% of the purchase which is the loan limit.
I've also learnt that the current 70% loan policy only applies for residential titled properties. So, commercial properties can be purchased with 80% loan. But this does not include commercial titled properties designated for residential such as serviced apartments i.e. if you are buying serviced apartments, you only get 70% loan.
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