Saturday, February 28, 2009

auction property?

bank negara had just announced another drop is the base lending rate. i am not a economist, i simply take the news as 'banks lowering interest rates'.

as a saver or a investor, the person will complain. now the fixed deposit rate has gown down to 2.5% p.a. which is very bad. and during such time, who dares to invest in the share market? considering prices of shares are way too erratic. some owners may even take their company private. some may close down like those in the united states.

for those who borrow to buy properties, i am so happy for them. the BLR has decreased from 6.74% to 5.55% now. this make a huge difference in their home loan repayment. borrowers can either shorten their loan term by continue paying the previous monthly repayment amount or maintain the repayment term but reduce the repayment amount monthly. if there is no change in income, i strongly advise to reduce the repayment term.

there are some who sees opportunity in this down time, fishing for property in auctions. so sad to hear that so many have lost their jobs and had to give up their homes. first i had a colleague who keep a look out for shop lots and another friend, looking for apartment. being curious i keep a lookout too. funny thing is, only 'news straits times' had such ads on auction properties. my usual paper, 'the star' does not have much ads.

just a few days ago, i saw one double storey terrace in seremban 3, selling for rm130k. it's way below the market price. and i saw an apartment in kelana jaya selling for 150k. both are simply 20%-30% below market value. slurps!!!!

1 comment:

Eileen Yong said...

sounds tempting! but then again, the fear of being jobless is enuf to turn you away from purchasing anything ... let's hope things will improve soon or we'll be the first to be out of job >.<

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