I do not subscribe to the view that the banks are the problem to the current number of unsold properties in the market. Many are saying that the reason is because the banks are not lending enough for property purchase. I think it’s best that potential buyers decide that they should buy something more fitting to their budget instead of thinking of the ‘perfect’ property which is actually just perfect for these few years. Once he has a higher salary, his perfect home requirement will change. Buy, stay and upgrade is way better than buy high, stay poor and could not upgrade later. As for the view that banks are not lending, here’s the proof they are. Plus the fact that the banks are doing fine too.
Article in nst.com.my here. AMMB Holdings Bhd (Ambank Group) saw its highest ever profit jump in four years to RM1.5 billion for the financial year ended March 31 2019 (FY19). This is an increase of 33 percent compared to the year before. AmBank Group chief executive officer Datuk Sulaiman Mohd Tahir said, “Our commendable results of RM1.5 billion net profit, on the back of a 33 per cent jump, demonstrates that our transformation strategy is bearing fruit and generating value for the group, as we continue to execute our priorities despite heightened competition and headwinds.” He was speaking about AmBank’s Top 4 Strategy where AmBank becomes a top four bank within the mass affluent, affluent, small and medium enterprises (SMEs), and mid corporate segments by 2020. For FY2020, the group is targeting a loan growth of 4.6 per cent in tandem with the country’s gross domestic product (GDP) growth of between 4.5 to 4.7 per cent. Article in nst.com.my here.
By the way, when one over-stretches financially in order to buy that property, the banks may not be willing to take the same level of risk and will thus reject the loan application. I think Ambank will do the same too. Yeah, I do know that if the banks did not lend to deserving Malaysians, they could complain to the Finance Ministry too. (earlier article here) Stop thinking that loan rejections are the main reason for unsold properties. Look outside the usual (for more choices) and look inside (whether we overspent…) and once we have done looking outside and inside, chances are that property purchase will be coming true soon enough.
Article written and edited by Charles. News article summarised by Dina Batrisyia.
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