Thursday, November 4, 2010
70% Loan-to-Value Ratio for 3rd house onwards
An update following my previous post 80% LVR?
It has finally happened overnight. BNM announced quietly, with immediate effect, a 70% LVR for the 3rd property onwards. See Support for BNM's LVR cap move.
As I have mentioned, this will result in much difficulty for small time property investors like us. However, Renesial Leong, the property guru, had mentioned that we can look at 2 bright points:
1. Property prices may stabilize for a while, or even drop because of urgent sales by investors who want to get rid of their property quickly since it is unlikely to appreciate in the longer term.
2. People who are speculators without sound backing may be out of the game for awhile, resulting in less competition.
So, fellow investors, collect your seed money and be patient, we are investors of the long term and we will be in this game, until the next policy change!