Developer makes so much money… Is this true? Part 1.
Now, I don’t think it is entirely fair to say that developer are blood suckers. Despite, many will still disagree with me. They will still insist that developers make unreasonably high profit margin for the project they have built.
The government is going to give eligible mortgage applicant up to 40 years to repay back the loans, esp for affordable homes. Is this a sensible step forward? Or is it going to make those who canNOT buy a property worse still in paying through their nose? Just for the sake of clearing some stocks? Responses were mixed. I would think that it is not a bad idea. Another 5 years from the 35 years or until 70 years old is not a lot of difference (14.28% increase). So, those who buys property at 25 years old can service the loan until 65 years old. Or at age 30 to 70 years old. Quite reasonable, right?
The major issue is those who has to resort to such measure are really the group not able to pay due to low wages. You cannot make low wage worker (cleaner) earning RM2,000 a month to pay RM400,000 loan which is monthly RM1,561 at 40 years term! The other way around is make the property RM200,000 instead of RM400,000. That will be RM780, leaving RM1,200 for his other expenses. But, can developer come down to that price? This is the question of “developer makes so much money!” true or false?
We shall continue tomorrow.