THE rising property market in Penang is due to the current demands for properties with facilities and amenities.

Penang Master Builders and Building Materials Dealers Association executive advisor Datuk Finn Choong said because of the current level of expectations among buyers, the prices of properties were now trending upwards.

“As customers want more facilities such as lift three-storey bungalows, builders and developers will have to comply with the trend.

“Nowadays, developers do not offer ‘bare units’ to the customers but properties that come with additional facilities and amenities which cater to the current market,” he said.

It is also vital to eliminate outstanding debts to improve one’s credit rating, said mortgage expert Michael Yeoh.

He said as banks scrutinise clients’ repayment records in deciding on credit approval, a good rating could be priceless.

“If one bank rejects your loan application, do not panic or immediately apply at another bank. Get to know your debt-to-income ratio first. Then you can improve your credit rating,” he said.

He also cautioned against needless credit card spending.

He pointed to studies that show Malaysian lenders in particular, often repay just the 5% minimum each month.

“Using RM10,000 as an example, they will need seven years to repay it, and end up spending RM4,500 on interest alone.

“Don’t ever be a guarantor for someone else’s loan, because if they default, you will be blacklisted, spoiling whatever financial plans you have,” he said during the talk, “8 Mistakes Loan Borrowers Frequently Make”.

The talks at the fair are sponsored by Hong Leong Bank.

Source: The Star