Hi,

I'm planning to buy a house this year, but some of my friends actually suggested that I wait as there might be recession and property price might drop. Is this true? Cause I wonder since everything's price are going up.. how is property going to drop?

BTW, this will be my first time buying a house. I don't understand the loan like Base Lendind Rate % +/- bla bla how many percent. Anyone can guide me?

Thanks .

if you dont understand any of these, its best you get a financial consultant to advise you.

blr = interest is flexible and set by Bank Negara

fixed rate = just like car loan. fixed!

FOr newbies, this is a good place to start :

http://realestate.net.my/forum

For the slightly advance one...

http://www.myrealestate.com.my


enjoy and good luck

what kind of house are u buying?


i have info that the newly developed houses price will increase by 30% next year to make up for this year's hike in steel and cement. it's a different story if you buy a second house somewhere else though ...


also, kopitiam talk is that the price of houses will increase, and then demand will drop, thereby causing the prices of houses to drop along with it... but that is only conjecture. i don't believe property in good areas will decrease in sales price.

All The Construction Materials Cost Increasing...

New House Will Be More Expensive..

Actually Now Is The Good Time To Buy..
Coz Developer Knew All The Meterials Price Increasing.. They Try To Build More Building To Gain More Margin Right Now..

Property price is likely to drop due to the following reason:
1) Over supply vs demand
2) Increase of petrol, food, and necessity item... thus squeezing people's expenditure to consider buying property
3) Increase in construction item, thus increase people's doubt whether the property company can finish the project on time or abandoned it
4) Political instability causing foreign people to consider buy property for the fear whether Malaysia is the right 2nd home to stay
5) Property price in good area will remain stagnant because there are some demand for it. But non-popular area would be hit with low demand.

I THINK new housing would most likely to be more expensive than usual due to rising cost in raw material and those older houses might drop due to economic crunch..still, depends on location tho.

ughh...Malaysian properties are so overpriced, I would better off buy a land and build my own from scratch.

There's no knowing when is right time to buy or sell. But looking at how properties have been on the rise for so long, soon enough it will stabilise or drop. Question is when.

If you are in no hurry, then save up first

It is advisable to buy now for completed projects as the price is not affected by the increase of building materials.

It is not advisable to buy on going projects as the price may be adjusted in view of rising cost. There might be abandoned/stalled projects if the developer is not making profit or even making loss.

House prices are increasing up to 30% and it is true but when there is over supply and demand is low, the price will go down. However, popular locations or locations near to public transport amenities will not be affected.

I personally think now is the best time to buy/sell houses. At least you are aware of the situation now. Nobody can predict what happens next and it also depends on how government can help to ease the burden of its people.

All the best to you

This post has been edited by agape_ian: Jul 14 2008, 11:39 AM

Malaysian property prices in general will fall, when developers and owners can no longer withstand the cost of servicing the mortgage. Futhermore, rental profits are generally falling, due to higher cost, which would further affect home owners . Out of desperation, a lot of home owners will sell. However when the prices will start falling no one knows. Some owners do have deep pockets which explains why PRIME locations value would hold better than non PRIME.

What is very attractive in the market now, is the mortgage rate. It's extremely cheap. At 4.75% you save hell of alot.

Well good luck to you buddy.

Nobody can 100% sure price will go down soon, but I have bad feeling our economy will doom. If you have enough saving to cover, it doesn't matter property price will goes down or not. At the long run (10-20 years), property price should goes up especially freehold landed.

Our stock market is still in the drain due to political reasons as well as US economy.

This is good since it means that housing prices will go up for at least until year end. Then it is projected to go down because of our high cost raw material such as steel, cement, sand and wood and weaker demand due to high property prices.

Those that can afford to buy property could do so now since the BLR rate is rumored to be increasing in August from 6.75 to 7.75%. This will seriously since you could be paying alot extra in interest to the bank.

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Added on July 14, 2008, 10:20 pm

The mortgage rate is low depends on the bank. As for me, i signed my agreement with RHB bank about 4 yrs back with 6.25 +1.9 interest which adds up to 8.15% which darn expensive compared to now. I still need to bear for another year before the 5 year bond clause expires so i can seek refinance with another bank hopefully at 4.75 interest.

This post has been edited by georgechang79: Jul 14 2008, 10:20 PM

Nobody is sure whether the price will drop or not
Will be happy if the price drop as we will get a chance to buy better properties at a cheaper price

This post has been edited by muscaa: Jul 14 2008, 10:51 PM

it might drop but over the long run...i think prices of landed property should at least remain the same and not drop...if it does not go up...

remember... location is the key word... buy a property at a good location...should be good enough to counter the price drop if it ever happens... even if it drops..it won't drop as much as those property at not so good location....

in good and established locations (eg. Bangsar, Taman Tun, Damansara Heights, Kenny Hills), don;t expect the prices to fall by much. At worse, it will just be flat...

prime location most likely to rise or at least remain..

those kampong or other than prime place will be competitive in term of everything..rental to value

Do people make land? No right? So anything time is a good time when you have holding power and it will appreaciate as long as population grow. Even a leasehold property has value because period ended does not mean you will lose the house. It's just you have to renew the title. Cause most of the houses after 99 years, im sure you want to tear it down and rebuild. Like SS2 house, after 20 years people are tearing it down and rebuild.

This post has been edited by yeehs18: Jul 15 2008, 02:08 PM

Price already increase lor...a build n sell property at cheras by ijm, previously ask on March, the price around 130k when launch, but now..said 160k when launch..so od up by around 23%

all developers have increased their prices by 20 - 30%. reason being, their cost has increased. if they don't increase their prices, they are building houses for free. but whether the average malaysian can afford these houses is a different matter.

for example, if A buys a house from the developer at the increased price, and later on has to sell it because of high interest rates, can he find a buyer at the same price?

SS2 houses are FREEHOLD. Price still very high despite the age of the house in that area.