Lowyat.NET Forums

Welcome Guest ( Log In | Register )

LYN wins Intel-Lenovo-Tangs Blogathon challenge. Thank you everybody!
23 Pages < 1 2 3 4 > »  
RSS feedBump TopicReply to this topicStart new topicStart Poll

Outline · [ Standard ] · Linear+

> Is property going to drop?, General property price discussion (Financial)

ychwang
post Jul 16 2008, 01:13 AM
Show posts by this member only |This post's rating (0+, 0-) | Post #21


Super VIP
*******

Group: Senior Member
Posts: 4,148
Ratings earned: 0+, 0-
Ratings given: 0+, 0-

Joined: Jan 2003
From: Malaysia




QUOTE(johnsonm @ Jul 15 2008, 02:20 PM)
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?
*



another thing to point out.
although construction price increase 30%, the house wont increase 30% as well.
For a normal house, the true value is the location.. especially in penang.
So if u're buying 300k condo, most probably 200k goes to the location and the building material only cost 100k.
Even got increse also 100k X 30% instead of 300k X 30%
User is offlineProfile CardPM
Go to the top of the page
+Quote Post
kevyeoh
post Jul 16 2008, 08:59 AM
Show posts by this member only |This post's rating (0+, 0-) | Post #22


Regular
******

Group: Senior Member
Posts: 1,027
Ratings earned: 0+, 0-
Ratings given: 0+, 0-

Joined: Jan 2003





somehow i can't help but suspect that the developers are taking advantage of current situation to hike up their profit a bit as well instead of purely to cover the cost increase... wink.gif


QUOTE(johnsonm @ Jul 15 2008, 02:20 PM)
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?
*


User is offlineProfile CardPM
Go to the top of the page
+Quote Post
johnsonm
post Jul 16 2008, 09:16 AM
Show posts by this member only |This post's rating (0+, 0-) | Post #23


Getting Started
**

Group: Junior Member
Posts: 274
Ratings earned: 0+, 0-
Ratings given: 0+, 0-

Joined: Jan 2008




ychwang & kevyeoh, you are both absolutely right.

house prices should not increase in proportion to the building material price increase as then the price of the land is not factored in. however this seems to be the case now.

that is why i am not going to bother looking at any properties just yet. i have to wait and see how things pan out.
User is offlineProfile CardPM
Go to the top of the page
+Quote Post
Pai
post Jul 16 2008, 11:37 AM
Show posts by this member only |This post's rating (0+, 0-) | Post #24


~ The automatic milionaire ~
******

Group: Senior Member
Posts: 1,847
Ratings earned: 0+, 0-
Ratings given: 0+, 0-

Joined: Dec 2004
From: Hell






QUOTE(johnsonm @ Jul 16 2008, 09:16 AM)

house prices should not increase in proportion to the building material price increase as then the price of the land is not factored in. however this seems to be the case now.

*




I think land especially in prime areas are more expensive now compared to 6 months ago, hence the 30% increase. Im not saying its right but they r in the business of making $$$$$.



For the NATOers, good luck in securing any decent properties at todays price 5 years down the road. Your cash value today will worth a lot less than it is today.
User is online!Profile CardPM
Go to the top of the page
+Quote Post
johnsonm
post Jul 16 2008, 11:42 AM
Show posts by this member only |This post's rating (0+, 0-) | Post #25


Getting Started
**

Group: Junior Member
Posts: 274
Ratings earned: 0+, 0-
Ratings given: 0+, 0-

Joined: Jan 2008




another good point by Pai. for those of you who are holding on to lots of cash, perhaps it will be better to search for a cheap 2nd hand property. that cash you are holding on to might be better used as recycled paper soon.

as for me, i am waist-deep in property investments already, so i am trying to make sure i don't drown!

perhaps after US election i will start again.
User is offlineProfile CardPM
Go to the top of the page
+Quote Post
nonexno
post Jul 16 2008, 11:18 PM
Show posts by this member only |This post's rating (0+, 0-) | Post #26


Getting Started
**

Group: Junior Member
Posts: 230
Ratings earned: 0+, 0-
Ratings given: 0+, 0-

Joined: Mar 2008




QUOTE(georgechang79 @ Jul 14 2008, 10:16 PM)
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.


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.
*



Bro,

Can't you refinance now? Read your contract. You may have to pay penalty but do your P&L and Cash Flow. You might recover after 2 years.
The banks are offering BLR - 2.2% now.
It would not be that level for long, probably until end of this year.
I got a good deal. I refinanced at 3.88% first year and subsequent year of BLR -2.45%.
BLR is expected to increase to 7 or 8 percent apparently. Lets see what the Central Bank does!
User is offlineProfile CardPM
Go to the top of the page
+Quote Post
johnsonm
post Jul 17 2008, 10:09 AM
Show posts by this member only |This post's rating (0+, 0-) | Post #27


Getting Started
**

Group: Junior Member
Posts: 274
Ratings earned: 0+, 0-
Ratings given: 0+, 0-

Joined: Jan 2008




you can google some refinancing calculators, that will take everything into account such as current interest rate, penalty etc and tell you how much you can save/lose if you refinance.
User is offlineProfile CardPM
Go to the top of the page
+Quote Post
fraulein
post Jul 17 2008, 10:53 AM
Show posts by this member only |This post's rating (0+, 0-) | Post #28


Casual
***

Group: Junior Member
Posts: 465
Ratings earned: 0+, 0-
Ratings given: 0+, 0-

Joined: May 2005
From: PJ





Ooo.. then it's still an unsure whether property is going to drop or not in Malaysia, also depending on the location I'm trying to buy.

We are thinking of Setia Alam which is freehold but the current price is quite steep at minimum RM295K for 18X65 double storey terrace. Is Setia Alam considered as prime location?
User is offlineProfile CardPM
Go to the top of the page
+Quote Post
nonexno
post Jul 17 2008, 10:56 AM
Show posts by this member only |This post's rating (0+, 0-) | Post #29


Getting Started
**

Group: Junior Member
Posts: 230
Ratings earned: 0+, 0-
Ratings given: 0+, 0-

Joined: Mar 2008




QUOTE(fraulein @ Jul 17 2008, 10:53 AM)
Ooo.. then it's still an unsure whether property is going to drop or not in Malaysia, also depending on the location I'm trying to buy.

We are thinking of Setia Alam which is freehold but the current price is quite steep at minimum RM295K for 18X65 double storey terrace. Is Setia Alam considered as prime location?
*



Definately NOT.
User is offlineProfile CardPM
Go to the top of the page
+Quote Post
mIssfROGY
post Jul 17 2008, 02:40 PM
Show posts by this member only |This post's rating (0+, 0-) | Post #30


Regular
******

Group: Senior Member
Posts: 1,260
Ratings earned: 0+, 0-
Ratings given: 0+, 0-

Joined: May 2005





QUOTE(nonexno @ Jul 16 2008, 11:18 PM)
Bro,

Can't you refinance now? Read your contract. You may have to pay penalty but do your P&L and Cash Flow. You might recover after 2 years.
The banks are offering BLR - 2.2% now.
It would not be that level for long, probably until end of this year.
I got a good deal. I refinanced at 3.88% first year and subsequent year of BLR -2.45%.
BLR is expected to increase to 7 or 8 percent apparently. Lets see what the Central Bank does!
*



Since the person left 1 year, i dun think he shd opt for refinancing. I myself just refinanced my hse, the whole process took me around 6mths. So in the end, if he left only 1 year be4 he is off the penalty hook, its not so feasible for him to refiance.
User is online!Profile CardPM
Go to the top of the page
+Quote Post
fraulein
post Jul 17 2008, 03:20 PM
Show posts by this member only |This post's rating (0+, 0-) | Post #31


Casual
***

Group: Junior Member
Posts: 465
Ratings earned: 0+, 0-
Ratings given: 0+, 0-

Joined: May 2005
From: PJ





QUOTE(nonexno @ Jul 17 2008, 10:56 AM)
Definately NOT.
*



Means I can still afford to wait, right? and hope that it'll drop.
At the other hand, if it's increasing their price, may not increase by too much?
User is offlineProfile CardPM
Go to the top of the page
+Quote Post
gkl83
post Jul 17 2008, 08:04 PM
Show posts by this member only |This post's rating (0+, 0-) | Post #32


Protecting Your Life
*******

Group: Senior Member
Posts: 6,209
Ratings earned: 0+, 0-
Ratings given: 0+, 0-

Joined: Nov 2004
From: Shah Alam, Bandar Utama, Subang Jaya




QUOTE(fraulein @ Jul 17 2008, 10:53 AM)
Ooo.. then it's still an unsure whether property is going to drop or not in Malaysia, also depending on the location I'm trying to buy.

We are thinking of Setia Alam which is freehold but the current price is quite steep at minimum RM295K for 18X65 double storey terrace. Is Setia Alam considered as prime location?
*

QUOTE(fraulein @ Jul 17 2008, 03:20 PM)
Means I can still afford to wait, right? and hope that it'll drop.
At the other hand, if it's increasing their price, may not increase by too much?
*

RM295k for 18X65? sweat.gif
somemore need to pay toll everyday and no so convenient to go anywhere too... why dont spend the money for ur house installment rather than pay the toll for few decades? sweat.gif
but i think they just increase the price, they cant sell the house for now, may able to sell those house after some times...
i got a house beside KESAS highway worth RM308k 22X70 (quality so-so, but i love the house design), built up 2100 sq ft with 24hr gated&guarded and community society type, at least almost go to anywhere no need to worry about the toll fare and may hike again in future...
even new house at Bandar Puteri, Klang (IOI property) which beside KESAS also, worth RM270k for 22X75 with better quality...

This post has been edited by gkl83: Jul 17 2008, 08:23 PM
User is offlineProfile CardPM
Go to the top of the page
+Quote Post
rollinpark
post Jul 17 2008, 10:11 PM
Show posts by this member only |This post's rating (0+, 0-) | Post #33


Getting Started
**

Group: Junior Member
Posts: 131
Ratings earned: 0+, 0-
Ratings given: 0+, 0-

Joined: Nov 2005





QUOTE(Pai @ Jul 16 2008, 11:37 AM)
I think land especially in prime areas are more expensive now compared to 6 months ago, hence the 30% increase. Im not saying its right but they r in the business of making $$$$$.
For the NATOers, good luck in securing any decent properties at todays price 5 years down the road. Your cash value today will worth a lot less than it is today.
*



Your view really scared me. Now I under pressure to look for house. Was thinking to let the dust settles first before looking again. Everything uncertain now.
User is offlineProfile CardPM
Go to the top of the page
+Quote Post
cuebiz
post Jul 17 2008, 11:05 PM
Show posts by this member only |This post's rating (0+, 0-) | Post #34


On my way
****

Group: Senior Member
Posts: 600
Ratings earned: 0+, 0-
Ratings given: 0+, 0-

Joined: Aug 2006
From: Bolehland





QUOTE(rollinpark @ Jul 17 2008, 10:11 PM)
Your view really scared me. Now I under pressure to look for house. Was thinking to let the dust settles first before looking again. Everything uncertain now.
*



One thing certain is that price of new house going to increase. If next week BNM increase OPR, then BLR will increase and loan rate from bank wont be that cheap anymore.

Buying house for own stay is not waiting for the right timing. As long as you like the house and have the capability to service the loan, then go and buy it.
User is offlineProfile CardPM
Go to the top of the page
+Quote Post
Pai
post Jul 17 2008, 11:07 PM
Show posts by this member only |This post's rating (0+, 0-) | Post #35


~ The automatic milionaire ~
******

Group: Senior Member
Posts: 1,847
Ratings earned: 0+, 0-
Ratings given: 0+, 0-

Joined: Dec 2004
From: Hell






QUOTE(rollinpark @ Jul 17 2008, 10:11 PM)
Your view really scared me. Now I under pressure to look for house. Was thinking to let the dust settles first before looking again. Everything uncertain now.
*




Not scaring anyone lah, just merely stating facts tongue.gif

Dont buy a prop bcoz of peer presure, but buy bcoz its right for you. Right PRICE, right LOCATION, right TIMING. U'll be fine if u do just that.

Its not wrong to wait for the dust to settle, but expect to pay more when it does. Good luck wink.gif

User is online!Profile CardPM
Go to the top of the page
+Quote Post
tzeyin
post Jul 17 2008, 11:17 PM
Show posts by this member only |This post's rating (0+, 0-) | Post #36


Getting Started
**

Group: Junior Member
Posts: 90
Ratings earned: 0+, 0-
Ratings given: 0+, 0-

Joined: Jul 2007
From: I m here!!





QUOTE(nonexno @ Jul 17 2008, 12:18 AM)
Bro,

Can't you refinance now? Read your contract. You may have to pay penalty but do your P&L and Cash Flow. You might recover after 2 years.
The banks are offering BLR - 2.2% now.
It would not be that level for long, probably until end of this year.
I got a good deal. I refinanced at 3.88% first year and subsequent year of BLR -2.45%.
BLR is expected to increase to 7 or 8 percent apparently. Lets see what the Central Bank does!
*



which bank on earth offer BLR-2.45% ? from the 1st year %, it looks like Maybank...

is your property in REAL PRIME AREA? finance <80%?
User is offlineProfile CardPM
Go to the top of the page
+Quote Post
cody99
post Jul 17 2008, 11:19 PM
Show posts by this member only |This post's rating (0+, 0-) | Post #37


On my way
****

Group: Senior Member
Posts: 595
Ratings earned: 0+, 0-
Ratings given: 0+, 0-

Joined: Jan 2003




Waiting dust to settle?
Good, waiting people to go for desperate selling... hahaha
Nowadays many competition la, i guess. Maybe im wrong
User is offlineProfile CardPM
Go to the top of the page
+Quote Post
kevyeoh
post Jul 18 2008, 09:38 AM
Show posts by this member only |This post's rating (0+, 0-) | Post #38


Regular
******

Group: Senior Member
Posts: 1,027
Ratings earned: 0+, 0-
Ratings given: 0+, 0-

Joined: Jan 2003





dude...can you share which bank that offer you that nice rate?


QUOTE(nonexno @ Jul 16 2008, 11:18 PM)
Bro,

Can't you refinance now? Read your contract. You may have to pay penalty but do your P&L and Cash Flow. You might recover after 2 years.
The banks are offering BLR - 2.2% now.
It would not be that level for long, probably until end of this year.
I got a good deal. I refinanced at 3.88% first year and subsequent year of BLR -2.45%.
BLR is expected to increase to 7 or 8 percent apparently. Lets see what the Central Bank does!
*


User is offlineProfile CardPM
Go to the top of the page
+Quote Post
nonexno
post Jul 18 2008, 09:48 AM
Show posts by this member only |This post's rating (0+, 0-) | Post #39


Getting Started
**

Group: Junior Member
Posts: 230
Ratings earned: 0+, 0-
Ratings given: 0+, 0-

Joined: Mar 2008




QUOTE(tzeyin @ Jul 17 2008, 11:17 PM)
which bank on earth offer BLR-2.45% ? from the 1st year %, it looks like Maybank...

is your property in REAL PRIME AREA? finance <80%?
*



haha... it's a good deal. it's refinancing and about 50% left.
as for bank I can't tell u la
User is offlineProfile CardPM
Go to the top of the page
+Quote Post
Playbook
post Jul 18 2008, 02:34 PM
Show posts by this member only |This post's rating (0+, 0-) | Post #40


Getting Started
**

Group: Junior Member
Posts: 286
Ratings earned: 0+, 0-
Ratings given: 0+, 0-

Joined: Aug 2007
From: Kuala Lumpur, Malaysia






Going back to the original question asked by the Topic Starter,

(1) If a recession hits, yes, house prices will drop. This is an unalterable, unalienable fact. What happens (although it may seem pretty obvious), is that demand will dry up (or shrink from where it presently is). Regardless of whatever prices developers charge, the no. of potential buyers in the market will drop. Gosh, unsurprisingly, this has been the case in 100 out of 100 recessions globally around the world shocking.gif

People will generally conserve cash.

(2) If a recession doesn't hit, i.e. economic growth hums along albeit a bit slower, then, no, house prices will not drop, but will rather rise. In this case, our economy will very likely have cost-push inflation (as opposed to demand-pull inflation), and the prices will reflect increased costs of construction. Unlike a demand-pull inflation situation though, house prices will not skyrocket. An earlier poster hit the nail on the head when he/she identified the percentage of property cost that would be likely to be hit by the inflation factor. It's not like a demand-pull situation, when overall prices will zoom up.

Thus, you will just need to figure out if you think a recession will hit or not.

If you think there'll be a slowdown, either because of global contagion, or local issues (e.g. political issues), then hold on to your cash and wait to buy at the bottom of the market.

If you think we are a resilient economy, that we will stay the course because Asia is decoupled from the rest of the world, then proceed to invest.
User is offlineProfile CardPM
Go to the top of the page
+Quote Post

23 Pages < 1 2 3 4 > » 
Bump TopicReply to this topicTopic OptionsStart new topic
 



----debug section please ignore----
Lo-Fi Version Time is now: 23rd November 2009 - 07:43 PM
All Rights Reserved 2003-2009 Vijandren Ramadass (~living on a prayer~)