QUOTE(klfong @ Sep 24 2009, 11:48 AM)
What if... it depreciates to 100K? Then now cash seems to be a better investment. Supply and demand is a very complex thing, keeping real estate as an investment will finally end up with a crash. When everyone keeps an additional house and wants to sell it when they retire, suddenly there is a slew of supply, then no buyers (assumption: population does not grow by 2x 20 yrs later), the price is going to crash.
EDIT: I do not know the current status of real estate market of Malaysia, nor I have the price index, but anyway, there is no investment with guaranteed return, must understand what you want to invest thoroughly.
Simple facts
:
1. Show me a decent place that has depreciated by 100k in the past few years apart from Bukit Antarabangsa and Lembah Beringin? Pls exclude unsafe properties.
2. Majority of population cant afford to buy a property in decent areas, but they can afford to rent.
Malaysia real estate market is not known for its speculative nature. Prices has been on the up albeit on a much slower pace VS say SG. In the past 4 years, I've yet to see even one new development that is selling below its developer's price, let alone 100k below.
Added on September 24, 2009, 4:53 pmQUOTE(cherroy @ Sep 24 2009, 03:13 PM)
b) Not necessary across. Some areas which has passed its prime time, may not find buyer even lower 10-20% which you see lot of shoplots being abandoned one. This particular true on shop lots and those shopping mall that in non-strategic area one. The statement mostly true on residential properties generally which is not hard to find buyer, but for commercial real estate different story.
c) I would say we shouldn't be too complacency on the refinancing side, even though generally there is not much difficulty. As when there is real issue or crisis unfold in financial sector, banks can reluctantly to lend at all which clearly been shown in recent US financial crisis. Also over last decade, most people never experience the high interest environment, so refinancing can be costly as well. Although it is not the case for near term future. Just we cannot take for granted, refinancing will be easy and cheap to getÂ
b. Agree with ya hence for this purpose I only advocate residentials. Maybe for this purpose one should not go for anything less than a completed highrise, with stable rentals.
c. My personal take on refinancing is that it will only get easier in the future, assuming a person maintains a decent credit standing. It will not be to difficult for TS to get cash out of his/her properties 20 years from now.
Added on September 24, 2009, 5:02 pmAnyhow, Im not saying properties is the bestest option for TS. However, properties offer TS the flexibility to use OPM to generate his education fund, unlike general savings, equities, UT, gold & silver etc whereby his has to come out with his own funds.
There a reason why banks allows so much leverage for properties, but not for any other *investments.
*at least for the average joes, its diff if u r a private banking customer
This post has been edited by Pai: Sep 24 2009, 05:03 PM 
Sep 24 2009, 11:39 AM
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