Some of my friends are advising against buying house now citing reasons that interest rate will go up and house prices will drop, is this true? would it be better to buy house later say 3-5 months down the road rather than now?

As i know...the price for house, keep increase

in jan 2009 low, people say dont buy wait drop somemore, economy bad..
price go up until today

Property price will never come down until next major economy meltdown like 97 crisis. We are recovering from subprime crisis so next cycle of crisis probably will not hit us soon. It takes time to build another bubble to burst.

Inflation is kicking in at a faster pace than ever, our currency is also loosing value at a faster pace than ever. So expect it to rise, but whether it is rising at today's pace is a different discussion.

Buying today and 3 months or 3 years later is not an issue if you are buying for own stay. If you are buying for investment then there are many other things you have to consider.

my 2 cents worth of view.

there are many factors other than interest rates; i bought at a low interest rate, but i have not yet pay my first loan amount, the interest rate has start rising....interest rate is one of the factors that is unpredictable; no one knows....so, don't make it as a factor; instead, get a good loan package....

agree...the next turmoil would probably happen in 2019..so beware...by that time, make sure u are not caught!

I would think the next turmoil would be far closer. The next general election will probably be a very unstable period for Malaysia I suspect. What do the others here think?

If you are buying for your own stay then the earlier you buy the better.

offtopic a bit: talks going on that the next general election will be before GST is implemented (of course, why would they hold a general election after GST is introduced? that would be suicide...)...

back to topic: if the interest rate is going high, its even better to get a loan now than later, isn't it? because at least, you could have catch some payments while the interest is still lower...for the house prices, they keep on increasing, so that doesn't matter anyhow...

but yeah, get a good loan package..don't just look at the interest rate...

i'm also like leongal..haven't start servicing loan yet, but interest already increasing..but, looking at the house prices today, i'm damn glad that i bought the house earlier...

The BLR is increasing due to better economy outlook. So its better to buy now rather than later... i bought mine 2 yrs ago... and the property price just keep increasing despite economy went down... event are hard to time... I will start to service the loan next mth... those who haven't bought yet should look for good package such as no interest during construction period...yes... there are hard to find.

when times bad, property price didn't come down,either maintain or goes up, now with better economy outlook, property price sure going higher, those buyer waiting for house prices to come down will be forever waiting. Now with increase in interest rate, they will end up paying more.

the only way for property price to come down is to increase the interest rate more. due most people have depleted their savings in the bank by investing in alot of things/properties. with the interest rate up higher alot of people will serve the interest up to their neck bcos majority is taking 80-90% loan and also can afford the loan later on.

bank will be the gainer, the more people getting loan, the richer the bank is. waiting for the bank quota to reach and then blr increase higher and higher interest rate bcos people have fall into the trap/tie down by the huge loan.

majority of the property buyer is either ahlong/money lender( turning $$ money laudering / flip flop) by paying 10% and few year no need to serve to loan. later tell agent to sell for them

or big boss buying at a high price is abit risky bcos expecting normal double storey Rm500-700k) to hit the price of millions in 5 to 10 years time for just a double storey house. just like HongKong property crash

Even can afford to buy , is only a empty house and need to renovate and put in alot of things in order to stay. alot of hidden cost. $$ is tie down. Why would people want to carry/serve loan/ tie down by the expensive house? Work daily like a dog for it. what if suddenly no job/sack/ alot of hidden commitment pops up. Percentage of Property appreciate will be low/min due to purchase at a high price.

property price higher due price of property gain tax 5%/ agent fees 2-3%/other hidden fees/lawyer fees/ stamp duty +- etc incurred into the price already by the seller or unless pay a certain amount of cash undertable(negotiable price) and declare less for tax purpose.

money lender/money laundering is now into second used car/ buying property (buy a few units to flip flop)/opening wedding business, computer business etc. pumping a few million into the business and selling just a few ringgit higher to turn back the $$ (turn from black to white $$)

eg. register a new company and buy few million computers/accessories and sell it just a few ringgit higher or at cost, will eventually turn back the $$ with some gain. others competitor will eventually close shop. Large volume have bigger discount rate, and the small timer is no way to match the price

buying a new property just pay 10% deposit and wait for few year to start serve the loan property and at the mean time can sell at a higher price. gamble abit. but not second hand property bcos have to serve loan once the buyer buys it and get loan

salary wise is not in tandem with the higher inflation rate/ property price. rental wise is totally out for such a property high price. JUST like gambling/investing in share market by buying at high price.

if cannot sell in time to come have to continue to serve high interest rate and maintain the property. Nothing in the world that goes up but never come down. everything have to come full circle in time to come. sooner or later in time to come

This post has been edited by lowyat888: Mar 11 2010, 02:44 PM

Recently there is an agent email me on the new launching unit , she will be getting latest price and reservation priority. Deposit/booking fees is only less than RM10k.

How can i make money by selling higher?

will anyone wait another 30 years to buy a property for own stay?

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Added on March 11, 2010, 6:40 pmnew launching if got good prospect, booked 1 unit, wait til all unit sold off, buyer will offer if they r sell like hot cakes, otherwise be prepare to get burn if you get stuck.

This post has been edited by Tohsan: Mar 11 2010, 06:40 PM

You can sell provided:

1. the project us hot and quickly sold off
2. the developer must consent to changing name on your booking receipt

Steel prices likely to rise further


PETALING JAYA: Steel prices are expected to jump a further 15% to 20% after the Chinese New Year as governments in East Asia restart spending on major infrastructure-related projects and restocking activities increase, said Malaysia Steel Works (KL) Bhd (Masteel) managing director Datuk Seri Tai Hean Leng.

The current steel bar price in the domestic market is about RM2,000 (US$585) per tonne while the international market price is about US$565.

He said the steel industry was heading for a recovery with an average capacity utilisation of about 70% to 75% due to an improvement in steel demand from East Asia.

The higher cost of raw materials like iron ore and scrap metal, given the extreme cold winter, could also result in steel prices rising in the coming months.

“Many industry players are expecting an increase in restocking activities as consumers (steel buyers) prepare for strong construction demand by end-February,” Tai told StarBiz.


Malaysia, Indonesia, the Philippines, Singapore and Thailand are expected to spend a total of about RM102bil on infrastructure projects, financed by their economic stimulus packages.

He also expects locally-made steel billets to command higher prices in the regional markets as the local products were of a higher grade compared with those from China.

“The Middle East, Australia, Pakistan and Bangladesh will also be favourable export markets for local billets, should these economies continue to improve,” he said.

According to Tai, Masteel was looking forward to boosting the sale of its premium steel products which conform to the Australian and New Zealand standards.

The company recently secured a two-year contract worth RM120mil to export steel bars to major cities in Australia. It has been exporting to New Zealand since October last year.

Tai said Masteel was targeting to produce 500,000 tonnes of steel billets and 280,000 tonnes of steel bars by the year-end. Currently it produces about 450,000 tonnes of billets and about 230,000 tonnes of steel bars.

“Works are in progress to further boost our billets and steel bars capacity to 550,000 tonnes and 300,000 tonnes by the middle of next year,” he said, adding that this was to cater to the expected higher demand arising from projects earmarked by the government stimulus packages.

The infrastructure expenditure in Malaysia include the Light Rail Transit extension, Gemas-Johor Baru electrified double-tracking, the low-cost carrier terminal, the upgrading of roads, bridges and community halls in rural areas, the upgrading of schools and hospitals as well as the urban transport system.

It is reported that over the past two years, local steel mills had been exporting about one million tonnes of steel products.

Malaysia’s exports of steel products increased after China imposed a 25% tax on exports of billets which created a shortfall of about five million tonnes of billets in the South-East Asia (SEA) market. Previously, China supplied about 75% of the total SEA billets requirement.

Meanwhile, analysts expect feedstock iron-ore prices to increase by 20% to 40% from 2010 onwards due to the emergence of highly monopolised supply from the impending merger between iron-ore giants BHP Billiton Ltd and Rio Tinto Group.

Metal Bulletin said in a recent report that iron-ore prices would likely trade at US$110 to US$110 per tonne from US$70 to US$75 per tonne currently.

BHP is currently in talks with China to set the annual iron-ore prices. Together with Vale SA, the world’s biggest producer, the move could signal contracts doubling the spot market prices this year.

loan interest is increasing day by day. and price of housing in certain area increasing day by day too. so do the decision yourself.

is there any double story terrace which the price less than 300k around klang valley right now?

Klang/Rawang/Kajang/Bangi considered Klang Valley?

hehehe... actually no need to go so far, USJ 2 also have, but quite small, 20 x 60.

Regards,

one of my guiding principles

"it is better to buy property and wait, rather than wait to buy property"