QUOTE(froglai88 @ Sep 14 2011, 08:22 AM)
GlobalKL kor, I think what you said was right into my concern. I always tot I'm lucky to get above properties, and at a right price and at a right size, based on my past experience in Aust. Furthermore, some very positive views and opinion from local KL frens made me no hesitation to go ahead.
Only until recently after I joined the forum, then I realised I might go into a wrong strategy. I started to get abit worry, anyway, too late to turn back now. Finger cross.....
This is why now I try not to buying anymore new launch that will be compleled in 2013/2014. Coz I pretty sure d rental unable to cover monthly loan repayments, coz d 2 mthly loan repayment more than 11k+....
Now try to buy smaller subsales units with a instant rental income...
Thanks for your opinion, appreciated.
froglai88 kor, you are welcome. lucky to get above properties? and right price? Sometimes you cannot use the same yard stick of another country to apply to KL properties. You need to look into average wages, cost of living, income per capita, inflation rate for these countries...that is the reason why some gurus always mention that KL properties are cheap cheap compared to SG, HK, China....but we need to look into the uniqueness of these countries in terms of supply/demand, land scarcity, population, income per capita... and that apply to AUS as well. If you ask local KL kia, they won't say The Element and KLEC are cheap and most of them will shun away from these 2 prop. You can see the response in this thread telling you something...
Listening to a few frens is not as powerful as listening to a group of property-savvy forumers, right? There are few forums in the internet discuss about KL prop and I believe that you know some as well...So next time, you better do your homework before venture into Luxury type of investment...
Hope you can get back at least your capital for The Element + KLEC. Good luck.
This is another source of info for you to digest and see whether you are buying too high-priced product or not and the prospect for this luxury prop.
http://www.swhengtee.com.my/swhengtee-news...market-bad-moveTightening measures on luxury property market bad move
Thursday, 15 September 2011 07:35
Soruce from : Homeguru.com.my
Regulations to curb investment in the luxury property market, which is expected to be introduced by the government in the upcoming Budget 2012 in October, may not be a good move.
According to Gavin Tee, Founding President of Swhengtee International Real Estate Investors Club, curbing the wrong investment segment may cause a less favourable situation for the Malaysian property market.
Malaysia's high-end property market has been quieter since 2009. Today's market trend focused mostly on landed apartments, commercial properties and medium-cost apartments. Thus, tightening measures for the high-end segment should have been implemented way back in 2008 and 2009. Tee said that the luxury property market needs a boost to stimulate the economy instead of cooling measures.
Currently, medium cost units at the outskirts can reach between RM700 psf and RM800 psf, while areas like Mont' Kiara and the city centre can go as low as RM600 psf. Tee suggested that some clarity from the government would be a good move. It is important to understand the difference in each market segment and not to implement measures that would affect the wrong market, he said.
Meanwhile, high-end units in the city centre are being marketed at around RM800 psf, and within the range of RM1000 psf to RM1500 psf. This is said to be the lowest price among the region and five times lower compared to luxury units in Singapore.
"We are in the initial stage of globalising our capital to reach metrocity stage, and it is important to attract foreign and local investors to drive our country's Economic Transformation Programme (ETP)," said Tee.
The government's plan to make world-class cities in places like Kuala Lumpur, Kota Kinabalu, Penang, Melaka and Johor need the property market to be globalised. However, the country suffers from lack of foreign interest compared to neighbouring countries.
"So if the government introduces measures which discourage investment and create a negative impact, this could result in a slow-down in the processes of the Economic Transformation Programme. In fact, incentives to encourage foreigners and locals to stay in high-end areas should be offered especially in city centres, which have not been very conducive to stay in."
The profitable properties are primarily in mega-projects, globalised commercial buildings, institutional shopping malls and tourism real estate. Tee pointed out that if Real Property Gains Tax (RPGT) will be used as a tightening measure, the focus should be on those sectors and not on individuals, especially after housing loan policies have already been tightened.
"The possible measurements of increasing the Real Property Gains Tax (RPGT) or tightening of property loans would have an impact on the globalisation of our real estate market. A wrong move will affect our current historic moment in the long-term growth of our real estate market, and it should not be discouraged from growing so," he said.
http://www.theedgeproperty.com/news-a-view...ic-turmoil.htmlSUBANG JAYA: The uncertainties over the world economic prospects have started to take a toll on the local property market. Transactions have been slowing down in the past three months compared with a year ago, in addition to stricter requirements for mortgage application.
Glomac Bhd group managing director and CEO Datuk FD Iskandar said the external challenges would put pressure on the property sector. The extra requirement for the financing of property purchase also dampened demand, he added.
"There have been more measures required by the banks in terms of lower loan to value ratio (LVR) and other aspects where they are now calculating the eligibility for loans based on net income instead of the gross domestic household income of potential purchasers. So coupled with these, the US high unemployment rate and the financial meltdown in Europe, there would definitely be a slight slowdown," he said on the sidelines of the 14th National Housing and Property Summit on Wednesday, Sept 14.
Iskandar said the property sector would continue as one of the mainstay sectors to drive the country's economic growth.
He said the foreign capital outflow would have affected demand for high-end properties. He suggested that the government promote the Klang Valley for real estate investment in the region to increase Malaysia's attractiveness to foreign investors.
"We should somehow focus and make Malaysia, or Greater KL, as a real estate investment point; that's what I think we should do. We are going out and telling foreigners how great our country is, which is fine, but at the end of the day we forget to tell them that our property is good, the quality is good, design is good, it's very affordable, and we have some of the most lenient property laws in the world for foreigners to purchase property, it's so easy."
Despite the slowdown in the overall market for the past few months, there are sub-sectors in the property market which are still vibrant and attracting a lot of queries. This is especially in the affordable housing range between RM200,000 and RM550,000, according to Datuk Eddy Chen, group managing director of MKH Bhd and chairman of Real Estate and Housing Developers' Association (Rehda) Institute.
Chen said the local property market still has room to grow as the average units built every year do not exceed what the market can absorb. He said annually about 150,000 units are built and the market can absorb between 170,000 and 180,000 units.
This post has been edited by GlobalKL: Sep 16 2011, 06:45 AM