you will see more and more developments (townships) there in next few years, all the way to nilai.

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Added on April 15, 2011, 11:59 pmand I found this good stuff http://tlcollect.com/ve/ZZ62BB74t856561FT953 http://www.digi-flips.com/digiflips/fob/kf...i-flipbook.html

This post has been edited by kh8668: Apr 16 2011, 12:27 AM

For those who believing the property price will keep increasing or gradually increase say 10% or 20% a year, are u ready for an inflation too? A mixed rice seller will raise their price by 10%,20% or more, Clinic doctor also take granted by increasing the fee, School teacher also come out and stike for higher salary 30% payrise, Indon worker oso want extra pay due to higher living cost, and so forth if they want extra income to buy a decent property.

Accordingly, in 2-3 years times in PJ area, a plate mix rice @ kopi shop might be selling RM10, a bowl of penang prawn mee, curry noodle, etc will cost RM8-9, plain mamak Mee goreng will be RM6, Kopi ice & teh tarik might be selling RM5/glass.
Seein a doctor for fever or cough might cost u RM60-70

So in 5-6years, 20x70 DS at setia alam might be selling at RM1mil, Desapark houses might be selling @ RM3-4mill, Casa tropicana condo might be selling RM900k for 1188sf, Pelangi damansara might asking RM500k/950sf and .....In tandem to that, mix rice = RM15/plate, Har mee= RM13/plate Kopi ice, Cham Ice, or Teh ice = RM8/glass


A single income earner who is earning RM3500 now, say a bank officer, might need RM6000 by that time to maintain the same quality of living.


just a layman thought

This post has been edited by bluesfingers: Apr 16 2011, 03:55 AM

Yeah, the banker will resign eventually and sell mix rice

To buy a home or wait
Saturday, April 16, 2011 the star online
FIRST time home buyers who are daunted by soaring prices of residential properties in the Klang Valley should not wait in the hope of a softening in the property market.

Prospective new home buyers may want to take note of rising construction costs that are driving up property prices, as well as possible further interest rate hikes in view of the consumer price inflation hitting a 22-month high of 2.9% in February.

On Wednesday, SP Setia Bhd president and chief executive officer Tan Sri Liew Kee Sin said he expected home prices to rise by at least 10% this year, depending on location, to reflect higher construction costs.

“Property prices will not drop as the costs do not allow this anymore,” said Liew during the Invest Malaysia 2011 conference in Kuala Lumpur.

Meanwhile, a recent report from Hwang DBS Vickers Research says that as a proven inflation hedge, property should remain in demand even with potential interest rate hikes.

The report says while it is believed that the 70% loan-to-value cap managed to cap speculative activities to a certain extent, strong underlying demand from first-second home owners and upgraders has continued to support recent property sales, even at new benchmark prices.

The 70% loan-to-value ratio satisfies Bank Negara's ruling (announced last November) which requires buyers of third and subsequent residential properties to fork out 30% downpayment.

Also, a recent survey by the Malaysian Institute of Economic Research (Mier) on residential property in the country says an astounding 61% of housing developers who responded to the survey had adjusted their prices of their residential properties upwards in the first quarter of this yearthe highest proportion garnered since the third quarter of 2008.

None of the respondents in the survey had lowered their prices.

However, the Mier survey report concludes that pressure exerted by high costs of raw raw materials, fears of rising oil prices, and the interest rate factor could all combine and impact negatively on the sector in the coming months.

“This is likely to impinge on the future growth of outlying areas, and may also dampen the revival process of developments

that are currently suffering from low take-up rates, low population inflow and an overhang problem,” said the report.

Short-term outlook

The Mier report pointed out that “the short-term outlook for the residential property sector looks calm generally”.

Financial coaches and planners contacted by StarBizWeek also say that first time home buyers should not sit on the sidelines.

“There is no certainty that if you wait, you can get a cheaper residential unit. A property loan is long term. Even half a percentage point rise in interest rate will have a major effect for the home buyer,” said CTLA Financial Planners Sdn Bhd managing director Mike Lee.

Whitman Independent Advisors Sdn Bhd managing director Yap Ming Hui shares a similar opinion.

However, Yap cautions, “Waiting for a few months before making a buying decision may not make much difference in the purchasing costs, depending on the location and type of property the buyer is looking at.”

Carol Yip, chief executive officer of Abacus Advisory Sdn Bhd, also advises home buyers not to be too hasty.

“They must always look at their own financial positions and the affordability factor,” said Yip.

This post has been edited by kh8668: Apr 16 2011, 09:57 AM

man, my salary surely doesn't appreciate as fast as the property price... however i think ppl are factoring the current and potential increase in raw material price into the property price. At this stage when gov just started to impose more restriction to invest (to those so call speculators), the more they react immediately to buy as soon as possible (higher is the BLR, higher is the installment thus lesser is the cash flow). Thus price potentially will continue to go up in the short to medium term (buy later will appear burn out effect which they have no more purchasing power or further restriction become non-suprise to them). However in medium to long term, we need to see the balance btw demand and supply. I have never seen so many projects launches in Klang Valley as what i see now compare to the past few years (maybe i wasn't been observant enough previously). Thus a lot a lot a lot of these projects will be completed in the next 3-5 years. I do expect that price appreciation will continue however not evenly in Klang Valley... among another big reason is the MRT expansion (new and old lines) and the face lift on few major areas...

This post has been edited by novabankinghall: Apr 16 2011, 04:07 PM

is gomen really trying to stop the speculative buying? or actually encouraging the opposite?
on one hand, impose ltv70, on the other, the banks go from blr-2.1 to blr-2.4.
if gomen really want to stop this, they wud hv set tighter blr and reserves, impose higher rpgt. but they won't, not now.
as we know, if that happens, construction/prop dev grind to a halt, where to get gdp growth to win erections?
for same reason, notice how fast they propse, approve and award mrt contracts?

in a situation like this, many losers, many winners.
most losers from working class, poorer ones.
biggest winners are the rich, ones on the inside or the connected ones to the inside.
dun forget, before the props get launched, hundreds of mils already made by some with land deals.

KLCC Maybank ... got two nice lady sitting outside with booth selling service apartment in Shah Alam ...
Ahhh ... the good old times

what message you're trying to send us?

let's go resign and start selling mixed rice.
Adopt the same strategy like most of the Speculator/ Investor/ flipper whatever u call it, stick with your price tag no discount, selling RM8/plate for a 2 vege 1 meat mixed rice. so we make more to pay the developer.

Wake up! all Employeesss, tender your resignation letter tomorrow and start selling mixed rice, prawn mee, kutiau goreng, etc VERY IMPORTANT we have to collaborate and agreed on an absurd price tag 1st b4 we start selling maybe RM8/kutiau goreng, RM9/mixed rice, COme speculators if you wana eat Or f*** OFF go home and lick mummy ***** if you dont wana pay this price

why happily missed out another news?
http://www.starproperty.my/PropertyScene/T...htBox/11419/0/0


By HOUSING INVESTMENTS | Apr 16, 2011
By THEAN LEE CHENG
Don’t circumvent Bank Negara’s ruling
--------------------------------------------------------------------------------

Last November, Bank Negara introduced a macroprudential measure to curb speculation in the property market. Buyers of third and subsequent properties were required to pay a minimum downpayment of 30% of the purchase price.

Four months into that ruling, Bank Negara’s monthly statistical bulletin showed that for four consecutive months since November, the number of loan applications for residential property has reduced. Observers and analysts say a minimum of six months are needed to conclude if this anti-speculation measure is working.

Nevertheless, there is reason to believe that there are property buyers who are trying to negotiate around this ruling with the help of bank officers and agents because they want to pay a downpayment of only 10%.

How widespread this is today is just a matter of conjecture. Bank officers are not likely to confirm this. Banks will also want to lend out as much as possible. Agents will want to protect their own interest as they want to sell as many properties as possible. The same goes for the developers.

There are different ways to circumvent this ruling. The saying, where there’s a will, there’s a way certainly seems to ring true.

On the part of the buyer, it is learned that some are topping up the difference with a personal or a business loan. Another way to do it is to buy the property with a sibling or to use the name of children who are working. The combination of two salaries results in a larger loan when only one person may be actually paying for the mortgage. The risk, therefore, falls on the borrower who will be responsible for the mortgage.

Group chief economist at RAM Holdings Bhd Dr Yeah Kim Leng says it is possible for bank officers to “structure” loans such as topping up with personal loans to circumvent the 70:30 ruling particularly when they are convinced about the customers’ credit profile and repayment ability.

He says such overlending risk is likely to be isolated given that it is detectable through the centralised credit information system used by all banks. Obviously, if the circumvention becomes prevalent, it will dent the effectiveness of Bank Negara’s macroprudential measure to curb excessive speculation in the property market. Nevertheless, the banking institutions and the regulators have to be alert against such practices as isolated problems tend to become system-wide when there is excess liquidity and intensifying competition in the loans market, he says.

On the part of the developer, there are also developers who are trying to negotiate around this ruling. Buoyant though the property may be, there are developers of certain segments of the property market who may find it a bit challenging to sell, coupled with the pricing they are asking as well as the location of their projects.

Because their revenue is dependent on sales and because they want to “catch” the market as quickly as possible before the situation turns, they offer a rebate as an enticement. By offering a 20% rebate on the property price, they effectively enable the purchaser to make a downpayment of 10% and have the rest in the form of a 70% loan, which meets Bank Negara’s criteria.

In this case, the developer absorbs the loss while the buyer “gains” a 20% discount of the selling price. From the consumer standpoint, this is a better way rather than topping up with a personal or a business loan.

Whichever route a buyer takes, there is some element of risk involved, as with any investment. Globally, we are not out of the woods and on a national that Sarawak election is something to watch. We won’t have to wait long, though. On a regional basis, inflation is running high, although Malaysia’s inflation rate of 2.9% as of February is considered among the lowest in the region.

A statement by Bank Negara says the 30% downpayment requirement was put in place to curb speculative activity in the property market and to promote the continued affordability of homes for the general public.

The provision of additional financing facilities (such as personal/company loans) together with housing loans as a means to circumvent the loan-to-value ratio limit would be inconsistent with the intended objectives of the measure and is not a practice that the Central Bank considers acceptable.

Bank Negara will continue to monitor the practices of banks closely, and will act against institutions found to be facilitating or encouraging the circumvention of the measure, the statement says.



Assistant news editor Thean Lee Cheng thinks what’s yours is yours. No point losing sleep trying to scheme and plan.


=====
isnt' this happening now? so there could be quite a number of people overstretched.

Firstly, property is a hedge against inflation. It doesn't cause inflation. Singapore property is more expensive than ours, but the prices of goods there are comparatively and generally cheaper. Can get chicken rice for S$2.

Furthermore, high leveraged investors welcome inflation.

http://answers.yahoo.com/question/index?qi...30095044AARu4Wh

Want to know more? Do some research

This post has been edited by Veda: Apr 16 2011, 10:30 PM

Traditionally, loan applications in Nov, Dec, Jan & Feb are trending a drop each year. March, April and May (2011)figures are important as it will tell how serious the implication of LTV 70%.

This post has been edited by kh8668: Apr 16 2011, 10:32 PM

the property market actually is boom up by Najib economic transformation plan, and the truth behind the plan is actually copy from Mahathir 90s economic plan, which was brought Malaysia economic disaster on 1998.
If u study malaysia economic, when 1997 the props market also as hit as now, foreign money flew in very fast, cause malaysia economic grew fast, but the government didn't really have a strong backup, once foreign money gone, finance collapse, props drop.. company bankrupt, ppl lost their job, many ppl pokai..
who is expecting the market collapse so they can buy a cheap prop.. if the time really happen, i think u need to worry another thing... recession.

when the country is in recession, no matter how cheap, most people wont be buying (thats what caused the recession in the first place - everything is interrelated), and my bet is the same group of the people who is 'afraid' of buying now, would be afraid of buying too by then

This post has been edited by property101: Apr 17 2011, 11:33 PM

In the edge magazine this week's issue. Chris Boyd - executive chairman of CB Richard Ellis (Malaysia) as one of the panel members at the The edge investment forum said that the landed property market will start to level off soon for a few years before sharply rising again.
Prices have risen to meet demand. For the long term looks good as the current age demographics (young population) supports future growth.
He pointed out that there is no bubble unless there is spike in interest rates or when people start to lose their jobs and can't sustain repayments.

i remembered during 1997-98 crisis i refinanced all my existing prop to accumulate my cash and wait for good fire sales, but it is not happening. who said 97-98 prop price drop?? pls show me facts b4 and after. dun show me the generalized graphs. i oni interested in KL, PJ prime area. eg ttdi, ss2, damansara, ampang, bangsar, KL within 5km etc. i know becos my existing prop did not drop....yes there are many abandoned project/factory (mostly non prime area). but danaharta has sapu all. u and me no chance at all. danaharta later sell at higher price when market recover in 2000s', dun know where is the profits goes to??
also if u compare price now vs 97, it is doubled, tripled etc. so wat ever u said crisis, KL prop price still up. i also wait for fire sales during 08-09 but none there. now i gave up, just buy when i have cash. or else my cash will worth lesser after 10, 20,30 years later due to inflation. population growth in KL (locals, other part of msia and foreigners) will drive prop price up further.

I agree with you on all of the above, but I think one factor that makes it different this time is China. China undeniably has a ridiculous property bubble and it is inevitable that this will pop. When it does, it will take the economy of the rest of Asia along with it. It will also have a profound psychological effect on all property investors in Asia. How many times have we heard increased property prices in Malaysia being justified by the fact that property is so much more expensive in China? Due to this, I am convinced that when the property market in China crashes hard, Malaysia will follow soon after. So the question is how long the party can still last in China.

Have to agree with you on this for the China factor. You just said what is on my mind!

At 1st those people predicted US crisis will badly hit the property mkt b'coz US is tai kor, those people quiet now. it doesn't happen, now China pula...

i'm thinking to ask the same question too