Being optimistic, to get the picture across.

This post has been edited by TheDoer: Jun 6 2011, 05:38 PM

Yeah, so given the 2 factors (referring to the same prop).

1.) Youngesters want to buy a comfortable home.
2.) Rich uncle, aunty want to invest to make lots of $$$$.

Which do you think should cease?

The irony is, those who invest, will hold on to those new props, keep it until it's "Old enough" then sell it to the innocent young ones. What's the rationality behind this??

Let me tell you guys straight off hand, there's this old prop that I had been eyeing, which look like crap. The only reason it was so appealing, was because of the location which was unique to my family.

The owner stayed firmed and asked for 30-50K above market rate (advised by the realtor). (Even though he would have already made a killing with the current market rate)

The house was abandoned by the previous renter whom, raked up a large bill, and destroyed the interrior of the house (eg. broken ceiling). The mentality of speculators. Optimistic to the bitter end. Either they win or lose, the buyer is always the loser.

This post has been edited by TheDoer: Jun 6 2011, 04:40 PM

The fact that he already makes money if he sells it now (at market rate) isn't the issue. The issue is that his greed is preventing him from doing so.

Only someone like me would be tempted to buy it. And the reason is because of the location significance it has to my family. I find that house, and that area strategic for me. Even though not in a prime area.

I'm not thinking about the renovation costs now, I'm asking myself, what greed would make a person raise his prices like this.

The irony is it could've been easily a win-win situation.

Now his got this crappy house on his hands... He tried to rent it out, and his tenant ruined it further. What's he waiting for now? For the house to mellow abit longer?

This post has been edited by TheDoer: Jun 6 2011, 05:37 PM

Yep you guys are right, this guy is working in a foreign country. He doesn't live here. He's just finding a place to dump/dumb his money.

The prop is small and run down, even after renovation I don't believe he plans to spend his retirement here.

You guys are right, this is the common/normal course of life. There are greedy people out there.

But if you look at the big picture. The question is why? And does this kind of behaviour actually help the economy?

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Added on June 7, 2011, 10:57 amFor those who think there's nothing wrong with prop speculation, please consider:

As mentioned before. joining the game, is like joining a pyramid scheme. Because the money comes from other players. And this assumes that there will always be new blood, new players.

I can guarantee you that in both cases, people will make money! That's for sure!

But less mentioned are those who had tried very hard and lost money.

With any business, we've gotta ask ourselves, "Where's the money coming from?"

If it is illegal, you will be caught, if it is unethical, it will not be sustainable.

Remember that our objective is to improve the economy.

An economy is basically, the measurement of how well, transactions are being made, transactions therefore hint that people are getting the things they want, and life is good.

If the economy is not good, then everybody's life sux.

If the economy grows, not from transactions that benefit society, then that is simply inflation, and not real growth.

because the number of goods and services in the pool are still the same amount.

This post has been edited by TheDoer: Jun 7 2011, 11:02 AM

Correction. The bubble had long started. The correct term would be... it's about to pop.

I'll wait till it drops to the amount I am comfortable at buying. Even if it doesn't reach that level it doesn't matter. At the moment, I am in no hurry to buy.

I'm hoping that a prop bubble will burst, while our economy itself is unaffected. if it does go down.. oh well.

There's always risk in investment.
House Bankrupts family

Talking about MNCs and investments, Qimonda, in Melaka, had moved to Senai, and took over a huge factory. They payed their employees a bomb to move down there.

The paint were still fresh when the economic crisis struck, and everything went away.

This post has been edited by TheDoer: Jun 22 2011, 10:25 AM