hahaha...but the problem is the purchasing power is shrinking, there will have a time that all the real housebuyers fed up, give up hope & stop purchasing entirely.

it already started, just had a discussion with 1 of the leading furniture shop, their outlet sales are dropping month by month & some of their outlets are in the red already

dunno want to happy or not

the connection to real buyers are no longer there anymore cos they can't really get the loan as most of the valuers value much lower & the top up is too much for 1st time buyer to bear...only left with speculators

what cause these construction material rising, can also cause it reduce


in investment world, nothing is impossible
remember Iraq war, every1 said share market going down but up they they go at the very same day started
or KLSE drop to lowest at 261.33 on 1 September, 1998

This post has been edited by Iceman74: Jun 21 2011, 11:25 AM

thanks for sharing, i like these part, me myself been there before, very scary after i do acid test on my financial strength at end of 2008 & start reduce/restructure debt until end of 2009. i admit i miss the huge rise in properties price but i can sleep well every night even if tomoro morning got financial meltdown

Don't compromise the roof over your head. Don't compromise your family's residence just to try and make a quick buck in the overpriced housing market. Protect your residence and your family. If you have extra cash, put it into your own house right now. Own your house. This has been a rule I've lived by for many years. You should owe nothing to any bank on a house you live in. In my opinion, until you have 100 percent equity in your own home, you have no business investing money in a second home. You should first give yourself the financial foundation of owning your own home free and clear. Once you have taken care of that, you can afford to risk cash in the housing market, if you so choose.

Until then, you're crazy to do so, and I know a lot of bankers and financial people will strongly disagree with this line of reasoning. They'll say, "No, no, no. Mortgage everything. You should highly leverage your first home and mortgage your way into a second or third home, and you'll be rich when things go up." What they're not telling you about is the potential downside. What happens when those prices you just paid for those second or third houses are cut in half because the housing market pops? Then you lose your third home, abandon your second home, have to sell your first home, and you still owe money.

i partially agreed with you cos the subsale price are lagging behind but so does the valuation by the bank. not many ppls can afford pay both the difference + the renovation fees(at least elec wiring & water piping) must done to make a liveable condition.

yr friend are very smart, if he switch the situation, he may need to pay/miss out high "rental" in the nicest one & that change/disturb the whole financial planning

there are alot reasons punya, maybe he already brought a piece of land waiting to build dream home