Just sometimes wonder
Is it really worth it my frugal life style
Hopefully when I get old I really can go enjoy a bit
But who knows what will happen in future?

So youngsters enjoying the moment life style is not something that we can say right or wrong
Just like grand grandfather told grandfather how tough his life was
Then grandfather told father how tough his life also
Then father tells his son now, his life was tough…

japan high demand on steel, cement, wood will push price up. msia timber, plywood, MDF prices has already up recently. same to global steel price etc

approx. 80% of households earn less than 5K a month, i doubt many can afford a 500K house/ condo in KL. new lauches in those so called prime locations are priced >RM500 psf for condo, and this has caused older condos prices to shoot up to RM400-450 psf in surrounding area. Just wait and see how high can the price go 

The demand is from the speculators themselves.  It is not self sustaining, but it won't last.
1. Old cash rich folks.  Instead of putting their money under the pillow they heard from people that props are a good hedge against inflation, and sure to go up.    (Speculation)

2. Foreigners. They heard that prop market here very cheap, and seems like will keep going up (Speculation)

3. Malaysians working overseas.  Donno what to do with money while working abroad. Unable to afford house overseas. Hope to use prop to stash their cash, which they hope they could use when they come back.  (Speculation)

The real demand comes from genuine home buyers. but they are lacking.
How is the prop price going to increase without demand from genuine buyers?

Despite the alarm being raised on the amount of debt households are carrying, data indicate it's not a problem for the financial system as much of those loans are back by collateral and the assets of households are more than double their debts.

Malaysian cepat lupa or Human cepat lupa??? it is a known fact that the U.S financial crisis is caused by the housing market, the value of the so call collateral (properties) or assets that backing the loans declined significantly during crisis time. The collaterals were of course valued more than the mortgage loans when the banks decided to lend , the value only dropped sharply when crisis kicked in

i think we have to get things right. It is the bad collaterals that caused the financial crisis, not the derivatives products. The significant drop in the value of the collateral is what caused the derivatives market to plunge, increasing couterparty and settlement risks. And why many financial institutions got caught was mainly a result of their overly opmitistics view on the outlook of the housing market ~~

When i purchased my property in 2009 it cost RM470K. But now it can easily fetch RM 650-680K based on similar transacted deals in the same area. Would you recommend i refinance? My current 90% loan is for 15 years so balance another 13 years.

Can get up to 80% for certain banks, if you know a good mortgage executive 

Yes.  But consider the amount of existing debt that he may find himself in, I personally would weigh that over the fact that previously you are a good pay master.

Because it doesn't mean that just because you were able to pay last time, that you will still be able to pay.  What it does means is that, if previously you were struggling with your credit card, then it would most likely be that you are going to have a hell of a time paying back a loan too.

What having credit cards to me means, is that with a snap of a finger, you may suddenly find yourself borrowing a few K from the bank.  As such, it should be treated as a standing loan. And just because you are able to pay your current loan, doesn't mean that you can pay "despite" of it.

This is what I understand, from the little bit of banking experience I had.

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Added on April 4, 2011, 3:05 pmI do not know the inside of local bank lending policy,  but I had experience with lending in a different country.

And it does seem that credit limit is the thing that make or breaks your approval chances by quite abit.

I really hate our local banking scene, and I find that they are pretty unethical, and have runaway policies.

For one, I once had to argue with a bank clerk that I shouldn't have to sign up for a credit card to get a simple savings account.  To which she says I had to get it, as it was part of the banks policy for savings accounts created for my company.

At the end of the day, it was a matter of whether I still wanted to create the account and get my salary, so I just signed the blasted thing.  When I went back to office, I found out that a colleague who went just a few days ago, did not have to apply for the credit card.  So I made a call to HR to settle this with the bank.

A few months later I got a mail from the bank, saying that my credit card was not approved....

I was like wtf??!!  What do you mean "not approved" I didn't want it in the first place.  What this means is that the bank clerk had gone ahead with my application, and just doctored some details so that I won't get the card as I had "wished".

Blasted clerk, she should be jailed for that.

Do not see the point here.
if earning 50% from purchasing price
property
bought 500k
Sold 750k
fees involve say: RM50k
net earning before tax = RM200k
RPGT 5% = RM10k
Net earning after RPGT = RM190K

if earning 30% from purchasing price
property
bought 500k
Sold 650k
fees involve say: RM50k
net earning before tax = RM100k
RPGT 5% = RM5k
Net earning after RPGT = RM95K

so why selling and earn 30% if you can sell and earn 50% margin from purchased price?

As I recall, the US example was cited mainly as an example that property prices can fall, i.e. to argue against the myth that property prices can only ever go up. But most people understand that the US economy is decoupled enough from the Malaysian economy that even a recession in the US shouldn't affect Malaysia too much.

The situation now is different in the following ways:

3) By and large, Malaysia banks don't care what happens to US banks, so they were not contaminated by the falllout. But when the property bubble in China bursts, it will also affect Hong Kong, Malaysia and Singapore. Do Malaysian banks have lots of dealings with Hong Kong, Singapore and China? I believe so. This could get very messy.

first of all, that is the official number, the actual inflation is usually higher. (by the way, last i read the inflation rate is 2.9% instead of 2.4%)

secondly, the number above is an average number - which means there are some goods (such as electronic devices) deflated while some goods (such as property) inflated. the average number is still positive, which means the goods that price has increased is way more than the goods that price has decreased.

some shitty idea:
1. subsidy reduced or removed. prices shoots through the roof.
2. property prices definitely beyond reach of 'normal' consumers. forced to rent from hereon. some even sell existing home to cater to new living cost.
3. all properties in malaysia held by 'affluent' people and started monopolising rental rates. rental rates starts shooting through the roof.
what happens next is anybody's guess.
terrifying but might be a reality in the making.

So what does our esteemed moderator think about our residential property market? Are you a bull or a bear?

Anyone listen to BFM radio recently? The business, finance radio station.

This morning they interviewed the CEO of Economic Transformation Program. Just few days ago they interviewed the CEO of LHDN inland revenue.

Believe all should know now that only 10% of working population paying income tax. Remaining 90% below taxable income. (LHDN CEO trying to twist and ignore the fact, making ass out of himself in radio station, utterly unbelievable such thing can happen. Oh boy, Malaysia truly Asia mah!)

What shocking to hear that out of 10% paying income tax, only 10% paying 15% above taxes. In short, only 1% paying 15% and above tax bracket! If you are above 15% tax bracket, congrats! You and the top 1%, though the fact is take home income nothing to shout if you stay in KV.

I still firmly believe all being con by conment. But tat doesn't imply one big bubble burst, but possibility of mini bubbles in few areas. Thks to conment lah. 1Malaysia! 

i reckon the next thing that happens will be increase of rental

yeah right, back to your shitty idea 

reason are property price risen significantly, landlord will not be able to cover loan with rental. how long is the landlord willing to bleed cash? one landlord increase rental might not have effect, but how about when most of the landlord are already feeling the pain and they slowly increase rental? previously if the tenants find the rental is high, tenant look for somewhere else, but in this situation, everywhere rental has increased, tenant cannot afford to buy, the only option is to continue paying higher rental.

i remember a business guru in taiwan once said, things will always swing from one end to another. for example, when there are too much exclusive (expensive) restaurant in the market, affordable mamak will start mushrooming. in this context, when property price has increased to certain level, which indicates has reached the end of a swing, rental will be another end to rise

secondly is combo with government high income nation transformation, what is unaffordable today will be affordable tomorrow

the quality of human will be downgraded... it will be worse then ppl who staying in hk then with smallest space...

This is happening in China. Dun believed? Asked those living in Shanghai.

i believe these are the sellers who are too optimistic.
they believe they can sell with whatever price they quote...