With SRR trending higher, highly unlikely.
Cost of money for banks are getting expensive with SRR raised.

Ya, most of the time, price won't drop, but abandoned properties, or vacant property.

No transaction, so price didn't drop...

My personal view.

No gov intervention is preferred.
Most of the time, too many intervention measure by gov, can lead to inefficient issue.

Also, Gov intervention mean you open up channel for crony, political linked issue may arise.

Tax break for poor?
Most poor doesn't need to pay tax. Those pay tax means you at least earn 2.5k above.

The real and effective to do social responsibility, can come from RPGT.
Any property transacted >200k, RPGT is imposed.

Those RPGT money collected then can channel to build low cost housing as gov funding to build low cost.
This is a muchmore effective way of social responsibility.

or those property transacted below 200k, has a low flat rate stamp duty.

Just my view.

Then ensure yourself earn from 20k, 3 years later 30k, another 3 years 40k.

Pressure?
What pressure?
Anyone pointing gun on them to buy properties?

Since when just start working, buying car and properties is a must?
No offence.

Nobody want to bash.
People feel very not right when they are complaining that they cannot afford to buy new car, new houses, new Iphone, cannot go clubbing, after they have just graduated and starting working for a few years only.

If you are earning 5K per month as starting point, you still need at least 3 years to accumulate 50K.

It is not the like after start working, already deserved to have all those.

We can see household debt is increasing rapidly last this few years,
house loan up to 35 years,
car loan up to 9 years (where got 9 years car loan last time, only 5 years the max),
personal loan (people curse bank when personal loan is not approved, seeking all sort of way to get it), in fact personal loan is the worst loan, the interest rate is extra-ordinary high.
Buying thing with monthly installment, even those 1-2k stuff.

Nobody care when one is under FAMA support or not.
But please do not complaining just because cannot afford due to one wants new car, new house, new Iphone, just after graduated or starting working less than 3-5 years.

Home stay/dream home one, BLR, price plunge or not later on, are not the consideration.
Even your house price surge 1000%, you are not intended to sell one, and merely own stay, why care.
Even the house price plunge 50%, you are not intended to sell also, doesn't matter.

The one matter is you can afford the house.

Yes, goods price sky-rocketing.

Currency depreciated, it makes your property look even cheap from external, aka foreigner.

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Added on May 20, 2011, 5:06 pmWrong, both below 0.5%, roughly 0.1~0.2%

This post has been edited by cherroy: May 20 2011, 05:06 PM

When talk about interest rate, always use the central banks benchmark overnight rate, or rate policy set.
Like Malaysia OPR is 3% currently. So when we talk about interest rate, we said Malaysia current rate is 3%.
BLR is on top on the 3%, after adding cost of money, profit margin etc.
We don't use BLR as the indicator rate of a country.

Generally lending rate is above 2-3% the rate policy set.

Commercial is lucrative compared to residential.

Commercial properties yield can easily fetch up 10% yield, for good location/demand.
Residential yield somehow below 5% is quite normal, some even considered at high end range of yield already.

Rental rate is not going up as same pace with properties price. Rental rate is going up at a tortoise pace, while properties price is sprinting like a rabbit.

Currently the major inflation problem mainly come from external (have to agree car price is high due to high taxes, but this has been there for long time,)
which if we talk about current inflation spike, it is mainly due to massive QE which drive up commodities price, which just means Malaysia (almost all Asian region across) has no control over it, aka inflation being imported, or someone said US export inflation to Asia also.

Even if BLR does rise to 8, you just see slowdown in transaction, and economy acitivities, for sure it is not end of world.

This years, the highest most predicted, is around 7%, aka BNM, the most will raise 2 times, aka 0.5%. There is high possibility BNM will only have another 0.25% on OPR, then pause to see the effect before deciding next course of action.

As economy has shown sign of weakness.
The raise on rate, is mainly inflation is running too hot and also BNM want to control the household debts which is rising too quickly and start to concern the health of household debt.

Yes, you have a valid point, but
do not spread false info.

Existing non-subsidy diesel is around Rm2.70~2.80/lit.
It is same with petrol, non subsidy petrol price is around Rm2.80/lit

Ron 97 is already near non-subsidy price indicator.

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Added on May 25, 2011, 3:51 pmCurrent real market price (non-subsidised) is RM2.70~2.80.

My company got buy industrial diesel, which is non-subsidised, price fluctuate every week. From Rm1.80 when global crisis on its height, to now around Rm2.70.

This post has been edited by cherroy: May 25 2011, 03:51 PM

When you have traffic jam around the bus route, it is impossible for anyone to implement a timing and efficiency bus system.

You cannot possible solve traffic jam if our car new sales keep on climbing, from previously 50K per month, now >60k per month.

The better solution is getting good LRT, MRT system, that get rid of car around the town.

This is not classified as overvalued.
Bank only value the property worth aka excluded renovation and full furnished or not issue.

There is no such thing of worth or not worth if you are buying for your own stay.

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Added on May 27, 2011, 4:37 pmBuy a new condo, totally blank one.
Renovation, furniture stuff, even only renovate the most simpler, basic, 50-100k is norm.

A sofa cost you >Rm2k, bed >1k, cabinet, table, especially nowadays wooden stuff is very expensive.
Those furniture alone >10-20k on the most basic.
If customised even costly.

Not yet count the kitchen stuff, another 10-20k.

Electrical wiring >5-10k.

This post has been edited by cherroy: May 27 2011, 04:40 PM

I view rent is not a bad idea after all.
Personally I don't see why must buy a house. My priority is a place that call home, that's enough.
Whether I own, I rent is always secondary.
Yes, owning is the best, but it is not a must for me.

The main priority is the property can be sold or not.
There are properties sitting there, waiting 6 months, 1 year, some even more, there is no buyer turn out.
The most fear is no buyer aka some properties that little buyers show interest, even your slash price 10%, 20%.
Some properties especially wrong location shoplots, you can find zero buyer one.

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Added on June 2, 2011, 1:52 pmGov doesn't have extra money when cutting subsidy, it reduces the deficit, so that the financial is more manageable and sustainable.
It is not the like cut subsidy then gov has extra few billions.

This post has been edited by cherroy: Jun 2 2011, 01:52 PM

I live in a rent house for >25 years.

Some landlord are good, some are not, so it depends.

Rent, means you have no high commitment, can have extra cashflow doing others things.

Gov budget is already in deficit, reduce subsidy means reduce deficit, which in turn gov doesn't need to borrow to fund the deficit.
It just mean no further borrowing needed, it doesn't mean there is more money popping up.

Not 100% actually.

Why a lot of people want to buy properties in current scenario?
Because it can make profit or a lot of profit for them.
Once the profit cycle is killed, just like US housing bubbles, those buyers can become nowhere to find.

People want to buy properties simply it is making a lot of profit for the last 5 years.
Just like an animal (sorry no offence, not mean directly, just illustrate) can find foods at place A, the animal will constantly go to place A, until cannot find the foods at place A.
Same with stock market. Back 90's, a lot of people make good and easy money when bull run, lot of people were lurking around brokers houses, watching stock market everyday.

So if property market price stop rising for 2-3 years, or have a dip and doesn't shoot up back quickly, some of buyers or speculators may suddenly disappear.
There are lot of buyers around now because the properties price escalating non-stop for the last few years, and price surge quite significantly.

How can US default its bond when USD is the world major trade currency and world largest economy?
Impossible.
Do you know, money can be just being printed?
It is not the like trillion of debt or treasuries need to be repaid now.

In fact, treasuries price is going up in current scenario, due to flight to safety, aka investors feel safer to park money in there.
Fyi 10 years treasuries yield goes down from around 3.5% to now 3%.
Funding cost is even cheaper if wish to.

Default? if really default (an impossible scenario), whole world economy go kaput, still need to figure what impact to Malaysia?
A Lehman went under, already cause so much turbulence on 2008 global crisis, US somemore?

People generally share the success story, how many money had been made through properties etc, yes people did,
but there are people suffering due to high commitment on properties portfolio especially when things turn bad, but this 'suffering story' generally being swept under carpet, which we seldom or will hear.

There are people buying some properties but stuck with little people interested to buy or having difficulty to be rent out.
Not every property is the same, even though properties has tremendously surge for the last few year, there are properties hardly fetch a lot of premium or if calculated carefully, the return rate is not something very good, some even comparative to FD rate only, after deducting expenses incurred, renovation etc.

Locally despite many said oversea moon is brighter, there are still opportunities around for one to make decent living, income around.
The most important is whether one is capable or skill enough.
One may argue got skill but not being appreciated, but in private sector, if one has decent skill, and ability, there is still room for one to strike out good living.

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Added on June 15, 2011, 1:37 pmYes, if can strike a good working life and earn decent overseas good.

But whether has confidence or not with m'sia, some (majority) is born here, live here, and mostly will died here as well.

I am not encourage nor discourage people to go overseas, but not everyone has the chance and opportunity to do it, due to various personal reason, condition etc.

So need to make the best from the situation or environment they had.



This post has been edited by cherroy: Jun 15 2011, 01:37 PM

It is because we had no such magnitude of bubble before.
Partly due to more conservative nature of our banking system.

Sometimes, you need to look at the banking system or financial, once they too relax about lending practice, then it is a dangerous sign.

Most bubbles are similar if look back the history, too easy to get credit, too optimism, complacency.
When everyone especially the bearish people finally give up their bearish view and concede that the price won't fall, then most of the time, price hit the peak.
Peak always happened when people cannot see the peak time. Get what I mean.