like i said many many times.
property prices ain't the problem.
purchasing power or lack of it and low income is the main culprit.
and don't even get me started on the source of it.

back to one of my shitty idea?!

that's because chinese labour is cheap and malaysian labour is expensive.
made in china versus made in malaysia mah...
we are riding straight to hell. next stop, satan's residence!

nice analysis. but mamak is great at their disguise. selling sub-standard food at fair value price. but when compared apple to apple, we might end up paying more for mamak's food versus fancy restaurant.
nowadays, cheap food is McValue lunch! many years ago, i recall fast food are premium food for myself. can only eat once in a blue moon. nowadays, it's one of the cheapest choice for me (but extremely unhealthy lor).

just to add on, when a tenant starts jumping and looking for lower rent, they might be sacrificing some comfort in their selection. eg. say rm1k ro rm800 per month. maybe they jump from a better apartment to a slightly worse off apartment with smaller built up.
in reality, he might be paying rm200 less but he's paying a higher psf basis.

mod is right.
i remember when working under my previous firm, my big boss constantly reminded me
"you must work harder and produce more and the salary adjustment will follow suit"
then we just thought it's typical boss saying.
now we realise that if we work harder and better, automatically transform to better profitability to company and translating to better pay and bonuses to the staff.
so until now, i still remember my boss preaching, work first, pay later. funny thing is somehow things are going smoother once i'd accepted the idea.
to those hoping for a payrise, make sure your company is in a position to do so.

one of the saddest 'incentive' given to date was luring the overseas people coming back by giving them tax rebates.
to me, it's another demotivator for presently local people. especially good local people. indirectly, they are just saying outside=good, inside=no good.
by virtue of this incentive alone, i never felt more urge to venture outside.
classic case of bad implementation.
at least to muah.

me! me! me!

another price hike coming??

rent?

that just shows how credible he is.
earlier this year, he says malaysia property prices to hit rm5k psf by 2015. now he say market correction.

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Added on May 3, 2011, 8:51 pmwould like to add on, a subsale property i was eyeing since end of last year till now has gone up by rm150k. it's a landed intermediate unit in pj.

This post has been edited by kochin: May 3 2011, 08:51 PM

i don't understand why many people still thinks that once installment is higher than rent collectible, it's all doom.
and of course i can't speak for others especially investors if their school of thoughts are the same but consider this:
assuming the loan to be rm3k per month. how much goes to interest and how much goes to interest. this is going to be tricky because interest are initially high and taperring to low nearing the end of the tenure of the loan, right? so let's just say it's a 50/50 since by the time you finish the loan, it's like borrow rm720k, pay rm1.44mil. and so, again assuming the property does not appreciate in price and NEITHER does the property experience any drop in price (and for discussion's sake, please leave out the inflation factor for this illustration).
and the unit is rented out for say rm2.5k per month. now, the owner might be paying the additional rm500 to the bank and rm500 for maintenance. and so the big question is, is the owner losing money? is the owner at a disadvantage because he has got no positive cashflow?
i like to think that he is still making money albeit less. think of it differently, every month, he is forking out rm1k to foot a rm3.5k bill. in which, out of the rm3.5k bill, rm1.5k is his actual fixed gain (payment for principal). over the entire tenure period of the loan and when he succeed in paying off the loan, he would start to gain rm2k every month then + a fully paid property.
i know some will argue the above case with inflation, misc charges, etc.
but look at the macro aspect of it. and i believe that is why, most if not all speculators and investors are able to hold negative cashflow properties. problems only arises when rentals are lower than payment to banks that can't even cover the interest. but on hindsight, he is still paying less to own the property than a normal buyer on his own without rent.
but the above is just merely my own 2 yen...

loan - RM220k
DP - RM 0
tenure - 30 yrs
int. - 4.5%
monthly payment = RM1115

what if work too hard and exceed rm1,500 threshold and gomen say sorry cannot buy the rm220k house anymore?

think you are onto something here.
but tough luck.
just take the haze for example. it occurs nearly every year. pattern is similiar and area is also identified. with all our technology advances, one would have thought that humans would have the capacity to prevent peat fire, no?
sometimes, ability to do something and the will to do the things are entirely different things.
some have the ability but no motives.
some have motive but no ability.
only people with ability and motive can move things around.
of course, they are extraordinary cases.

that's why never say never.
what goes up must comes down and in share market, what goes down also will anticipate a rebound. but of course, some share just delist.

government is suppose to pay for it in the first place. that is why many many taxes are there in the first place.
if developer pays for all related infrastructure, why do we need to pay taxes?

fyi, when a developer apply for utilities eg telekom, water, electric, etc. they are also mandated to build their own PPU, PMU, SSU, waterline, etc.
sometimes, they are even required to surrendered some part of their land for these purposes. build all these at their own cost. upon completion, have to beg them for inspection and acceptance. once the utility company accepted it FOC, they start to charge customers for the usage. do you still think that's fair?

am not disputing the fact that taxes needs to be paid for what you have mentioned.
but respective taxes should go to respective categories.
eg. road tax for road maintenance; iwk fees & assessment fees for garbage management; etc.

but problem arises when we still pay taxes and yet the fund received were not used for the illustrated purposes.

PS: on top of it, when developer submits plans, there's building plan fees, development charges, infrastructure fund, R& D fund, security deposit, etc.
and after all these contributions, there's still condition for the developer to build the roads themselves, pedestrian walkway, beautification and enhancement to surrounding including traffic lights too. the list goes on and on and on.

This post has been edited by kochin: May 16 2011, 09:47 AM

you have raised some excellent points. but reviewing your points i can't help to notice a lot of it is dependant on the economy and point no. 6. and if BLR is 'controlled' by government, and if they knew the consequence/catastrophe that is going to land malaysians in the event of property bubble, wouldn't the government intervene and maintain low BLR to prevent bubble bursting?
just a thought...

last time i also use FAMA loan to secure my 1st property.
no shame in it.
less than 5 years, i fully repay them with 25% interest!

my version of build then sell:
1. developer take full risk first hand. cannot sell during construction. higher cost of project especially financing cost
2. upon completion, calculate actual cost per unit
3. start selling with price up mechanism
4. once hit break-even point, completely stop selling
5. reanalyse to either sell remaining units at whatsoever price (since oledi break-even mah) or if rental is good mah rent out all the units lor
6. keeping units means recurring profit AND majority votes during AGM for JMB

if the above materialise, might even be worse for property market since we are even more dependant and at the mercy of developers.

not sure about countries that practises build then sell. maybe experts can share how they do it overseas. but overseas practise might not be applicable in m'sia bcos too many corrupted people here??

PS: would be extremely dangerous too if developer starts disposing remaining units at prices below initial buyers price if developers are in need of funding. it could well decide the fate of a development entirely by their decisions. purchasers lose eventually.

This post has been edited by kochin: May 24 2011, 03:22 PM