i think everyone is taking a stand, to buy now or to buy later or not to buy or ..... whatever....just that As for me, I have no urgency to buy now so why can't i just wait 3-5 years?? is my choice and is my money right? And my decision is based on my believe that prices won't go up up up up and up without adjustment in the next 5 years ~

As for the erosion of my savings because of inflation, there are other ways of investing money la LOL. But for the sellers, paying interest to bank and other fees is a MUST

Besides, there will be new launches (developers will have to keep lauching to survive, otherwise share price will drop), market will always have supply, more choices for those who can afford to wait. If the income of malaysian are not increasing at the pace of property prices, the buyer pool will shrink forcing an adjustment. Of course, again, this is my view and my stand.

Anyway, i do believe that there are fairly valued properties in the market, we just need to search harder, once find it, then buy all means, grab it

This post has been edited by godutch: Apr 11 2011, 08:18 PM

godutch, since when you have been searching for property to stay? Mind sharing?

oh, it will be a range of results.
some will keep vacant, keep paying for 5 or more yrs.
some will rent cheap.
some will sell quick.
some will end up lelong.
it's a matter of yr view on how many gorengers have the resources to pay for it all.
me, i think a good %, say 30% are quite poor, overborrow, thanks to the lax banks wanting to make $.

leg up

Hmm...by that time, we should get two or three generations loan packages.

who knows, right? however, everybody 's aim is to get very own shelter.

work hard buddy

How come those hoping for a price drop conveniently left out the fact that properties in the right location:

I) can be rented out at a rate that can easily cover the loan installments and other miscellaneous expenses
II) have demand from tenants that outstrips supply

In fact..... in some places, units available for sale are few, and the demand more, despite the increse in prices recently.

But I do agree with the highlighted part.

Btw have those hoping for a price drop formed a Support Club or something. Noticed a few forumers eagerly agreeing with anything posted against property price increases/evil speculators without posting opinions of their own

if you get into the specifics, you get nowhere. we should keep to the generalities so as stay relevant to the thread topic. just as there are some props that will thrive come what may, some will die standing! moreover, if there are units "guaranteed" to win, will the price justify a continued "guarantee"?

this thread has been fair, imo. while there are some who try to use it to talk up prop prices, there are others who will want to talk it down. yet some will like to talk it flat or not talk at all.

ok to keep going this way.

This post has been edited by AVFAN: Apr 11 2011, 09:39 PM

The purpose of a debate is to dissect an issue...... not talk about "generalities".

If some props thrive come what may, while some will die standing ...... can the general prices of properties drop?

Well most of the inflated property price nowadays have rental yield <5%.

This is utmost unreasonable return, with large capital outlay required, low liquidity and high maintenance.

Bear in mind, the +-5% rental yield doesn't even take in the maintenance cost of condo / maintenance cost of the property.

Properties in Singapore and Penang island have much lower rental yield compared to Klang Valley for many years before the recent price surge. But property prices there did not crash, did they?

hi, not too long, since Sept/Oct last year. was actively looking when i first started and now narrowed down to 2 areas. will work hard to find my dream home. Are you in the same group (gang? )

---

Added on April 11, 2011, 10:53 pmfor the area that i am interested to buy, i would be happy if the price get adjusted by 15%, if this happens, sure jump in and grab my dream house,. Actually i can afford the current price but just that i think the property is overpriced using the simple property yield approach.

This post has been edited by godutch: Apr 11 2011, 10:53 PM

I'm not familiar with property in Sg or Penang, therefore, I would not want to comment on that.

But having said that, rent is better than buy outright atm IMHO.

yes!! you are rite. if the investors declare the rental for income tax purposes, the yield is even lower. for property being a more illiquid investment, <5% is really .. i suspect a lot of people jumped in over the past two years expecting to flip upon VP not for rental income that's why prices shot up like rocket in such a short period of time.

i believe that resources (savings) are limited. if indeed what some analysts said that 80% are genuine buyers （buying for own stay) over the past two years.

This means the buyer pool shrank already (genuine buyers won't buy 10 or 20 units for own stay), because genuine buyers usually buy and stop looking for at least 5 years before they think of upgrading etc some even stick to the house for >10 years. So, if 80% genuine buyers over the past 2-3 years, now they are less buyers in the market, make sense right? unless income is growing at the pace of property prices, less buyers will enter into this so called buyers pool.

If uncles aunties buying for their kids (help pay the downpayment etc), how many kids they have? and how much savings have already gone into the property market over the past two years? so buying/investing power has deteriorates also rite?

Before I sold my BK4 hse in 2010, I hope property price to rise..

I suppose to sell in 2009 for 330K, then I hope price to go up, then it went up to 410K (Feb 2010), I sold. I thought it bout time and mkt has reached the peak
After I sold, I hope mkt will drop (that I can invest again), I was wrong, one year later Feb 2011, 550K can fetch for my house.
You ask me, I am in the position of hoping to drop and hoping to rise, I hv another condo in Kota Damansara for rent and another house for own stay. I am targeting to buy one more condo, shd I hope the mkt crash and I can buy the condo at a bargain?
If mkt crash, I will be benefited & vice versa, if mkt rise, I will be benefited & vice versa

If I hv bought the condo at the price I want, I will hope mkt keep rising. I think you will be in that position one day (to hope mkt recover and price increase after you purchase),
so the moment we point to someone, tomolo we are pointing to ourselves

This post has been edited by UFO-ET: Apr 12 2011, 12:45 AM

hi, i think different people different thinking

i bought my first condo 6 years ago, after i bought it i never bother about the property market coz i bought it for own stay. i sold the condo 2 years ago coz it was not well maintained (with a very small profit) and i did not feel any regret although the market price of the condo went up 20% after i sold it. I was happy to get rid of the condo to hv a peace of mind.

i am currently living with my family and looking for a decent condo for own stay, i hope to be able to live in my dream home for another 20-30 years (if possible ). Because i now know better what kind of condo can be called home. What i can tell you is, after i find my dream home, i won't bother about the market price, why bother when you know you've found your dream home? they are many other things in life are worth to explore, why get yourself stuck in the property market ? Anyway, this is just what i think, just to share.

you see, you are caught in the situation bczo you focus on investing in property and wanting to profit from it, and sorry to be blunt but i think you yourself is part of the forces that pushed the prices higher and get yourself into this dilemma.

For genuine buyers like myself, when i find my dream home, i buy it and i will be off the market for a long long time until i decide to upgrade (10-20years later maybe). But even then also, i still have option, if the market is bad, i just continue to live in my dream home while waiting for the right time to upgrade. Genuine buyers are more straight forward, what is important is “affordability" and don't overpaid. after i find my dream home, prices up or down wouldn't affect my monthly installment so why bother???

This post has been edited by godutch: Apr 11 2011, 11:55 PM

I think you didn't catch what I mean...

i agree with yr thinking. and i think it's 80% investors in the last 1 yr.
just need to talk to frens and colleagues who recently purchased.

---

Added on April 12, 2011, 1:10 amafter 147 pages, still dissecting...!!

This post has been edited by AVFAN: Apr 12 2011, 01:10 AM

yield can be calculated many ways.
for example, the unit is enjoying a rental rate of say rm2k per month (rm24k/yr).
the buy in price is rm240k but the current price is rm480k
so yield over buy-in price is 10% but yield over current price is 5%.
that is why some people can afford to hold so long since their initial purchase price is low and yield over current market price is low.

and i also recall long long time ago, i posted an anticipation that it will come to a point where rent rates will start to escalate. it's the natural evolution. given the scenario that massive people buy in at current prices and find themselves unable to cover the mortgage/interest with rentals receivables, they will need to raise the rates sooner or later.
when that happen, it will be another round of adjustment and correction until a stabilise price is sought.

again, i'm hoping by heart it's not gonna happen but my head thinking it most probably would.

---

Added on April 12, 2011, 7:23 ami totally agree as i think those that voted in my poll of having more than 1-2 properties will be in your same dillemma.


This post has been edited by kochin: Apr 12 2011, 07:23 AM

lol.. need to form a support club or not.. why don't have Speculator/Flipper club..
maybe the 'few forumers' agree the point that posted by other forumers opinion..
u can try to read back from the 1st page.. there is also forumers that says " price is up up up ! " and then doesn't give opinion of their own...
sama saja lah bang..


after 10 years i might be in that position

This post has been edited by CKHong: Apr 12 2011, 09:03 AM

i totally agree with godutch. bt at the same time those genuine buyers take themselves off the market, a round of fresh grads take their places. people who couldnt afford it last year now have saved enough this year to purchase. it all comes back to supply/demand. right now the developers are launching like crazy. every weekend there is a new launch. so when the supply outweighs the demand, there will be that adjustment every one is waiting for.

i think the problem is not the local buyers but it is the foreign buyers who are influencing the market. those rich ones from HK are buying up lots like buying candy. so the illusion that demand is still there bt its not a local demand, i feel.