freddie mac and fannie mae in the making...

Agree with u. Now the properties price already sky high, even thought a lot of them purchased for own stay but they are in 80/20 or 90/10 loan. In the case where there is a sudden hike in interest rate, they might not able to service their home loan which will results in foreclosure.

Overhere in SABAH, property developer gone crazy building commercial shoplets even in small town (due to palm oil boom).. Use to be only 30++ shoplet now suddenly wanna to add another 150++ unit. Units being snap up/book before its been advertised (even booking also long queue) Local businessman said business already very competitive and now more shop, not sure how the market gonna absorb the extra capacity.

Most of the speculator are buying for capital gain, not much into rental yield which is the most dangerous part of the game. When the property in USA collapse, some of the property not affected because they provided constant "CASH FLOW" even in most distress market. Some of the property price sink because there is no market for it yet.

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Added on May 26, 2011, 10:43 amMost likely because interest rate had been kept low over the year, monthly loan still relatively affordable (within reaches of many, RM200,000++ loan only RM1500++ monthly repayment over 30 year period)

Not until inflation/hyperinflation kick in, then interest rate will most likely increase. And not all properties price will be affected as long as economic is booming in some part of the country. Only when there is significant of foreclosure which as a result of home owner/speculator who was unable to service their loan, then there will be a drop in property price (depends of the rate of foreclosure)..

Properties price goes up and surely down, it happen worldwide and it will happen again, and again, and again...

This post has been edited by thk38: May 26 2011, 10:43 AM

Check this out
Foreclosures for sale: Big supply, low prices

Let see what FED decision once the QE2 end this coming 30JUN. Not sure which country will buy USA debt knowing that US might no able to repaid them, if FED decide to increase interest rate, this might lure other to buy in USA debt but other country will surely follow to prevent major economic crash (withdraw of foreign fund will result in some country financial vulnerable, but this action might also cripple the country economic if its debt is too high). Start another QE3 will spark a major hyperinflation where no other country can stand absorbing US overprint notes. No other country had ever flooded its economic with its own currency without crashing its financial system except US cause everywhere in the world do accept Greenback, that's why every part of the world is experiencing economic grow (mostly due to increase value of oil, commodities, properties... and not increase in factory productivity which suppose to solve unemployment rate and social instability) If Greenback collapse, the world will be drag along with it... Are we prepare for it...

Apply car loan also only need 10% down-payment.. Others find it hard to make deadline while others kept taking up debt like there is no tomorrow...

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Added on June 3, 2011, 12:33 pmUS is a developed country, wonder why a very nice home only cost them US100,000 (redefined the word affordability, even-thought the cost of raw material are rising...)

We are all tie in global economic so any happen else where in the world, could happen to us too. Tries to be open minded.

This post has been edited by thk38: Jun 3 2011, 12:33 PM

Actually, the bubble should have already pop since 2008.. But the FED kept supporting the US financial system preventing it from collapse by pumping more printed money to the world (not just US) market.

That's why there is a surge in asset/commodity price over the year (as long as FED kept printing, world will kept absorbing until the liquidity is greater than the global GDP, which is happening now) US 13 trillion of debt alone already reaching its GDP limit. Recent QE1, QE2 does not really contribute to US productivity (it alone does not solve the US unemployment problem, and US housing market problem), in fact it only help the greedy/risk taker (TOO BIG TOO FAIL) bank bet on the world economic to fuel their hunger in $$$$$ Therefore put the global financial market in risk of sudden collapse (so the next step who will FED ask to rescue the global market)

Put our mind together, do u reckon our economic can sustain without foreign capital inflow. The reason why some of us are not very convince about the pricing of the property cause the price cannot justify the standard of living in our country. Of course it will be good to have property price increase over the year, but does it meant affordability and does it provide a good rental yield.

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Added on June 4, 2011, 11:39 amActually, the bubble should have already pop since 2008.. But the FED kept supporting the US financial system preventing it from collapse by pumping more printed money to the world (not just US) market.

That's why there is a surge in asset/commodity price over the year (as long as FED kept printing, world will kept absorbing until the liquidity is greater than the global GDP, which is happening now) US 13 trillion of debt alone already reaching its GDP limit. Recent QE1, QE2 does not really contribute to US productivity (it alone does not solve the US unemployment problem, and US housing market problem), in fact it only help the greedy/risk taker (TOO BIG TOO FAIL) bank bet on the world economic to fuel their hunger in $$$$$ Those put the global financial market in risk of sudden collapse (so the next step who will FED ask to rescue the global market)

Put our mind together, do u reckon our economic can sustain without foreign capital inflow. The reason why some of us are not very convince about the pricing of the property cause the price cannot justify the standard of living in our country. Of course it will be good to have property price increase over the year, but does it meant affordability and does it provide a good rental yield.

This post has been edited by thk38: Jun 4 2011, 11:41 AM