average household debt about 76k ..lOL

so deposit 63k for each household....okay what.


63kx10 = average household can afford 630k worth house.


This post has been edited by kh8668: Oct 16 2011, 09:26 PM

If this 2 info are truth, we are heading for major bubble burst in 2012...

7 Mil households with already have around 4.5M residential & every Quarter more then 500k residential enter into market

btw i heard Hongkong newly launch properties price are lower then the average price of the surrounding
If yes, then construction materials increase reason doesn't hold water any longer jor

This post has been edited by Iceman74: Oct 16 2011, 09:54 PM

wrong la...hahaha, who is going to build 500k residential properties for you every quarter?

besides building materials, dont forget labour cost also increase. (not in term of wages, but cost to do business) lol

to reduce / to maintain the property selling price, developer might go for sub-quality materials lo. so do not surprise you pay so much for your property but you get poor quality materials/workmanship.

This post has been edited by kh8668: Oct 16 2011, 10:04 PM

developer may just focus on developing further lands away from the city for affordability..

if prices drop..im sure someone is there to snap it up.. =)

Don't just count on savings.
Try look at the stat of GDP.

FYI:

GDP per capita:

2007 - RM14.5k
2008 - RM15.2k
2009 - RM13.8k
2010 - RM14.7k

Total Household debt:

2007 - roughly RM400 Billion
2010 - roughly RM550 Billion

Our GDP is not increasing, but household debt is increasing. Even BNM is quite worried now.

The simple facts has spoken. Either you live with it or live in denial..

since when we get 100% on what developers promise
maybe after much publicity complained or advertising stunts

cost of doing business increase?? r u sure?
the only things increase substantial are rental(greedy owners including me - cos they peg ROI to minimum FD interest income) & wages. And these 2 are related to each others

No worries. One Q. R u gonna sell when it's not up to de price u wan? So I stil dun think it's gonna drop in price.

U r very rite tat developers ll build further away fr city. Lots a developers now focus at places like kajang, semenyih, rawang, bangi, etc etc.

If the interest rate goes high, there will be a few who won't afford to pay the monthly installment. They were paying $500 a month. Now they have to pay $1,000 a month because interest rates are 12 percent. What happens? They can't make the payment. What do they do? They sell the house, or they try to hang in there for a while until the house gets repossessed, and the bank sells it. Either way, the house is getting sold. The house then goes on the market, adding to the supply glut of homes for sale. It's not just this one family that's affected, because interest rates affect everyone. Suddenly, a large group of homeowners can't make the payments all at once.

Assumption is alwiz assumption. 12% was a history long ago. I've no idea if it's gonna happen again or it could b higher than tat sooner or later, or never.

1 more Q, r u ready to face it or runaway fr wat u assumed ll happen? If u hav chosen to live w it, then b a man n face it. Plan A or B or C. Whichever plan u hav. But if u hav chosen to stay away, actually u r living in denial. I would rather face it. No matter wat ll happen, s long s v r ready n well prepared or equipped, I dun c any big prob. Econ cycles come n go. 1984, 1997, 2002/3, 2007, or later, those who r not prepared for raining day ll suffer. Those who r smart enuf ll enjoy n growth their wealth even more. opportunities r for those who r prepared for it.

Life is short. Few 10 yrs of life r not much. Do wat u think is worth doin when v r stil capable. Worries ll only make our life suffer.

Eg. I would rather live 60-70 yrs n eat wateva I like. I ll not live 100 yrs eating food I dun like. In tis case, I hav planned well for my family members. They ll enjoy de fruits when I'm no longer w them. If v plan well, it's not de matter when r v buying or selling, it's where about v r investing.

No obligation boss. Just IMHO.

guy the world is gone messy now the day gone by...if you still think malaysia property not head down ward then.....you are the guy invest heavy during the last few year.....you now denial it and want people from out sider to believe malaysia property never crash...buy some more to create you weatlh....
Face the fact....wake up....

Property Developers Hurting in China; New Homes Sales Down 50% in Shanghai; Preposterous Prices Won't Last; Commodities to be Hit in Building Slump


Developers in China are struggling and it's about to get much worse because China Construction Bank Raises Mortgage Rates for first time borrowers according to the Wall Street Journal.

Channel News Agency Asia reports Credit crunch in China hurts property developers

The co-founder of SOHO China, one of the nation's leading developers, is worried Beijing's efforts to cool the sector are hurting sales and threatening to send some debt-laden property developers to the wall.

"In my sixteen years as a developer this is by far the most challenging year I've ever had, in terms of what we could sell," Zhang, chief executive of Beijing-based SOHO, recently told reporters.

Since the beginning of this year Beijing, fearing a bubble, has been trying to bring down dizzying prices by hiking interest rates and restricting lending to developers, making it nearly impossible for many to get financing, Zhang said.

Industry officials and analysts are worried that the measures are now squeezing sales so much that property developers who have borrowed heavily to fund new projects could be tipped into bankruptcy.

"A wave of newly completed property is about to hit the market. Developers are likely to find themselves holding large volumes of unsold property."

In Shanghai -- where the average cost for one square metre of downtown housing was 48,000 yuan (about $7,500) last year, about 12 times the average monthly salary -- home buyers have little sympathy for cash-strapped developers.

"Considering the high housing prices in Shanghai, a new flat is just a dream," said Qian Xueqi, a manager at an international hotel.
Housing Math in China

One square meter = 10.7639104 square feet
Cost per square meter = $7,500
Cost per square foot = $7,500 ÷ 10.7639104 = $696.77
An 800 square foot home (74 square meters) would cost $557,418

How many in China can afford that? Moreover, other than bubble mentality, there is no reason to pay such prices, even if one could afford it.

http://globaleconomicanalysis.blogspot.com...?x#echocomments

hehe... actually the bubble is generated once the developer build house far away from reach or convernience of ppl... exactly wat will happen in usa.... urbanization

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Added on October 17, 2011, 9:29 amprop market become like stock market now... i saw some advertisement thise week price 400k, then next week 450k, and few days later 400k back and on and on... hehe.. i think the agent/owner put the price tag is base on the news.. hehe.

once the commodity price drop... prop price will drop... prop market crash, financial system will follow as well.... this not difficult to predict as normal ppl also can earned mil in prop during rally.

This post has been edited by sampool: Oct 17 2011, 09:40 AM

+1

even during crisis i dun see many prop are selling at huge discounts. (i m waiting to buy cheap during 1997 but cant get one). The statistic recorded 30-50% down is maybe only small % of total prop in the market and these prop maybe were absorbed by danaharta etc. Asia is well prepared now coz the govt can set up many agencies like danaharta to support/rescue the market. (same to China etc). US, Europe is different, govt are not allowed to intervene. Temasek made ton of $ buying US illing assets during crisis. Same to Danaharta, they made ton of $ during 97 crisis. Msia somehow is diff from USA , Euro total free market. Many Asian/ME countries are copying Singapore Temasek..

hehe..what make cost to do business increase? rental is only part of it. Labour cost (import duty per head taxable by government) also part of it. the other factors, can also think of them lo, utilities, marketing, printing, comissions, etc.

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Added on October 17, 2011, 9:54 amLOL...GDP is just like concurrent income statement. also we need to see how stong the financial support (backup) on individual.

we only can analyse the simple average here. further indept info, we need more accurate data.

This post has been edited by kh8668: Oct 17 2011, 09:54 AM

1) Again, that is overall in Malaysia. How many are contributing to salary tax atm? only 10% of the people, it means the living standard is still FREAKING LOW! So you tell me, the other 90% of the people with such high living cost now days and yet such puny pays, is there anyway they can live without a debt around them?

2) Most of those who went into bankruptcy, it's not due to Home Loan repayment. The percentage had spoken, those with personal loan, credit card, hire purchase and business loan are the contributing factor.

*You should choose to fix the problem in the first place. Bringing down the property prices will still leave us in denial.

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Added on October 17, 2011, 10:12 amGREAT, in this case we can join the others who go bankrupt! oh wait i forgotten to tell you, i am only paying 1/5 of my current nett income to serve my home loan repayment. I guess it's not a problem for me if it goes up to 12%. But what happen if i lose my job? Well.. if it really happen most likely you would lose yours as well. Let's plan together to curb this issue.

"!!!Wait... my job opportunity to wash the toilet and clean the rubbish had been taken by the foreign workers... God Damn!"

*This is one exact example if we do not do the right thing. Now that foreign workers are filling all the spot, i am expecting the employment rate to go down as well for the locals. disappointed with the government management.

Face the fact bro, everyone needs to plan for themselves. If you fail to plan you plan to fail. As simple as that. Those who are doing good in such situation what makes you think that you would be better than them when time comes? I believe most of us who are capable had already planned for the worst to make sure if there is anything happen, i would still have a backup plan. Question is.. Do you have one?

Paper money value is dropping everyday, your RM1 might be RM0.10 next day you know. By the time with 12% interest most likely my net income will be much higher compared to what i have now.

*No one is that dumb, % of interest will increase gradually if it really happen like what you've said, the government is asking for trouble. from 6.5 >>> 12??? well they are asking for RIOTS in whole nation if they do so.
*Those who are renting will not have a place to rent, those who are still serving their loan most likely will just bite on to 1 property and work their ass off in repayment.

This post has been edited by kidmad: Oct 17 2011, 10:12 AM

few of my friends told me prices for property might drop next year, is it really going to happen??

Do you friends give you any supportive information to make that statement?

Another add on, while some of us are speculating the prices will go down further have you failed to notice that most of us who are posting in property section is still looking for a property, nearly all the new development in KV had been post up in lyn and i can still see loads of ppl buying.

This post has been edited by kidmad: Oct 17 2011, 12:13 PM

"US, Europe is different, govt are not allowed to intervene."............you sure or not? Have you heard of bailout before? If you don't call that market intervention, what is???

Tats y v dun alwiz look at others. Otherwise many ll go invest oversea liao. I hav to giv credit to those who r optimistic enuf bout de props price goin up or at least sustain. S mentioned by Lucerne kor kor, Danaharta is 1 solution. But out of the whole nation, how many props r taken over by Danaharta??? My relative worked there. I was even offered a few props to buy then. S I mentioned b4, opportunities r for those who r well prepared, of cos well equiped oso la. Back in 1997-2002, I hav seen many props offered to public by Danaharta. I hav oso seen lotsa ppl rushing to buy. Y?Y?Y? Cheapo??? Not really. Its just very simple. Smart ppl alwiz spare for raining day. FD is 1 strong criteria to grab tis offer. Bank ll come into the pic to help if u hav handsome FD amount w them.

For speculators, I would suggest u guys start saving a bit. Not need to go all out la. Chinese says, if its belong to u, it ll end up urs. Otherwise no need to blame or force la. (Sori har, my england not so good la)

This post has been edited by ManutdGiggs: Oct 17 2011, 12:03 PM

well i m not a speculator, but loading up now to buy cheap prop in coming months. can not get one in 1997 but hope to get some good prop in 2012.. especially shops and factory lots.

This post has been edited by lucerne: Oct 17 2011, 12:34 PM