up or down by how much, nobody really know
just dun sai lang all into properties investment...leave a cash portion(prefer a huge portion now) for future investments

but then again, the location i looking for, price are softening

mind to share where is the location you looking for?

During the beginning of the US subprime crisis, the reaction by banks were to raise interest rates.

Because they were losing a lot of money (many people overborrowed and cannot pay) they try to cover by charging those who can pay.
This only stop when the US Feds step in to bail out the bank.

True, the situation was 'saved', but at what cost to the country?

Also, US and UK can do quantitative easing - print more money like mad to save the economy - we cannot.

Can this happen in Malaysia? Fortunately our banks are still quite regulated. No funny derivatives and loan bundling.
But if too many people over-borrowed to speculate, it is possible to have a short term mini subprime crisis.

As I keep emphasizing - the question is how many people have been borrowing recklessly.

That will determine how market will go - up still, soft landing, hard landing, crash.

Manutdiggs kor is right. We can only predict. He is optimistic, I am conservative.

We choose what we want to believe in, and act accordingly. Life goes on.

---

Added on October 18, 2011, 12:01 pmMay be culturally different for the older generation.

But take a look at the younger generation. Their financial outlook just like the Americans, Europeans.

That is what Lee Kuan Yew very worry about.

This post has been edited by Fazab: Oct 18 2011, 12:01 PM

[quote=Fazab,Oct 18 2011, 11:56 AM]During the beginning of the US subprime crisis, the reaction by banks were to raise interest rates.

Because they were losing a lot of money (many people overborrowed and cannot pay) they try to cover by charging those who can pay.
This only stop when the US Feds step in to bail out the bank.

True, the situation was 'saved', but at what cost to the country?

Also, US and UK can do quantitative easing - print more money like mad to save the economy - we cannot.

Can this happen in Malaysia? Fortunately our banks are still quite regulated. No funny derivatives and loan bundling.
But if too many people over-borrowed to speculate, it is possible to have a short term mini subprime crisis.

As I keep emphasizing - the question is how many people have been borrowing recklessly.

That will determine how market will go - up still, soft landing, hard landing, crash.

Manutdiggs kor is right. We can only predict. He is optimistic, I am conservative.

We choose what we want to believe in, and act accordingly. Life goes on.

[/quote]

I believe there will be crashing on Credit card overspending soon. Yesterday my wife received a love letter from Citibank to provide income proof for the Rm36k BNM regulation rule to be inforce on 1st Jan 2012.

---

Added on October 18, 2011, 12:01 pm
May be culturally different for the older generation.

But take a look at the younger generation. Their financial outlook just like the Americans, Europeans.

That is what Lee Kuan Yew very worry about.

[/quote]

yup, agreed with you. younger generations are more brand/trend/product awareness

---

Added on October 18, 2011, 12:08 pm[quote=insaint708,Oct 18 2011, 11:54 AM]
mind to share where is the location you looking for?

[/quote]


Puchong

This post has been edited by Iceman74: Oct 18 2011, 12:08 PM

that is more true than not, imo.
low productivity and incr debt is what is plaquing many nations.
bolehsia's national debt at 51% gdp now, the law will need amendment when it hits 55%:
http://www.themalaysianinsider.com/malaysi...ng-warns-anwar/
one can argue 70% is still fine since usa is at 100% and took greece at 180% to see riots on the streets.

This post has been edited by AVFAN: Oct 18 2011, 12:18 PM

One thing must happen first before property prices really drop.

People start getting retrenched and losing their jobs. Businesses start going bankrupt and have to lay-off all their staff. Unemployment shoots up.

Before that happens, property prices will still go up or be stagnant.

younger like facebook ing everyday n nite... "Like" here and "Like" there... some rather doing farming n gardening indoor instead of outdoor... !

不撙节国债2020年或达1万亿
智库：届时纳税人各分摊59万
http://www.malaysiakini.com/news/178958






This post has been edited by sampool: Oct 18 2011, 01:40 PM

You're rite, seems dunno how to differential Reality and Virtual Reality ...

I feel that that is not necessarily so.

if prices are stagnant, some people who "invested" and was counting on a price increase eventually default on the loan, may cause a landslide effect.

Though I do not doubt, that people may lose their jobs during the coming crisis.

---

Added on October 18, 2011, 2:15 pmI have a noob, non economist question.

Does GDP take into account inflation?

Let's say the price of everything goes up, does that make the GDP go up also? Without any real gains.

This post has been edited by TheDoer: Oct 18 2011, 02:15 PM

Any why would the investors "eventually default on the loan"? Do you mind explaining the logic behind your statement?

You can go to any property auction & lelong site and do a simple search, vast majority of properties that are up for auction are in buy-to-stay locations.

It's like this, flippers buy to flip. Some more so then others. Some do not take into account their other commitments they have, because they believe that they can get back their capital when they sell off the prop.

If price of prop does not increase, they will keep holding on to their investment until eventually something gives. Their will to keep holding on, or they suddenly get a windfall that fixes their problem.

from http://biz.thestar.com.my/news/story.asp?f...65&sec=business

let me translate it

“We are still positive on the sector for the next year and we hope, despite a prolong European debt crisis, there will be a soft landing. We believe the demand for properties will continue to be buoyant because we have a young population and there is a lot of rural-urban migration,” he said.


Don't worry, soft landing are coming but we have a lot uninformed buyers.


Leong said property purchase was very much driven by two factors job security and sentiment.

as long gov don't lose

The country's savings rate and healthy employment market are the other factors contributing to the strong property sector.

“Beginner homes below RM500,000 will meet buyers' needs,” he said.

If really bad, we launch properties with lower price, so is game on for flippers


In today's market, he said, prices of high-end homes were expected to soften a bit.

for flippers on high end market...gotcha, be prepare to hand on yr trousers

“We expect mid- to high-end uniti to be popular. Semi-detached units priced at about RM1.4mil or thereabouts will be in demand. For bungalows it will be those RM3mil or thereabouts. The location, accessibility and the availability of amenities are other contributing factors to the success of a project,” he said.

We do have same things to offer, why go for 2nd hand


At the same time, the company is also replenishing its land bank. It recently purchased a piece of land in Rawang of about 90ha for RM92mil.


see, we still can get cheap land...muahaha

Good Translation

Sori in advance to those young ppl here. I personally think tat young gen now r more speculative. Productivity wise, hmmm, not so. Most young gen prefer fast money. Older ppl more down to earth. I'm not old but since very young I dealt with old guys. I'm a drop out here. The onli cert I hav is 'SIJIL MASYARAKAT'. I hav seen ppl fall fr very peak to very low. WHY??? Greed!!!

Lotsa ppl now try to flip for profit. Tis r opportunists. Not investors.

Anyway, s some mentioned, diff ppl diff thinking. Maybe its bcos m KIASI so cant able to earn quick money. HAHAHA

This post has been edited by ManutdGiggs: Oct 18 2011, 07:12 PM

I heard rumor property prices might come down next year. How far can it be true.?

I would like to see property prices drop a bit few years ahead...

thanks for the correction. I was also thinking about something went wrong with my calculation LOL.

Anyway, the point is, our household debt is very2 high and it's in a critical zone now.

---

Added on October 18, 2011, 9:11 pmExactly, I'm preparing for it. I'm piling up my cash to wait for the big bargain..


This post has been edited by hazairi: Oct 18 2011, 09:11 PM

Good luck boss. Dun forget to acknowledge me if u hav any good offer.

Tq

we are reaching it's peak..

---

Added on October 18, 2011, 10:07 pmNot around the corner but maybe another 1-2 years to reach it's peak and the price will stagnant for a few months then BOOM!

This post has been edited by hazairi: Oct 18 2011, 10:07 PM

now say 100% price as one...1-2 years later on maybe 150-200%....stagnant for 1 or 2 years......150-200%......Boom 300% - 500%

2011 ----------------------2012/2013 ---------------------------2014/2015---------------------------------2016/2017 (KLIFD/MRT/RRIM) kaboom..if lucky, all these project failed, then you can expect the pirce of existing propery will be stagnant also.