If you fork out your own cash money you will still get the same amount gain la. Don't look at the % it's deceiving. The only difference here which we need to take into consideration is bank lawyer fee + 5% incase of lock in period. You save quite a huge sum from there. You put down payment when VP you flip and earn 100k, the person who use their own hard cash will have the same amount of earnings.

*however a greedy cash load free person will be looking into a few unit and instead of buying 1 unit most likely he will take his hard cash and split it to a few.

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Added on October 19, 2011, 12:52 pmBro mana cari roti canai 40 cent and 60 cent teh tarik? if i can find a place here in CBJ ill go there everyday for breakfast. ahaha

This post has been edited by kidmad: Oct 19 2011, 12:52 PM

http://www.malaysiakini.com/news/179057

This post has been edited by sampool: Oct 19 2011, 02:03 PM

i believe you dun know the true meaning of flipping

let said you have 500k cash, either you can buy 1 unit cash or 10 units on 10% downpayment & the rest on loan

after VP, you can dispose & net gain 50k on each units for 9 units (50k x 9units = 450k)
all the profit goes to the last unit & settled the loan
end result you will still have1 unit & RM450k cash from the disposal

Your friend unutilise the chance given but dun follow me cos it hell of the ride for 2/3 years b4 VP...

We are all merely rushing to get to the top. Nobody is willing to line up like civilized people.

The suffering will stop, when we all behave.

haha...now in stampede mode, hope not in stampede mode during down cycle

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Added on October 19, 2011, 2:45 pmearning Millions in properties still consider normal ppl ar
me more "char" then consider what ar

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Added on October 19, 2011, 2:58 pmMalaysia Banks strict
What you see in reports are diluted by majority of small creditors, it need just a small minority big creditors get into trouble, then you will know the answer above

This post has been edited by Iceman74: Oct 19 2011, 02:58 PM

It is not shocking at all, and not a rocket science, it is an obvious choice, and logical choice especially when the borrowers are under stressed.
You must understand the word "underwater" property.

You bought a house 500k and obtained 500k loan, which you need to pay monthly.
Now the house market price is only worth 250k, but you loan still 500k.

If property price doesn't goes back up 500k, and stay the same 250k, for everyone USD1 you are paying to the loan monthly, you are burning USD0.50 straight away, aka you are paying USD1 price to a house that only worth USD0.50 every month.

Haha i already marked my comment with * la. That's what i call greedy. Too bad i am no body to stop them from buying 10 unit at one go. But if this really still happening then how the price will stop increasing?

Unless the supply is too much for our population but now days all the young adults wants to have their own home instead of staying with parents... Will the buying stop then?

we do not see this happening in HK, Singapore, Japan for underwater prop... we Asia is different from US. Maybe due to face value??

There were a lot of underwater properties during 1997 crisis time and foreclosure of properties
Just we don't see this time around, because prior to 2008 financial crisis, Asia did not have RE bubbles.

Yes, cultural issue can make some different as well, but Asian tend to have higher saving rate which serve as backup fund to avoid foreclosure.

Also foreclosure law, or defaulting the properties loan law is different as well.

Malaysian banks strict? When a person with salary below RM5k can buy 10-20 properties? When some ppl were openly "sharing" in other forums that some valuers can be "bought" to give the valuation that the speculators want? When the property price can be jacked up to get "no money down" deals? And all that require the cooperation of several parties involved.

Btw there are already whispers in the wind of retrenchment and pay cuts, of businesses not doing well. But nothing published in papers, at least not yet.

To see the supply is too much or not, or specifically properties price can be sustained or not, is not solely about population number, aka 1 house 1 people ratio or whatever ratio.
It never work like that.

It is all about money that willing to put in properties.

A rich tycoon can own 100 properties, and only 20 rented out, the rest 80 collecting dust, if the rich tycoon views he/she has too much money, don't know to park where, and FD and elsewhere investment return also pathetic, he/she can opt to buy 80 properties that collecting dust also never mind. Then, pricing is supported.

Buying come from money, not people.
You can have 1 million people that has no money, even you build 100 house, also price drop.
But if you have 100 billion idle money, cheap money, don't know go to where money, but only 100 person, house price can soar.

And this is happening right now.

People keep on complaining house price keep soaring, say, hey no enough middle income people to buy, soon or later, it will collapse, but in reality, there is simply too much money around, especially from the upper class people.
Worldwide has zero interest around, so if you have the plenty of money, where do you want to put it?
Bank? earn nothing
Stock market? too risky, volatile especially lately few year.
Inflation is eating the money, need to find some hard asset, obvious choice - property.

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Added on October 19, 2011, 5:06 pmLocally, most company are finding hard to find enough skilled workers to fill in the job.

This post has been edited by cherroy: Oct 19 2011, 05:06 PM

+1 thanks bro for clearing some of my doubts. I guess at the end of the day it's all about those rich folks out there who continue buying.
Next question... how to stop them....

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Added on October 19, 2011, 5:20 pmWho with salary below 5k can buy 10 - 20 properties? I have more than that so i can buy 20 - 30 props ah? any method to do this? mind sharing?

This post has been edited by kidmad: Oct 19 2011, 05:20 PM

Salary might be RM5k, but income from rental/FD/other business must be high enough to justify otherwise no bank will approve so many loans.

As long as all the properties rented at positive cashflow, with stamped tenancy agreement, and proof of rental bank-in, then bank will include rental income in borrowers total income.

Someone with RM5k salary and 10-20 investment properties being rented out generating RM5k positive cashflow is lower risk vs someone with RM10k salary.

Cherroy, does the rich ppl you are referring to include foreigners?

For what I know, foreign interest/purchase in Malaysian property is considered low percentage wise.

Therefore, those rich ppl that are buying multiples houses are rich Malaysian. Do we have so many rich Malaysian????

Somebody posted the numbers of rich Malaysian with min 3 Mil liquid asset in hand, maybe we could start from there???

yes alot of biz man oni declared 5k /month for tax purposes but owned >20 properties for rental (mainly shops etc)

if declare 60k/year & buy shop...good luck
they will need a lot good luck

dont forget we still have 1mil Msian working oversea who earned good salary and millions of them already return to semi or full retire in Msia. not
compare to Filipino maids who remit $ to their home coutry (and big contribution to home econ), I think Msian is easily 100x the values. Msian "jump aeroplane" wave is more than 30 year since NEP started. (and increasing due to weaker RM)

I know many msian who worked oversea are now multi millions in liquid asset. (1 mil Sg is MYR2.47 mil). 200k sgd annual salary are common. they can easily become 1mil sgd after 7-8years. Some oredi work in Sg for more than 20 yrs...

if Msia govt can attract this millions of ppl back to Msia, i think msia prop will boom again.
many now just invest oni small amount $ in msia prop (1-2 for holiday or for parent) coz many still hesitate to return to Msia..

but .. if msia policy /politic become worst, the opposite scenario will happen ($$ flow out) and those now reside in oversea will immediately renounce their msia citizenship... Nanyang recently reported 6,000 Msian become Sg citizen in 2009 alone (a sharp increase), i think mainly due to worsen politic climate after 308 (eg balik China etc) . What happen after PRU13??? So 2012 is a cornerstone for Msia prop.. down or up?? u bet.

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Added on October 19, 2011, 6:46 pmhaha, u dun believe?? i know many of them..

pls take those old days bank do not share loan info so they can have multiple loans with just 5k salary + co financial statement. but they still can afford to pay loan installments from biz income..and continue to buy new prop etc. nowaday, if you can show bank the valid tenancy agrements, the bank will continue to borrow new loan with jsut 5k salary + biz financial statement.

This post has been edited by lucerne: Oct 19 2011, 06:46 PM

mana boleh bro, say easy la. Buy a property not only that you need 10% down payment. U still need lawyer fee from both side. Unless the guy is 40 years old but still earning 5k else i don't think younger generation with 5k income can afford 10 - 20 props la. It took someone 2 years + to save around 40k+ to buy a 250k prop, and that 250k prop will drain nearly everything out of it...

I'm not saying i dun believe you. Just that these ppl haven't being visited by IRB for teh tarik session.
The few cases happened to clients around me, some have to sell shoplot/condo to settled the penalty.
Mostly visited by IRB will not go back emptyhanded. Me waitiing for the teh tarik session also but i prepare for it.

Like the old chinese said, never see a ghost, never afraid of dark

i heard many biz man now changed their base (or form a trading co ) in sg or Hk i/o Msia to save tax . is it true? (i have a few fren done this, not sure if it is common now)
i think if msia do not reduce their corportate tax structure the more co will run away.. heard many feel disappointed with 2012 budget.