most people dont plan to fail, but fail to plan

You think new launches are ALL selling at fair price and valuation genuinely justify that?
People who can't afford subsales will look at new launches mainly
due to the discounts, interest-free and less outlay incentives, which is often time not available for subsales.

failure to plan is planning to fail

you can also put it that way

Just back from 'yam cha' (drink tea) with two friends. Found out that one of them just bought a 2nd prop and another just bought a 3rd prop around Klang Valley.

Looks like the market momentum is still good going forward...

So many articles on mont kiara

that's probably how developer create curiosity and spur up the interest...

Are they stretching their finance to the limit?

if yes, than it is not a good sign for the market,
because it is a momentum in reduce spending power.

The market have yet fully recover, but economic is heading in a not so good direction,

high inflation and over-leveraging.

They are stretching, but it is not over-stretch yet as both are high income earners. The props they bought is service-apt type. No need to succumb to LTV70 rule.

how high??

based on ur fren case

stretching in second half 2011,

over-stretching in first half 2012

over-stretching to the limit in second half 2012

boom at 1st half of 2013......so market will crash in 2013......haha

actually i got a fren also putting himself in the risk, he play bursa, buy few new propertys and new car...brave heart.....optimistic view.

No pain no gain. Only risker takers will gain more, of course, vice versa.

Hi all, I'm noob here.
Just want to ask. usually if you guys play property, when you say stretching, does it means maximize all your 1/3 income to pay for the property repayment or more?

Another question is I saw alot of properties with owners are cashing out their properties although they are still tenanted and quite profitable (about RM600 - RM800 rental). These apartments are sold RM180k - RM250k.

Hope all the sifu here can give some good advise here. Is it good to buy? Thanks.

Really, service apartment can escape 70%LTV rules?
I thought LTV did't apply for commercial building only.
Anybody can clarify

low end prop (old and less than 200k type) has little or nomore appreciation. so it is better to cash out now and invest in higher rerurn assets.
low end prop tend to become worst if it turn to drug addict, illegal workers home. (not now but maybe in near future)
many ppl are now reside or move to better condo..even students..

kekekeke....with some exemption lo....e.g. those old condos in Taman desa / Kuchai Lama / Setapak / OUG and bla bla bla...

This post has been edited by kh8668: Jul 27 2011, 12:38 PM

I don't know for sure. Let's just say they still can continue living their lifestyle even after the purchase.


Unless money supply drops drastically next year, otherwise the market will still be flushed with liquidity. As long as there is still a large amount of cash floating in the market, many people, like your friend will continue to dabble in risks. Banks need to loan out the cash, risk takers will borrow and dabble in stocks, properties, etc. The recent SRR increase doesn't really affect banks hoarding of cash. M-3 supply has grown another RM106B from July last year till May this year.

I really don't see how property market will crash in the short to mid term as long as the money keeps rolling in (thanks to US anyway for their quantitative easing).

Moderation of property prices in the short term maybe, as no. of barriers increase for property buyer. Many ppl will pause to see see look look what is the next development. Then after awhile, ppl will think "What is my money doing in the banks earning less than the inflation rate?" And then the property price graph start to continue upwards movement...

Of course, I am not saying a crash won't happen, it is just that I don't see the signs yet.

Something for reading, which is a good piece from BNM:

 bnm_eng.pdf ( 1.67mb ) Number of downloads: 79

kh8668, those condo you mentioned, is there a potential for further capital appreciation or just ROI? Those are also the place where I'm looking at.

If usually more then RM200k with current BLR, the ROI would usually be negative cash flow isn't it?

e.g de tropicana @ Kuchai (opposite kuchai avenue). that one i tried to bid at 115k last year (Q4), now transacted above 180k.

leasehold left about 50-70 years (not remembered).

Bukit OUD condo.

Taman Desa those less than 400k, but psf still low about <300psf.

a lot more if you really look for them. Open up Ho Chin Soon Condo/Serv.Apt Map to search one by one. LOL

No GE... how u see the sign... 3 months after GE u will kena it...