mmm
u got a point there...

a) Average Joe income might not increase rapidly, but it doesn't mean those above average one, rich one, or those can apply leverage one. Remember worldwide currently is under some historical low interest rate aka plenty of cheap money around.

b) Cost of leveraging is cheap as stated in a)

c) Properties is about buyers and seller, demand can come from money instead of real people migration in it. There are many rich person do not mind buying a property and collect little rent, because many view it as an inflation hedging tool, especially with inflation threat is quite serious lately.
KV may not facing huge influx of people, but KV is still facing population growth. Somemore new family new house. We are experiencing that a house now hold less and less people due to smaller family, and family members are not living together like last time that you can have brother and sister family living in the same roof.

d) This still need to ask?
Oil price was USD30-40 prior before 2003-2004. Now USD 95.
Palm oil was around RM2000, now >Rm3000
Timber price has 2x if compared to 10 years ago.
Go out and check how rubber price surging, how labour shortage, difficulty and wages around.

Ya, fact, developers and company registered healthy profit, because the inflation cost is passing to the consumer/customer.
Just because inflation then developers must facing profit drop?

Personal opinions, of course

<<With this explanation, this means developers profit are in line with M'sia's inflation rate? No freaking way! But of course, they do get away with it>>

developers are gambling with raw material price increase in the next 3 yrs... so if developers made lot of profits mean they win in gamble (which the raw materials end up did not ate up their profits initially they anticipated raw x2, x3.. what if things became reverse, do the purchasers willing to top up $ or developers go bankrupt?

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Added on July 1, 2011, 11:40 amtrue, many of my unmarried fren are staying in 3 rooms condo, 4-5 rooms DSL or SD alone..imagine a family with 5 siblings.. parent one house, 5 siblings 5 houses. total 6 houses. and most of them also invest few prop for rental income.

This post has been edited by lucerne: Jul 1 2011, 11:40 AM

developer will have no risk not meh ? i thought only contractor will have risk if the raw material price is increase ?
Developer tell contractor > ok.. this condo i will pay 100 mil.. can u build it ?
contractor > Hmm.. will be able to cover with some profits..
next month raw material go up 50% > the one kena will be contractor
am i wrong ?

of coz all sub/main contractors will increase their bid price la. developers hv no choice to accept higher bid coz they also worried the main con went kaput. same to main con...the sub con can run away too.. they all need ot gamble a bit but not definitely based on today price la. it is not the same as those days where the raw prices are quite stable. they can not use the same mark up for now..more risks involved..

when contractor cannot cover their cost, what do you think contractor will do? my guesses are contractor would:
1. ask more money from developer
2. reduce quality
3. run away
4. deliver anyway but make a lost

option 2, 3 would give developer very bad additional headache. after all, developer and contractor are honest business man (hopefully), they dont want to take unreasonable advantage on each other. option 4 is the least likely will happen for an obvious reason. my guess that most likely is 1(ask more money from developer) and developer will be willing to compromise as this is nobody's fault except rising material cost. any smart developer would have factored in the cost in the first place when selling the property.

Anyone can give thier opinion?

I think if you can get a landed unit if you know its not too overpriced. If it's overpriced for no reason, really.. don need to

it depend on your needs , no need to follow others.
if u are single or just married, just stay condo is better option.

if u have kids and need more space /gardening/cycling etc then go for landed.

if u want to make some extra $, invest in stock will do.

Heard the rumor about recession may be happen within 8-12 months... bank division was directed not "too aggressive" on lending...

omg... how true is the recession..
if its true.. i duwan do job hopping first lur..

Yes i heard after Raya

Not sure. If you have best friend work in malaysia bank, VP or above, deal with secured/unsecured loans you can check with them...

The bank should do it moderately and in stages or else there would be a credit crunch. No cash in circulation. It will hurt our economy badly.

There is no such thing of rumour of recession unless one has crystal ball that can see the future.

Bank are not too aggressive because they are concern of over-leveraging of household debt, as well as many leverage on rapid rise of properties price.

They just want to protect themselves or prevent themselves has too high NPL if there is slowdown in economy, also the SRR being raised which reduce liquidity of in banking system, which is expected to be raised further in the coming BNM policy meeting.

New York Times!

Minnesota Government Shuts in Budget Fight
By MONICA DAVEY
Published: June 30, 2011

MINNEAPOLIS — Minnesota began what is expected to become the broadest shutdown of state services in its history early Friday, after Republicans and Democrats there failed to agree on how to solve the state’s budget woes in time for the new fiscal year.

And so, on the eve of a holiday weekend, residents were likely to find the state’s parks, historical sites and the Minnesota Zoo closed, hunting and fishing licenses no longer being issued, and that state’s lottery system and racetracks unavailable. Minnesota’s 84 major rest areas along highways were closed. Thousands of state employees were expected to be sent home without pay, and contractors were to be told to walk away from hundreds of road construction projects already underway.

Since early this year, politicians in St. Paul have been locked in a battle over how to work out an expected a $5 billion budget deficit under a divided government. Republicans, who took control of both chambers of the Legislature after elections last year, called for cuts and reining in spending to the $34 billion that the state expected to take in over the next two years. But Gov. Mark Dayton, a Democrat who was also elected in 2010, called for collecting more in income taxes from the very highest earners to spare cuts in services to the most vulnerable residents.

While private negotiations went on, day after day, and the Friday deadline approached, it seemed as though the argument had never really shifted much at all.

“This is a night of deep sorrow for me because I don’t want to see this shutdown occur,” Mr. Dayton told reporters late Thursday, not long before his spokeswoman confirmed that a shutdown of services had begun. “But I think there are basic principles and the well-being of millions of people in Minnesota that would be damaged not just for the next week or whatever long it takes, but the next two years and beyond with these kind of permanent cuts in personal care attendants and home health services and college tuition increases.”

Into the evening, both sides sought to sway public opinion on a shutdown that is certain to affect Minnesotans’ daily lives, even as protesters (demanding a solution to the impasse) gathered outside the Capitol. Republican lawmakers held what some described as "sit-ins" urging the governor to call a special session so some state services might be temporarily kept running, even if negotiations took longer. Democrats, meanwhile, accused the Republicans of “political theater” and called for compromise.

“I’m willing to compromise,” Mr. Dayton said. “I’m willing to meet halfway. But I’m not willing to give up what I believe I was elected by the people of Minnesota to do.”

For days, leaders on both sides have met under what Mr. Dayton’s spokeswoman described as a “cone of silence” about details of their progress. But by Thursday — a day before the new budget year was to begin — state workers were beginning to frantically prepare for a shutdown.

Numerous states’ new budget years begin on July 1, but Minnesota now finds in an unwanted spot: the rare state facing a shutdown, a prospect certain to bring political fallout and mounting tension. The last such standoff in Minnesota came under an entirely different set of leaders (including Tim Pawlenty, the former governor turned Republican presidential candidate) in 2005, but involved the shutdown of far fewer services and lasted a matter of days.

“It’s a very sad day for Minnesota,” said Lawrence R. Jacobs, a political scientist at the University of Minnesota, which is not expected to close. “It’s a state that had a well-earned reputation for being well governed, where, at the end of the day, politics were done in a fair and efficient manner. And it’s now on the cusp of ungovernability. There’s a new ethic here that compromise is weakness.”

The list of state services expected to close is lengthy: all sorts of state offices including dispatchers in the Twin Cities who monitor traffic jams and accidents and try to keep rush hours moving along. Certain crucial services will stay open, such as state patrol work, prison operations, courts, and schools.

http://thedailybeck.com/2011/06/29/glenn-b...v-june-29-2011/

So did you put your money where your mouth is and sell everything already?

It is rumor.
http://en.wikipedia.org/wiki/Rumor

Cherroy may be correct as what I heard they are advice not "too aggressive"... to be specified reduce loan repayment period...

Don't ask for memo/letters/etc...