Best way to indebt malaysian is to inflate house prices. There has been good empirical studies on household debts and house prices. Bank Negara, Wake up, time to introduce more measures! i won't mind policy error that lead to property crash, at least it won't burden generations to come... don't get me wrong, i own more than 7 properties but i still think prices are crazy now.

agree although i dun hv as many.
in addition:
1.prolonged surges in home prices give false hope that money can be created out of nothing, no need to be productive
2.sick and economically strapped gomen is further encouraged to use debt and construction to push gdp up, do nothing about anything else

This post has been edited by AVFAN: Aug 15 2011, 10:22 AM

i salute u
own more than 7 properties and point out that property price is crazy now

unlike a lot of ppl here
keep trying to create the hype despite knowing that there is something wrong with the price now

thx alot...

ps: i do not own 7 properties
but i do own few
and i believe the price is crazy now
especially those DBIS projects
and 6k get $800k loan...

Conclusion Do away or stop dibs...

agreed.save your cash.cash is king

spare for the downfall.the price of prop may slash to 50%

50 percent??

I suppose the house prices keep going up is because the buyers take on more debt to inflate the housing bubble, at some point down the road, Malaysian will reach a debt saturated situation, they simply cannot take on more debt without matching income grow in order to keep inflating the bubble. The price would have to come down to earth eventually.

Bank Negara should raise interest rate to a more appropriate level, people are using this low rate to speculate in the housing sector. Government is kind of dilemma, if they raise rate now it will be damned (housing bubble burst) but not raising rate will be damned too (bubble keeps inflating to a greater level and eventually burst follow by a more severe recession).

SAVING = INVESTMENT CAPITAL = CAPITALISM, we simply cannot have sustainable grow based only on borrowed money.

do not talk about fundamental here. our properties all selling to foreigners / expatriates, that is why expensive.
remember properties in Malaysia still dirt cheap compared to so and so..a lot of upside still.

see the optimism already set for the next 10 years.

Malaysia Property Golden Era 2010 - 2020

yup.all sold to foreigner

that was happened in Johor Bahru

Ghost town,no one at these housing. no one want to buy old house.Selling lower than buying.

When this cycle happened, all this foreigner frightened and ready to cash out at 50% discount.hehehe

Better to have local buyer.They just don't run when world market destabilize/politic chaous/riot

If anybody wishes to put their money in a fund they should do some major research first as you can also easily lose 10-15%.

Wondering if talking about new launch prices or completed props. If 2nd hand props, might still move up a bit in immediate future. AFter all Malaysia has not seen any drastic change in economy & no one who owns a prop will want to give another person a free ride on his mighty fine prop, bought using his hard-earned money unless there is an unavoidably good reason, like everyone is doing the same cutting prices, or his salary is cut. If new launches, prices might still go up or down, but have to drill down to details to b more accurate, developers might launch cheaper props but the prop will be smaller, so in effect u r still buying a more expensive prop psf. But its like the soho trend, people normally only see the total price, if cheap ppl wil stil buy, so developers will start to downgrade sizes. Hi-end props will b more stable, less down-risk but not talking abt condos, very2 expensive condos will b hard to sell oh.. After seeing whats happening in klcc, the rich are even more scared than the middle incomers. As for these mid-incomers, will still look for props to buy, there will still be market so new launches might not scale new heights in pricing but be prepared to be disappointed not to be able to find quality condos sold by developers at cheap pricing, prices will hold. Some ppl will be scared anyway, market will be smaller bit by bit, so developers will think of more 'promotions' or free items bundled with sales to stimulate interest. But i still stick to my opinion, prices psf for aprt/condos at nice locations that everyone wants will not come down. . I didnt touch on landed props cos it will be futile to wish for prices to come down Land is scarce, developers will hold if they think cannot make big bucks. If still want to look for cheap landed, go to rawang/banting/nilai. These scenarios hold true if no change to usa/europe. However if france/germany slides.. then start to look for bargains in the 2nd hand market.

the key words - QUALITY OF LIVING ENVIRONMENT

some ppl always say landed property price never drop but I bought mine few years ago with 10%less market price. cheers.

Not me har.. i was talking abt landed props frm developer If 2nd hand market, can bargain2 & got desperate ppl owing to personal circumstances..

So you expect the minority 5% foreigners could support the other majority 95% of housing market perpetually?

In reality, many home grown Malaysians have sucked into this euphoria and taken mortgages they can't service in long run.

When the music stops (don't tell me your logic is another 20% price appreciation per annum in this coming decade), they would default their loans, and you expect the foreigners/expats would step in and take up all the inventories which are empty and without generating yield, so the price would not drop?

"Properties in Malaysia still dirt cheap[" this is the typical propaganda created by developers/real estate agents! Can you compare house prices in Malaysia to Paris, they are earning 10 folds of a typical Malaysian does!

Historically, after property bubble burst, house prices would only bottom in 5-10 years. If you think your "holding power" for your empty properties is 1 or 2 years, you might need to have more capital to avoid default.

I'm just trying to share my information, and you make your own decision. I have friend in Australia who has few investment properties that couldn't be flipped out in a falling market, he is no longer able to service his underwater mortgages, he is going to file bankruptcy and lose everything he got!

This post has been edited by debtismoney: Aug 15 2011, 06:30 PM

Your words were quoted and will be used for future references.

Hang Seng Index to Drop Below 18,000: Expert


http://www.cnbc.com/id/44141134?__source=y...xt%7C&par=yahoo

will is affect Msia prop? definitely will affect KLSE..

bro.

well said.

share

http://blog.iproperty.com.my/downloads/mpi...t-july-2011.pdf

relaks, bro... no need to get too agitated. two camps here for v1-3 - #1 one saying props here dirt cheap, foreigners buy (but never say for wat!) upupup 4ever, everything gudygudy. #2 other camp sees red light, high debt, unsustainable prices. u oledi know, i think.

perhaps cambodia, laos and mongolia should start ballooing their debt, no need to grow padi and raise sheep - all become rich. if not mistaken, najeez was selling this idea to african countries.

if you read more from camp #2, one explanation is ada new forum - lifegoeson, syoksendirigoes on...