Property is stagnant at the moment with a sharp pull back on transactions but strangely asking price going up. guess ppl adopt wait n c. US n Europe been same story for quite some time (years) now. So my guess current volatility of stock market the cause. IMO, in a few weeks time props will get active again as we are still growing n so is most of asia. oso middle east money being parked here (Mal n asia) more n more n I expect a knock on effect. except this time I don expect crazy price increases like 2009/10 coz of drama in the west. anyway my take was that the current bout was engineered, S&P ratings and all. The global fundamentals have not changed but they got the heard spooked.

"in a nutshell, property valuations are subjective. it is very possible for a bank to lend rm500k for a property when YOU OR I think it is only worth rm400k"

yeah! or rather if it was one big scam by the industry

here is some food for thought

http://www.marketoracle.co.uk/Article22390.html

http://moneymorning.com/2010/12/08/asia-fo...ities-for-2011/


true or not

this is true coz I did it like this. the key for banks is to prove with genuine tenancy agreement backed by bank statement to prove the rentals. The headache is to fight with Income tax dep every year on the allowances and relief for all the cost involved. been doing this almost 20 years now. already of loaded half coz getting too old for this rental game. the other half will dispose when sentiments rebound.

took me a year plus to do reno and move in so I guess there are cases like this but how much I cant say

concur, the fact there is no downturn, at least not yet but people are expecting it and so taking a wait and see attitude. Prices so far I see are maintained not going up or down.

really perhaps in selected places. Guess don have to wait too long for the feel good factor to set in with EU hopefully get their act together soon n our GE oso soon

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Added on October 24, 2011, 10:37 pmyep sure sound like a few folks in this forum never mind la let them wait la

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Added on October 24, 2011, 10:47 pmI think probably not in near term (at least till end of this year) coz of forecast slowing of global economic growth.

BUT if things turn around and inflation shoot up (meaning pump too much liquidity into the system) then it may just happen. quantum will depend on these factors and how fast it accelerates .. just my guess??

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Added on October 24, 2011, 10:52 pmI really like point 4 but just cant get reliable info in real time malaysia all delayed by 1Q at least and mostly very well massaged anyone access to reliable data pls share

This post has been edited by antal: Oct 24 2011, 10:52 PM

This is interesting. I have seen it happening on my recent visit to india. I guess its the same in china. The big difference with Malaysia is all the rest have by far a lot better implementation.

http://aheadoftheherd.com/Newsletter/2011/...Super-Cycle.htm

Aiya ?? My folks bought Bangsar Bharu link 40 years ago at RM35K from developer. Then can get Bowl of mee at 20cents. Now house cost RM1million +++ and the same mee cost RM 7 to 15, if u compare for same quality. U can get scaled down bowl of mee for RM 4 to 5 depend on which are in KV.

On another note I bought Damansara Perdana RM168,888,00 .. 10 years ago, now market price pushed to just over RM 300K. The point is our salary never keep up with inflation and the value of the currency but properties mostly tracks it eventually. another example when I started work my salary RM1.8K, then can buy car for 12 to 18K, BMW 7 and Merc S class around RM60K. Now how much

hahaha! I think the foreign worker don know how to count. either he cut u first day or give u discount second day

You have to consider the time horizon. short term price will go up/down like 97/98 drop more than 50% in some places but by 99/2000 recovered and actually went up. Don expect a repeat of 97/98. But if it did happen again then prop prices will be the last thing on your mind coz most ppl will be looking for survival and food on hand to mouth basis. On a brighter note, slowdown/recession may be coming. however the impact cannot predict probably will present some buy opportunities but IMO not at 97/98 levels. If can get at 10 to 20% discount already very good. But one fact remains despite all the doom and gloom stories, MY economy as of writing this is still chugging along for now, its only the sentiment that has tanked and rightly so.

Another fact to consider, our population (and Asia in general) is growing unlike in the west n EU especially so over the longer term (10 to 20 years) there will be increased demand for property of all types. So prices will definitely go up. so the trick is for one to be able to ride this wave and capitalize on it.

This post has been edited by antal: Nov 3 2011, 10:12 AM

Actually 4.30 for mee and nescafe very cheap ma. I am guessing u r not in KV, maybe butterworth. Dam just paid Rm5 for bowl of pork mee at tmn Equine n 1.50 for teh ice.

Aiya Bangsar ah! Will cost me 6.40 in toll alone to go there for breakfast. guess just have to live with situation in Seri Kembangan

As for economy nobody can say la not even the so called experts in wall street and elsewhere. The fact is that since 2008 the world has entered a watershed situation. Firstly it marked the collapse of the new world financial system, which was very flawed and driven by extreme greed. Secondly globalisation and tech developments has allowed the old world to start regaining their pre colonial positions. now throw in weather and natural disasters into the mix, everybody So many gigantic factors playing out at the same time, so who can predict the outcome. The thing that has got everyone running for cover is the imminent perceived collapse of the global financial system. I say , So the old system is collapsing but the real problem is that nobody has any idea how to replace it or overhaul it, at least in a way agreeable to the world as a whole. In the end as usual the most smartest and powerful will win as usual.

So what has all this got to do with property prices in MY .. well nothing really but then again everything. MY is a small fart country dependent on exports of commodities on the most part and manufactured goods to a lesser extent. So MY can only react to developments on the global stage. What would happen if the EU and consequently the US go into a meltdown? Can Asia and the rest of the world stand on their own? In My case will the banks and Gov have the resources to sustain. How about the ringgit, what value will it have then? Some may say this is extreme case but is it?

When it happened to us in 97/98, the west came in forced the foreclosures except our mamak then maneuvered MY out of it only coz we are such a small fart country. Now same shit happening in west and I c they are trying to do it mamak style. but they are no small fart, but dam huge. Can solve or not, I don think so without a thorough clean out of the system. So far they just keep postponing their day of reckoning.

So with all the crap flying around on the global level, the house u bought at say 400k in 2009 now gone up to say 650 to 700K, but salary didnt move an inch. expensive, yeah sure from your salary point of view, but fair value from the global perspective. but if and when the shit hits the fan, how much your house worth??? U might say this n that, but what currency? will the ringgit have any value? if so what and will you want to part a real asset with some paper??

For those who are insisting that the shit will not hit consider that the US debts currently will take 3 or more generations to payoff and the EU is in a bigger mess. A 97 type asian crisis will hit them in a matter of time, when who knows? Asia is looking better but apart from SG everyone else has transparency issues, especially MY.

I am no economy expert but this is the gist of what I have gathered so far so already sold half of my holdings and settled the loans on the rest. prob is don know where to put the balance especially when the ground we are standing is changing fast. totally F***

This post has been edited by antal: Nov 3 2011, 04:49 PM

The US and now the EU are having their 97/98 Asian Financial crisis moment, except that its on a very much bigger scale. will it affect MY, for sure. like 97/98, not likely except if China and India also crash which I dont expect to happen, especially china. They have the cash and the political control to keep growing, maybe lower at 6 to 8%. which is still good enough to bring Asean along for the ride.

No not quite true. China will not loose the customer but trade volumes will decline as has happened. Unless both the US and EU totally implode economically China will still have them as customers but with much reduced volumes. Will china KO if both US and EU totally collapse, not likely but that will be the start of a new reality. China has been busy making inroads to other markets the last 10 years, South America, Africa, Mid east ad Asia naturally. If the worst happens the rest of the world will adjust and life will go on. At the moment only the developed economies have this serious debt problem. The rest have debts but not become a problem yet although it could in future. When push comes to shove, everyone in the end will do what is necessary for survival. IMO it may take some time 1 or 2 years but the world will get out of this mess one way or another. and we in asia will pull through as experienced since 2008. Lately some companies have been reporting lower profits so what. my q is have have the majority been reporting big losses, no! They still making profit so thats a good sign but hell the market react like they are loosing money just because they don perform as expected.So everyone come up with their own horse shit theory on what is going to happen which just reenforces all the pessimism. The fact is no one can predict the future, not even the so called economic experts.

If BNM cut rate today may see increased activity in properties?

Which news are you specifically referring too mind to enlighten

IMO everything actually. BNM preemptive move to contain consumer debt. Good move I think, will help minimize damage if the shit were to hit.

Oh dear! Slow down so far expected and now kinda officially confirmed. BNM doing what it can to minimize possible MY debt crisis. Damm good move. Zeti is hell of a govenor IMO the best we ever had. Wish she become PM oso