ok you can slowly wait for that to happen. Learn from your history. from 1998 to 2007. Property price will not slash up to 40%. reason? few factors:
1) Land Value
2) Raw Material
3) Hot spot area

Whatever happens live will go on and everyone needs still needs a roof. Those area which soon to be hotspots, Sungai Buloh, setia alam, nilai, puchong, outskirt of ampang and yada yada... this few places the property market will slow down that's for sure. Hot spots like PJ, Mont Kiara, Bangsar.. nah you got no chance, those houses most likely ppl had paid them up fully for own stay. if the property market really bubble most likely houses which you bought 330k from developer would remain as 330k - 350k but for a property to drop from 500k > 330k? You can dream on. If a property shoot up from 330k > 500k it tells you that it's a hotspot. Everyone wants it, middle class salary earner is eyeing on it. Infact me myself would WANT them! If you can pay 50k down payment today for a home what makes you think in 3 years time you would not be able to fork out another 50k for another home? The debt crisis will hit us soon but how hard will it hit us? We can't gurantee. What if it would not even happen? Think again.

Your graph is nice to see. infact im hoping for it to burst, but i am not worrying, i'm planning to buy a condo soon and sell off 1 of my property to earn for some extra bucks. If i buy the Condo for 300k now and next year it bubble and it drop to 250k why do i need to worry? It will still go up for the years to come. You will only need to worry if you do not have the money to repay your debt to the bank. You only need to worry when your spending way beyond your earning capability.

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Added on September 6, 2011, 7:50 pmWell it's quite true.. if only you are LEAVING OUTSIDE OF KLANG VALLEY. Renting a condominium in klang valley is a pain in the arse. a studio apartment in subang will cost you RM2.6k which if you purchase them and do a 30 years installment... It would be even CHEAPER! Same goes to the few places. Renting a place is just like paying for others installment.

I have to agree on your point, it takes time for you to build up your reserve fund. It's always better to pay more initially to lower down your burden.

This post has been edited by kidmad: Sep 6 2011, 07:52 PM

do you see houses in tokyo keep going down? do you see new york house prices going down? despite they are having a debt crisis? Houses in Beijing had shoot up more than 100% in 5 years time... Do you see bangkok which went bankrupt stop developing? Have their house prices drop since ever then? You really have to read properly and observe more. You should not take the overall well being of a country to do a benchmark. From what i've written, i'm only talking about klang valley. our debt level might rise up to 80% or 90% but that's overall for everyone in malaysia. 80% of malaysian are earning below RM3.5k what do you expect? Of course everyone would have to borrow from the bank. If you would have read my message properly. Indeed everyone should be alarm and be aware but if a house is needed it's always a smarter choice to BUY instead of RENTING if you are living in Klang Valley. If you are staying outskirt somewhere outside of Klang Valley then you might opt for renting.

You keep focusing on other ppls life. You should focus more on your own. Have you borrowed any money from the bank? Your credit card balance cleared yet? Go and do the necessary! if you need a place to stay and you don't want to buy a home, where you wanna live? under the bridge? or being a smart arse renting a studio apartment for 2.6k? oh well if you are living outside of klang valley renting is always cheap! The debt level is indeed alarming but if you have not borrowed any should you be worrying? if you do not have a debt you do not even need to be alarmed! I hope you get what i mean.

Btw who are you? Ananda? Robert san? Come on it's only your 2 cents worth. If everyone is worried and stop their buying where will it lead us to? From your comments, can you GUARANTEE our future? Your point is base on other's speculation. In Year 2007 i thought it would hit us hard as well. Ended up i did not get any property in 2008... and in 2009 i had a ghost bump because the blardy property i'm looking for had shoot up from 180k to 280k just for a studio apartment....

The point is.. if you are capable and you need a place by all means you should get a place to stay, the waiting game should only be played when you intend to invest. Life is simple, no matter what happens tomorrow you still have to live with it. You have to find your way to build what you want. If you don't start building what you need now, i'm afraid it would be NEVER...

of course like my previous post, to those flippers who bought homes beyond their capability.. Good LUCK!

B going for 700k property is still ok but A going for 500k property is really risky. 500k with 10% downpayment most likely you need to pay a 2.3k monthly while the 700k one you need to pay 3.2k monthly. Of course B with 10k income would have more to spend.

The household debt taken out is alarming, but that's for YEAR? 2005 2006! i read them when i was at that time. Today the story might be different. Oh yeah! talking bout this blardy article! In the end did house prices went down? YES! it did but +-5% not much. Places like Ara Damansara is still selling like hotcakes. Double storey link housed were still sold at 3xxk which today had gone up to 5xxk. Hot places like Bangsar, PJ which i surveyed that time were not even budging from it's original price.
Moreover the Idris guy with his article is only 1 person POV we can't be living in others POV and neglect our live. IF you dont buy a home for yourself you will still be renting. It's da same old story.

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Added on September 7, 2011, 11:50 amso read mine carefully as well. I'm trying to correct some numb nuts who ask someone else NOT TO BUY despite the guy is getting married and needs a home.
Well my mistake was because i listened too much to the speculation as well. Everyone say home prices will be dropping, business will be going down and bla bla bla. But at the end... i missed it. To me the best chance when i can get the best bang of my money is when prices is speculated to be dropping or when the market is at the bottom. But again, i am nobody i do not have the extra bucks to mess around with my life. If the economy is at the bottom i would not dare to touch my asset nor my active cash flow.

This post has been edited by kidmad: Sep 7 2011, 11:58 AM

So enlighten me if i am wrong. As far as i know my colleagues in JP are the ones who told me houses in TOKYO had never budge from it's original price thus they have to stay 40 minutes away from their working place. New York? The rental is going up yearly, if you can't afford there... come back again in 10 years time. Well so far i get to see lotta charts showing the downfall for houses value and price but for a studio apartment which i browse in London area 1 is still the same today as compare to last year. The value did not appreciate but it did not went down from my observation. I might be wrong cause i'm only benchmarking on a certain area due to some interest on the places.

So if you have some facts and data to correct me please do so. I do not live in Tokyo thus i rely on my colleagues who are working there to share and discuss about our living expenses. Same goes to the information i got from my colleagues who are working in Beijing, Phoenix Seattle and Prague.

LOL, why should i look at the house prices? again you miss my point. Focus on your own life. Who are you again? you are no body. You can control the economy. Don't buy now? so when? By then you can gurantee the price went down?

You call those hot spots in China? We have Klang Valley and China has? It's Beijing only! Those Guanzhou and Shenzhen they are just building up recently in the past 10 years.

Now talking bout india.. that's nice. Their house in Bombay is more than double than our houses here in MY. You need 25% downpayment and you can only take 15 years loan for it... What's more let me think... oh yeah! their living standards and buying power. Now you see why their houses hardly sells?

Again, i myself is debating in this open forum not because i want to strongly stress the point that property would not bubble in the near future or anything but as long as our policy does not change... eg: giving 40 years tenure period for loan.... 10% down payment for your 1st and 2nd home... can get loan if you have fix deposit in your account even your earning capability is low.. and many more other factors... It would be tough to see property value to shoot down way below the current value. Rich people will continue to stay rich and salary worker like myself is stuck up with the fact that the price is being manipulated.

The places like HK, NY, TYO, SG. Their prices are still sky high. They are dropping to the PRICE WHERE they over valuated for at least 20% for these places. But do you see a drastic drop? Buying a small apart in NY is still USD700k...

Nice charts bro. Don't they tell you that prices after 2007 is stagnant? I believe you've seen it for yourselves from the charts.

Yes indeed especially a few places which i have an eye on but again raw material prices had increase by 30%.

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Added on September 7, 2011, 3:16 pmand i believe i did mentioned in my previous post as well that it went stagnant? I might have grammatically put myself spot on but my message is simple, the prices had drop to a rate where they initially over valuated the houses in those places but since after that, i do not see any significant drop. I believe if you did follow on the news on what's going on in the US you would know. In 2007 when the US had the crisis, the property value for them is going down. What's the impact to the property value in MY again? I was hoping ours will follow suit... but right after that.. all i see is BARANG NAIK. Raw material naik, petrol naik, harga rumah naik, tambang toll naik, gula naik. All naik naik naik.

back in MY houses is still cheaper.... WAY cheaper to be honest but of course everything still ties back to how much a salary worker gets at the end of the month and how much they could fork out for a home.

This post has been edited by kidmad: Sep 7 2011, 03:17 PM

Exactly! so why are we debating and benchmarking ourselves again? That is exactly my point. Everyone talks bout US, CN, JP, we are not even CLOSE TO THEM! in terms of living standard, property value, technology and yada yada but yet you keep talking bout others...

And from my post if you read back, i'm just trying to pin point to someone that if you need a home get it! (read back the previous page) it's always a better choice compared to renting but it lead us to this... haha i guess debating in an open forum always get your work up yeah?

sorry 2 page back ya.

Yeap agree. LOL.

YES! that's why if you say totally don't buy... no i can't agree with it. Buy if you really need it and buy if you can afford it. We are not any big shots who would know what will happen with the property market in the near future. If we speculate that houses price will drop but it turn out to be the other way round what are the difference between us and those who speculate the price to go up?

Bro i really wish everyone could be on the same page. Handsome mind thinks alike. LOL. As mentioned earlier. Hotspots will remained hotspot if you are talking bout Klang Valley, buy now and later it does not matter if you need it get it. Ppl keep talking bout the instability in stock market but they never thought of... our natural resources for raw material is running low.

Good point, in the end RM might worth nothing we will be like indon. maybe.... that's if it crashes. Either way, thats a typical mindset. For me if the economy really going to be that bad, i forsee lotta foreign companies will shut down their operating offices in countries in Europe, US, Oceania. We will see more opportunities in asian market. Companies will start blooming in Asia. In MY itself i know there are couple of large MNC which is shifting their operation office from US and middle east to MY.

Household debt is high indeed it's alarming. but effect you or not? The household debt is high because it's conducted across MY. But some ppl here are only taking KV properties to benchmark the overall household debt in our country. You do know that lotta ppl in kampung places are only making rm800 bucks a month right? raw material had increase by 30% since 2 years back houses in kampung now at least rm80k to start off.. some even higher. Don't take loan amacam this guys going to buy a home? KV only have 6m population, the other 80% is for the other state in MY. Do you think a kampung house would really cost that high? So tell me, if there is such situation how not the household debt to increase? Everything is increasing but salary is not of course la naik bang. Go and study the graph. IF salary increase by 20% what is the household debt would be?

If you want to benchmark properties in KV then we should just focus in Klang Valley area. How many peeps are getting below RM2.5k now days? What other debts do you have? It's not only about property. other debts like CAR! Credit Card! Gadgets... All those would need to be factor in.

If government lift the AP going to crony today. You will have enough money for your down payment today. Unnecessary Toll, under table money going out and back to ones pocket. If those issues being tackled properly everyone will have a significant income boost.

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Added on September 8, 2011, 1:38 pmWhich industry you from? You know how to differentiate between an operating office and a factory right?

This post has been edited by kidmad: Sep 8 2011, 01:38 PM

+1 i bet they can't see the difference. They only talk about statistics & reports shown by someone else. Go out there and ask those who are experiencing the current situation. They will tell you otherwise. If you say property in London is falling go and ask those folks what are their POV. If you say NY properties are going down do the same thing. go and ask them.

+1 yeap! only some narrow minded ppl will think they other way and start talking bout the reports on 80% household debt. the cycle goes on. Like it or not they will benchmark the overall situation of Malaysia and not base on Location. To them KV and KB is the same place. with same living standard and same living expenses.

Well this tied to few factors.
1) whether you willing to take up new challenges
2) whether you are willing to move on
3) whether you are willing accept new changes
4) your flexibility to new environment.

This post has been edited by kidmad: Sep 9 2011, 02:35 PM

Yeap the location is really the factor.

aiseh you keep telling us times are very bad but i'm feeling damn good. I don't know why but i just feel damn good. Cause im positive and your negative? US is going down, yeap but i see this as an opportunity for us. During .com era when there is a turmoil there are still ppl investing millions and that's when today we have amazon and ebay. I know companies who are going to open the operation offices in MY and they need more than 1k skilled employer. i know my ex company had open another operation office in MY and hired additional 600 skilled worker because they are planning to close down their offices in US.

Come back to earth focus on your life. You keep plucking figures on other ppl's article. Keep doing a comparison and benchmark between MY and US. You know why the american losing their jobs or not? You know why? To be honest up to this point... I wonder what do you do for a living..

Btw again i am going to ask you this question. Who are you again?

haha no! Your planning to flip the market! im just trying to tell others if you need a home you should get it.

The precious asset we have in live.. it's not cash or property or even gold.. It's time. If you think you have loads of time to wait go ahead but to me I only have 25 more years of prime time for me to waste. I can't be waiting because someone is speculating the property will drop, i need to do what is right for myself and focus on my own life. I have too much to worry and such as global recession, economy turmoil, property value going down... That's not under my control. I will only work on what's under my control and embrace it.

This post has been edited by kidmad: Sep 9 2011, 03:05 PM

Just to add on. Are you talking about Sime Darby? I know that they did bought TONS of land so called trying to boost our agriculture. But today, i see Sime Darby is popping those lands with houses like mushroom. Key note here, if Sime Darby think the economy is bad. They can just stop building anymore homes and just sit tight and wait the wave to come along again. Do you know how much land they acquired? All the way from JOHOR to KTN (highway) check out those land own by whom.

1 earth, total sqf of land is shrinking because of global warming. Population is growing everyday. aiseh. Life is tough. haha btw how you manage to get each 1 dollar can get 10 dollar credit out of it? haha