http://forum.lowyat.net/topic/2263664

Great! Pay down payment with credit cards! Some said this is high risk high return!

Nothing down to buy $million property. Let's keep the property frenzy going.

When the market is running out of savings/capital to pay down payment for property purchase, people use credit.

When running out of credit, what can we use? The answer is D word >>> DEFAULT

This post has been edited by debtismoney: Mar 13 2012, 09:21 PM

But the thing is even the top 10% buy property with debt, you think they will buy it outright? They won't look at those peanut sub 500k real estate, when you can afford to buy $million real estate, why bother to step backward?

When their businesses slow down, they might struggle with cash flow. Physic laws do apply in this situation I suppose.

Besides, new home prices in Shanghai/Beijing plunge 20% since Oct 2011 (newly launched property). Where are those top 10% that can prop up the market?

I have a few mates working in overseas Engineering firms, they are running out of work to keep everyone busy and starting to get rid of contractors/casual. Engineering firms are at the front line of capital investment... this happened in 2008 just before the GFC.


"What the heck is a concern if the 90% of the 10% wealth people cannot afford a property when

the 10% of the 90% of the wealth owner can own mutli property and keep frying it....."


If 90% of people can't afford to buy a comfortable roof over their head >>> REVOLUTION

This post has been edited by debtismoney: Mar 13 2012, 09:14 PM

Chinese/Malaysian/Singaporean governments DO NOT restrict anyone to buy more than one property, you only need to fork out 30-60% or more down payments in order to get a second/third mortgages.

If they are so cash rich why bother to get mortgages, buy it outright and prop up the prices or use credit cards to pay down payments to verify the high risk high return theory.

This post has been edited by debtismoney: Mar 14 2012, 05:17 PM

The following legendary billionaires/investors/fund managers/forecasters/politicians buy gold:

MARC FABER, JIM ROGERS, PETER SCHIFF, ROBERT KIYOSAKI, DONALD TRUMP, GERALD CELENTE, RON PAUL, JIM RICKARDS, ERIC SPROTT so on and so forth

The names say it all... why you never read this on newspapers? Because the elite control the mainstream media, they want you to hold paper currency and continue to play their paper game, so they (bankers) can continue to steal your wealth through the hidden tax - inflation.

The most popular gold hater - WARREN BUFFETT. Why? Because if you own gold and we have a gold backed currency, he can no longer steal your wealth through inflation, it is that simple.

Why unbacked paper currency can only survive average 47 years? You should ask how much more currency depreciation people are willing to accept?

Your parents worked hard in their life time and if they are honest savers, they become poorer everyday and will have a below average retirement.


Inflation does benefit property prices to a certain extent, but when oil/food/energy prices go up, average wages stay stagnant. Average workers get squeezed and will they have extra capacity to buy an investment property? They will if they use credit cards to pay down payment as some already done so

This post has been edited by debtismoney: Mar 14 2012, 06:20 PM

Opps... am I teaching you?

BTW, my tax return last year touches 6 mil gross

Wow! Didn't know my tax return could stirred up so many posts. It's time to give a response.

In my few decades of experience, if you want to increase your chances to be financially successful, you should always against the majority's ideas. Just like what I'm doing now, against the property BBBlindness...

By following this thread, most of the people here are still very very skeptical about gold despite my countless voluntarily and free explanation about it. Some even posted insulting message, as usual, I'm always on the other side that people would laugh at me.

Pull out a 10 year chart, gold has been in a quiet bull run for over 10 years and gone up over 6 fold. Don't argue for the sake of arguing and continue to be BBBlind.... don't be smart S and try to trade gold option/future/ETF

I will jump back into real estate eventually, but first look around and see how many for sale/lease banners hung on the facade of some brand new buildings, and they are building more next to them. Home prices gone up over 100% in 2 years, nothing has been added to the vacant property. Do you think the potential home buyers in the market are really BBBlind? The pool of greater fool will run out eventually. Those flippers who bought property with credit cards, who are you gonna sell it to? I think in the US, it was about 3% of troubled assets that triggered the housing crash.

When it happens, don't say you weren't warned

I thought this topic is for everyone to post messages FOR or AGAINST property market?

Okok. I know gold is off topic and will not touch it here again, so please stop posting something like the following, so I don't have to respond it.


"quickly sell all yr propertiessss in hand and trade gold better lah"

"guys! lets buy gold, the monetary system will be back to gold standard next year after 42 years from 1971"

"ya keep more gold as you can, until world war 3 it gonna be very useful."

"What's wrong with you? After talking about GOLD replacing currency now want to talk about petrol dollar."

"The guy who said gold will replace money currency and claim that house prices will continue to go downward... you can't expect too much from him."


Sadly, this time around it wasn't me to start gold topic.

The thing is how much inflation we got in the past few years? Everyone knows government cooked the book and reported 2% or so inflation, in reality inflation could be about 5%.

But how much home prices had gone up in the past few years? 100%-200%?

No matter what asset class, this kind of price movement is simply not sustainable. This is just another tulip mania.

Say selling at 450k, IOI had 20% profit margin >>> cost about 360k.

After 2 years, IOI did NOTHING to the empty unit, and simply jacked up the price to 660k after 10k "discount". They are looking at 660/360 = 83% profit margin!

IOI is struggling to find the next greater fool to buy their property... 22x75 Lyden terraces are selling at 770k and now offering 25k rebate? Who's next?



http://www.spsetia.com.my/setia-eco-park/p...sp#.T2mfYBHxq60

Was thinking to buy this Semi D at Setia Eco Park back in 2009, the price was about 900k+, but their website said SOLD OUT at that time so I didn't bother to drop by.

Now SP Setia "resale" the exact same Semi D called "Amber" again (still phase 8C), same layout, same built up, same location, same design, same facade. But they simply jacked up the price to min RM2,363,100! 162% price increase in 2-3 years!

NOTHING has been added to this property! NOTHING AT ALL! Will I be the next sucker? Even people could afford it, people with a logical mind simply wouldn't want to be the next greater fool.

This post has been edited by debtismoney: Mar 21 2012, 07:21 PM

It's time to prove the "STRONG HOLDING POWER" myth as stated by many real estate agents/investors here from this point on.

Despite banks are tightening home loans, but some with vested interest still believe the BBBlindness can continue forever.

Easy home buying scheme started in 2009, and after 2 or 3 years of construction frenzy, we will see ROW AFTER ROW OF EMPTY BUILDINGS hitting the market soon, and those "owners" will be desperately seeking the next greater fool which is drying up.

See how long those flippers can service their mortgage repayments before forced sale. May the "rich" will appear before you and offer a ridiculous high price for your empty buildings as many RE agents/investors claimed.

I really doubt the smart money is not on the opposite side of the market as the writing is clearly shown on the wall...

http://www.malaysiaeconomy.net/my_economy/...3-17/17854.html

This may interest you, see what BN did to your EPF.

BN may lose the next GE, the cronies are liquidating to fill the EPF hole, or to pull out as much fund as possible and bailing out themselves while they are still in the government?

One scenario >>> When everyone says oil price is up up up and will lead to massive inflation.

Do you think BNM will have to raise interest rate in order to control runaway inflation?

Btw, the world will slip into recession if oil price is too high (i.e. oil crises in 70's and 2008). Don't misunderstand massive inflation will benefit property prices, it won't.

Some may interest in these >>> The US/Israel will attack Iran sooner rather than later. Now Iran can't sell oil to the west due to sanctions (oil revenues accounted for 65 percent of Iranian government revenues), and all Iranian banks have been cut off from international transactions a few weeks ago. What do you want Iran to do other than go to WAR? It's baked in the cake.

The west can't get out of depression, they will lead you to WAR by deception...

Think about how this would impact oil price.

I recap again, if you buy that's fine, but dun simply ask other people to buy.
If we give wrong advice (simply buy or refrain fr buying), it will cause disaster. In the next 3 years, many pretended to be expert now asking friends to acquire their desire but unaffordable property will be causing massive trouble to people who believe him now. It's a sin.


Once again, everyone makes his/her own decision. We are only sharing our opinions here and not giving "advice" to individuals. All should learn to think for themselves.

Btw, what can we expect to hear from a RE agent (people like to call sifu) other than BBBlindness?


To those financially stretched flippers, if you plan to refinance your mortgages, do it now while you still can! When you have negative equity in your property, you won't have a chance to do it. Considering yourself lucky if those bankers are not knocking your door and ask for more equity when you are under water.

This post has been edited by debtismoney: Mar 26 2012, 09:16 PM

What a simple and perfect world you are living in.

Don't just think about demand side factors, you should factor in supply side components as well.

We are due for another stock market bull run?

In a 0% interest rate environment, the world major stock markets are not even through the peak in 2007, bull run? We are in a secular bear market since 2000 dude.

The UK household debt to income level is one of the worst in the world! Haven't you read the news about UK households are using credit cards to pay mortgage repayments, and taking on interest only mortgages? How far the UK housing market can go? They are hitting a wall head on now. Go buy UK property with your both hands like EPF and SP Setia did

S&P500 went up 22% in less than 80 days without a drawdown, since you are a chartist/tech guy, you really think this is normal? All shorts have been shaken out, and it's sucking in retail investors (those like to read charts) while big boys are selling. It's time to crash the market might be a more likely scenario.

The west are solving debt crisis with more debt, they are just buying time. Mathematically they would have to default, it is either print digital money into oblivion or declare bankrupt. It's a matter of when not if.

If the government (Chinese & Malaysian) did not do anything to curb lending, and let the housing bubble keeps inflating further. The consequence will be a lot more destructive. Look at Japan, house prices plunged 80% from the peak 20 years ago... because Japanese government did nothing.

Mr. sulifeisgreat, I was just wondering, why do you need 2 accounts under different names to hang around here?

Shouldn't your chart reading track records are too good, and you want to quit at peak and become legendary? My friendly advice is, chart reading is about 40% correct historically? In the long run, it won't work...

We are just sharing opinions here, we don't have to prove anything to anyone. Who cares whether we are right or wrong. All should learn to think for themselves. Take it easy.

Farmers will become the wealthiest people in the not too distant future, Sadly, many agricultural lands in bolehland have given way to housing development which produce nothing...

100% loan is only delaying the day of reckoning.

When the market ran out of buyers who could fork out 10% down payment, they introduced 5/95, DIBS schemes etc. Now the market has run out of buyers under those schemes, they are rolling out 100% loan.

When the market finally runs out of suckers who can afford the expensive piece of concrete even under 100% loan, reality will kick in eventually >>> price slump to match the income level of the majority of local businesses/individuals.

Buy 1 free 1 might be next? Which can translate to 50% price correction

This post has been edited by debtismoney: Mar 31 2012, 07:41 PM

Is it? Haven't you heard of few thousands down payment to buy a million bucks home and get 10% rebate from developers? This is no difference to 100% loan, just under different names.

It has been going on for a while, but now it has become official.

This post has been edited by debtismoney: Mar 31 2012, 08:11 PM

What about the housing crashes in Spain, Ireland, and Dubai? There was no sub-prime lending in these countries.

These bubbles were caused by easy credit and speculation frenzy, everyone thought house prices can only go up up up, and wanted to flip houses upon completion until the music finally stopped >>> ran out of next greater fool.

Is 100% loan considered easy lending to you? Do majority of your friends and relatives all talking about property "investment", flipping houses and wanting to make a quick buck? Do you see people queueing and balloting for property launching?

Zero down payment GUARANTEES speculation and artificial demand, it's human natural behaviour that's all.


FYI

http://brazilianbubble.com/the-housing-bub...lking-about-it/

"As Asian property prices surged 70 percent or more over the past two years, skeptics have warned that a bubble was brewing. Now it looks like that bubble is bursting. Real estate prices are falling in Beijing, Hong Kong, Singapore, and all over Vietnam. Most analysts expect the decline to remain moderate, with prices buoyed by Asia’s strong economic growth, but recall that most analysts foresaw nothing more than a mild correction in the United States when real estate prices crested in 2007."

"More than 100,000 new residential units will likely come on the Singapore market in the next three years, according to Standard Chartered analysts. In China, the deflation of the housing bubble is already in the works, as well."

"with annual lending rates increased to more than 20 per cent last year to fight Asia’s highest inflation rate, the once flourishing property market seized up and prices tumbled. Premium office rents have fallen from above $80 per square metre per month in 2007-2008 to below $30. Hundreds of projects under construction across Vietnam are “in hibernation,” according to Marc Townsend, managing director of the Vietnam branch of CB Richard Ellis, an international property agency."


Most people think massive inflation (especially when oil price keeps going up up up) will benefit property prices, but in order to fight runaway inflation central banks would have to raise interest rate, wouldn't it? I believe many property "investors" are stretched to the limit, how much interest rate movement they can bear, say +2%?

Wait until Israel/US declare war on Iran... we will see people around the world queueing at petrol station

This post has been edited by debtismoney: Apr 3 2012, 08:44 PM