QUOTE(mellomm @ Dec 28 2011, 12:14 PM)
History lesson way back 1999 everyone was into share market. Crazy time where people just buy shares unit trust and bonds . Even bond also price more than par rm1.40 per unit. Not suported by fundamentals and advice thrown out of the window. Then suddenly price drop like stone and all speculators who came in late or hold were dead meat.
2012 A repeat but now its property. Just like the share market good location can make a comeback but not to t price it was. But those which are way off market or not so good location will be dead. U can hold forever like the dead share stock. Trust wat the fundamental is indicating. Good luck.
can't apply the theory of share market, trust and bonds into property market which only one way to make profit, price up you gain, price drop you gone.
in property, other than for own stay, you can flip in short term capital gain, or hold it for long term capital gain with tenanted or vacant, you may have positive income from rental.
your rental may just enough for the loan repayment but tenant are paying for it, in long term, although the price still maintain but profit can be make from the loan deduction.
although the rental only enough to cover the bank interest and you have to top up money for loan repayment, you still can make money if the price increase in future.
that's the reason people's mindset are so positive toward property investment, and it's least riskly among all other investment. and also one of the reason property price are keep going up in long-term.
This post has been edited by zuiko407: Dec 28 2011, 01:47 PM