I really think property market will take a breather and have some correction in 2012. Income rise has not caught up with propoerty price rise. Also foreigners (inlcuding overseas Malaysians) who think our property is cheap to buy, have to worry about the economic situation in Europe, US and Australia. Lastly, people are worried about the coming elections. I think its good to park your cash in liquid assets like REITS and wait and see how things turn out.

That's right. Property investment is for the medium to long term and its a non liquid asset. When you buy a property for own stay, you want to make sure the environment is stable for at least 10 years or longer than that. If you are buying for investment or to flip, you need it to be stable for at least 2 -3 years or more. Its not like shares - where if you smell something bad is coming, call your broker - cash in.

Yes, willing buyer, willing seller. Only have to watch out for the bubble. But I believe many of these buyers are foreigners or Malaysians from overseas, who have plans to retire in Malaysia after they have struck it rich overseas.

Please remember, this may not have been bought by a property investor. In fact I don't think so. If its for own stay, the buyer could be motivated for a number of reasons - near other family, or lots of cash to throw around or money laundering

I think this is the house that was sold. The description and price is almost the same. But stated as a 2.5 storey.

http://www.iproperty.com.my/propertylistin...k_House_ForSale

also by Fiona Fong from Kim Realty and for RM1,780,000.
so from the pictures - worth it or not?

This post has been edited by tigana: Dec 30 2011, 07:55 PM

property investment is a great investment tool in any person's portfolio. But people have to be realistic that it cannot keep rising without a breather. Income of potential buyers must keep up. The fact the govt has asked banks to loan only 70% for third purchases has also affected property prices. If you have RM50K cash and the bank allows you borrow 95%, you can in theory buy upto RM950K. If you are only allowed 70%, you can in theory borrow only RM120K. Yes some rich investors can afford to put down 30%, but you need a lot of players (buyers and sellers) in the market , to impact the market. Furthermore, most investors would like to leverage as much as possible. Property investment is still potent but needs a rest maybe for the next 1 or 2 years.

I hear people refer to reports by so called experts who say the property market is still oK - semua ok. I would take these reports with a grain of salt (actually you better take a few spoon full). I mean I have read with my own eyes in a reputable investment magazine, some so called experts recommend buying lousy stocks like Proton and TNB (credibility out the window). Please remember this so called experts have a vested interest in people continuing to buy properties. What I mean to say is - go ahead and read these reports , but learn to observe all the economic indicators around you. with your own eyes. Eg more than half the income earners earn less than RM3K a month. Local income has not caught up with property, goods and services price rise. I believe that most of the buyers jacking up the price are speculators and also Malaysians working overseas with much higher income - Especially in Singapore. In my company alone a dozen or so engineers are attracted by the pay package in Singapore. I think there are still opportunities for investing- Sepang (near KLIA), Semenyih and maybe even Nilai / Seremban. Anyway - tread cautiously and good luck to all of us.