Please stop reading if you're in property price will not go down camp. Take own responsibility if you still persist to go on. Don't blame the author for making your day bad.

Fact is the real estate market has slowed and the signs of further slowing is growing every single day.

Forget about U.S and E.U, everyone is tired about the gloom and doom there.

Better shape countries like Taiwan (don't argue, is a sovereign country and maintaining its own military), China, Korea and Australia face difficulty to maintain economic growth. For example, Australia coal, iron ore and copper export has slumped. For the past 6 months, Australia total home sale has dropped and recorded the widest drop in July 2012. Price in some second tie markets for high end sector (>AUD1m) has dropped significantly as much as -40% or more.

China fresh grad unemployment rate reached double digit this year (check Al-Jazerra latest documentary on China graduate). ZhuShanJiao 珠三角, Guang Dong Province (the locomotive of manufacturing hub in southern China), area like Dong Guan registered NEGATIVE -11 GDP contraction due to large numbers factories closure.

Though China official GDP is 7.1% but the reliability is quite questionable. China financial market is not reflective the entire picture because shadow banking plays a large part for the medium/small enterprises. Last year reports of massive shadow banks run begin to surface from WenZhou, ZheJiang Province which has alerted Wen to intervene. Australia, Korea & Taiwan export to China begin to contract in 2012 and China electricity production did not grow from 2Q, 2012. It tells us the situation there is not good at all.

Those in Malaysia who believe the property price can be sustained and grow (maybe slower) despite the economy gloom and doom around the world is living in fantasy.

Property price can only be sustained if you and me, brother/sister, your friends and enemies, good or bad neighbor, untie and uncle.... ALL, is able to continue paying the installment and rent on time to bank/landlord regardless of how bad the economy will become. The market really don't need many people failing to do their commitment for destruction the working of the financial chain.

Fictitious case. Just for illustration. A 3 years old condo with 400 dwellings. All in one size 1000sf, bought all in one price RM350k (now market price is RM500k) and 80% of them bough with 90% bank loan. When recession hit, 2% of them losing job and 3% of them have pay cut. So, 5% of them have problem to repay installment. 1% of them have saving while 1% of them, family can help out. Then left the 3% under water and foreclosure is inevitable. 3% is equal to 12 units of houses, is now on lelong. Let's say the lelong price is RM500k and under such economic downturn and large number of lelong is available, finding taker posses its difficulty. So, auction price has to be reduced, say, -10 to RM450k. If a different owner, financially better shape, want to sell his property now in an open market, he is not likely to find buyer at RM500k. Like it or not, RM450k is the realistic price (if there is taker of the auction price at RM450k. If not, further reduction is expected). When only half of the auction houses are able to sell, the remaining 6 will be further reduced. What if after further reduction, still no taker? Well, banker has to shoulder the liability without cash flow. When the vicious circle spread, it will force the market to raise interests rate as bankers now is facing reduction of cash flow. When interests rate adjusted upward, we can imagine the the ugly picture followed

To believe the property price can be sustained or rise is equal to believe all the parties in the chain can do their part without failing. All of us know very well, it's not possible.

When the export drop which is happening now, the affected companies is going to bite the bullet and under such circumstances, the problem of laying off surplus labors and suppliers is inevitable in order to survive. Chain effect: our neighbor working in those companies and friend who is supplying the material to the companies and our government who collects tax from those companies. People spend less and .....

It is a tough time ahead, friends.

Obama is trying hard to reelect in Nov 2012 and he, as well as Mitt Romney will try their best to win voters than curing the economy (U.S has just reached 16 trillion deficit 2 days ago but who is talking it now? Still remember all the huhu-haha in Aug 2011 when deficit hit 15 trillion mark?). Angela Merkel will face the same as Germany election going to take place by latest of next year. China, just settled the recent largest political scandal involving the influential Bo Xilai, make no difference. China main focus now is the 18th National Congress of Commuinist China soon to be held. Who will take charge after Hu/Wen will be decided. Thus, it can be speculated that those politicians are buying time time for the moment.

i wish to feedback from the economy pov instead of prop$ pov. we have learned that it will b a down turn every x yr, where the x is an unknown. when the bear comes everyone & everything will be hit.
yes, the sign is there that a winter is coming, whether it a true or false sign is still remained to be seen although imho there is 80-90% chance that the stormy winter isn't far away.however i hv also stressed a few times that we need weather the storm to grow stronger as it is part of life. jz b prepared & u will b allrite.

This post has been edited by humble_tot: Aug 31 2012, 07:03 PM

I actually wanted to post the same topic...and i agreed 100% with what u said...i myself predicted that in a few months, most probably in 2013, the world economy will crashed and burnt many young new property investors out there..dont believe what the property developers said or what you read in the newspapers, its 99.9% bullshiit..trust me, im a mortgage banker...the is simply too much greed in the market today...you can buy a property with just 1.5% downpayment, developers claiming how much appreciation and rental income you can get, but how much a Rm500-Rm800k small condo appreciate, with hundreds of competitors at time of completion...imagine a 625 sf condo new at Rm180k, went to rm330k, Rm360k, Rm380k, than Rm450k and now Rm500k, in a space of just a year plus...there is simply too much greed in the market today...if prices continue to rise, nobody will be able to afford to buy

This post has been edited by brother love: Aug 31 2012, 07:09 PM

Fren, anyone who drove back to balik kampung during the holidays will see vast expanses of empty land, even in places nearby KV, look at Sungai Buloh, Klang etc, we are not Singapore or HK, pls spare us the classic developers excuse for rising property prices

Wah really aa? Then I should buy more. All taikors, go refinance your house. Jualan murah-murahan is coming.Huhu. A good investor can make money regardless of how the market is. That is my point of view. Although how I wish jualan murah is coming, I doubt it will happen. If it does, it will be a christmas gift to all. Being a property investor, you should know that you need good holding power. if no holding power, better play something else.

This post has been edited by AMINT: Aug 31 2012, 07:37 PM

The only properties that will crash and burn will be all the high end condo/penthouse that is more than 1mil and all the 400k SOHO/studio.
If you guys think that you can get any 2storey link/semi-d house in PJ and prime area in KL with price from 4years ago, please stop dreaming.

An economic crash as severe as 50% decrease in property price will affect everyone in Malaysia. Dont talk about flipper, even the normal people will have problem getting food on their table. There is a very simple way for them to curb the property price, increase the interest rate. The current problem is very simple, the interest rate is too low. Just compare the FD interest rate with the loan interest rate, obviously most people will park their money in property. Besides for new development, you don't even have to pay anything if you have DIBS, rebate and all those discount.

Let your money depreciate in the bank if you guys are scared. Just dont cry 3years later when you find out that all the properties in good location are sold out and are still as expensive as they are in 2012.

If you ( TS and those who agrees with the prediction) have the magic to make the price drop, please do so. I will be happy coz I can buy more. Gotta get ready more bullets. huhu

Property price correction is more likely not crash unless malaysia is experiencing 97/98 crisis again where interest rate sky rocket and our currency is worthless.

Those are pretty marco pictures but on a specific basis some segment will survive and some will be affected like to shoe box, pigeon hole, soho, sovo, isovo o watever u call it. I'm sure good landed property are still very much in demand.

When one expect crash to happen very likely is not going happen coz naturally some form of precautionary measure already kick in to balance the market. Crashes happen when no one can predict.

Techically market correction is good. At least it can help to ensure market balance and sustainable growth on the fundamental of demand and supply.

Also not to discount factor of inflation into equation and currency is very much driven by value of global commodity that we see today.

let's go kelantan and stay there, big land cheap house.

Temerloh oso not bad. Just went to fren bungalow with big land n very huge b/u. It cost onli 1.5mil inclusive land. FYI, land 15k b/u slightly more than 10k. Walao. Mana cari kat KV.

ehh... KL also quite often one geh... maybe stay in cameron highland la

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Added on August 31, 2012, 8:48 pmehh... Aussie such a big country also experience slump in prop market..

This post has been edited by twincharger07: Aug 31 2012, 08:48 PM

If i work in aussie, i will sure find for one. But monitoring from malaysia or anywhere else is troublesome

wow, such a wonder land. additional holidays provided?

how about construction cost rising, material rising and labour cost rising etc???

The key is Cash in hand.

What makes one think that ones' property (with outstanding loan) will withstand any crisis?

All standard excuses by developers...bro im not talking about vast expanse of empty land and spaces in Kelantan etc, im talking about right here, Sungai Buloh, Klang etc so many land avalaible, where is the so called scarcity ...dont forget those Rm600-rm800k condos, do u serouosly think the prices could go up to Rm 800-1million, many young investors will be burnt when the market crashes...and oh ya, forget those good sounding jargons su h as " price correction, cautiuosly positive" etc these r all propaganda, a crash is a crash

but they dont rise triple i guess.. unlike props in certain area raise from 200psft to 600psft in few years..

In Aussie, a totally diff. ball game.

- High interest rate .
- Your profit from property rental is taxable (bare in mind, higher tax in aus)
- council and water rate around aud2k/yr, if apartment, somemore got strata fee!
- is advisable to have 20% DP.
- if you are non resident, then you will need to pay higher tax.
- plenty of land in the suburb if you are willing to travel to office.

+negative gearing.
+ tax deduction on investment asset depreciation.

IMHO, Msia still a better place for property investment! Moreover, by paying RM, I have more holding power if the economy slump!

What I like about AUS!?? "LOW RISK" saving acc., a saving account - more flexible than fixed deposit but can generate interest of 5-6%/annum without commitment

Perfect theory and great prediction

The game went on too long and things started to mess up, very soon.

What can we do and how can we play our part well, when these big cooperation company are in a greed mind

The situation in developed country is different compare to Malaysia. Building are very well maintained. As such the property value are very much sustained if not increase over time. Some of the old building are very much in shape even after so many years, thanks to better build quality material, better workmanship and good maintainence.
Sometime in Malaysia the building or apartment value drop or did not appreciate much after a number of years as the building itself is so run down, paint color faded like levis jeans, poor quaility material used not to mentioned horrible workmanship...
I happen to ask one of my fren who is working in construction company in Singapor, they said most of their paint that used for exterior wall are painted with stain resistant paint. This expalin why less maintainence are required over a period of time and can be clean easily. Thus all building look fresh even after so many years though the initial cost is expensive.
Malaysian developer are using cheap paint which easily attract dirt and look pale after a while. Worse still with lack of maintainence mentality, the building itself so run down especially those flat and old building.

Agreed. That s a 2 years old condo in Malaysia looks weired than 10 years old flat in Singapore

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Added on August 31, 2012, 10:39 pmTo be accurate, raise within a year.

This post has been edited by brianccg: Aug 31 2012, 10:39 PM

You have made an important point!

Building has depreciation cost. What make the value up is the rate of land price appreciation (scarce & limited naturally) outpacing the rate of building depreciation. Many 'modern people' forget this simple rule.

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Added on August 31, 2012, 10:59 pmHigher interests rate in Australia show the central bank there know what they're doing.
Higher required down-payment provides better home equity for the owner and safety net for the lenders. Speculative buying is minimized.

Australia central bank practice is much more conservative and prudence. Malaysia, honestly, is quite lax relatively. Even in Thailand, the down payment is 30% and China, coastal city as high as 50% (recent rule is 2nd home in 1st tie city is 80%!!!). In the event of recession, though property price can drop but the financial institution there has much bullet to cushion the sudden value drop. Besides, Australia & China has massive reserve and lesser debts.


This post has been edited by agentdiary: Aug 31 2012, 10:59 PM

Another similar thread .. but interesting!

Please tell us more specifically:

1. What precautionary measure that will kick-in in the event of market crash that will balance the market (if so unfortunate happens)?

2. Market correction. Please enlighten us how real estate market correction works.

3. What is inflation? And what inflation lead to?

I can only see your point valid if a large majority buy house CASH or lesser loan. Fact is: Most buy on leverage. That's my main concern.

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Added on August 31, 2012, 11:19 pmPlease explained.

This post has been edited by agentdiary: Aug 31 2012, 11:19 PM

My take:
- property investment market may cool down a little in the next 1-2 years due to challenging macro environment.
- however, property in good location will be sustainable
- Demands are reinforced by overall healthy household balance sheet of the middle and upper classes
- Plus, looking at the demographic of Malaysia, the sizable population btwn 20-39 will sustain the demand for housing especially for mid and entry level property
- Singapore investor will keep coming to hunt for good property esp those btwn 500k-1mil, due to stronger SGD
- also bcoz some of the property investment by wealthy investor are not really heavily leveraged. Many rich man buy with cash.
- therefore, market unlikely to crash.

This post has been edited by nanoe: Aug 31 2012, 11:51 PM

U sound and talk like those well prepared speeches by developers and media, with politically correct words such as " market may cool down a little, challenging macro environment" etc etc...no 20-39 year old will be able to afford those Rm600 k condos, not even those RM450k on their own

No one ever say everybody and anybody can afford property. A person just graduated and work less than 3 years is financially challenged to save for property for 500k property, no doubt.

But does not mean these group are not in the market and need for property. This sizable group is indeed reprsenting a huge demand in market. Thus, inherently the market demand is there, albeit the market is responding cunningly by having a higher asking price. This is how demand supply works.

people in late 20 and 30s stand a better chance finncially as saving and income progress. Also, In reality, many people Join income with spouse, or parents provide subsidy.

Bottom line, demand is till strong and reinforce the market overall, ESP good location.

huhuhu

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Added on September 1, 2012, 10:16 amYa lor, I am in my late 20s and I cant afford RM450k on my own, let alone those RM600k condos

This post has been edited by AMINT: Sep 1 2012, 10:16 AM

Nowadays the majority that take up units of property landed or condo even before they are launched are speculators or investors, not those who are looking to purchase a home for their own stay. Most of the investors would make money as once construction is completed, it is likely that potential buyers would commit to a purchase.

Nevertheless, it depends on price and demand. Especially condo units, there are many units available in Klang Valley. It is not easy to commit to condo unit that is priced above 600k especially the younger group of middle-income earners. If there are excess or abundant units that can't be sold or rented out by speculators who grabbed them at a very early stage, they might be forced to sell them at below market price as they can't be holding them for too long and servicing the bank loans themselves, especially if they have 5 to 10 units in their hand, if you get the gist of the issue.

Property prices are at their peak at the moment and has potential to go up further. However, there is also possibility that in some circumstances as mentioned above, low demand may force sales at below market price. On top of that, the government may impose or implement certain conditions to keep prices of property from spiralling even further. It will be interesting to see what the government can do for the property sector in the upcoming budget announcement. It may not be much, but there will certainly be some effort to at least stabilise the property market a bit.

That's why i said, go join income. Get married.

Ok, noted. thanks for the advice. I appreciate it. hehe

Yeah, many speculators out there. But many of them are rich speculators too. And this group of ppl don't mind hold on to their property for longer term if market is slowing down. Thus, it may not trigger fire sale.

Also, ppl reaching 50s are also withdrawing epf to buy house, either to invest, or for kids.

The loan limit is already there, it works or some but still, the richer investor are not really mpacted.

Demand still robust. Market may cool, but my not crash. ESP for good location.

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Added on September 1, 2012, 10:43 amYeah, two is better than one

Unless you got rich pama

This post has been edited by nanoe: Sep 1 2012, 10:43 AM

ok. good read.

Imo Unless you're some sort of guru, else better just keep your "view" or "prediction" to yourself. It will be very embarrass if things dont go your way few years later.

No disrespect to TS. Enjoy your opinion.

Not siding with anybody and certainly not to disrespect your comment.

Anyone can share their views and invite healthy debate. Even economist can get it wrong and stand to be corrected later on.

This post has been edited by nanoe: Sep 1 2012, 10:59 AM

Yeah healthy debate is the word. One can correct another one's mistake but not humiliate. Many here dun realise bout tat.

Foreigner influx will keep property market demand going up. Did not realize the increase of Iranian or African (generally) around your neighbourhood?

so IF your prediction is correct, then please expect more demand from them result from cheaper living cost.

And there are a lot rich country citizen looking to retire in country like Malaysia because of home country economic trouble. Did you consider this in your prediction?

Before joining this forum, I still not fully understand why so many people or the 'Majority' of people are bugging about can't afford to buy houses/property. Joining this forum makes me sees the vast difference between 'Majority' and 'Minority'.......
The 'Majority' > Discuss and chat about WORRIES and PROBLEMS!
The 'Minority' > Discuss and chat about SUCCESS and SOLUTIONS!

*I will reply to anybody, I'm not here to prove anybody anything.

Welcome to the club!

Majority on workers in Malaysia earned Rm3000, or below, if prices continue to rise, majority wont be able to afford on th eir own, and even when joint, really stretched their income limits...if landed 2x now Rm650-700k, do u seroiusly think most people will be able to afford, when sellers or agents started to ask for Rm800-900k?? Even most old condos in Damansara and Puchong area asking for Rm550k to Rm 600k, with newly launched from Rm600k..just two years ago, those same old condos only Rm400-450k...when new condo came up starting from Rm500k plus, the agents pushed the prices of old condos to match those new units..it happend in Damansara Perdana and surrounding areas...those greedy people will make many young people broke and bankrupt when market really crashed, can they seelp at night

Yup, what I found intereting is that those "seniors" probably think that the "juniors" couldnt afford anything. Sorry to say but you are probably obsolete today, thinking that you know everything.

This post has been edited by AMINT: Sep 1 2012, 12:48 PM

Britain is still in the slump, read the news today, there are going down one by one and going to create chain reaction...insiders from developers themslves sayi g 2013 is going to be worse, but in the newspapers, of course they try to portray all is well and paint a positive picture with those " sweet sounding words like soft landing, slight market correction, macro economics, etctetc

For young ppl eyeing for first property, perhaps need to be realistics and compromise slightly. For instance, don't just target hot areas like damansara perd, pj etc.

There are cheaper properties elsewhere in not so hot, but acceptable location. ESP subsale. If cant afford landed, should start with apartment. Be reasonable.

For instance, I know ppl that insist buying pj properties. Happening areas. But can't afford. I recommend other places but don't want. End up still waiting n waiting and drifting even further from reality.


This post has been edited by nanoe: Sep 1 2012, 01:06 PM

Just to add....

The 'Majority' > Discuss and chat about WORRIES, PROBLEMS & BLAMES!
The 'Minority' > Discuss and chat about SUCCESS and SOLUTIONS!

Simple Quote: There's a WILL, there's a WAY!

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Added on September 1, 2012, 12:56 pm SOLUTION advice! That's the spirits!

This post has been edited by AppreciativeMan: Sep 1 2012, 12:58 PM

Spot on!!

Winners finds ways
Loosers find excuesses.

it is not that when u complain the price will go down.

Oh yes. Gov is listening. Election year ma. Price may go down if complaints are many, ESP for popular areas

Just kidding. Seriously, I think u are right.

Out of the top 20 developers in the country, more than half are owned by government. So what say you??? hehe....they are the want that set the price.
They are either profit oriented company or charity non profit organisation?

This post has been edited by cheahcw2003: Sep 1 2012, 01:31 PM

Nothing touches a more personal chord and cuts a deeper wound, than a statement that strikes fear into those who've invested their lives into their properties, that maybe their overpriced properties are headed down south.

So paranoid ke, that all these negative prediction going to somehow affect your lives?

Speaking for myself, I think this thread is about whether we think the prices will go down or not. For me, I expressed my views based on rationale mentioned in my earlier posts.

Therefore, For those that express their views that market may not crash, I don't think it is fair to call them paranoid or with vested interest.

You're RIGHT! More than half company our G involve on it

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Added on September 1, 2012, 2:13 pm2013 property market, personally think that more targeting on commercial development projects and the people who want to upgrade their existing house

This post has been edited by 37 Exposures: Sep 1 2012, 02:13 PM

Last time (almost 2 decades ago) when one first started job as graduate, the pay is 1k. Now for the same graduate (with degree), it's 3k.

Yup, probably they dont know that there are some 20s earning Rm30-40k a month and some 30s earning Rm40k-70k a month. Blindly saying 20s and 30s cannot afford is wrong. Look around u, those driving GTR R35, lamborghini all in 40s? But an average joe working in malaysia, surely it is hard to come by

This post has been edited by AMINT: Sep 1 2012, 03:48 PM

Sad to say that, 3k it's hard to survive in KL nowadays!

3000- 330(EPF)- 700(Car Installment)- 250(Petrol)- 200(Car Maintenance+Insurance)- 100(Toll)- 200(Parking)- 100(Mobile)- 500(Breakfast+Lunch), only left 620 for other expenses like rental, dinner etc..

Beside solve house price problem, hope all the boss here can solve the salary problem as well!

This post has been edited by 37 Exposures: Sep 1 2012, 03:40 PM

500 for meal enough, only RM16 per day, unless you are stay with parent lah

Guys, I have spoken to 2 person. 1 commercial banker and 1 bank negara staff. Both said all banks are preparing and predicting some bad shit is coming in 2013 and have setup special task forces for that. Any bankers here want to confirm that?

This post has been edited by AMINT: Sep 1 2012, 04:17 PM

Here I go again: get married and join income. Joint borrowers.

Of course, hv to start modestly, don't immediately aim for hot properties or areas.

This post has been edited by nanoe: Sep 1 2012, 04:18 PM

One word 'CHANGE!'

Not satisfied of where u r, who u r.... Change job, Change environment, Change yourself, Change the way u think and etc.... There is sooooooo many things tat one can do to be different...... Do something different from what u r doing now then u can get a different result/outcome. If u continue doing wat u r doing then don't expect any different result.

If u r poor financially, it can be temperory. If u r poor mentally, it will be permanent!

This post has been edited by AppreciativeMan: Sep 1 2012, 04:54 PM

Just breakfast + lunch for majority fresh grad nowadays should b enough
500 the balance ady not much left, what if I put higher..sure become NEGATIVE

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Added on September 1, 2012, 5:15 pmActually msia situation still ok if compare to hk jp spore..they need to join father, mother, wife only can get a house

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Added on September 1, 2012, 5:20 pmAgree with you, poor mentally it will be permanent!

This post has been edited by 37 Exposures: Sep 1 2012, 05:20 PM

why can't forumer complain the price too high and hope gov impose measurement to cure the speculative activity??

since the developer allow to complained openly in the all major media to warn gov not to hike RPGT, all Malaysian have the right to raise their complain either in media or open forum.

what the forumer want is kill the all the speculator, due to them, economic of Malaysia might be in deep shit...

if the market is drive by the actual demand not speculator, the developer won't warn gov not to hike the RPGT. It just too obvious what is driving the market right now.

And due to this fact, TS predicting the property to go down is rationale, not because TS wanted to buy property or invest into property

This post has been edited by Nikmon: Sep 1 2012, 05:27 PM

You are right to a certain extent. Rakyat have the right to complain and highlight their plights.

Government certainly need to take care of the masses welfare.

The problem is, demand for property is still strong, and those affluent group can still afford them. You can't really blame them all. If they not invest in properties, where to invest their money? Stocks? FD? The interest is so low, it makes property investment a logical choice. Especially for long term investment.

Also, the guidelines on financing is already in place. Those ppl that can buy and so call speculate now, it is likely they hv cash for down payment and qualify for loans. But of course, my view is the LTV can be further tightened for 3rd loans onward.

Again, the speculation may not be equally intense in all areas. There are properties still priced below 400k in klang valley. But guess what? Sometimes ppl just look down on these properties, coz ppl want nice house in hot areas like pj and mont kiara etc. And ppl hope that the prices of these areas will come down. It may, but most likely may not and even if it did, it wont be material, coz at any point prices drop a bit, there are eager investors to snap up good location properties, some even can outgun your offer prices, or pay cash.

It is challenging, I know.

This post has been edited by nanoe: Sep 1 2012, 06:11 PM

You are right
Try to think if price drop, demand increase then the price sure increase again so meaning prices drop cannot solve the problem

Yes indeed true. It's a side effect of economic development sometimes, unfortunately. It is even worse for countries with increasing urban migration like Malaysia.

yea..
or get a very small unit - my jap colleague only live in a 40m2 (around 430sqft) with her husband in tokyo..
or stay very far away - another colleague had a landed house but 50km away south of tokyo...

When i came back bolehland, having a 1200sqft near KL feel pretty fortunate adi..

This post has been edited by twincharger07: Sep 1 2012, 06:16 PM

Im a mortgage banker, and i dunt need those people from the top telling us that the economy performing well becoz of GTP etc, or we r shielded from Euro crisis....anyone with a decent commonsense can sense the doom ahead

[quote=twincharger07,Sep 1 2012, 06:12 PM]
yea..
or get a very small unit - my jap colleague only live in a 40m2 (around 430sqft) with her husband in tokyo..
or stay very far away - another colleague had a landed house but 50km away south of tokyo...

MRT coming.... can stay far away from KL.

What "shit" are u referring to?

The big big shiit

Only a select group of people aware of this situation and trying to get out of the dangerous market asap....for more info, u can read the NST property section every Friday, they have excellent article about coming impending doom for the last few wweeks..

with the increase house price, more ppl cant afford and forced to rent. this is good for the landlord.

when market down, those enter the market recently cant flip and need higher rent to cover/subsidy their higher installment. so ultimate winner are those veteran bought prop 5, 10, 20 years ago which can offer lower rental and attract more tenants cant afford buying and still generate +ve cashflow.

if prop stagnant /down, the new buyers will be suffered. some will hold but -ve cash flow, some force to let go their prop at lower than market price. the large pool and cash rich veterans will then take over the firesales prop and continue and repeat their +ve cash generating cycle.. or profiting after n years.

if prop price continue to increase , the recent investors will be happy , some flip, some join to rental play and follow the veteran and repeat the cycle, those in wait camp /cant afford will continue to rent from the new and old investors.

so it is better to invest in prop earlier than later.

I've to agree and if one has the holding power, why not?

Wow that serious? I would imagine the prices can be going up at the current rate as its not sustainable..but would also think that most properties in the country are priced reasonably...

i think those long time investors, veterans are belong to this group. these are the group will continue to buy regularly despite market up or down.

Yeah like brother love said, the big big shit. Asian economic downturn. This is beyond just prices of houses jatuh. Banks are predicting asian economy to be something like 1997. If it does happen, be ready with your mighty shield holding power as BLR will go crazy.

Ah ok, will take note. Might be good that my new prop will not be completed any sooner..

Yeah, I would also suggest u refinance 1 house and put the money as plan B. If you had to let go a house coz too much to pay every month during economic downturn, it is most likely be as bad as the economy itself. I believe BLR will be increased like depending on how servere the economy is. So it is worth to be prepared. I hope this doesnt happen though. If it does, we will be looking at job retrench, money becomes worthless, stocks not stable etc.

http://www.smartmoney.com/news/on/?story=O...000322&cid=1259

but msia money supply is still growing.. more cash to buy prop?
seem lot of cash rich people in msia.

That would be quite extreme isn't it? That will be the last resort

The way i see it, that "shit" goes beyond housings, loans, etc. And yeah there are cash rich people in malaysia. the only way to make sure that house prices stay stagnant or still increasing is to have healthy demand from people regardless of how shitty the economy is. Dunno possible or not

my cousin age 20++ just bought a property of RM600k at Rawang. I not sure worth or not

Hehe. If you are holding 2 properties maybe dont need. If you are holding more than 5, probably it is worth bro.

hopefully "old" property can maintain value and generate +ve cash flow better than holding cash

Haha, definitely not so loaded to hold 5 or more ..

What do you mean by BLR going crazy?

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Added on September 1, 2012, 8:24 pmRM600k can have other choices other than Rawang. Of course, only he can defend his rationale. Mayb he emphasis more on size and prefer newer house. But at least he has a place to call his own home. Rather than keep waiting for market to crash.

I got friend just bought subang 2x story recently rm500k. Of course smaller unit and abt 10 yrs old. Small compromise, but at least become property owner.

This post has been edited by nanoe: Sep 1 2012, 08:24 PM

In the event of economic downturn, BLR will be increased tremendously as a remedial solution. I doubt that asian economy will head south but i think better be ready than sorry. banks setup task forces. sounds serious

It is very unlikely. The opposite is likely to be true.

Don't compare with 97 crisis when the interest rate went up. It was a different kind of recession.

Under the current environment, increasing rates is likely to cause private investment and consumption to go down. It is a no-no. Also, it will cause RM to appreciate, thus making our export more expensive. A double whammy and no-no.

Bottom line is, increasing interest rates is not the right tool to address economic slow down due to slowing aggregate demand and export.

Wah...Rawang also RM600k nowadays, Semi-D? Mah Sing Project?

I too predicted QPR would finished 2012/13 campaign in Top 5 only to see them toasted by Swansea 0-5 in the opening match.

Good thing is, it cost me nothing to give wrong prediction. I believe this is the case with yours as well?

2.5 storey super link cost more than 600k already in Auggun Rawang area, and Lake park Rawang.

Maybe 5yrs later some ll say "hais, should hav bot the whole row, then now can goyang LP liao"

Ya, some well respected TKTJ in other forum foresee few Rawang Project will be the next DPC, don't play play

Haha, half the DPC ll do. But beta ask ms darn. She ll definitely giv us more details.

This post has been edited by ManutdGiggs: Sep 2 2012, 07:32 AM

My advise to you is to change job and find a job with better income and most importantly upgrade yourself and make sure u achieve certain level important role in the society. I'm at the beginning of 30. All my classmate working in malaysia is drawing salary of min RM 5k on average, some of them get married, mostly able to achieve household income more than RM8k.

Why can't they afford a house?
RM450k loan only need RM 2.2k if you stretch the longest loan period of 35 years. (for young couple, this price is still manageable)
If you can't keep up with the competition that's your problem. It's your own problem internally for not be able to achieve salary like that, wait the government to help as if asking the sky to fall u some money.

If you say condo expensive for single young people, why young people cannot stay old flat meh? Don't tell me they do not have place to stay, stay with parents cannot? So far I never see young people who can work need to stay under the bridge.

If you really such low pay and can't affort, just stay out and apply for government flat. It just cost you RM130 plus per month less than RM30 maintenance fee. Very cheap!! I know it very clearly cos I was from there before.

U got no money you DARE to ask for landed in city AR? Why not you dream higher and ask for a bungalow beside KLCC?
In this world you think cry and ask you can get meh, you go back cry to your parents may be they can give you, if you have a rich dad.

House is just a place to stay and recharge to meet another day at work to earn more money to achieve your dream, or to work harder if you wish to be rich.

Review yourself, your classmate or friends same age with you where in your income ranking compared to them? Can you reach the top 10% or 20% among your age group?

The reward for financial stability only to those who deserve it, not for somebody that doesn't value time and opportunity.

I also heard something like that from a friend working in the bank. Doesn't sound good at all. But then no one is sure whether it will happen or not.

Those who bought property with DIBS, will be under the shelter for few years. Just not sure whether some small player developer can cope with the increment of material price and the progressive interest they need to bare.

Hehe....Good but flawed lecture bro....im speaking for th majority of Malayian income earners....most earned Rm3 k ++.. and of course, Rm2200 installment for Rm450k property seems ok, even combined salary of Rm6k can get you a Rm650k property, only Rm2800pm installment, but the problem is, u failed to mention the extremely high living cost...let me give u a real world example instead of nicely polished and selectively biaased stories....both husband and wife joined income Rm6 k bought Rm650k property, approx Rm2800 pm installment for 34 years, half for esch person Rm1400...sounds ok right?? The problem is, after paying Rm1400 For each person, the husband remaining Rm1600, he used up Rm20 petrol, rm30 food, rm20 parking, that already came up to minimum of rm70 per day, not even included toll and miscellenous..and multiply rm70x 5 working days equals to 350 per week and rm1400 per month, after adding the monhtly mortgage rm1400 installment, just left Rm100-200 in the pocket, and this not even taking otherfactors like car repair, clothes etc into the pic!! Imagine if the husband stii paying car installment for our overpriced cars!! That will be negative balance every month, and not able to save a single sen!! Most young people easily get their loans approved but they never think of such things, thats why so many buying rm600k-rm800 k condos for " investment ", not thinking in the event that economy down, their holding power practically none and have to compete with sommany other units comoleted at the same time...looks at Damansara
Foresta is a fine example of how may investors, can get a unit with only Rm10k downpayment and easy bank loans, i was there most people painic buying like pasar....the risng prices forced many genuine house buyers to pay big portion of their income to the mortgage loan and if continue rising majority wont be able to afford...the current greed in the msrket will create many financially distressed young investors when the game is up

Agreed. Most ppl bought high rise for rent and landed is for own stay. Hence market falls, rental also gone, it always affects the high rise building.