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 V10 - Property Prices (Up, Down or .....), and the debate goes on and on and on ...

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SUStat3179
post Apr 4 2013, 07:53 AM

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QUOTE(agentdiary @ Apr 4 2013, 07:44 AM)
but seen many instance it is widely abused....
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Yes, but not low cost and bumi lands. And especially to foreigners.

Already to purchase low cost land you need to get consent and other red tape for local citizens, foreigners additionally need to get foreigner's consent on top of that and the props they are allowed to buy must not be less than 500k in selangor...

So no, foreigners can't just come in and scoop up low cost houses and collect rent from the locals. Imagine the stink to the state gomen of the day if that really happened and on the papers or the Internet.

Low cost are usually bumi lot houses too....it is nearly impossible.

If you say some undeclared local rich guy slipping the net I might believe you, but foreigners, no...
SUStat3179
post Apr 4 2013, 07:58 AM

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QUOTE(agentdiary @ Apr 4 2013, 07:37 AM)
how to get broke in a bubble for dummies:


user posted image
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You can't really compare the south sea bubble to the housing crash really.

The south sea bubble was people buying paper assets and contracts without them really knowing what they are buying. They just buy only so that could sell out later. Props are different in some ways.

For example, subang jaya which I am familiar with, even during the real dark days of 97 the prices did not drop much, in fact after the crisis is over it shot up even more.

Location is unlike stocks, it can't be reproduced. Some strategic places will retain its value because people want to stay there regardless of economic situation....
SUStat3179
post Apr 4 2013, 02:17 PM

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QUOTE(agentdiary @ Apr 4 2013, 01:15 PM)
our real estate boom start since late 80' and the AFC 97 was not a burst!

asset class boom usually last 2 or 3 decades.

just share a fact here. I am not seeking your 'wisdom'
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"fact" indeed...if you are providing facts instead of opinions may I have the source of your assertions please.

If the AFC is not a bust, I suppose cancer is also not a life threatening disease either.

Another thing, I am not providing wisdom. I am providing my opinion.

Do try to distinguish which is which.
SUStat3179
post Apr 4 2013, 02:31 PM

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QUOTE(agentdiary @ Apr 4 2013, 02:20 PM)
AFC we have a burst in currency and stock market. So did the bond to certain extend.

Not real estate really.
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The point is, stocks and property are not the same asset class.

Both are prone to have bubbles, of course, but you cannot set up a new company and issue shares with land.

Also, people can live without buying shares, but people still need a place to stay and will strive to live in the best neighborhood possible, which is limited and unique unlike shares.

Real estate did suffer during the AFC, just not by much.

And it rebounded quickly after the crisis.

As whether there is a bubble now, well, my bones tell me it is so, but by how much, I have no idea.
SUStat3179
post Apr 4 2013, 10:09 PM

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QUOTE(joeblows @ Apr 4 2013, 07:55 PM)
Everyone needs a roof over their heads, but that does not mean all kinds of property will be in demand.

There very certainly can be an oversupply of commercial prop (shoplots, offices and yes, malls too) which is already happening now.
There can also be oversupply of residential props especially for those where there are very few takers - like so-called "high-end condo" (where the only thing high end is the price and not the fittings) in non-prime areas or landed areas in the arse end of nowhere where people have to drive 1 hour + to get to KL every morning selling for megabucks.

BTW don't tell me X is only X mins from KL if you take MEX/SKVE/blablabla. It sure is only x mins, if you drive at midnight on a weekday, all the traffic lights are green, speeding along at 140+km/h, etc. Normal peak hour traffic, it will be xxx mins instead...
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That is why I said props are different from shares. That is why after the 97 props still goes up but shares languish until now.

People still need places to stay, and you just need to pick the right ones, and try not to bet into the ulu places if possible..l
SUStat3179
post Apr 13 2013, 07:49 PM

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BBB still going it seems...checked setia walk today and the prices went up like 50K in one month!
SUStat3179
post Apr 13 2013, 09:03 PM

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QUOTE(joeblows @ Apr 13 2013, 09:01 PM)
When you mean 50k, do you mean residential or commercial part of setiawalk? And increase means asking price? Or transacted price. Even iincrease in transacted price could be because of high floor etc.
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Transacted. SA told me that a month ago 1000plus sq feet is about 520K or something....now cheapest is 570K to 600K....
SUStat3179
post Apr 13 2013, 09:45 PM

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QUOTE(fast_coder @ Apr 13 2013, 09:40 PM)
if this is indeed true, i am curious who are these buyers?
for flipping? ((must be crazy)
genuine house buyers ?
for rental play? (doubt can cover with current rental rates)
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Rental play would be impossible, at least at the short to medium term.

Most of these units are unfurnished with those prices, and rental is rather at a low side unfurnished.

You still need to cover with your own money monthly.

That's why I think the prop market is bubbly....rental yield does not follow cap appreciation....
SUStat3179
post Apr 13 2013, 09:47 PM

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QUOTE(zuiko407 @ Apr 13 2013, 09:23 PM)
You worry too much about price increase tongue.gif
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If you rental player like me you do.

I think I will avoid most props from now on unless I find distressed props that could give me a decent rental yield versus price....

maybe from a speculator like yourself... brows.gif
SUStat3179
post Apr 13 2013, 10:22 PM

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QUOTE(kh8668 @ Apr 13 2013, 10:19 PM)
you should change your mind that all rental collection could cover your monthly repayment at LTV of 90%. [then ppl will die die find 10% down to get their own roof, why need to pay you the rent?]

if LTV at 70% and then rents can cover your monthly repayment, then it is good enough at the current market.

in the future, many people will find it difficult to take out downpayment for their property and then they will have to keep renting.
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If I could not profit from renting, why bother investing in props in the first place?

cap appreciation? Not really sustainable isn't it?

Might as well park money in dividend yielding shares....
SUStat3179
post Apr 13 2013, 10:30 PM

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QUOTE(kh8668 @ Apr 13 2013, 10:24 PM)
you should flip for profit tongue.gif

renting is for long term play mid-term to long term (at least 10 years tongue.gif )
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I would agree if I can buy a time machine and travel back into time....

Maybe go back to 2010 or 2011...

Now the prices in Puchong for example at Setia walk is already 600 psf...

Can you fore see Puchong go up to 700- 800 sq feet?
SUStat3179
post Apr 14 2013, 08:34 AM

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QUOTE(kh8668 @ Apr 13 2013, 10:42 PM)
come on man, you definitely will say the samething in the future.

why not the price will hike? did those people in 1970s see PJ 's property price hike in 2000s?

tongue.gif
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From developer to sub sale I agree...it is a Malaysian mentality thing...

But sub sale to sub sale...unless there is real significant booster on value lah...


SUStat3179
post Apr 14 2013, 11:14 AM

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QUOTE(kh8668 @ Apr 14 2013, 10:59 AM)
Same thing applied.

One bought usj terraced house corner for 530k in early 2012 that time valuation was only 480k-500k. Manage to change hand at 700k+ end of 2012.

One bought a piece of leasehold bungalow lot at 90psf in early 2012. That time valuation at only 70psf. Due to leasehold needed approval from the state government. And now it is approved and the valuation is 130-140psf. Asking then from 180psf.
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That one landed different lah, I am talking about an expensive 2 room 1 bathroom condo lah.

Landed people will buy for their family home.
SUStat3179
post Apr 14 2013, 11:24 AM

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QUOTE(kh8668 @ Apr 14 2013, 11:20 AM)
I can give more examples if you wanna to know. wink.gif
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Go ahead...

Point is, condos doesn't appreciate like landed here because Malaysians have fetish to live in landed once they married and have children.

Also, nowadays developers sell condos like shoeboxes only, for single or dinks couple can lah...do rental play only for condos mostly...but in the end, I notice that rental yields don't catch up with developersrices, how to invest?
SUStat3179
post Apr 14 2013, 11:35 AM

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QUOTE(Steven83 @ Apr 14 2013, 11:32 AM)
that's the problem that we are facing now  rclxub.gif
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If I invest in lower cost apartments....don't want the hassle to collect rent from low income tenants...likelyhood of them not paying rent higher...plus value cannot appreciate much....

The nice higher end, few months VP prices shoot to the moon already....and far outstrip the market price of rental

Sigh....better collect bullets and wait on people despo want to sell and buy below market price like that....
SUStat3179
post Apr 14 2013, 11:55 AM

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QUOTE(AMINT @ Apr 14 2013, 11:47 AM)
Thats the dilemma we are facing. I think we have to always be alert. Somebody sell below market, terus snatch. Not easy to do that
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And to factor in the rental yield vs sale price as well...
SUStat3179
post Apr 14 2013, 02:02 PM

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QUOTE(kh8668 @ Apr 14 2013, 12:01 PM)
check out setapak old apartments such as setapak ria, pelangi, danau kota apartments.
check out pj apartments such as pelangi, palm spring, ken 3 etc.

decent one can check out
- titiwangsa sentral
- sierra residency puchong

a lot more;  sweat.gif
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All no lrt and you think all those old condos will appreciate in value like landed ah?.... biggrin.gif
SUStat3179
post Apr 14 2013, 02:11 PM

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QUOTE(AMINT @ Apr 14 2013, 02:04 PM)
Titiwangsa sentral is a walking disance to lrt bro but i encountered something a bit unpleasant when i wanted to check it out.
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The transvestites there right...read your report... biggrin.gif
SUStat3179
post Apr 14 2013, 02:23 PM

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QUOTE(kh8668 @ Apr 14 2013, 02:20 PM)
Setapak got no lrt wor. Still appreciate like heaven.

Even got lrt, people will still prefer driving. Lrt or not, it is just an option for them.
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I buy got lrt wan...

Anyway...the titiwangsa one a price shoot to the moon already....now 600k per unit, rental only around 2.8-3k, howlah play rental game?


SUStat3179
post Apr 16 2013, 08:15 AM

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QUOTE(AMINT @ Apr 16 2013, 08:12 AM)
What the... Drop some more
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Good wut...if you are a gold bug, then it is time to buy...

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