rather than guessing whether the property market is going up or down. i prefer to be 70% invested (or used up to 70% of my leveraging capacity). if property prices relly crash i hope i get to buy few more, if it goes up further i still have the 70% to benefit.

I already realised 1 unit and holding some cash preparing for the worst. May not be making as much as those who are fully invested like the "taikors" here, but at least i have a backup plan. Part of the cash is in stocks now, and market has been doing quite well over the last few weeks, already making >10% return.

Let just say I beg to differ.

"as a responsible and mindful adult"

For me is make sure I have food on the table to feed my family and a roof over their head
"Without debts, your wealth will surely and definitely been 'transfer' out to those closer to the monetary expansion circle, both public and private"

Dont have debts =/= dont invest.
Before you come screaming : O, u must be rich or from rich family ....... I come from the typical middle income group family. Just that I CHOOSE to Save and invest and NOT to Borrow to invest.

I have seen "millionaires"  bankrupt during 1997 when interest rate shoot through the roof, hitting 20% or more. My question is how many could withstand the cash flow problem when interest rate go up another 1 to 2 percent for your loan ?

As someone my senior used to tell me , over-leverage, you end up as a "slave" to the bank....

Just my 2 cp

Very true

As for myself, the house I am staying > fully paid up. No debt on the house.

400 K cash > my kids education fund ( IMO, MY best performing investment fund !)

Have some equities (divident play).

But as i said, depend on your risk appetite. And dont be envious of the ppl next to you " that make a few million on speculating property". If they make it, congratulated them.

For me, its most important that I can sleep well at night

Just my 4 cp !

I am more bearish.

from what I know, the overly high debts has prone BNM to make speedy counter measures in order to pull back the number within the BASEL standard.

Current spike in foreigner owning local bonds is a double edge sword. Coupled with expected accelerate inflation, pressure to interests rate is clearly seen.

I think once this stagnant market go for another year (I don't know how long), the whole situation will start to go south. The newer and higher up (stratified property) the property, the greater the impact will be. If it ever happen, I don't think govt can do much about it like taking up problematic assets (aka TARP) or pushing down rate (aka Fed). It is beyond them. But if it really do so, well, then be very very very worry about our ringgit.

It will take some time before the market can recover.
   
To Halamdar: I owe you an explanation. The debts I mean, is fixed not free float one that tied with OPR or BLR. All my remaining mortgage loans already converted to fix because I bet on the inflation.

is die die must answer.

maybe those country bank that have high expose to  japanese market?

Zeti not going to increase rate b/4 PRU. Up upu up People keep hopping lower rate. LOL

She also not going to impose more measure on the loan things before PRU la even she knew how bad the situation.

It is very normal the center govt act like this. Political pressure la. Why so many people don't understand this?

correct.... i am pointing it to up up people la.

propability interest rate up is greater than down.

Here's my 5 cents..

What the rich with holding power will do?
-Keep holding, or buy more. Mind you, they are not going to simply buy, but bargain hard like hell for value buy because they know they are in the position of strength. That's why they can become rich. So price wont shoot up again so soon.

- What will the middle income fully leveraged will do?
If fully-leveraged, then they will either go bankrupt, or forced to sell cheap cheap to avoid bankrupcy. And loss all those profits gained in the past five year.

- What will the down camp will do - for middle income group with average savings?
Err.. who told you down camp = middle income group with average savings? I know some down camp ppl with five figures income and holding a lot of cash waiting for value buys.
For those in middle income with average savings but not currently in debt, market slump 30% is good news. Can buy at 30% lower price wat..

- Life goes on for the poor?
For those really poor, they are not even in the market. Of coz life goes on. Maybe can get new neighbours at their flats from the second group above. 

2008 bear trap, now denial stage.

Definitely not bear trap as we have passed the "media attention" & "new paradigm" stage.
By the way,  cranx, thanks for the data

The lawyer from the down camp also switch side and buy RM600+ psf pigeon hole, the market how to stop going up ? 

Relax la bro
If market really clash, it will still clash no matter what people saying.
Why so desperate for price drop?

Relax la bro
If market really clash, it will still clash no matter what people saying.
Why so desperate for price drop?

many thanks.  otherwise how to sell my condo. bought at 350k. sold at 630k. more bbb!!

Edited