how on earth developing nation with higher portion income spend on necessities i.e. foods can outspend developed world?

you seem to confuse between business opportunity/consumption in developing and developed world.

if I were you, i will just keep my mouth shut and pray this threat quickly fly to pg 50 or more and hope ppl forget about it ........

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.

P/s : Dun use "IF" next time, I hope you get it, read back wat you hv written "So, will u like my shxx if I m tycoon?"

This post has been edited by UFO-ET: Mar 27 2013, 02:44 PM

Irony, as a responsible and mindful adult, we should have debts that we are capable. Without debts, your wealth will surely and definitely been 'transfer' out to those closer to the monetary expansion circle, both public and private.

Good plan...

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.

I read some stuffs from Jimmy Lai who never tired shooting Superman Lee in HK. Though both are tycoons, but at least Jimmy is more honest to admit the no.1 purpose of doing business is to make profit and don't pretend to be a good 'Samaritan' with vague social value ideal and flowering language to camouflage the public an act preferred by Super Lee.

your choice.

only one sentence for you to ponder.

Don't and never trust CPI from government.

A very valuable 2 cents...

20%?

Debt is like a weapon. You have to learn how and when to use it, and how much to take on, to make the best use of debt. In property investment, the judicious use of debt is almost indispensable.

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.

Hehe, as I mentioned, EVEN with FIXED rate =/= fool proved.

What if I lost my job, can I still service the loan repayment....if so many property loan > I will die die die and fast fast too. ( BBB fast fast >>>> DDD fast fast)

Dont tell me O, my job is secured... only thing I will ask is are you 100 percent sure ? and how can u be 100 percent sure ?

During economy crises, No One will be spared. What will make a BIG difference > are you prepared for it ?

Just my 3 cp

U earns my vote!!
Not because u not in debt (because I'm a debt person, the more the merrier ), but because your crystal clear plan in your future and importantly..... u don't complain and u don't condemn!!

This post has been edited by AppreciativeMan: Mar 27 2013, 04:59 PM

don't conclude so fast.

Open mind and just think about it:

Superman have 2 prop, one for own stay (RM650k) and one for rental (RM350k).

For own stay, he paid 2k installation and 1.5k respectively. But he receive 1.2k rental.

Thing is, Superman is very conservative and have 1 million in FD for rainy day despite continue saving 2k a month for rainy too.
He also got EPF, insurance and equity too. Bcoz he is so conservative, all derivatives instruments is out from his mind.

This leverage help him!

The problem nowadays is alot of people, most of them I think, leveraging like no tomorrow. Many are on the cliff.

Fire kills, doesn't mean we have to be so scare from using it for our benefits. That's why I am saying 'responsible and mindful adult"

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 !

Wow... I hope you didn't up your 2 cents to 4 cents because I said the earlier two were very valuable... haha... kidding...

But again.. another valuable 4 cents...

Market to recover definitely... The market hasn't even began recovery in my opinion... its currently on pain killers.

Inflation lah ... 2cp > 4 cp !!! due to latest CPI from the government !!!

Hahaha

If the property is for own stay try not to leverage too much. Maybe 50% loan.

If the property is for investment try to max the return by max leverage. Maybe 90% loan.