Yea... I think you better ask your lawyer friend when in malaysia history got property bubble....

Well, given the benefit of doubt... if there is really bubble happening in the past, did the price recover after that?

Key word is location... for good location I doubt it will drop to half of that value...

Cyprus is not malaysia... who knows ppl in msia damn rich with lots of savings... even if the price drop in half... ppl will just keep...

Never say never... but I doubt property in msia will be hit hard... even in 1997... the property price has already recovered and is on positive earning region...

Our household debt is at it's highest and one of the highest in the world (if compare to disposable income).

When BNM increase interest rates, then we can see many lelongs..

ok la...when i read the reply...didn't really answer my question...but looks like your lawyer friend trying to imply that the property bubble is happening now, but did not happen in the past at all... well, until it burst... we won't really know if this is a bubble or not...

my main point here is if you can buy and hold over the years...long term... bubble or no bubble...it should be alright as the price sure UP... when you buy the property at the right location...

good points for discussion anyway...i'll try to open my eyes more for the questions you posted below...still haven't really observed much Bank Lelong signs around and For sale, there's always the subsale going on...

There are many deep pocket investors out of your imagination. I recently viewed a few "brand new" condo unit (out of 30+), with electric wire still hanging on the ceiling, but the condo had been VP and tenanted for more than 6 years.

good point, i have also think of that before...

if you look at US case...it is worse as any ah beng, ah kow, muthu and ahmad can get loan...that is really a big bubble happening cause the buyer's financial is not stable at all...

but on the other hand, the banks here at least are not giving free money away.... in fact yesterday, i just heard from an agent that there are loans getting rejected...well...i don't know if the agents are telling the truth or not but i don't see any reason why the agent want to lie to me about this...

so in my opinion, we can't compare this to the US case...US ppl not much savings...but in Malaysia, lots of ppl got savings and backup... maybe not all but i'm sure we're better off than US....

until that happens in Malaysia, i mean about the dubious loans scheme to anyone...i won't compare this to US... but good point brought up by you to take note of...

That's the problem now, when government spoon feed something cheap, but people not interested.
Maybe the new launch by developer are too tempted, nice concept, nice facilities, nice showroom.

boss, your calculation is true IF there's a downturn.
alternatively, let's assume there's a 5% net yield out there.
if the guy bought it immediately before the downturn, do not forget to factor in the yield he would be getting from now till the downturn.
please also do not forget the potential cap app before the downturn.

if it's for own stay, please do not forget the $$$ he would have saved from paying rental to their present landlord.

guess the debate is still on when the downturn would strike and how severe.

Lol. Those Americans I know all still living comfortably.

Look back this post and your post after 30 years from now. You will be laughing why you said so.

So kiasi how to earn big money
The way you think make me recall bought my 1st property in 1999

Mr Lawyer, That's the different you and me, I'll never ask how much money require for children education, bcos I already got it. I'll never ask which location I afford to stay, bcos I can almost choose any location in klang valley for own stay.
'Si' or 'not Si', I know better

Denmark joining in the fun
Denmark races to prevent foreclosure

Sounds like a DIBS effect

Don't too pessimistic, you will do better
Brave a bit, don't too kiasi.

then that's good. Guys, this will explain well, that he really can afford the education, and investment in any places. Oil and gas salary really makes a big different in any of the world. But factory based are going down, no matters which party you vote.

You have your point. No everyone can be as high income as him, but back to the same point, this is how he think because he have the cash. Unfortunately for me, I have make the wrong option and this is what I get. That's why they said, rich are likely to mix with the rich, because they are from the same pool.

I believe to ensure the bubble wont pop we need the following conditions.

1) new launch buyers mostly are own stay buyers with good income
2) large pool of tenants with the ability to pay high rent
3) low interest rates

The ringgit is getting weaker. Malaysian properties will be cheaper than ever.

I'm not dare to agree with you, some group of people might say what special in msia? Why foreigner invest in msia? Why not Sulu?

One of the reasons I can think of besides 'cheaper' property price is our country doesn't those big natural disaster problem.

I do hope they are on time.

BNM 'closely monitoring' household debt levels