Really?

Hmmm... Too little too late? Or is this the spark that starts the fire (sales)? Impact of this news in the market will definitely stir some panic selling ... Look out for early bargains... For those with upcoming VPs I think they enjoyed the so called airconditioned coach too long until they missed their stop... Now it's going to be more difficult to find buyers (I.e sell)... I wonder why BNM is doing this... Isn't property prices going up good? Wealth of locals increasing no? What happened to the foreigners coming to buy? Another point to note is... BNM new policy covers PERSONAL loans as well... Hmmm ... Trouble brewing there as well? Seems like he credit crisis is in the horizon... Everyone got their popcorn and drink ready?

Not sure where it is... but just looked up some info on the place... I'll offer that fella 320K (start) to 350K (last) take it of leave it.

Can empty the unit also, I don't put value on furnishings... costs me more to tear it all down...

This post has been edited by Rooney1985: Jul 9 2013, 05:46 PM

If you're buying when prices are peaked you're essentially locking in the highest commitment (monthly installment payment) for the next 30-35 years. If the market goes south, you've practically loss on equity as the value of your asset declines... (please also bear in mind... your commitment to the bank is still the same). Yes, the value of your house may return to the value that you purchased it in the future. But what does this all ultimately mean? It means that, if you enter at the highest price, your greatest loss is the opportunity that you would have if you entered at a lower price. This opportunity comes in the form of an earlier upgrade to a better house, basically more funds to do other things instead of just paying of installments.

I hope that helps to give you some clarity and especially a different POV to what others here may preach (i.e. anytime is a good time to buy, you need it, you can afford it, you buy)... I don't like paying for over priced items (i.e. priced way above its value)

3 "ifs" relate the the action of the person... only 1 "if" is in relation to the market... the most important... end of the day you just have to understand both sides of the coin before making your decision... just giving a different POV cos I can see many here always say "anytime is a good time to buy"... which is just one side, and I offer the other.

It doesn't matter how many you picked up yesterday, last year, or in the past 8 - 10 years... .the most important thing is ... NET WEALTH.. no point picking 5 properties and drown in debt... I don't see any sense in that.



This post has been edited by Rooney1985: Jul 10 2013, 12:10 PM

600,000 Y for 3 sqm
600,000 Y for 32 sq ft
18,587 Y psf
RM 580 psf

Hmmm.... how many properties here already hit the price?... especially those developed in no-man's land...

Her problem is simple... she's paying too much rent... nothing to do with the buying at 480K... I think someone mentioned the same point earlier.

Knew a guy back in 94/95... Everything he owned was bought on credit... Not that he didn't have cash but he preferred to take advantage of the availability of credit... Absolutely everything was bought on credit even down to his furniture... The last I heard was he lost everything in 97/98... His business collapsed overnight and within months his cash reserves dried up... His debtors could not be found and his creditors were knocking at his front door... He lost his house, car, furniture, everything... when times were good he was living the life... Happiest man in the world... This is high risk high gain life but could also mean you lose everything when times turn bad and your unprepared... When crisis comes it doesn't differentiate between the poor and the rich... Millionaires who have lived the high flying lifestyles have also lost everything so what's a 6 figure number in the bank account?

Looks like the window of opportunity for investors to sell and make some profit is about to close shut. Those still on the air-cond coach, its rise and shine time...

Wonder what other new policies BNM going to come up with next... and the mother-of-all changes?... increase interest rates.

Its all for the best

Those who just entered the market affected, cos they have to pay more interest. Those looking to exit the market also affected cos demand is restricted. Those looking to enter can't get loans BECAUSE asking price too high and they can't secure loan based on higher interest and shorter tenure... 2 outcomes, prices stagnant or go up, end up no transactions OR prices drop and transactions continue... now its just the market adjusting... Intensity of impact dependent on the stubbornness of prices...



This post has been edited by Rooney1985: Jul 15 2013, 12:46 PM

See those that bought for own stay will be facing higher interest rates (i.e. higher monthly installments) and therefore under pressure to sell if they can't continue paying... Those who bought for investment will see their paper profits diminish as prices remain stagnant (due to lack of demand resulting from peaked out prices and restrictive credit policies) until a point where they are back to square one, break-even... so then the decision is do i exit at a small profit now, or take a gamble and ride out the period of 2, 3 years of continuous monthly payments... Mind you, all this is happening with the possibility that the market is selling like crazy... My view is, these guys are going to exit... Only ones that will hold on to their properties for dear life are those that need a roof over their heads... local demand is shrinking... with more attractive returns from an improving US, foreign investors are going to cash out... hmmm.... but really... is that a trap as well?



If you think those at RM400psf still okay then please go ahead... that's your decision, others may think RM500psf okay, some RM300psf okay... But I'm greedy, example instead of getting one unit for RM400psf I want 2, at RM200psf... hehe...



This post has been edited by Rooney1985: Jul 15 2013, 01:02 PM

Me three, four and five... sounds like a very good deal...

Should be stated in your loan/ facility agreement. Bank's have the right to adjust your monthly repayment OR loan tenure OR both. Please bear in mind current tenure cap of 35 years.

I think although those who applied for loans before July 2013 may obtain loan tenures > 35 years... if BLR increases, 110% its going to be pure increase in monthly payments for these loans (i.e. remaining tenure >= 35 years)



This post has been edited by Rooney1985: Jul 15 2013, 03:38 PM

FYI,

For every 1% increase on 100K loan balance, monthly payment increases by at least RM60 per month (exponential component of 2-3%). So if your loan balance is:

100K and BLR increase 2%, that's additional RM120 per month.
500K and BLR increase 2% (BLR 8.6%), that's additional RM600 per month.
500K and BLR increase 4% (BLR 10.4%), that's additional RM1200 per month.
1M and BLR increase 4%, that's additional RM2,400 per month.

People talk oh 1% I can take it la so small, but painting out the monthly payments gives a clearer picture... no?

If it were so easy you'd think UK, Ireland, Spain, Greece all would've prevented what happened to their country and their people... And these are countries that do what they can to look after their people... You think these countries like to see their people going bankrupt, going jobless? They don't have a choice sometimes... but I think these countries have more sympathy for and responsibility towards their people... bolehland.... I think they would sacrifice the mass public first while the elite few cr0nees enjoy the tax payers wealth... I think the coffers all dried up already anyway... You think organisations care about how many people go bankrupt, jump off buildings, sleep on the streets, etc, etc... If they did, we wouldn't have casinos and medicine would be free... Get real its a dog eat dog world... Like someone said earlier... nothing is fair... well the same goes here, if it costs more for Malaysia to borrow, you think they're going to bear that cost for you? Then why even bring up GST in the first place? No body wants to see beggars or people jumping off buildings... BUT at the same time, no one is going to sacrifice their own livelihood so that a stranger doesn't have to go bankrupt.



This post has been edited by Rooney1985: Jul 15 2013, 04:51 PM

That should expedite the increase of interest rates....

Relax la, cool down... this is only my opinion.. why you so serious? I'm not pointing at gun at you and insisting you follow and agree to my opinion... you got your opinion then you share... but please don't tell people what to do... I don't know why everyone is so up tight and defensive when others have opinions that are not all rosy... jeez...

Btw, your points are not constructed based on facts either Its good to reflect on yourself before criticising others...

Anyway, i was just sharing if you think RM400psf is still a good buy then by all means, best of luck...

I think you made some good points above... Yea current price trend is up, but future price don't depend solely on historical data... If that's the case it'll always be up... Even you don't want to buy a unit that is priced almost 50% more in what 2yrs? Or less? If you have that mindset, what do you think others are thinking? It takes time for buyers to accept price increase until affordability kicks in that's when even if they accept they can't afford it... On the flip side, it takes time for seller to accept that majority can't afford their prices or are unwilling to accept that price to value... I'm not saying property market is cold I saying there's a stand off now... Either people can't afford it or they can't accept it... Those that accepted it and can afford it are already in... And there's only one way left for prices that's down lest foreigners stry buying up or owners can keep holding on... This is my opinion...