It depend on how to see it.
He/she are burning RM2k/mth on rental. In a year, that 24k, around 5% of RM480k of the property intend to purchase.
Should the properties market drop 5%, he still get nothing. But if price stagnant, every year burns 24k wor
Price up lagi jialat
If price up/correction at 20% either end, I think no eye see jor

With loan interest rate at very good packages and he manage to find home sweet home with no problem servicing the loan. I would said, go for it.
We can afford to make a mistake on first home purchase cause normally we can outlive the price correction

Just my 2 cents opinion.

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.

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...

Haha...i do noticed that. For her, better buy home to force saving then let $$$ drain out.

Penang and KL are reaching ridiculous levels already.

The latest project next to E&O Hotel in Penang, called Shorefront is RM1500 /sqft.

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.

Friend, you have to look at that price in relative to the circumstances at that point in time. On hindsight, it looked super dumb. But caught in the frenzy that time, the buyer of that land must have thought it was the right decision and pricing.

Same as here and now. RM800-1000 psf is becoming the 'norm', and people dont 'feel' it's excessive. But once we take off the rose-tinted glasses, it means RM500k for a 500sf studio, or RM1mil for a 1000sf condo. I repeat, RM1mil for a 1000 sf condo. Match that to the average income of Malaysian.. RM5000 per HOUSEHOLD. And you will see how 'unaffordable' our mass housing really is to the general public.

Well, I am not sure if marketing classes teach  the basic Ps anymore.. but anyone who know anything about marketing will know one of the most important Ps is Pricing.

The article already mentioned the possible reactions to this kind of news..
THE BIGGEST LESSON IS NOT TO FALL INTO A STATE OF DENIAL

"Most of all, economists say, Japan's experience teaches the need to be skeptical of that fundamental myth behind all asset bubbles: that prices will keep rising forever. Like their United States counterparts today, too many Japanese homebuyers overextended their debt, buying property that cost more than they could rationally afford because they assumed that values would only rise. When prices dropped, many buyers were financially battered or even wiped out.

"The biggest lesson from Japan is not to fall into the same state of denial that existed here," said Yukio Noguchi, a finance professor at Waseda University in Tokyo who is perhaps the leading authority on the Japanese bubble.

During a bubble, people don't believe that prices will fall," he said. "This has been proven wrong so many times in the past. But there's something in human nature that makes us unable to learn from history."

Well, I am not comparing to Japan. It would be not be exactly the same circumstances, triggers or impacts. But there are many economy and financial ratios similarities, which many other posted here.
After the Japanese bubble popped, the Americans too thought it wont happen to them. US not same as Japan.
After the America, the Irish said it wont happen to them. Ireland diffent from America.
Then UK, Spain, Vietname etc.

Hi. I am looking to buy an apartment in Putramas, dutamas(Segambut), Jalan Ipoh/ Jalan Kuching area. At present I am renting a fully furnished unit for RM 2000/ month in Royal Domain Sri Putramas 2 (Off jalan Kuching). As my budget is well below RM 500k ( only because of the property market of course!)  and most decent apartments in these areas are costing beyond RM 500K including Sri Putramas 2, I am sort of in a serious dilemma especially after BNM’s announcement of capping the loan term as well as percentage given.

1. Will the property market take a slight dip? I am now seriously          hunting for a buy, therefore should I wait or should I just go for it?
2. I have seen a unit in Putramas 1 yesterday. It is 1100 Sqft and fully furnished(decent furnishing) with renovation as well as with 2 car parks. The owner is asking for RM480K. is it worth paying that price for that property.

I hope someone can give me some clear insights on these. Thanks so much!

This I agreed fully
Can sleep better at night without worry income drop lar, interest up lar, cannot rent out lar and others

It doesn't matter RM1500/sqf or RM5100/sqf, there are many RICH people in Malaysia that can afford to buy just anything!!!

And wages in banks, oil industry like Petronas I know increase like hell already. Combine income of husband and wife from the insdustry are easily more than 10k.

Let me ask what is the price of oil during the 80s. When the bubble hit so call Japan?
Then the 90s how much was the price of oil?
Now 100USD for a barrel of oil is the norm.

Given the fact that during the recent 2008 crisis, oil was not the contributor to the crisis but how much was it then?

During a bubble, people don't believe that prices will fall," he said. "This has been proven wrong so many times in the past. But there's something in human nature that makes us unable to learn from history."

Well, I am not comparing to Japan. It would be not be exactly the same circumstances, triggers or impacts. But there are many economy and financial ratios similarities, which many other posted here.
After the Japanese bubble popped, the Americans too thought it wont happen to them. US not same as Japan.
After the America, the Irish said it wont happen to them. Ireland diffent from America.
Then UK, Spain, Vietname etc.

The Lesson is
WHO IS IN THE STATE OF DENIAL?

No doubt but how many people are in this category? People in this category, have many more investment options and need to limit to property in Malaysia.
No doubt but how many couples are both working in O&G and banking industry? Believe most of these couples are already staying in their own property, only in the market for investment or upgrade.
Given the amount of recoverable oil and gas found both North and South America and slowing down of Chinese economy, don't expect oil price to remain at current level for long.

Well, the fact is property price growth is going downwards.. Just look at the graph. How long till it reaches negative territory?
so those think it's always going to be up, up and up is in a state of denial. 

The problem here is the gap between the rich and the poor. Although there are rich people entering the market everyday, there are poor people entering the market too.

This is right. So we have the 5% rich and 95% poor. But if u look at the supply and pricing side, maybe 80% is only affordable for the rich.
So it becomes a game of musical chair.. the rich buying among themselves.. looking for the next fool?

Simply put, property prices went up because of credit. Take that away or limit its accessibility and you will see what happens.

You see as car prices rose, so did the hire purchase tenure. My parents laugh at todays generation paying 9 years for a car.

These have little to do with young people earning more.

We have always had high paying professionals in the country. Its nothing new. But theyre not the majority, far from it in fact.