Continued from the above....

The students then pleaded the teacher so that they could go back to the orchard to pick the ones they thought to be the largest ones.

But the teacher said, "No way, we need  to  move on. We can't go backward, you have to make right decision at the right time to grab your opportunity. It is our human life which differentiate ones who are richer/poorer than another ones.

As usual, this thread has degenerated into a mess of ad hominems. All in good fun of course, but not a very fruitful discussion.

Nevertheless, has anyone cared to comment on the impact of the tapering of QE in the regional economy? The ringgit has fallen considerably relative to the USD. Where is the money flowing out from? Government Bonds? Our KLCI hasn't fallen that much.

Anyway, why is QE relevant?

To my mind, the fundamental value of property on a *macro* basis hasn't changed at all in the past 5 years. By macro, I mean the attractiveness of property vis a vis other asset classes, and the attractiveness of Malaysian property vis a vis property in other countries. What has changed is the perception of the investing public as to the attractiveness of property as an investment class. Whether that perception shift is permanent, or whether it will reverse is still an open question, hence the present debate.

I note that the momentum of rising prices has already faded, and this sucks a lot of speculative euphoria out of the market. I'm therefore trending towards a reversal in the trend, but only if there is a systemic shock to the economy because prices will remain sticky in the context of our kiasu culture. One candidate which I have been monitoring as a factor for a systemic shock is the outflow of foreign funds following the end of QE. A reduction in liquidity, the fall in the MYR and a fall in the stock market will lead to an increase in interest rates, and a reduction in the wealth effect, thereby reducing the demand for luxury products like fancy houses.

Any thoughts?

However, the following reasons do have impact on the property price:
1). GST implementation
2). Petrol subsidy cut
3). Raw material inflation.
4). Sacrity of land
5). Population growth

Which way it goes  is actually quite difficult to tell...

BTw...my father's matured housing area prices are already going down 1st hand news coz he knows everybody there (in short he abit 8 lol)....so words travel.
Consists mostly landed houses, bungalows, double storeys, single storeys....etc.
Housing area is Cheras (near Leisure Mall) and under construction LRT is just within walking distance.

I am lost on where the property market is heading to. Thus tried to get some indication from property index. See below.

[attachmentid=3521644]

a. A slight dip on the right end. Too early to say, I guess.
b. From the graph, no peak yet since 2000. When was the last property peak? If the last peak was in 1998, property market has a rather long cycle time, now 2013-1998 = 15 years since the last peak.

They say property market is a leading indicator of the economy. So, good to keep an eye on thsi indicator.

If you have other property indicator, please share. Thanks.

Have to be smart enough to choose which property to buy.

not too surprise... as it was expected. I will be watching the game to ends

No. this is all about slowing down of credit. The effect is IMMEDIATE.

My speculation is the unloading of foreigner in MGS recently and if BNM still do nothing, some agency is goin to downgrade due to no stop on the rising debts. This is worsened (i believe BNM never put that in priority of such possibility) by the possible trade deficit from June 2013 (due to abrupt China slowdown) that would put a serious question how Malaysia to pay on the debts without surplus.

you still don't get it. to sustain the price, the market need at least to maintain the increment rate. Even a slower growth, i.e from avg 16% become 8% (I cited an actual example), will kill the market if it is certain that the rate of buying was peak in 2012. Imagine that, once the supply was flood to the market, where there is enough credit available to absorb? Yes, if our economy is great and income growth compensate the shortfall but...... sign

I afraid there would be more and more distress sellers as days pass.....

I believe the demand is still there..I'm in my mid twenties and 90% of peers are actively searching for a place..

this could be possible. at least some % chances in malaysia..... see how some amarican & japanese got that super cheap.

if economy turn bad.... micro + macro... bnm don't do more to control high debts......the % can be as high as 51%    

Hong Kong Sees No Shelter From Housing Storm
http://www.cnbc.com/id/100868737

Are those 18*60 type? Very narrow lah. And those are not really gated and guarded. Boom gate style.

mk experts, can comment on this offer?

https://forum.lowyat.net/index.php?showtopi...&#entry61605521

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!

Mind you reveal how many property you own?

Due to the current credit squeeze those who are unable to qualify for loans in the formal banks will turn to the informal banks. There are already a lot of evidence of individuals and SMEs and even developers are getting loans from the informal banks where maturities are short and interest rates are high. The problem is we do not know how large our informal banks are and what type of portfolios they are holding. Another problem is we do not know what sort of linkage or relationship between the formal and informal banks. If they are linked and if our real estate market were to collapse then the resulted decline in real estate prices will be serious, due to the following.

There will be force sales of real estate financed by the informal banks. This self-reinforce selling will further depress the prices of real estate. This is the last thing our Government wants because when the informal banks start to liquidate their assets to raise cash then it will cause further downward pressure on the market.

Informal banks may have got their funding from the formal banks. So any credit squeeze will certainly have effect on the operations of the informal banks which might force them to shorten the maturities, recall or totally freeze their loan operations.

Without funds to finance their operations, many businesses may have to cease their operations. With the expected softening of the real estate market developers who have been snapping up land to build up their land banks will find it difficult to stay afloat. This can be shown with the following chart on bankruptcies in Malaysia from April 2011 to May 2013.
---
The Housing index refers to the residential construction activity during a period of time. As indicated by the housing index below, our residential construction activity has declined to 6% in the first quarter of 2013 from 12.2% recorded in the last quarter of 2012. It represents more than a 50% drop on a quarter to quarter basis. At 6% it brings us back to the level recorded in the early 2010 when our economy is just started to recover from the Global Financial Crisis in 2008. This big drop in housing activity certainly worries the authorities and which might be attributed to the over-leveraged consumers and also the peaking of the housing prices

http://www.malaysia-chronicle.com/index.ph...2#axzz2YZP6ObNh

Hahaha i can't rent a room because i have a husband and a son living with me. Guess it must be crazy for 3 of us to live in a room

im not sure if you know what you are talking, but what can the wrong reason be for a debt free person ?