Aussie plumber charge A$100/hr, truck drivers at mines take home A$200k p.a., they can certainly afford to buy in KV.

Thus it is as what i said again. Most of malaysians have income problem on their jobs where it is just giving such low salaries. I observe the same thing in bangkok when i went there a few weeks ago. I noticed that service related workers like taxi drivers and waitress r paid quite low comparative to malaysians. But the price of 7 Eleven items are the same as in malaysia. And their high end condo is expensive too. 5 miilion baht for i think less than 1k sq ft apartment?? Equivalent around 500k myr. But then their cars are cheap as hell.

Properties in some areas are still appreciating, but rather slow. While some areas are stagnant, it will worsen te scenario in 2015. So at the moment of time, people still can afford to buy but not many can buy subsale as lacking of capital is most people's problem nowadays, this is the reason why new properties sell like hot cake. Many hope to flip and earn fast cash from that. I would expect price adjustment but maybe in coming few years time

How crazy is crazy? If GST is 4%, how much do you think house prices will increase?

Developers are getting financing to book more building material especially the one developer bidding for blue line project. This act due to building material up up up every now n then. Will you get property in future price cheaper than today?
FYI, bangsar will have new launch condo price has confimed at 1300 per sf.

If gst implemented, home affordability will become worse. The bubble risk also become greater in proportionate.

I feel that year 2013 still got plenty of flippers and they are more fast and furious than the previous batch.
Among them, let's check out some of the incredible take up rates of:
Lido residency
8kinrara
Temasya qaseh
Trop metro park
Trop gardens
Okr projects
Etc.

Inflation is one thing, lack of service providers and suppliers is another.
All contractors are uninterested to undertake new jobs because of their full to the brim jobs at hand.
It is like you want me to quote I quote sky high price. Take it or leave it.
Even headhunter are recruiting like mad.
No wonder job street also hitting more than rm4 per share in the stock market.
Let's just hope it is not a case of the bigger they are the harder they fall scenario.

Seems that the Euro crisis and US economy is not of people's concern nowadays, but china's risk is getting bigger. The china credit crunch just weeks back suddenly brings up the interest rates concern. And it went up to 10%+ for overnights. If it were to happen to malaysia again (it did happen when overnight rate went up to 40% in 1998 and BLR went up to 10%+), it could trigger the downturn not only in property market but across the board. Just imagine we are paying 4%+ now, and suddenly our interest goes up to 10%+, many unprepared borrower will be forced to sell their properties

Just to put things in perspective, a RM500k loan with BLR-2.4% and 30 year tenure, the monthly installment is about RM2400.

If BLR goes up to 10% - 0%, then monthly installment is RM4400. An increase of RM2000 pm ! If investors have no reserves for this situation, then the only option is to cut loss and forced sell

How likely is that going to happen ? Anybody's guess My guess is the chance of this repeating is low because no countries wishes to see china goes into that situation. Or china itself will just follow USA's footstep to print even more RMB than US$

In either situation, the most important thing is we the borrowers must be prepared for the worst and don't over-borrow

Customs proposes standard rated supplies for commercial properties and exempt supplies for residential properties. What it means is :

1. For commercial properties, we have to pay GST of 4% (or 7% as suggested by the stupid new minister) on sales price. So,if we buy shophouse or SOHO under commercial title, the price will be 4% (or 7%) extra

2. For residential properties, consumer should not pay any any GST. The government expect the developer to absorb the tax on input supplies. Ie, all building material, sub-con for labour will still charge the developer 4% (or 7%) but the developer cannot pass the 4% extra to property buyers

Ideally that is what is hoped by the government. But looking at the sugar price increase vs teh tarik price increase ? In malaysia, will businesses not take advantage of the price increase and make an excuse to increase their profit ?

I personally am not optimistic that the businesses will stick to what the government suggest. On the contrary, the businesses will just see this as a chance in their lifetime to profit from it. I would think the increase could be in the 5%-10% region. We might need to fork out additional RM50 psf for a current RM500 psf unit. All in the name of "expanding our national tax base" that actually goes to RM500 BR1M, laptops that cost RM30k and RM700 screw driver

oh yes, still plenty. but probably a new wave.

the ones that i know, have mostly got out by 2011. and i suspect this is the pattern.

the ones u mentioned, how much appr u think they can get or expecting in real when vp comes?

i believe many had asked for the same question in 2008-2012

let's see how the market will perform

this "looming crisis" is everyone's talk, impossible to predict. if it can be predicted, there wun be a crisis as everyone will be prepared!

only that there is weakness everywhere, very much so in boland with such high debt levels. the spark can be china, europe, a disease, or the currently hot tppa talks. so, yes. i wud be careful about my own strength to stand up to a crisis.



one thing about high inflation+gst+more taxes, it seems the general view is this will just drive prices up with few other effects, everything remains inelastic...? i mean if my spending power is reduced by 50%, how the hell can i buy a car or home that has gone up by 50%?!! conitnuous unlimited debt? which lenders? boom time for super ahlongs or wat?

This post has been edited by AVFAN: Jul 14 2013, 12:04 PM

Yea free market is determined by supply and demand. With GST 3 things could happen

1. Price goes up, nobody buy --> supply > demand --> price reduce
2. Developer don't want to absord cost, hence scale down on their projects --> supply < demand --> price increase
3. A new equilibrium will achieve and the price is stagnant at current high level

It is still uncertain now. But 1 thing I am sure, first home younger buyers will even complaining more it is so unaffordable !

Sadly, it appears that few in Malaysia have real knowledge on what went on during the US housing bubble. South California was one of the wealthiest places in the US, and their median prices bottomed out at about RM 750k.

http://www.nuwireinvestor.com/articles/a-b...tate-53126.aspx



Here's a chart for you: http://www.doctorhousingbubble.com/wp-cont...home-prices.png

As I recall, Florida did around the same or worse than SoCal, but I can't spoonfeed all the details. Prices in both places are recovering, but we are after all 6 yrs from the peak, in an environment of zero interest rates and QE and many government initiatives to help homeowners, so the recovery is by design. Like I said, I was only seeking to correct a misunderstanding that desirable and wealthy places must always hold value in order to guide this forum's discussion back to the use of accurate facts and examples. Debt and liquidity is always the most important factor. You should be looking to places like London, NY and Sydney to justify why our values will maintain.

In any event, it is far fetched to suggest we will ever suffer a 50% crash (apart from multimillion luxury condos of course). Although it is clear to me that current pricing levels are not sustainable by our fundamentals, I do not subscribe to the belief that a massive crash must necessarily follow. It is just one of many possible outcomes, and is dependent on a myriad of factors, political and economic, domestic and international. With so many factors at play, there is no way to predict with absolute certainty, so one must hedge their risks. My view is that holding too much debt at this point in time is foolhardy, as the chances that it may work out well is growing slimmer every day. The unfortunate fact which I distill from these forums is that many in Malaysia have no hope to achieve wealth aside from wagering away their lives (multiple 40 year mortgages) on the property market in the hope that prices will continue their upward spiral. I wish you all the best, although the very fact that there seems to be no feasible way to achieve wealth other than gambling on highly leveraged asset appreciation must tell you that something is seriously wrong with the economic fundamentals of this country.

I have an urge to dig out the versions of this thread that posted during 2008 - 2010, to see who is boasting and who is not.

I'm just being too regretful that the moment I started to know about stock market was end of 2008 and property market, only since last year. If I would have learned much about stocks and property, I would have well planned and prepared enough.

I know I can work harder, but still, it doesn't mean my salary + part time jobs increment can beat the increment of housing price. Sadly, working harder and harder is not the best choice but apparently this is the only choice.

this, unfortunately, is the truth, the whole truth and nothing but the truth.

the better off ones go for asset speculation, or cepat kayas, 4ds, etc. all very popular as we know.

some have to work 7-11, 15/7, can do ok. others struggle everyday. many go deep into debt.

then comes crime when desperate. and the perennial corruption big and small.

the economic fundamentals are definitely in bad shape and there is nothing to suggest they'll change anytime soon.

This post has been edited by AVFAN: Jul 14 2013, 02:12 PM

Price going up near KL area only. Even then its hovering for the last one yare with direction still uncertain with all the new rules. Its a gambling for sure but thats natural. Win or lose. But beyond KL n pj cant see how can sustain, and theres no urgency u can wait.

can anybody explain why are we in the subprime, eurozone crisis discussion?

are we dependent on china economy? I dont think so.

Since the last time 2008 global recession, from my understanding, malaysia economy did not even budge and property market are still intact. Only certain industry sectors are affected, not all. We did not lose all of our jobs. It's just big companies cutting down expenses, freeze hiring, people have hard time to find jobs.

Suggest reading this book - 5 Lessons From A Millionaire Friend on Life & Wealth. Not really on shares or properties but the basic wealth foundations.

Happy reading!

You said you missed the opportunities in the past. There will be a few more of this cycle in your life time. Study, plan and action on your learning.

Cheerio.