Jul 14 2013, 03:10 PM
QUOTE(Anon_1986 @ Jul 14 2013, 01:17 PM)
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 a differing view. Do you have other articles, experiences or sharings on how other 1st world economy affect Malaysia? We just passed 2008 global recession, have you gotten any effect from that? 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.
Agreed on the last paragraph.
This post has been edited by Selectt: Jul 14 2013, 03:45 PM
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until everybody get crazy, get drunk and do something crazy.
party time now. hehehehe 
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