Sorry but I have to pick on your statement again. Not everyone is trading or investing. Most of them are buying so that they could have a place to call home.

down of course due to low bank valuation..but still higher compared to last alleged transacted price..

I don't like the topic discussion here. Not giving hope to first time home buyer + non-affordable level like  me.

I have done 2 part time jobs. If i can i will do more, but i am very tired.

I dont mind the housing price getting higher, but it doesnt mean i am willing see the price rising 50% higher after 2 years where our salary rise only 5% per year.

Bro, I beg to differ. The thread has gone to 11th version, coming to V12. Those UUU camp seems to be right all this while. So the answer is quite clear (up to today)

Downturn will sure to arrive 1 day. Therefore those DDD camp will be right 1 day and say "I told you so". But when that day comes, it doesn't mean that the UUU camp is wrong for the last few years. For those who bought in 2009 for say, RM500k and the value is RM1m today (100% gain), even if the downturn cause the property price to go down 30% (RM700k), they still are making gain

There are many 1st home owners like debbie throughout the 11 version. Let's say debbie did ask in the 1st few version in 2009 whether she should buy or wait, and she takes the advice of DDD camp. She would have missed the opportunity on hindsight. Likewise, if she takes the advice of UUU camp, she could have made 100% gain and posting comments like the UUU camp here

So, let's just wipe out what happened for the past few years, and start all over again now. I would say the chance of the market going down is 50-50 only. Should debbie wait or buy ? She will be facing the same situation in 2009 when we have V1 - nobody knows the future. So, if I am first home buyer, I would buy whatever I could afford now and don't bother what will happen to the market (because up or down, I am not going to sell it anyway). It is a calculated risk I will take and the risk is just like the outcome of flipping a coin - 50% chance I will be right

My flow of thoughts for the property market not going into a downturn is like this :

1. Banks in malaysia lends to only qualified borrowers (not like subprime loan) --> only a certain % of wages can be used to service loan installment. It is not like if a person wants to buy 10 properties, the bank will lend to him. It all depends on his affordability
2. So, if property owners' job is secured --> they can service the loan even if rental market is not good
3. If malaysia economy is on positive region --> their job is secured --> No forced sale
4. Malaysia economy depends a lot on world economy. If world economy is ok --> malaysia will be ok
5. Currently world economy seems to be better than 1-2 years ago --> euro crisis improve + USA improve. (although now China's turn to be of concern)
6. It is true if interest rates goes up by 2% or more --> installment increase --> property owners will be affected --> forced sale. But judging from the world low interest rate environment, I think the interest level will remain the same. But the risk of interest going up is there
7. BNM and banks has since late 2012 became more stringent. We can see now usually the bank valuation is lower than market, LTV is lower and many rejected application compare to pre-2013. I think after the limit of loan tenure to max 35 years, this coming budget we will have some more mild curbing measures of property market. If the market can be cooled down slowly, we will have a healthier property market which increase more normally  

So I think property downturn is depending a lot on world economy. And it is only 50-50 we will see a downturn. Just my tiny opinion 

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.

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

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.

Hello guys, I'm new in property (since last year only), so can't say much but can only refer to report & data (or facts, assume they are true?!  ):

http://napic.jpph.gov.my/portal/content/Pu...HRM_Q1_2013.pdf

Just look at the fact:
The Malaysian House Price Index increased by 6.0% in Q1 2013 relative to Q1 2012           

Yup, that's a good point to highlight so those who are planning to go for a property remember to plan the worst out of it. Cause if your loan repayment is rm1.8k today if it shoot up to 10.x% out of the blue.. It will turn out to be rm3.3k.

But Rooney  have you thought. If something as simple as that you could have already thought of what makes you think BNM would not do anything to prevent this from happening? Do you really think they would like to see ppl jumping off KLCC out of a sudden? Do you really think they would want everyone to declare bankrupt and have the nation suffer? Look at Greece la.. 20% unemployment rate but at least when I went there for holiday, ppl are still happily walking around and I don't see any beggars around.. KL street have more if you were to compare..

past 2 weeks or so, the BNM busy intervening the market to maintain the rate. Mind you, active intervening isn't without a cost.

current bond yield has near pre 2008 era and the mortgage rate back then was around 6 - 6.5%....

borrowers owe their gratitude to BNM....

I bought a landed prop end of last year for own stay in sub sales. Manage to get 15% below bank value, but the prop needs some renovation done for sure.

Was wondering whether should I sell another prop I have which was bought 8 years ago. Still got a bit of loan left, thinking of settling it in 2 years. Is it better to sell the one I'm not staying?

I also don't like the idea of too much debt.

you better have a good explanation why the 10 yrs MGS yield reach above 3.8% (happened just today) while claim we have high liquidity? how it is possible??