Round 11....
Let's start.

i like your signature.
you should add
"we only know one's an idiot only when the person open their mouth"

anybody notice residential rental rates are slightly creeping up?

and would appreciate admin can pin a thread for lawyer's V3.
V2 ended quite some time ago and i find it very useful.

This post has been edited by kochin: May 31 2013, 09:30 AM

boss,
rental rates or selling price?

personally i would rather target property on uptrend pricing rather than downtrend.
unless you are getting your unit at a super discount from market value, else what is the back-up plan to prevent further decline in prices?

rising property price..... alarming but not panic mode yet.
rising rental rates..... all hell breaks loose.

4 to 5 mil prop?
ouch.
way beyond my league.

boss, one more Q.
you mentioned 2/5 dropped.
what about the other 3?
increasing or stagnant then?

am referring to general property prices both new launches and/or secondary market.

actually who or what party stand to gain the most in the event of a property downturn?

lol. i am asking who stand to make the most because am trying to see whether there's any opportunity for myself to benefit from a property downturn.
am not really bothered by who loses the most as it wouldn't benefit me in anyway.

as to which category i belong to, i was classified by someone as a DDD camper.
but i would like to term myself as a property enthusiast. it doesn't really bother me so much whether property prices goes north or south or sideways.
i believe some are ridiculously overpriced.
and i can't fathom why some props are not moving north as it should commands.
but in hindsight, i do hope for higher property prices on overall because i dislike the fact that we are cheaper than most of our neighbouring countries. it belittles our purchasing power and our option to migrate (eg a kiasuland fella can buy our props but not necessary vice versa).

not really the type of answers i'm trying to look for.

it's true that someone who have least exposure to banks, developers and property may suffer less compared to others who are more vested in those.
but is there any industries or profession which actually benefits correspondingly with direct property downturn?

eg.... when a prop drops 100k, does someone stands to pocket a % of that 100k through other means?

humour me along rooney boss for i think you do have some economic flair.

i believe a vast % contributing to our rise in property prices is because of our poor performing currency exchange.
while pricing could be high, what's stopping it to go higher IF our currency performs worse?

on the other hand, if strong economy kicks in, cost of doing businesses might actually go down with better transparency and less corruption.
this in return lowers cost of production including cost of construction.
but this would not translate to lower property prices still as with better economy, i believe consumer would spend more too.
but i do believe they would spend wiser.

can i sum it that poor currency, property price rise in tandem and citizens suffer.
good economy, property price rises in tandem and ties in with citizens' affordability?

This post has been edited by kochin: May 31 2013, 04:50 PM

i 2nd zuiko on this.
mk10 is a much better product compared to mk11.
nevertheless, your choice, your $$$, your decision.
cheers!

for starters, mk10 site is bigger than mk11 yet having less unit.
mk10, being on slightly elevated ground, have higher height compared to mk11.
it's elevated deck at the podium stretches more than 1km.
each unit comes with steam bath.
and of course, it also scored higher quality rating by bca between these 2.

mk11 main focal was the architectural and it's floating deck podium. some may find it's facade too commercial like.
while mk10 do seems boring but at least it would stand the test of time being the boring old look.
but don't get me wrong, both are good product except i prefer 10 over 11.
11 is more expensive being smaller unit and launched later.

what about seni?
and the upcoming competition from icon, concerto, verdana?

700psf, not 700sf.

i 2nd that. go genting big/small table. buy small for 20 times in a roll, sure kena at least once kua. but i'd seen 24 times in a roll before switching also. kekeke.



boss, i agree our debt is insanely high. as soon as pru13 was over, it sh!ts me to know that our big man is pushing for a RM1trillion transformation plan!
while our debt is high, do you have any idea where the funds are coming from? internal or external.
if it's external, surely the big boys out there would need some sort of collateral as well, right?
else if bolehland go bust, how would they recover their $$$. any ideas boss?


i agree some props have come down in terms of pricing from the 2011 Q4/ 2012 Q1 peak. but there are also various subsales pricing which is still continuing their uptrend.
think the key would be good versus mediocre prop.

right timing is soooooooooooooo crucial. while prices may come down, the big question is would it be down enough to compensate the purchaser of the time they intended to buy in the first place. this usually only benefit short term and not long term, right?

i do believe what you're holding could potentially be high in demand props. one of my props which has VP'ed more than 10 years ago is regenerating multiple enquiries. when the agents called me as well, i questioned them why are they calling me for an old prop. they told me it's because of market demand. but this applies to only selected props lah. not all. so for agents to bugger you, that must mean you hit all good props in your portfolio. OR all your props have recently VP'ed perhaps?

believe it or not boss, i was hoping and hoping BLR rises. not just 1% but 2%!!! kekeke. i built in my reserves but it didn't happen.
but due to sensitivity issues, might i add on, in the event BLR increases, who would be the likely parties that is going to be the most affected?
i mean in broader picture in terms of demographics and ...r*c*s. would it be because of this, the gomen would hesitate to make this difficult decision?
to me, it's a bit similiar to petrol subsidy decision. tough choices.

we are sooooooooooooooooo dead......

boss, if you feel property crash happening next year, you may choose to wait.
but, please do consider the following:
1. would the crash provides sufficient savings to you against your current expenditures awaiting the crash (if you are presently renting)
2. would the crash provides sufficient savings to you against your potential 'income' from rent or potential capital appreciation from today until the day of the crash (if you are looking into investment)
but since you mention own stay, then option 1 applies lor.
more importantly, would you be able to secure the margin of finance you intended for in the event of property crash.
or in the event of property crash, what would be employment risk factor then?

of course, the ever crystal ball question of, if property crash does not happen next year, what next?
factor in your 'losses' of another year's rental into the property crash value before you make your move?

how high do you wish for rpgt?
anyway rpgt still means profit to the investor. unless he's selling at a loss.
and some tricky bastards do have creative accountants working for them.
if set too high, might damper growth.
perhaps more viable to lengthened the period? say 10% or 20% until 10 years?

lower LTV?
again, some creative investors can always opt to free up their liabilities through transferring 'profitable' assets into a company account, and they are able to reset their LTV quota.

based on cocr or through absolute amount of property?
if cocr, should be able to achieve easily.

if based on amount, not just property investment, a lot of investment also hard to beat inflation.
all savings even in FD would be considered down.

tough standards you set there but good for you.

btw, if someone buys at RM100k the first year.
upon VP is RM150k.
he rents out at say 5% of ori price = RM5k/annum.
adjusted to present price is only 3.33%.
so consider beat inflation or not?

that might work.
i have no problem with this.
at least reduces flippers.

3% p.a. on property price is good enough for me.