Yea.. you are correct the property price will not drop significant maybe now the market price per sqf is Rm600 , during economy down around Rm570-580 depending how serious the economy situation in Malaysia.
You are correct that people may not sell their property if economy is bad but the problem is not much potential buyers in this market maybe other issues like living standard increase,toll rate increase, foods or other but salary remain the same.. These few days majority the market share price dropping... How these peoples can survive if work with the organisation?if become a boss then fine. If let say unemployment and that time no body hiring ppl? This century is unlike last time. Degree holders or professional like Acca, IR,profesor and other type of peoples are a lot,
No matter how bad the economy like last time(1970-2000), the employers still need them since these candidates are less and not much degree holders during 1970-1990. Now? What wrong?Degree holders fully of flood in KL. What will happen to Boss concept is like that. Hiring somebody can perform better and with low pay scheme.. Even now fresh students come out work for 3 or 4 years also hard to buy a house unless rumah mampu milik(Rumah Wip)
A fresh student with Rm2.8k (consider average)
After deducted Epf and socso, the net would around Rm2450
Monthly expenses:
1) PTPTN -The biggest issue is PTPTN, you know what will our govt do if dont pay. (RM350)
2)Petrol (Rm300)
3)Necessity(foods etc) ( Rm10 x26=Rm260)exclude dinner
4)parent allowance(Rm300) depend on you whether pay on you pay or dont pay.
5)entertainment(Rm400) weekend-8days
Total monthly expenses:Rm1350
Net: Rm2450-1350=Rm1100
How to pay monthly installment housing loan?
If let property in KL RM420k after rebate everything until no need to pay the 10% during spa time.
Borrow Rm420k from bank and monthly installment pay approximately Rm2100 for 35 yrs.
My major concern is how these fresh graduate students or those who work for more than 3 or 4 to buy with this price? Majority potential buyers will around age 30-45 in this market.
I work in a developer company. Most of them loan rejected because of their spending power is too narrow or commitment is high or some even signed their spa then after 2 yrs withdrew their purchase due to the failed to pay first 20% money after when they have promised to borrow 80% from bank. All of their money forfeited by developer. The worst case got 1 buyer purchased 2 or 3 units then their boss fired him. What he paid to developer all have gone around 50k.. im not lie. . Im telling the truth and not creating story..
It is good if able to pay the loan if cant then wanna sell in market but supply more than demand during economy down. That time what the purchasers have invested will gone. Bank will take over the borrowers property due to failing to pay existing loans.
I have bought a condo in jalan ipoh and i have rent it out for more than 4 or 5 yrs . Im not even to think to increase their rental fee. They might move away and look for cheaper rental.
So if buy for own stay in this project around rm600k consider cheaper since it is near to klcc or some other points.
If buy for investment. It is not a good idea. Cant even cover ur loan if rent it out.
Even i also waiting for Sentul village phrase 2. =)
Yes, you are right that fresh grads will not be able to buy property. Most of them wiill invest in a car or motorcycle first in order to travel to work. They are just the potential tenants. Since, they cant afford to buy during their first 3 to 5 years of their working life, they will still need a place to stay. Sharing a 3 room condos with other housemate is still affordable. But, i think the supply is more than demand now in view that more and more residential projects are launched. So,competing with other investors for tenants is really tough. Sometime,you really need some luck in order to get a tenant, not to mention a good tenant.
Most people have to buy a property when they get married. They will most probably choose a min 3R2B property and apply loan together with husband and wife. I think 700k for a 3R2B is still affordable for them with combined household income. That is equivalent to applying 300k loan per person.