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 Overall new property price drop next year? , Reason- no more DIBS + Higher Govern Tax

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ProperTYcoon
post Aug 21 2013, 11:24 AM

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QUOTE(tikaram @ Aug 21 2013, 11:20 AM)
dsl now average cost 650k

if the price on a dsl cost rm2 million or cost Rm 300k next year

we still have same demand?
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Hi, I don't quite understand your statement as abovestated.

Price increase Dramatically, it doesn't simply Boom up 300% daily/weekly.

Example of the Trend

->Purchase from Developer 650k

->Before O.C. Obtained (According to research/analysis) 15-20% increase to 800k

->After O.C. (Depends on Demand) either it will stuck at 800k, or It goes up by another 5% to 860k

->So that goes on yearly from 2%-5% until supply runs out
SUStikaram
post Aug 21 2013, 11:27 AM

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QUOTE(ProperTYcoon @ Aug 21 2013, 12:24 PM)
Hi, I don't quite understand your statement as abovestated.

Price increase Dramatically, it doesn't simply Boom up 300% daily/weekly.

Example of the Trend

->Purchase from Developer 650k

->Before O.C. Obtained (According to research/analysis) 15-20% increase to 800k

->After O.C. (Depends on Demand) either it will stuck at 800k, or It goes up by another 5% to 860k

->So that goes on yearly from 2%-5% until supply runs out
*
what if rpgt suddenrly go up to 200% tomorrow

650 x 2 = dsl house need to sell 650+650+650 =1950k wo.

TSwanted111who
post Aug 21 2013, 11:30 AM

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QUOTE(tikaram @ Aug 21 2013, 11:27 AM)
what if rpgt suddenrly go up to 200% tomorrow

650 x 2 = dsl house need to sell 650+650+650 =1950k wo.
*
shocking.gif I don't think government will kill her own people and themselves.
SUStikaram
post Aug 21 2013, 11:32 AM

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QUOTE(wanted111who @ Aug 21 2013, 12:30 PM)
shocking.gif  I don't think government will kill her own people and themselves.
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property tycon said " the more the RPGT will be, the price will increase further"
ProperTYcoon
post Aug 21 2013, 11:32 AM

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QUOTE(tikaram @ Aug 21 2013, 11:27 AM)
what if rpgt suddenrly go up to 200% tomorrow

650 x 2 = dsl house need to sell 650+650+650 =1950k wo.
*
Hi there, 200% tomorrow?

I'm a Property Investor, I do research on the Market, but to be honest and to be frank,

We haven't came across such ridiculous Assumption before as it has exceed twice the Original Selling Price which is impossible.

After rethinking your question over and over again.

Q : If RPGT suddenly go up to 200% tomorrow
A : Subsale Market will gone, no more Foreigner purchase into Malaysia (FDI), no more investments, no more development, the demand will always be there searching for first hand purchase.

As a conclusion, that's the end of the Modern Era.

I feel ridiculous for taking your question seriously. blink.gif


cockee
post Aug 21 2013, 11:33 AM

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QUOTE(ProperTYcoon @ Aug 21 2013, 11:24 AM)
Hi, I don't quite understand your statement as abovestated.

Price increase Dramatically, it doesn't simply Boom up 300% daily/weekly.

Example of the Trend

->Purchase from Developer 650k

->Before O.C. Obtained (According to research/analysis) 15-20% increase to 800k

->After O.C. (Depends on Demand) either it will stuck at 800k, or It goes up by another 5% to 860k

->So that goes on yearly from 2%-5% until supply runs out
*
So within 3 years the prop price increased 30%.
Now let's talk about demand.
Demand is also depending on affordability. We can 'demand' to buy. but if cannot afford also no use, right?
The same situation above; prices went up 30%, but does the average income in Malaysia shoot up by 30% in 3 years?
If not, how to sustain the demand?

ProperTYcoon
post Aug 21 2013, 11:36 AM

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QUOTE(cockee @ Aug 21 2013, 11:33 AM)
So within 3 years the prop price increased 30%.
Now let's talk about demand.
Demand is also depending on affordability. We can 'demand' to buy. but if cannot afford also no use, right?
The same situation above; prices went up 30%, but does the average income in Malaysia shoot up by 30% in 3 years?
If not, how to sustain the demand?
*
Hi there,

First of all, estimated increase of a property yoy is around 2-5%(depends on Location/Type of Property).

If you are talking about an Apartment which cost around 200k, which has significant strong demand. Able to increase up to 50% yoy.

Your question is wide, I need to know what kind of property you are referring to
ecin
post Aug 21 2013, 11:39 AM

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selective buy and sell

This post has been edited by ecin: Aug 21 2013, 11:39 AM
SUStikaram
post Aug 21 2013, 11:40 AM

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QUOTE(ProperTYcoon @ Aug 21 2013, 12:32 PM)
Hi there, 200% tomorrow?

I'm a Property Investor, I do research on the Market, but to be honest and to be frank,

We haven't came across such ridiculous Assumption before as it has exceed twice the Original Selling Price which is impossible.

After rethinking your question over and over again.

Q : If RPGT suddenly go up to 200% tomorrow
A : Subsale Market will gone, no more Foreigner purchase into Malaysia (FDI), no more investments, no more development, the demand will always be there searching for first hand purchase.

As a conclusion, that's the end of the Modern Era.

I feel ridiculous for taking your question seriously. blink.gif
*
i ask ridiculous question bcs i get very blur ridiculous info from you.
ProperTYcoon
post Aug 21 2013, 11:42 AM

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QUOTE(tikaram @ Aug 21 2013, 11:40 AM)
i ask ridiculous question bcs i get very blur ridiculous info from you.
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First of all, how many properties have you invested/harvested?
SUStikaram
post Aug 21 2013, 11:43 AM

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QUOTE(ProperTYcoon @ Aug 21 2013, 12:42 PM)
First of all, how many properties have you invested/harvested?
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i am just ikan bilis. not many. relevant meah?

This post has been edited by tikaram: Aug 21 2013, 11:43 AM
ProperTYcoon
post Aug 21 2013, 11:45 AM

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QUOTE(tikaram @ Aug 21 2013, 11:43 AM)
i am just ikan bilis. not many. relevant meah?
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Sometimes you need experience to ask a question
SUStikaram
post Aug 21 2013, 11:46 AM

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QUOTE(ProperTYcoon @ Aug 21 2013, 12:45 PM)
Sometimes you need experience to ask a question
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okok... i am just thinking buy that 4mil banglow lot in jade hill.... so how it sound now?

laugh.gif
BTimes
post Aug 21 2013, 11:48 AM

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QUOTE(ProperTYcoon @ Aug 21 2013, 11:24 AM)
Hi, I don't quite understand your statement as abovestated.

Price increase Dramatically, it doesn't simply Boom up 300% daily/weekly.

Example of the Trend

->Purchase from Developer 650k

->Before O.C. Obtained (According to research/analysis) 15-20% increase to 800k

->After O.C. (Depends on Demand) either it will stuck at 800k, or It goes up by another 5% to 860k

->So that goes on yearly from 2%-5% until supply runs out
*
I agree with this trend, which I experienced for my two properties that recently VP. The other two that will VP next year are also treading the same trend. It is hard for prices to come down, unless the global economy goes into recession/ depression again. Latest data indicate that US has recovered sufficiently to consider withdrawing the QE. This means US demand for import goods will increase which will benefit our regional economies. KL could be looking at easily 0-5% growth while JB at minimally 10-15% price growth in 2014 for new launches.
cmk96
post Aug 21 2013, 11:49 AM

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Its funny to see each ppl hold on so tightly to their own beliefs.

No need waste time predicting what will happend next year. Concentrade more on increasing current income la. Bubble or not its not a big worry to those with plenty cash reserve.
stevenycs
post Aug 21 2013, 11:50 AM

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QUOTE(ProperTYcoon @ Aug 21 2013, 11:45 AM)
Sometimes you need experience to ask a question
*
Quite agreed on what u said so far.
But what do you think about current on-going projects and those completion within 2016?
I think it's still a good investment currently for those still having DIBS now.
But upon 2016 we still need to hold for at least 1-2 years before we sell off.
Since RPTG is going to be increased as predicted.
As I am thinking bout investing in my 2nd property now.
zuiko407
post Aug 21 2013, 11:50 AM

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QUOTE(tikaram @ Aug 21 2013, 11:46 AM)
okok... i am just thinking buy that 4mil banglow lot in jade hill.... so how it sound now?

laugh.gif
*
buy it, dont think whistling.gif
sunrain
post Aug 21 2013, 11:50 AM

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With the increased tax and no dibs, property still yields a better % comparing to fd and bonds ( if u consider property as low to medium risk)

Therefore, the BBB continues for the cash rich Malaysians who can still afford the 30% down.... Different goes for the young ones who's trying their luck w 3rd prop though...

RPGT increment will definitely not deterred buying at all... It's just a small fraction of your profit... Not the property price...

This post has been edited by sunrain: Aug 21 2013, 11:52 AM
ProperTYcoon
post Aug 21 2013, 11:51 AM

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QUOTE(tikaram @ Aug 21 2013, 11:46 AM)
okok... i am just thinking buy that 4mil banglow lot in jade hill.... so how it sound now?

laugh.gif
*
First, it's called Bungalow Lot, not banglow lot.

Whatever your purchase is definitely not a part of my expertise as you might have to consider your "Construction Cost" if you purchase an empty lot.

For more specific, if you are "Thinking" to buy 4mil bungalow lot, what does it has to do with anything here?
savants
post Aug 21 2013, 11:52 AM

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Why drop?
Land = Less
Demand > Supply
Population = Increased
Construction Cost = Increased

Went to a forum... was told we need at least another 2 million houses in coming years but we can only produce roughly 150,000 houses. So demand is always higher than supply. Price will continue to increase just depends on how % every year.


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