hope i wont offend you, for my direct explanation. As, i have work for construction industry for almost 20 years, from small substation, low to high residential, hotels to reactor plant, especially costing side. Diff constructions require different works, specs & of cos prices.
As for residential properties, no doubt prices goes up, but due to scarcity of land, speculation, bank NPL taken in account. These spiral upwards prices, gone up till quality of material & workmanship were compromised for sake of making huge profits. Of cos, wealthy house buyers, property realtors & agents alike take advantage of the situation, meeting supply & demand of house buyers whether newbie or veteran hence quick commission & profit. Overall, these prices gone even higher!
When these prices gone even higher, of cos those house buyers, would not want their properties be evaluated below their costs!To protect their interest, and biased bank evaluation, prices for these houses were not to their true value. Thus, prices of house is higher and higher, but benefits those who have money, speculating nature, etc..spiral upwards which is bad for majority which i will explain below.
Back to graduates or just married couples, their pay would not able to get loans for RM500k for dsl in KV. Even their combine salary of RM8,000, bank these days, will require checking their existing loans, study loan, car, etc before approved these loans as BNM have tighten bank requirements of house loans.
Prices of food and almost everything have gone up, it pushes these 'middle income earner group' not able to finance these 'sudden increase' of house prices, yet alone if they have babies to take care. Bet, you see these people, mid of month, checking their bank balance, i wont be surprise, their balance wont be more than RM 5,000. I have randomly check, in many states and its people, there are not many, have bank balance of more than RM20,000. (<5%)
As our nation building, and construction & property industry is growing, we do not want to see 'middle income' trap, whereby graduates unable to purchase house or good cars after working for 5 to 10 years or so. Or else, these so called, brains will elsewhere to seek for better pay & environment, which irony our govt is trying to bring them back!.
What i am try to emphasize is properties shouldn't be speculative, but a gradual increase which is not too high or low. These will help to avoid, speculation, low to middle inome/graduates to have decent home, where loans able to finance by them, (for example singapore, 2 room HDB flats, 200 to 280k, 3room HDB, 280 to 350k - depends on places, regularly control although their land is much much smaller than kl alone!) rather than these situation where crazy house prices indirectly pushing them to leave the country to seek employment elsewhere.
Everybody wants money (from house buyers-agent-govt RGPT-contractors-material suppliers-workers), but does it worth the money?
Just my 2 cents.
No hard feeling here bro! Just a discussion and we agree to disagree..
Yeap, I agree that you got a point that the speculations on properties somehow make the middle incomers especially the younger generation getting harder in their house ownership. Nevertheless, by realizing that sooner or later, properties in the city or preferred location will only be affordable by the 'survival' (eg, New York, London, Shanghai, HK, Tokyo, Spore,etc), thus I choose to focus on making myself one of the 'survival', than mourning over the history of housing price, since the market is non of my control...
Even my hometown house prices has gone up more than doubled from 120k ten years back to current 300k...does it means that ppl shouldn't buy there but move to places lagi ulu to avoid property speculation? Anyway, both kangkung and broccoli are vegetables, it's just depends on individual appetites...
Jan 28 2014, 02:05 AM
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