Maybe bz put up "super cheap sales" all over uuu taman? Or gone hiding from along loan shark at some ulu place with no signal?

This post has been edited by tikaram: Nov 21 2013, 12:18 AM

Whether its a liability or a pile of cash that I'm sitting on, I'm just glad that I jumped into the market 2 years back. Paper gain only, but a gain is still a gain, certainly better than a loss.

Seems like Mr Chan must hv recently exposed big time in property...now very stressed that it will burst, so need to crack some jokes to release some of the stress

It is all very simple :

those who hv recent years made investment in properties, now worried bubble will burst, so try to say things that bubble theory is non-sense

those who are waiting to buy will of course hope that the bubble will burst soon so can buy cheap

So far bubble has been growing and growing...so those invested keep seeing their property price increasing, while BNM is trying to deflate or at least contain the bubble, but it seems like prices still going up, meaning bubble still growing

When will it burst, you need to prick the bubble..i.e. a trigger event. So what will be the trigger event, frankly nobody knows, but here are some past examples :-

1. some type of financial crisis. weakness in banking system
2. currency crisis
3. some regional conflict..war
4 natural disaster...such as earthquake in Indonesia, where the after shock reached m'sia and caused some condo to have major cracked line...wow if that happens, you will see massive sell off in all condos
5. others...

This post has been edited by MDV: Nov 21 2013, 10:44 AM

I would really wish that this is my position ...

12th page is not bad ... can escape the mod gallow ... someone just started another thread. haiiii ....

the question is if the bubble grows 100% in 2 years...and if it burst and goes back to original price... u don't really lose much also...

example, condo original price 350k, in 2 years goes up to 700k..

bubble burst...lets just assume... can the bubble burst cause price drop to 300k and below? i don't think so...

so even if bubble burst and drop 50%...go back to square one...

what is your thought on this?

Is true for those who bought few years back, how about those just bought recently?

Dun really lose much if it goes back to square one.......but if factored in legal fees, interest charged by banks over the years if got loan, even if no loan buy cash 100%, there is this thing called the Opportunity Cost of money...unless all these can be offset by rental

the one baught at the price of 700k will hurt very bad. he lose 350k + the tax and legal fees. This include people already has many props and also first prop. Pity to the first prop tho.

So long as u don't sell u don't loss.

Having said that if u bought it at 350K & sell at 350K is a lost, eg. legal fees, spa & etc, renovation, maintenance fees should be add in for break even.

Though RM 300K is highly unlikely but who know someone may be too desperate to cash in, world cup 2014 coming .. endless possibility. .lol

This post has been edited by jolokia: Nov 21 2013, 12:21 PM

Provided one have cash flow to sustain it.

I think ppl use the term 'burst bubble' too much. I think the property market in Malaysia is already in a bubble but this bubble is not going to burst. The Government wont allow it to happen. What we will get however is a property slump where you might see prices dropping about 10-15% in glut areas and stagnation in prime areas.

Im not worried about a slump as I have the holding power to withstand this (as long as the BLR doesn't go beyond 8.0%). My real concern is for those investing into property this year especially property which is clearly being priced well above the subsale market price of the area with little or no sustainable factors to support these prices in the future.

Property cycles and the event of slumps do not bring prices back to its original levels. It just eats into the profit margins of investors as long as these investors have a few years of 'buffer' in between cycles to absorb this effect. But new purchasers will not have this buffer leaving them exposed to a slump if they do not have the holding power.

Temptation to spend this "gain" prematurely could be hard to resist by most people especially those who have never seen this amount of money before.

Those which has not bought will have hard time getting loans and no dibs. Those which has bought is enjoying the facilities now. I fail to understand why those who has not bought is the winner. From before until now, banks approve loan base on a person ability to pay base on income track record. It is not given out as wanton as some thinks. Bank more afraid loaners cannot pay, so i also fail to understand why those believe that with the implementation, suddenly a lot of people cannot pay n price collapse. Bank negara in setting the rates also have the data of loaners paying capability n will be fully aware of the npl risk if they increase the rate. New property price will be stagnant which will be the ceiling for subsales. Inf fact it may help flippers as there is no.different in buying subsale or new launches.

Duplicate

This post has been edited by kohts: Nov 21 2013, 03:06 PM

Neither U.S, Spanish or Greek gomen wish, want or cause property bubble burst in 2008. Property bubble burst in those countries was largely initiated by many buyers/borrowers couldn't sustain loan repayment.

If loan tenure is over 20 years, statistically, there is over 50% chance BLR will be above 8% at least once.

Nobody said Governments caused bursting of bubbles. But Governments have the power to prevent it from happening by limiting the amount of exposure to non performing loans.

The tenure of the loan is not a concern for investors or the Gov in limiting the risk of a property bubble as investors rarely hold properties that long anyway. That's why the RPGT was increased dramatically for the first 3 years.

Whether the gomen have act early and enough to prevent exposure to potential npl is remained to be seen.

Some people can blow their water until US, China HK market

I prefer down to earth, logic and honest comment

BNM OPR is largely determine by macro and international scenario. When time come to crunch, BNM priority is to protect the gomen and banks, borrowers in financial ruin is acceptable collateral damage.

This post has been edited by icemanfx: Nov 21 2013, 03:46 PM

Money for cattle farm turned into Properties flipping fund ring a bell ?

Perhaps this is the 5th critical sign of bubble market.

This post has been edited by jolokia: Nov 21 2013, 03:58 PM