Interest rate for house loan will definitely go up.

One way to tell is to compare with 10 year government bond yield (which is the interest rate at which the Malaysian government is borrowing money, for 10 year loans). 10 year is suitable for comparison because on average housing loans are settled in roughly 10 years (the loan tenure may be 30 years or whatever, but on average it will be settled earlier as the house is sold etc).

Malaysian government 10 year bond yield is 4.2%, a big jump from just six months ago. So certainly the current interest rate for housing loan does not make sense, because as a lender, there is no reason to loan to house buyers at the same rate as loaning to Malaysia government (house buyers should pay a higher interest). I am not sure what is the difference in yield in Malaysia historically, but in the US, the gap is 1.0% to 1.5%.

By the way, one big factor driving up the interest is of course the plan to reduce and eventually eliminate the QE in the US.

Malaysia gov 10 year bond yield
http://www.tradingeconomics.com/charts/mal...101&d2=20141231

US gov 10 year bond yield
http://www.marketwatch.com/investing/bond/10_year/charts

this is damn good advice.

I share my stories as well. Im currently staying in a prop which i bought for 1.3mil in PJ back in 2011. That time, price still ok, but can see flippers starting to come in, over the years, the flippers came in force, cos areas like TTDI/DJ etc became too expensive, prices creep to 2mil....then 2.2mil...then 2.5mil. And this in turn attracted even more flippers to my area.

Now..its 2014, just 3 short years since i bought my house. The asking price is now 2.6-2.8mil for unreno, reno is asking for 3.2-3.3mil NO ONE IS BUYING...i count 6 props for sale within 1 km of my house that has been on market minimum of 6 months, 2 have passed 1 year. These flippers must be crying every month, cos its not a rentable area, ppl buy to stay only

at 2.8mil for a house, it makes more sense to put your market in klse, and just rent the damn place. i still see a few units being renoed to flip in my area..good luck to them. Malaysian prop market wont crash, but it will stagnant, and ppl will start lowering thier prices when they cant hold any longer, just have to wait and pick your jewels

Auction house not only having bank as customer. Many owner can ask auction house to help instead of agent. There is a very gd way to sell prop thru auction house if u know the way.

To avoid risk with today mkt, avoid flipping, aim to buy and hold your property, 5 yrs is a good time frame to do so. The risk is minimised and the return could be huge. People will always need a place to live and property will always hold value. History clearly shows that property always has been and always will be a good investment.

For only property prices: http://www.numbeo.com/property-investment/..._by_country.jsp, affordability is still higher than many countries and price to income ratio is better than most countries too.

http://en.wikipedia.org/wiki/List_of_count...P%29_per_capita

Malaysia rank No 59