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Investment 4 Critical Signs of a Bubble Market, Property Investment

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icemanfx
post Nov 21 2013, 04:19 PM

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According to a lawyer friend; currently, one group of foreigners are rushing to sell before new rpgt and another group of foreigners who are working here are rushing to buy before 1m minimum limit kick in. Guess, UUU camp can have the market to themselves in the new year.



SUSjolokia
post Nov 21 2013, 06:24 PM

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QUOTE(icemanfx @ Nov 21 2013, 04:19 PM)
According to a lawyer friend; currently, one group of foreigners are rushing to sell before new rpgt and another group of foreigners who are working here are rushing to buy before 1m minimum limit kick in. Guess, UUU camp can have the market to themselves in the new year.
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I see foreigner cabuting moneyflies.gif

The foreigner rushing to sell r the flipper, the foreigner rushing to buy is Singaporean who wanna buy a house & stay at JB/Iskandar.

By 2014 hehe .. House grab time. drool.gif
yltoh
post Nov 21 2013, 06:28 PM

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By 2014 hehe .. House grab time. drool.gif
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[/quote]



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TScybermaster98
post Nov 22 2013, 10:22 AM

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QUOTE(jolokia @ Nov 21 2013, 06:24 PM)
I see foreigner cabuting moneyflies.gif

The foreigner rushing to sell r the flipper, the foreigner rushing to buy is Singaporean who wanna buy a house & stay at JB/Iskandar.

By 2014 hehe .. House grab time.  drool.gif
Yes I think 2014 & 2015 will be a good time for bargain hunters in the secondary market.
JustNobody
post Nov 22 2013, 10:53 AM

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QUOTE(cybermaster98 @ Nov 22 2013, 10:22 AM)
Yes I think 2014 & 2015 will be a good time for bargain hunters in the secondary market.
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There is possibility but I think not a lot. Don't under estimate holding power of house owner in Malaysia.
PradaLee
post Nov 22 2013, 11:13 AM

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QUOTE(kohts @ Nov 21 2013, 03:04 PM)
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.
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Sounds reasonable. nod.gif


SUSjolokia
post Nov 22 2013, 11:31 AM

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QUOTE(JustNobody @ Nov 22 2013, 10:53 AM)
There is possibility but I think not a lot. Don't under estimate holding power of house owner in Malaysia.
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I would rather believe most have very low holding power base on the long list of auction unit I see recently..lol

If u hold on to something doesn't bring profit in near future, it actually hinders ur money from invest in other more profitable investment, mind u business need liquid assets too row, the entire country not depends on properties industry along to survive.

In fact P.I.G.G.S & USA entire economy got turn upside down because too much concentration on properties flipping & ignore other industries.

People had become obsessively indulged into properties gambling, if by now never wake up from it, expect same route with Spain.
stevenkkt
post Nov 22 2013, 11:38 AM

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QUOTE(jolokia @ Nov 22 2013, 11:31 AM)
I would rather believe most have very low holding power base on the long list of auction unit I see recently..lol

If u hold on to something doesn't bring profit in near future, it actually hinders ur money from invest in other more profitable investment,  mind u business need liquid assets too row, the entire country not depends on properties industry along to survive.

In fact P.I.G.G.S & USA entire economy got turn upside down because too much concentration on properties flipping & ignore other industries.

People had become obsessively indulged into properties gambling, if by now never wake up from it, expect same route with Spain.
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Agree, more and more auction units available & more auction properties group in FB created recently. In my opinion, if you can afford to repay the loan. I don't see a reason not buying one from the auction market.
ps1005
post Nov 22 2013, 01:30 PM

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QUOTE(jolokia @ Nov 21 2013, 06:24 PM)
I see foreigner cabuting moneyflies.gif

The foreigner rushing to sell r the flipper, the foreigner rushing to buy is Singaporean who wanna buy a house & stay at JB/Iskandar.

By 2014 hehe .. House grab time.  drool.gif
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brother, sure mou? don't make me excited ler shocking.gif
Drian
post Nov 22 2013, 02:12 PM

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As long as people have jobs, and the economy is in the positive growth region, don't expect prices to fall.


SUSjolokia
post Nov 22 2013, 02:40 PM

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QUOTE(Drian @ Nov 22 2013, 02:12 PM)
As long as people have jobs, and the economy is in the positive growth region, don't expect prices to fall.
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Maxis recently announced 500 job cut from their 3300 workforce, Thailand report economy growth slow down to 2.7%, China having slowest economy growth of 7.5%, Indonesia economy expect slow down in 2014 BI up to 7.5%, Hong Kong economy slow down to 2.9%, South Korea economy slowest at 1.6% in 3 years, Japan economy Q3 economy merely growth 0.5%.

U should read beyond local feel good media..lol

This post has been edited by jolokia: Nov 22 2013, 02:44 PM
evanesence117
post Nov 22 2013, 02:50 PM

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QUOTE(Drian @ Nov 22 2013, 02:12 PM)
As long as people have jobs, and the economy is in the positive growth region, don't expect prices to fall.
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But there is a mismatch in terms of median wages and the prices of property at the moment.
EddyLB
post Nov 22 2013, 02:53 PM

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QUOTE(jolokia @ Nov 22 2013, 02:40 PM)
Maxis recently announced 500 job cut from their 3300 workforce,  Thailand report economy growth slow down to 2.7%, China having slowest economy growth of 7.5%, Indonesia economy expect slow down in 2014 BI up to 7.5%, Hong Kong economy slow down to 2.9%, South Korea economy slowest at 1.6% in 3 years, Japan economy Q3 economy merely growth 0.5%.

U should read beyond local feel good media..lol
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thumbup.gif thumbup.gif

Faster burst !! Waiting waiting until neck also long long liao
EddyLB
post Nov 22 2013, 02:54 PM

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QUOTE(evanesence117 @ Nov 22 2013, 02:50 PM)
But there is a mismatch in terms of median wages and the prices of property at the moment.
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I hear the same point for so long, but the price still so high vmad.gif
Drian
post Nov 22 2013, 02:56 PM

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QUOTE(jolokia @ Nov 22 2013, 02:40 PM)
Maxis recently announced 500 job cut from their 3300 workforce,  Thailand report economy growth slow down to 2.7%, China having slowest economy growth of 7.5%, Indonesia economy expect slow down in 2014 BI up to 7.5%, Hong Kong economy slow down to 2.9%, South Korea economy slowest at 1.6% in 3 years, Japan economy Q3 economy merely growth 0.5%.

U should read beyond local feel good media..lol
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The problem with you guys is that you only assume that can only be two scenarios that can happen. One bubble burst, two bubble doesn't burst but the truth is what could happen and more likely to happen is stagnation or near zero growth until inflation catches up with the price. Even during the US recession a few years ago that was what happen.

I've said before, as long as interest rates are low, and economic growth is postive people will have very high holding power.


This post has been edited by Drian: Nov 22 2013, 03:00 PM
Drian
post Nov 22 2013, 02:57 PM

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QUOTE(EddyLB @ Nov 22 2013, 02:54 PM)
I hear the same point for so long, but the price still so high  vmad.gif
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I heard it since 2010
SUSjolokia
post Nov 22 2013, 03:18 PM

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QUOTE(Drian @ Nov 22 2013, 02:56 PM)
The problem with you guys is that you only assume that can only be two scenarios that can happen. One bubble burst, two bubble doesn't burst but the truth is what could happen and more likely to happen is stagnation or near zero growth until inflation catches up with the price. Even during the US recession a few years ago that was what happen.

I've said before, as long as interest rates are low, and economic growth is postive people will have very high holding power.
*
1993 fresh graduate salary starting RM 1500-1800, twenty years later 2013 fresh graduate salary RM 2200 -2500.

20 years approx 33% increase 1.65%/year
By now if u can't understand why gov only take stringent move to curb property speculation beginning 2014, & think developer had no ideas on the policy before announcement, why less project compare to 2009-2012, why big developer never make noise on these new policy, then I donno what to says to u..zzz

Who says price never go down ? iproperty or propertyguru ..lol


EddyLB
post Nov 22 2013, 03:30 PM

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QUOTE(jolokia @ Nov 22 2013, 03:18 PM)
1993 fresh graduate salary starting RM 1500-1800, twenty years later 2013 fresh graduate salary RM 2200 -2500.

20 years approx 33% increase 1.65%/year
By now if u can't understand why gov only take stringent move to curb property speculation beginning 2014, & think developer had no ideas on the policy before announcement,  why less project compare to 2009-2012, why big developer never make noise on these new policy, then I donno what to says to u..zzz

Who says price never go down ? iproperty or propertyguru ..lol
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20 year ago, fresh grad never thought of buying house. Nowadays fresh grads are buying 2 or 3 houses laugh.gif

That day got 1 thread started by 1 student asking how she can buy a house worth RM400k. A student now is thinking of buying a house. That's why price keep on increasing doh.gif
zonefinder
post Nov 22 2013, 03:50 PM

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QUOTE(jolokia @ Nov 22 2013, 03:18 PM)
1993 fresh graduate salary starting RM 1500-1800, twenty years later 2013 fresh graduate salary RM 2200 -2500.

20 years approx 33% increase 1.65%/year
By now if u can't understand why gov only take stringent move to curb property speculation beginning 2014, & think developer had no ideas on the policy before announcement,  why less project compare to 2009-2012, why big developer never make noise on these new policy, then I donno what to says to u..zzz

Who says price never go down ? iproperty or propertyguru ..lol
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Call it 1983 coz that was what we earned when graduated. That's 30 years with 33% increase. We are now in a Middle Income trap with economy still very much dependent on an agri commodity sector. Having said that, our property prices in the City centre is still lowest in the region so its not like the bubble is bursting at the seams. Consider this as a comparison, Shanghai 5 years ago has apartments costing rm 10m equivalent for a 1500 sq ft apartment with rental at that time only rm 18k equivalent ie a yield of 2%. A 1000 sq ft apartment at Mid Levels Hongkong now probably average rm 7 to 8m and we are not talking top range..
Drian
post Nov 22 2013, 03:50 PM

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QUOTE(jolokia @ Nov 22 2013, 03:18 PM)
1993 fresh graduate salary starting RM 1500-1800, twenty years later 2013 fresh graduate salary RM 2200 -2500.

20 years approx 33% increase 1.65%/year
By now if u can't understand why gov only take stringent move to curb property speculation beginning 2014, & think developer had no ideas on the policy before announcement,  why less project compare to 2009-2012, why big developer never make noise on these new policy, then I donno what to says to u..zzz

Who says price never go down ? iproperty or propertyguru ..lol
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I've no idea what you're trying to say.
What's your point?

Interest rates were way higher then in the 1980s/90s. That's why house prices are under control. So as long as interest rates are low, people will hold on to it.

And yes during the US recession there was a 1-2 year stagnation. There were tonnes of people in this forum who said house prices will go down and crash but it didn't You can check this forum 3-4 years ago.

This post has been edited by Drian: Nov 22 2013, 03:57 PM

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