That is true. Taiwan could be the country that will not be much affected. Their interest rate is just way too low!

Courtesy of malaysiaminion in the fennel.

http://www.theedgemalaysia.com/highlights/...lden-goose.html

Really really dumbfounded!

I think they have to follow both. In fact, Penang has impemented this before recent budget announcement. They have 1 mil for condo and 2 mil for landed. So the recent sales did reflect that.

correction: only medini might be exempted.

http://www.thestar.com.my/News/Nation/2013...i-township.aspx

Do u think this is yet another crying wolf story ?

http://www.financialsense.com/contributors...llapse-year-two

That is y I mentioned about the currency and credit wars in my earlier post. It is game played at higher levels.

I knew some people who lost plenty of money during 98 crisis. One went bankrupt, and never goes back up until today. He lost his factory, cars, etc. If I am not mistaken, he invested in properties.

The other one actually got billed out by family, as he lost too much money in stock market playing margin in 98. He told me that he wasn't in any mood to work at all during the good time, as he could make hundreds of thousands in days. He was in construction lines. He said on those days, developers never ask about your prices, they just ask when can you start and whether you have manpower.

A friend bought a house at that time for investment, and left vacant for many yrs. Only past few years, she managed to sell the house with price she felt ok.

I dun think Malaysia was affected much in 2008. At least not that I could feel. I think share market got affected more in 2008. I think I could only remember NPL was bad, and bank shares are very cheap. But somehow, nobody dared to buy.

I don't recall that properties has been this hot and high before. being rejected in loan application was hardly heard before.

Property everywhere has to go up intrinsically. It is built in the system. However, when there is bubble,fear will bring down before it goes up again. Recent example:

1. US
2. Spain
3. Vietnam
4. China 溫州

Don't be a UUU or DDD camp. One should analyze himself/herself.

My friend made 10k a month. After all expenses, KWSP, income tax, car loan, he can't afford a landed property nowaday. With average household salary of 6-7k in big city like KL, I supposed 10K is in the 80 percentile or higher. What do we tell about the holding power of average ?

There is RM500 loan payment for every 100K loan. If you hv two properties under loan, loan payment easily comes up to 5k amount. If it is not rented out, it is not so easy for ordinary people. For flipper with 4 or 5 properties, it is just not sustainable.

This post has been edited by gspirit01: Dec 15 2013, 08:51 AM

All the gen-x without courage, me included, showed that they r chicken when come to prop investment. Come, see the fearless gen Y here.

https://forum.lowyat.net/topic/2954500/+240&#entry65183070

Sigh. It must be generation gap!

These few days a lot of people has been encouraged by the following news:

http://www.theedgeproperty.com/news-a-views/11996.html

My personal view is that it is not quite accurate.

"CIMB Research analyst Terence Wong said in a report that occupancy for commercial properties in the Klang Valley stood at around 80%. “The situation can deteriorate if significant new supplies come onstream, particularly with the development of numerous mega projects by the government.”"

- so the commercial is out.

“We believe that buying interest should progressively return in 1H14 as potential house buyers come to the realisation that property prices are unlikely to fall and that potential inflationary pressure from the implementation of the GST in April 2015 could push up property prices further.”

-as if the market is driven by own stay buyer only in the past few year? In fact, i think half of the buyers are for investment or flipping purpose. So, y would the flipper or investor return to the market if there is no profit to be made ? With dibs gone , rpgt increase, foreign cap up, imminent increase in interest rate, it is tougher to make investment profit. This has shown in iskandar new sales figures. Even for some subsales, the price does starting to come down.

This is just my two cents.

Goto the bottom table of this article and form your own opinion!

http://www.theedgemalaysia.com/highlights/...lden-goose.html

I remember talking to a developer senior staff before. I asked them how they determine their property price. He told me, they look at land cost, construction cost, etc. But most importantly, they reference to the properties sell prices in the area. If a condo projects in that area selling for 500 psf and are able to sell it fast, they will follow something similar. Let's say, if the properties in Iskandar now is not selling well, I am sure the new developments will cut price to off load faster. Bear in mind that for some developers, land holding cost and development cost incur interest as well. If bad time is coming, and people desperate to cash out, the price decline may be very fast.

Actually I believe that removal of DIBS actually impacts quite a lot on the investment sentiments. In the earlier months or years, where DIBS is offered, it is a good way to make money, as no big down payment is required for 2-3 yrs. Just like in one of the post, for 20k downpayment for 400k property, if, after completion, it is not too lucky that it went up only to 450k. One still made more than 50% on 20k. Now that DIBS is gone, the investor has to come out with 20k+roughly 36k(estimate 9% for three yrs) for interest payments, the same property will suffer a loss of (6k+other fees like agent commission), instead of gains.

Of course, one can argue that they can add these to the new selling price on top of desired profit. True when the cycle just started, but not in the late phase of circle. For people who buy the house for their own use, extra 10k is considered alot, as it may not be recovered for a long long time. For investor or flipper, extra 10k is considered not too bad, as they can take it back very soon. With own stay and investment distribution of 50/50, what do you think the situation is now ?

Thanks for sharing!

After watching the ghost town video, I can't help but thinking abt liquidating all my china-hk shares.

Majorities banks and pharma.

Yeah, the div beats all the malaysian banks.

There is no national real estate market
- True, we hv kv, jb, penang, ipoh, etc. some are more frothy than others.

The real estate market doesn't explode or crash
- partially true.
- true: prop market is not like stock market. Stock market has much faster price reaction.
- untrue: depends on how u define bubble burst. If bubble burst means transaction and price decline fast, it is possible to hv bubble burst. Of course, it will be much slower and much more serious, as money is loaned. Stock is more structured as transactions are made. Whereas prop transactions are referenced.

The market has limited relevancy to the shrewd investor
- true: shrewd investor won't buy into inflated price. Infact, many shrewd has stopped buying since 2012. In 2013, shrewd investors are waiting for price to come down to pick up some.

From the same article, it is very well said !



On the other hand, if you are buying investment properties with negative cash flow and expect the values to increase over two to three years, shame on you! What if the values decrease? What's your backup plan? Can you rent it for break-even cash flow? Can you sustain negative cash flow until the market rebounds?

If so, then don't sweat it. You'll also pick up a whole bunch more properties at the bottom of the real estate cycle. If not, then you are a speculator, not an investor, and you are at the whim of factors beyond your control.

Such activity is very risky, to say the least, and it is disturbing to see that many investors are doing just that in some of the hottest markets. And, they are doing so with interest-only loans, with no "Plan B."

The bottom line is, the real estate market may go up, and then again, it may go down. So what? Don't bank on appreciation; buy properties below market, and have a "plan B" if it doesn't work out. Do this, and the you will see that the "bubble theory" is full of hot air.

Read more: http://www.creonline.com/real-estate-bubbl...l#ixzz2nh37y9UQ


This post has been edited by gspirit01: Dec 17 2013, 10:03 AM

When the sentiment floats abit, it sinks deeper with the subsequent posts!
It is like bubble is poke burst in this thread! Lol