If you have reinvested your profit back to properties, until liquidation with cash in bank account, it is only a paper profit.

Don't count your chicken before they are hatched.


This post has been edited by icemanfx: Nov 29 2013, 11:56 PM

Most of Warren Buffet and Li Ka Shing shares and properties are net of borrowing (i.e. net worth). People here are counting perceived or unrealized profit.

Current property flippers are similar to pre-1997 contra players, made $$$, poured back to invest more boldly. Until September 1997, contra players believe they were invincible.

Similarly, if one bought gold at $1,400/oz and didn't sell at $1,800/oz. He was perfectly correct to claim he have made $400 profit but until he liquidate, this $400 was only perceived, unrealized and on paper.

This post has been edited by icemanfx: Nov 30 2013, 01:26 AM

Property in kv is not the only investment choice and if time is not a constraint, better to buy at low.

During first half phase of inflation, price may go up but if inflation is prolonged and excessive, price will more likely to tumble e.g. gold.

Unlike stocks or commodity, property is relatively illiquid, price doesn't tumble over weeks but decline over prolonged period of time.

Historically, current low interest regime is a desperate measure. If U.S. economy is on track to recovery, healthy or idea Fed rate is between 3 to 5%, means interest rate will rise by 3 to 5% eventually.

From a bank account classified as npl to auction off property charged normally take 2 to 3 years. Private investors are reluctant or unlikely to sell their investments at a loss. However, if enough number of properties are auctioned in a short period of time, transacted price is very likely will register well under market price.

Property market is largely supported by availability of bank loan. Loan amount is subject to valuation, valuation is subject to recent transacted price of similar property in the neighbourhood. If valuation is depressed, volume of bank loan will drop and sending more sellers to npl.

Many of recently launched developments with dibs expected vp is in 3 to 4 years time. Believe many flippers bought multiple units, with intention to sell the moment taken vp and don't have means to hold. By the time these properties are vp, interest rate is almost certain have increased by over 3%. Pressure for them to sell immediately could be unbearable and many will be classified npl.

If kv property market meet the perfect storm, property price will be depressed for 5 to 8 years. No one can predict when is the peak until the peak is over. However, one can claim current price is unsustainable.

Housing loan is less than 25% of banks loan portfolio, banks could always channel their loan growth to other sector or gomen bonds.

Does property price difference between kl and sg relevant to local buyers? If yes, why not muadzam shah vs kl for the same reasons?

Production of building materials need electricity and transport of building materials need diesel, some people claimed cost based inflation is incurable means property price will climb higher . Good fortune to hoarders

This post has been edited by icemanfx: Dec 2 2013, 04:32 PM

If property price in Hanoi, Bangkok, Taiwan and Jakarta is relevant to KL buyers, what about Muadzam Shah?

Why not buy landed property in Muadzam Shah as is cheaper than kv? Comparing property price in Hanoi, Bangkok, Taiwan and Jakarta to KL is as relevant as to Muadzam Shah.

Means Malaysia property price can more than double or triple? BBB

http://www.forbes.com/sites/jessecolombo/2...bubble-economy/



This post has been edited by icemanfx: Dec 10 2013, 01:36 PM

Because they are confidence with their future income, they could always make back what they spent and many times more.

Richer whether real or on paper feel GOOD. Reward themselves with some treats is fulfilling and happiness.

Most if not all Marks in property investment are under 40s, out smart investment and commercial bankers so far, invincible and foreign economic model doesn't apply here.

Likewise when remisiers buy for themselves is at peak of bull run, and these remisiers are newly joined the trade, strong advocates of BBB and UUU.

In 1997, top end properties was not affected by the financial crisis e.g. Country Height Damansara hence some developers believe top end properties are immune to crisis and like to build bungalows. It is fairly common to see these bungalows vacant for a number of years.

Expats, Arabs, Iranians, Africans.......

Sure or not? Show us the official numbers.

According to JPPH statistics;

In 3Q/2013 number of residential property transaction in KL has dropped by 47% and 6% if compared with 3Q/2012 and 2Q/2013 respectively.