hm... I don't see much diff between now and earlier this year.
If given a chance to go back to past, would you still purchase what you did?

Quite a big difference in bank loan policy now compare to earlier of the year. End last year / earlier this year, banks are still aggressive. Then BNM send out their guidelines and the banks started to be more stringent in giving out loans. Then later in the middle of the year, gomen talked about RPGT, DIBS curb etc. Then came the budget in October. I think the gomen's policy for the past 5-6 months affected the market. The sentiment has changed a lot even from the mouth of my bankers and agents.

In 2016 when we look back, I think 2013 will be considered the year of changes in property investment after 5-6 years of strong growth

If the gomen didn't impose these policy changes, I will still think the market will continue to grow.

I can't undo what I have done. But looking back at my purchases, 2 are sub-sale which my MOF is low so it is cashflow positive. The other new launch purchase is because my company is the contractor of the project. So, I book it just in case I need to contra what the developer owes my company

if you can afford it, just buy against inflation. Like food, property is necessity of life. Do you think food price will come down? just my 2 cents.

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.

I don't know how long to wait before it is the optimum time to enter the market.

Do you?

If you do, please tell me when the bubble will burst.

I would love to know.

Oil is essential in life - it tumble.

How come 2008 oil price at USD 148 now hovering below USD 100 ? mind to share your thoughts ? more car r on the road but no need petrol ? how come 2008 says oil reserved very low suddenly found a lot ah. ??

Food price did go down - remember sugar, palm oil & rice price was extremely high in 2008 ? how come go down ? people don't eat all these anymore ah ?

Its all hoax & artificial demand just like property, Malaysian population growth is at all time low, we don't have 5,6 or even 10 children like our parents, actual demand for property are actually quite insignificant to push the price like 2009-2012, mere speculation.

+1

i like to know when bubble will boom also.

Funneh how some people who were openly propagating doomsday scenarios not too long ago are now making light of cautious sentiments

Funneh how some were openly propagating Buy3, Up3, Whack3 not long ago are now making comments here comforting there worrying heart ..hehehe

So long the Kiasu Buy & Kiasi Sell mindset r there, no worries it wouldn't drop..lol

Maybe some good offer after Brazil World Cup mid of next year. .wakakaka. .

There are many new shop buildings and houses to be completed in the next few months in my area.

Just wondering how much can the developers make from their construction?

High end
* shop 30%?
* house 30%?

Medium end
* shop 20%?
* house 20%?

of the sale prices?

With the dark cloud in the horizon, I do wonder how do the developers manage their business.

Thanks.

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.

If that's the case, am wondering if there will be soon, measures to cool down the effects of the npls...
(Considering that the domino effect could be quite drastic once "sudden brake" from the financial system triggered by the overwhelming npls...)

measure to cool down npls is to tighten the borrowing by making it harder for anyone to borrow from the bank. This include further tightening the LTV for property purchases. eg. 80% loan for 2nd prop, 70% from 3rd prop, 60% for 4th prop and so on.

Another way to reduce borrowings is to increase the rate. we may see increase of rates in the year 2014 by 0.3 - 0.5 or maybe even higher. as a result, rate of nps will increase.

i dont think central bank will reduce the rates any further as this will cause further increase in borrowing. additionally credit rating company will downgrade our banks' outlook

edited. thank you @jolokia

This post has been edited by kurtkob78: Nov 30 2013, 05:00 PM

U mean central bank will not reduce the rates any further ? not don't think central bank will not reduce rate any further, correct ?
Anyway S&P already downgrading a few big bankers of ours.

http://www.thestar.com.my/Business/Busines...Investment.aspx

http://www.businesstimes.com.sg/premium/ma...ngrade-20131128

The ratings agency cited prolonged run-
up in housing prices and household debt
level posing potential exposure to
economic imbalances as reasons for the
downgrade. “The negative outlook recognises the potential for deterioration in the banks’ asset quality and financial profile if the consumer debt burden proves excessive in an unfavourable economic scenario,” S&P said in a statement.

If these doesn't spell an end to the party then u donno what is.

Mind u when interest rate increase it doesn't mean only for Property loan, it covers all business loan as well, when boss/businesses cost increases ..hehe
Strong Holding Power ..lol
Bankruptcy or fire sales ur properties. .pick one. .wakakaka

This post has been edited by jolokia: Nov 30 2013, 05:15 PM

z

This post has been edited by madrid2013: Nov 30 2013, 05:07 PM

Isnt it a dilemma for banks? Cooling down the market = reducing borrowings = no business for banks.
Continue status quo = market getting hotter = risk of bubble = market affected (if) = business borrowings reduced = no business for banks...

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

well, u can't have it all the time, every time. the banks have been lending with taps fully open, making huge and incr profits every year, incr stock price, bonuses, so on...

if it works endlessly there won't be poor souls on planet earth - ethiopia, mongolia, n korea can do the same, all can get rich!

the shit will come, matter of when and how bad, i hope sooner than later. the longer it delays, more debt, more throwing away money, more money siphoning, more coverups, more lies, worse the implosion. tragic that few leaders are facing up to this.

v r on thin ice...



This post has been edited by AVFAN: Nov 30 2013, 07:16 PM

Rafizi & Azmin ! Sorry I don't believe.

So does that mean to ensure UUU market continues, flipper have no choice but support Barang Naik rather than Price Reduced party ??? hehe.

So I can predict GE 14 winner already. .lol

Well if everyone becomes a flipper, who will they flip to?