sorry if slow ...

"In anticipation of a shock"

A FEW weeks ago, a friend of mine was having a discussion with a property agent. He wanted to flip his condominimum after taking vacant possession but was told by the agent he will find it difficult to sell his property at the price he wants. She told him it’s a buyers market out there.

He then confided in me that he was paying RM10,000 to service his loan on the property. If he were to sell his unit at the price he wants, the buyer will probably have to pay a higher monthly instalment. Just how many Malaysians can afford to pay for such a property?

full article: http://www.thestar.com.my/Business/Busines...of-a-shock.aspx

Can stay far away if budget is limited. It is a choice, not a constraint.

2 million buck condo ???

Thanks for Sharing.

“Thailand and Malaysia economies are fine at this point in time (later ?),” S&P financial rating services’ managing director and lead analytical manager Ritesh Maheshwari said yesterday.

“But an unfavourable global economic event (QE Tapering ?) could affect Malaysia adversely, and this is why we have been highlighting in our reports that Thailand and Malaysia (Only these two only ? then we must be in bad shape)face risks,” he said in a teleconference on Asia-Pacific’s outlook for 2014.“


I think when those who are supposed to be in a very positive camp, like investors who just bought, agents, etc. are feeling pessimistic about the market, it is very very wrong now.

This post has been edited by gspirit01: Dec 12 2013, 09:55 AM

Saw this in today's The Star.

I just cannot believe what it says, at 10% of the price 20 years ago! Typo?

Or is the situation really that bad?

Cheerio.

Taugh property to get loan.

I saw three bungalow projects, with CF and VP issued long ago, left vacant for a long time (at least over one year) already. The price tags is >2 mils. Out of 30 - 40 units completed, only 1 was occupied. One of these projects is in shah alam, the paint started to fade already.

2 mil bungalows subsale of course will take forever to find buyer wanlah...

You wanna play multi million props you betta have the holding power...

Flip is for less than 500K props...hence studios is always hot buys whenever developer launch wanlah....

Actually this could be complicated. Only the insider will know. It may not be developer's fault sometimes. I would guess that the developer might hv spent lots of money developing the infra as well. RM40 and RM0.4 sounds different alot. But, how about RM0.0 vs RM0.4 ?

My fren sold his 6.8mil bungalow bout less than a yr ago. Vely niche but buyers r stil out there. Tats y vely few players. Most ppl buy bungalow for own stay. Vely few in the oledi vely few investors buying to flip. Holding power is important here.

This post has been edited by ManutdGiggs: Dec 12 2013, 10:55 AM

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.

r most agents now saying it's a buyer's market now?
wat happened to myprops dirt cheap, sgreans-foreigners will snap them all up??
did one stroke of rpgt caused a u-turn? says a lot about how strong really were the high prices just a few months ago?!!still, in far-away places, price decline can be much worse, demand can dry up faster.
that is not a no-brainer, do need to check n shop around too.1/2, 1, 2 mil... holding power...
"with great power comes great responsibility"!

holding power is not free, it is simply costly.
some who can afford to hold may not want to do so.
can expect some will dump at zero profit or even a loss...

This post has been edited by AVFAN: Dec 12 2013, 11:02 AM

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.

At that level, i think whether you can flip quick or not quick really depends on luck.

Like winning the lottery.

How many taikors out here can afford to live in a 6.8 mil bungalow anyway?

Sorry, still very new here. Is BBB = buy! buy! buy!? what does UUU stands for?

Since many wont choose tis type of prop for investment, guess the competition oso not there at all. So for those who dun mind to pour in the cash and wait for long, usually ll b rewarded handsomely in another way. Of cos the margin gain might best b on par with some flippers flipping 20 units of some small units studio under dibs upon vp. But lower risk for the bungalow holder imho. Cos he can service the loan. Guess if flippers fail in servicing loan upon vp without buyers, doomed liao.

BBB = buy buy buy
UUU = up up up

I think would need some luck to sell anything above 2m. Problem is trouble getting loan.

Oh!!!

So it comes back to my previous calculations. After vp, it takes +10% to break even after interest, rpgt, fees, etc. if hold for 1 yr. Price not up 10%, not rented = lose money.

Rental also not easy.

At that level, who rents?