people don't like to see the word bubble. maybe can change the title a bit ...

its not to educate the UUU. Its to educate all reader and then spread the info so that the sentiment towards property investment is not too extreme.

prior to 2009 everyone who bot properties gain a lot due to the rise in price is very high. However, nowadays one must be cautious to enter the market as the market is quite slow with slower gain. Additionally, the new RPGT policy will reduce the gain further. The gov. also seem to be doing something to cool down the market - proposed increase BLR & increase in assessment rate

Govt disallows interest capitalisation scheme for housing licence approval

http://www.thestar.com.my/Business/Busines...E-APPROVAL.aspx

the one baught at the price of 700k will hurt very bad. he lose 350k + the tax and legal fees. This include people already has many props and also first prop. Pity to the first prop tho.

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

something fun to look. house price index.

http://www.economist.com/blogs/dailychart/...al-house-prices

i may provide queue service

since 2008 property investment can earn big bux that's why many dive into this. but nowadays, no more easy money. Now all people need to work harder

even before the increase in rate there were many prop auctions. with the increase, this percentage will obviously increase.

furthermore, with the increase in cost of living, many will not be able to service the loan especially those who commit too much to acquire overpriced prop

i heard that the process to before auctioning a prop is a long one. some say more than 1 year. so in the year 2014 when gov impose cooling measure on prop price, the effect of will only show in 2015. ??

i once went to look for an auctioned unit. when I arrived at the unit, I was surprised that the unit was just renovated, empty and there was for sale banner on the gate.

This post has been edited by kurtkob78: Dec 26 2013, 08:26 AM

if first time auction no taker, will auction for 2nd time and so on. Reserve price will be reduced for 10% from the previous auction. if still no taker, bank will buy if they feel the price is good for that particular prop

The ltv is to prevent too many dead chicken. Blr increase will inc. Dead chicken

Because valuer dont want to speculatr house price. If valuer also speculate buble become so big si fast then pop all dead chicken

yes our GDP is growing, but our debt is growing faster than the GDP. This shows we make more debt than the cash we receive