Cap Kuda Feng sui power master told me in my dreams last night property go up 10% this year. Kennot proof oso.

Well, I was hesitated to share this as I dun really believe in Feng Sui. Since so many are mentioning about feng sui, hv fun with feng sui for Year of Horse!

http://www.bfm.my/2014-01-21-outlook-prope...-the-horse.html

Yup, I agrees with u. Sorry to say that based on some of the posts n comments. I believe quite of numbers here not go though 1997 n not even go though the best time in malaysia 1992~1993.

That y I mentioned before share can loss till underwear pun tak Ada but property, Watever u loss.... U still got the proprty there.

Dun be surprised in 1992 n 1993. Ah dog, ah cat n ah pig oso can make money in share market. BLR up 11%, ppl still borrow bank money to buy share. Quit job n full time monitor share. Once 1997 came....haziiii


Try to ask those go though tis cycle. Share safer or property safer. Really dun play play lor....

Just
U "assume" his calculation is wrong by unable to show what is correct ?

U should says u disbelieve his claim though u r not sure the actual figure, correct ?

In a way he is partly correct though, isn't all statistics r base on a pool of selected survey ? like the chinese new year meet up with kawan from unamed survey company, says property market still up for next 3 years..lol

Provided plan is executed and realized.

Few buy property in cash, hence, most need to service loan repayment and having negative cash flow on property, and many unlikely to sustain for long.

Believe current property frenzy is not dissimilar to stock in 1992 and 1993.

This post has been edited by icemanfx: Feb 10 2014, 03:37 PM

Yup, do proper planning. Dun simply hentam n of coz dun too passive.
Sometimes no "LP" won't make big money.

If proper planning is as easy as most flippers think, there should be more than 8% adults with net worth more than US$100k.

An old article on Jan. Interesting to read some of the perspective and the outlook.

http://www.thestar.com.my/Business/Busines...s-than-answers/

Excerpt from the article:-



This post has been edited by KChan: Feb 10 2014, 03:43 PM

As long as u can service ur loan. Dun be so worry. Land value still there. Land ls lesser n lesser.
Share... U can service the loan or hold. Doesn't mean can come bk.

Y negative cash flow?. Buy property till out of affordability ?. No I dun think so. If hv.. Oso not many.
Negative cash flow becoz share or biz till need to let go property. Yes I agreed.

Calling accountants to explain, thanks

simple explanation why negative cashflow property is not an asset

if your property is rented with positive cashflow
you lose your primary income ... your loan is still paid by the rental stream. no issue

if your property is not rented [i.e negative cash flow]
you still have you primary income ... your loan is still paid by your primary income. no issue

if your property is not rented
you lose your primary income ... your loan cannot be service ... dead in the water.

the issue is losing primary income during a downturn ... can you weather the dry spell until you regain your primary income.
people sometime is so "full of themselves" they don't even want to take job at half their old pay ... wait for dead only.

it really depend on your primary income power to sustain your loan.
some people primary income is share trading ... so F U loh !!

multiple income is better than sole primary income...

Actually some people comments really amaze me. In the end everything is just plainly economic la. Any money that comes in, must come out. Basics of business; when one losses money the other gains. People will pay RM2-RM3 for an item worth 50 cents if their feel the worth and can afford it.

Now economy wise, like China; our country has been pouring billions to give the construction industry a penile erection so that the citizen can have more job opportunities, banks profit by giving out loans (on paper), business owners profit by hiring foreigners to do labor Malaysians look in disgust at. Of course some politicians are not fully stupid to borrow for IMF but what they did was better, borrowing money from other bodies such as KWSP for their some worthless creepy projects etc etc and loosen up some building in-law guides which had encouraged developers to start building condos for maximum profit.

All these easy money and loans were one of the contributing factors that creates wealth and also paper wealth. And with wealth presumably rising among most Malaysians (not really, actually) demand naik, which we all know mostly are artificial. With demand and ease of credit, properties prices also inflated a lot. As the matter of fact, it is so obvious with MOST property advertisement today promotes LRT/MRT/Highways/Prostitutes/Gigolos/4-5stars/ Guaranteed Rental yield etc etc. What beats the purpose was back then such transportation was for the poor fags that couldn't afford a Porntong or Mawi these milo tins but now it was marketed as a CEO, MDs, executives, to parenthood and babies way of travelling and a guaranteed way to a worthy convenient living konon. It is said that by a certain year even kindergarten parents and toddlers also need to take LRT while carrying 10-20 brats since Malaysians are always so productive on the bed.

Someone argued that the rich are not bound to bank loans, which is brilliant for laughs. Fact is, many wealthy people owes the bank lots and lots of money but they can either perform their installments or roll over. Not sure how people roll over as I am no wanker (ops, banker) but there is always something we called "The System". That's so simple. Now the rich are buying properties in US during their downturn that causes property prices to drop in order just for 'in case' scenarios lah, because they know such wealth driven by debts may not last hence need an escape route. What is laughable is when someone says business also big risks no fast and big returns might as well go for flipping!!

I had seen several construction tender documents fabricated so that owners can borrow a huge amount of money. Real life case, owner get RM7m loan, structural construction costs around RM2.5m, contractor and owner kawtim already where the contractor will return the rest of RM4.5m back to the client after complete everything lah. The rest of architecture and interior design works were done himself by engaging his own in house ID in China, where we all know the country of all materials thanks to their massive debt oriented economy that emphasizes heavily on overbuilding of apartments/condos/shopoffices etc etc.

Well, many still refuse to acknowledge the current crap the country is going, until it hits them like a brick to the face. When investors cash out, how many jobs will be gone? If costs of living getting unsustainable, will investors be that wise to continue using our manpower? Our country exports is getting lower and lower, how can it be logical if economy can get better and better? Lol some people study about investments so high also cannot understand.

This post has been edited by MishimaZ: Feb 10 2014, 04:40 PM

That y I said during crisis biz man n those burst hand in share market will put urgent to sell property.
They need cash flow come faster to cover n basically they won't wait for 3 +1 SPA only to settle the full amt or maybe they will ask buyer to pay 50%( example) first during SPA signing. They need cash. Who will hv more advantage in tis case ?. Still cash rich buyer. Right? If wait for dead chicken but no such cash power. Still can excepts very " ONG" lor.


Flippers negative cash flow?.. Where is group come from?. Salary ppl.
Coz the unit can not sell, vacant,... salary can not cover the loan....
Simply question, how many property can they flipping?. If bank loan can approve n still got monthly salary. Mean salary ppl still got the baseline. Should be tight cash flow instead of negative cash flow

Except the guys with tight cash flow still big meat, big car, genting highland then wait for die lar.

Hello Sifus,
I'm a newcomer, I have read like 80% of the comments in this thread.
Noticed the UUU and DDD ppl are just like ppl in casino.
(just learned these 2 new terms lol)

UUU: Enter a casino thinking they are very lucky and can make handsome profit out of it.
DDD: Enter a casino and hope for a very bad luck banker so they can win their bets.

Ok. I know of this case. Let's see the scenarios yeah.

"Investor A" assuming staying with parents so no need spend $$$ on his/her own housing. His/Her salary is gross RM 6,000 which after deduction shall be around (RM 6000-348.35-14.75-660=) RM 4976.90

He/She bought a property say in 2010 for RM 450,000. Mortgage repayment is RM 1941.85 (Base on 90% loan, 35 years tenure, 4.6% interest).

So now, the his/her Debt Service Ratio (DSR) is 1941.85/4976.90*100=39%

Then he/she rents it out at RM 1,500 (4% yield).

That would be negative cashflow of RM 441.85 per month. Ok la. No big deal.

--------------------

Now he/she use the tenancy agreement of RM 1500 as income documents to bank. So basically his/her nett income is now RM 4976.90+1500= 6476.90

Based on RM 6476.90, and assume DSR is at 70%, he/she is eligible to take a loan with monthly instalment of (6476.90 x 70%)-1941.85= RM 2591.98 which the loan amount comes to RM 540,594

So now with a new property, his/her monthly instalment will be RM 4533.83 for 2 properties.

--------------------

Imagine this particular person with nett salary income of RM 4976.90 have a repayment of RM 4533.83 which left RM 443.07 monthly if the rental income suddenly stop coming in. Just think and see if this person can survive any probability of interest rate hike, vacant unit without tenant or market slightly crash?

There are people like this out there.

And I have not even talk about how genuine is their tenancy agreement (there are chances some of them using fake agreement or inflated rental price). Also imagine those people who leverage on multiple more tenancy agreement to max out their capability. I'm not saying there is a lot of people like this, but I'm very aware that there is a lot people using their tenancy agreement to take higher loan amount.

Got another group. Dun enter forever. No win no lose.

Yalor ~ FWG = Forever Waiting Group?

Thank you all the sifus. Really learned alot here ~

I'll follow this thread from time to time ~

be it sarcasm, troll or some good insights.

[quote=MishimaZ,Feb 10 2014, 04:39 PM]
Actually some people comments really amaze me. In the end everything is just plainly economic la. Any money that comes in, must come out. Basics of business; when one losses money the other gains. People will pay RM2-RM3 for an item worth 50 cents if their feel the worth and can afford it.

Now economy wise, like China; our country has been pouring billions to give the construction industry a penile erection so that the citizen can have more job opportunities, banks profit by giving out loans (on paper), business owners profit by hiring foreigners to do labor Malaysians look in disgust at. Of course some politicians are not fully stupid to borrow for IMF but what they did was better, borrowing money from other bodies such as KWSP for their some worthless creepy projects etc etc and loosen up some building in-law guides which had encouraged developers to start building condos for maximum profit.

All these easy money and loans were one of the contributing factors that creates wealth and also paper wealth. And with wealth presumably rising among most Malaysians (not really, actually) demand naik, which we all know mostly are artificial. With demand and ease of credit, properties prices also inflated a lot. As the matter of fact, it is so obvious with MOST property advertisement today promotes LRT/MRT/Highways/Prostitutes/Gigolos/4-5stars/ Guaranteed Rental yield etc etc. What beats the purpose was back then such transportation was for the poor fags that couldn't afford a Porntong or Mawi these milo tins but now it was marketed as a CEO, MDs, executives, to parenthood and babies way of travelling and a guaranteed way to a worthy convenient living konon. It is said that by a certain year even kindergarten parents and toddlers also need to take LRT while carrying 10-20 brats since Malaysians are always so productive on the bed.

Someone argued that the rich are not bound to bank loans, which is brilliant for laughs. Fact is, many wealthy people owes the bank lots and lots of money but they can either perform their installments or roll over. Not sure how people roll over as I am no wanker (ops, banker) but there is always something we called "The System". That's so simple. Now the rich are buying properties in US during their downturn that causes property prices to drop in order just for 'in case' scenarios lah, because they know such wealth driven by debts may not last hence need an escape route. What is laughable is when someone says business also big risks no fast and big returns might as well go for flipping!!

I had seen several construction tender documents fabricated so that owners can borrow a huge amount of money. Real life case, owner get RM7m loan, structural construction costs around RM2.5m, contractor and owner kawtim already where the contractor will return the rest of RM4.5m back to the client after complete everything lah. The rest of architecture and interior design works were done himself by engaging his own in house ID in China, where we all know the country of all materials thanks to their massive debt oriented economy that emphasizes heavily on overbuilding of apartments/condos/shopoffices etc etc.

Well, many still refuse to acknowledge the current crap the country is going, until it hits them like a brick to the face. When investors cash out, how many jobs will be gone? If costs of living getting unsustainable, will investors be that wise to continue using our manpower? Our country exports is getting lower and lower, how can it be logical if economy can get better and better? Lol some people study about investments so high also cannot understand.

[/quote

Like wise flipping.. prop price claimed by them to only going up and in the margin of 200k to 300k yearly..

better than studying investment..

Wow look at that LYNmarket sentiments product.. how u see prop market gamble ka?..

I guess should be more kful and prudent.. that " mesti beli dulu if not other ppl buy bo liao.. agree lehh..