Which study and research is better than from the horse's mouth?
The root of subprime crisis was indiscriminate credit extended to otherwise disqualified borrowers. Credit risks of over stretched flippers is indifference.

It is much easier to make a decision (to buy) during bullish mkt than mkt downturn

Recently met a banker purchaser looking for own stay (bout 40++), I show him -
1) Property A - 950K (launching price 2011), now 1.60 mil
Banker likes but says "Over inflated price, why shd I pay so much for the seller to earn, no rooms for appreciation"

2) Property B - 910K -1.15 m (launching price 2010), now 1.03 mil - 1.15 mil
Banker likes but says "why the price so slow, seems cannot appreciate one, why the owner want to sell this price??"
I answer "If you feel 1.03 mil is too low, I can always quote you 1.3 mil to make you feel better"

I ask why not buy fr developer, he says "I like finished product especially new VP house, can check the quality"

When one decides not to buy, he always hv excuses, real case for sharing

Before bnm stringent requirements, how many flippers secured loan otherwise they would not qualified now? How do you classify these loan?

Naked truth will be revealed when crunch time come.

To be exact, can't buy instead of won't buy because bank as listed company have to answer auditor and minor shareholders.

The company have no ground to answer paying over the odds eg 30-50% over market value.

fyi banks have strict criteria when selecting branch location, of the 100 unit shoplot in an area less than 10% can be considered for branch opening. And those holding these units rather rent to bank since guaranteed rental while property price appreciate during the 5yr tenure. Most of the time bank will keep on renew tenure which mean he need not pay installment whole loan tenure.

even if bank don't renew they can easily rent out because of the outstanding location among other units.

Survey conducted by sin chew today indicates top prefer investment prefer in 2014 is property. In fact cash value rm has drop much against foreign currency and trend seems continue. Inflation sure to rise further reducing cash value and other type of investment need to be monitor closely, with global economy warming up.

Keeping cash strategy is it a good move.......mmmmmmmm?

Have try this before but preciously admin charge n expensive exchange rate set a disadvantage unecessary. Now i try placing into funds with exposure in the develop countries. I dont felt confident in waiting for price drop nor up as both ways have clear disadvantage

Unless you fly to singapore n withdraw cash and then go to exchanger, direct tt cash to myr account us expensive aside the low interest. Else airticket and time is a cost also

maybe u want to reconsider.. i think i overlook something di when i post..

taking back the same example:

Buying a 850k DSL (previously bought 750K now likely to be echo hill case) after 10 years..... u di pay 420k installment (3.5k X 12 X10 years).. plus 75k deposits... legal fees stamp duty 25k upon selling and your progit of 100k lets say...and ur loan sum is 650k.. let us assume rental for DSL is RM1,000.00-RM1,800.00.. increase monthly...we take a median of RM1,500.00 per month (this works out to be RM180K for 10 years)

so 650k -420k-(75k-25k) -100k profit.. bro assuming interest rates does not flactuate at all.. you still owe the bank RM30K.. let say (provided 10 years you have tenant secure tenant) you get RM180K for 10 years. after minus RM30k you owe to the bank... you still earn 150k.. but think again the 75 k is actually the deposit you park in and 25 k is actually the legal fees payable, these are your own money) 100k total.. therefore, even with rental covers.. you only earn 80k for 10 years (assuming you really have tenant). that is like 8 k per year and that is RM666.00 per month.. rental in average..
now lets adjust to 950k.. total profit of 200k..
based on the above you earn 80k for 100k profit, but for 200k profit, you earn around 180k for 10 years per year 18k? RM1,500.00 per month.. this is reasonable but the risk of no one buying a DSL outskirt worth 950k (another extra 30k [being extra 20k deposit and stamp duties payable])

so you see.. this will then reduced to the arguements of whether the prop price will climb over the million mark.. WILL IT or is it REASONABLE TO EXPECT SO? holding long term really not viable.. and outskirt prop really runs the risk.. coz the starting price for echo hill is expected to be at least 650k... COZ phase 1 ( 450k +legal fees+ minimum expected profit landed 100K) =580K? subsales? izzit logic to say? new phase 650k at least? so developer sales no problem as entry is low.. your flipped price really going to be stagnant for quite sometime coz you are selling future price..  if i bought the DSL from you for 750k.. can i expect like you around 3 years to appreciate to another 300k just like you.. dat makes the figure 1.05 million DSL outskirt? UNLIKELY RIGHT.. this was never a phenomena in previous years before 2010, things was great.. just this few years.. the price are crazy and unsustainable..

the real market buyers are workers middle class and upper middle..

Maybe u got a bettet figure? Name it.. I thought you are the insisted 100k 10 years..

then again.. 750k (originally 450k) upon completion landed 2 years.. so another 10 years will be 1.2 million plus 750k.. around 2 million?... logic mas?

Lets not go far moment u purchase it for 750k.. after 3 years 1 million.. u want to buy? Loan of 4.5k per month for 35 years

Good question n hope got good answer