U making a bigmistake again like khots.. I m deterring  and giving awareness to potential buyers not investors to plan properly and take into consideration all factors across the board.. the likely hood of unable to service loan.. other exoenses I.e cars.. household and etc..

if you realise.. I m quoting only myvi only most of the time.. I myself not coz I take dugong.. you are please ti go lower like second hand car or viva...

I m not here to ask ppl to invest in car... it drpends ob different status..  like or not.. cars generally are still affordable.. new or old..

prop is not with the presence of investors.. u see.. it became unaffordable passing middke class earnings and now even upper middle class mark.. that is why many prop are sold but VACANT..

owning a car dugong pays installment of rm700 my case.. a prop inflated is 750k now cost 3.5 k.. dat is a really big disparity..

lets say u think owning a dugong is not a necessity.. we down grade it to a myvi lets say.. 9 years 500.. disparity of 200.. is not si bad compared to 3.5 k monthly with interest flactuate yearly and 35 years of bond..  u are coming along those lines that buying a car depreciates in price.. so why not we dun buy car and park Into inflated prop... coz it appreciates.. right.. due to the flipperz in d market the prices quotes are of 300k extra for their own profit on top of the 450k base price..
There is no room for flipping price quoted is 10 years down d road or never to be.. they are painting their sucess based on the initial boost 300k profit to potential buyers dat u be abke to do the same in 2 another 2 years time (agents or owner will say I profited enough di... I let u young pppl earn .. act that price is only wirkable wen units is new.. most of the time these ppl need money and know price will not appreciate that y they are dumping it)

the ting is you talks here lead me into 2 thoughts..

1. You are somewhat like my footing but of a lower class.. thus came to a conclution dat I should not whim  and lament here.. coz they are flats apartment and lower end car... like second hand and etc to be consider and that I should grateful of what I had..

2. You are just an agent or BBB group.. hoping to shed some suspucions  into my credibility by falsely painting a picture that I m championing cars rather than property.. thus discrediting my comments.. and try to keep me out of the forum.. dat BBW is car craze dude h I s financial position for unable to purchase car coz he failed to prioritise his money..
well then I hope you are the 1st.. coz in the 1 ppl will feel more what is the market reality and  ppl in general of affordability and etc... well then hope alwayls remain as a hope right..

can we back to property bubble

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.

BBW can tell banks file bankruptcy case by the dozens every week, unless one owe the bank over a few hundred millions, why bank takut owner bankrupt?