Well, so much for the alleged "bubble bursting". Now, who got more evidence of bubble bursting. Of course, assuming that one does appreciate the fact that burst means price drop.

What is ur point making a general statement.. dat property price will go up forever despite calculation prove otherwise.. oh gosh.. not necessary price can crash just like usa and dubai.. singapore.. bukit beruntung.. kota warisan.. coming kip sentral sepang ..

righy crash then wont up.. are u a newbie agent... after seeing these figures ppl who invested in place not supposed to pray hard.. those flippers wanbabe.. u choice..

this is a failed investment izzit.. risk is just too high myfriend even flipping and profiiting 200k and hold gor 10 years..

those in both megatownship investors.. see for yoursrlf possibility of holding longer and hardcore home owners.. thete is high posdibility investment burn..

This post has been edited by bearbearwong: Jan 26 2014, 02:16 AM

just chill with cappuccino and watch the show..
bubble tea like kids drink..

Loophole ? Banks still need to vet through all loan applications. It is not like the USA sub-prime where the approval hurdle is much lower (hence termed as sub-prime). BNM has strict ruling like DSR, LTV 70%, Net income etc. In CCRIS, even loan applications in progress will be highlighted. So it is very difficult to fool the banks with multiple application at the same time. Banks know every loans you already have and also in progress of application.

With DIBS + zero entry previously, it doesn't mean flippers can buy as many as they like without applying for loans. They still have to get the loans approved. So, the banks vetting process will still have to be passed through in order to buy a property.

Unless there is any other specific loophole for unqualified borrower which you can highlight ?

bearbear, he is correct as property prices in Malaysia historically grows steadily. There are some short period where the price consolidates before it shot up again. And currently we are all here and wait for the price to consolidate and take advantage of it

Boss think of the brighter side. Rental income is not mentioned in ur assumption le.

Tis is true. Agree

Landed is very very safe.
For those highrise launched last year, I feel that certain project price are too aggressive, is it hard to say that price will be higher after 5/10 yrs. IMO rental market is so encouraging, largely due to oversupply
However if RM further depreciate significantly (which I am fully confident with), no way for property price to drop in long run.
My main purpose to buy property in MALAYSIA is to safeguard my buying power. Real estate is a good instrument to hedge RM depreciation

This post has been edited by UFO-ET: Jan 26 2014, 07:44 AM

I did factor in this aspect but to my surprise that some people dun agree it.
IMO, if buy for own stay, rental shd be calculated in also, it is part of the savings

This post has been edited by UFO-ET: Jan 26 2014, 07:39 AM

Kangkong mentality mean for kangkong income and not geared for steak, shashimi income.

Due to inflation, absolute price is increased over the year. However, buying property incurs interest payment and should be included for valuation.

Unlike stock or commodity, property is illiquid. As foreclosures take 12 to 24 months, hence, please be patient and crunch time will come after vp of many dibs developments.

It is common for people to apply loan from a few banks simultaneously, after received offers from a few banks supposedly for one unit, as few banks check ccris again after loan approval, it is not unknown for flippers to accept all offer and bought multiple units. Further, many flippers paid deposit by cc installment i.e. zero cash investment. If this does not constitute sub-prime, what is?

Property market is not something new. Ever wonder why older people (e.g. gen x) and have more resources are not overwhelming in current property market frenzy?

Property in Malaysia is priced in RM, how to hedge against RM depreciation?



This post has been edited by icemanfx: Jan 26 2014, 08:19 AM

Yes, go for gated and guarded freehold landed. It is a very resilient investment

Not many investors whom I know of using credit cards/ balance transfer to buy property, especially the generation X and baby boomers generation. Maybe u r talking about the shoe box size development such as the studio/soho/sovo types of property which more likely attract Gen Y due to its affordability. These category of property would be oversupply.

Older generation, in general, are more experienced and risk adverse, they know what they want to suit their risk portfolio. Less emotional when making investment decision, less relying on hear say but invest with wisdom.
I can't say it for all, but at least my investment kaki around my age.

This post has been edited by cheahcw2003: Jan 26 2014, 08:37 AM

Judging the current security condition, gng landed is the way to go.

He doesn't factor in the current value and future value of money. In long term investment, one must factor in the time value of money (discounted cash flow method) to analyze investment as a dollar today is not the same value after 10 years. U need to discount back your loan amount after 10 years into today's value to analyze it.

Assuming the average mortgage loan interest is 5% pa for the next 10 years (Currently 4.2% with blr-2.4%), u r better off with the borrowing if the yearly inflation rate is > borrowing rate.

In the long term, those who keep FD in the bank will loose out for those who invest with better return. We need to at least beat the inflation rate.

Bro, you may be out of touch with loan processing. It is very tightly control in CCRIS

1. Loan application is property specific. That means if they approve your loan, it is for that particular property. If there are 5 banks approve for 1 property, you can choose only 1 bank. Other offer will lapse

2. You cannot take the other 4 offers to buy other properties

3. For CCRIS, once you apply for loan (note : in progress, not approved yet), your applications will all be shown. Each and every application from different banks will be shown. You can't get away with it. So if you buy 3 properties at the same time, banks will know you are trying to fool them

4. How much CC credit does a flipper have ? RM20k ? RM30k ? Flippers buy not because they use CC. They can afford because of zero-entry. They don't need to touch their CC

Can't deny there are some flippers who are too aggressive and may escape the net set by BNM. But overall, the banking system in malaysia is far from sub-prime system. The only way to see an equivalent magnitude of sub-prime crisis in malaysia if to have an economic crisis where many middle income face unemployment and default the loans

This post has been edited by Showtime747: Jan 26 2014, 08:53 AM

Better study subprime deeply before comment

+1

Walau, buying property has to think so much... if this skill is compulsory for property investment to sucess then those less educated anke/anti will hv prob loh... but yet they r silent majority who making fortune by just buy and keep ..

auntie uncle no matter how uneducated also know to buy, rent out and keep.. or buy in cash and keep..
my uneducated grandpa who never been to school also know about buying land with cash and keep, buying shoplot with loan and rent out..

i dunno y the current gen y mentality is poorer than uneducated auntie uncle.. they tot uncle auntie buy with loan, keep without renting and sell with negative profit..

This post has been edited by twincharger07: Jan 26 2014, 10:55 AM