I SAY.. IN PROPERTY TRANSACTION RATIO, SUBSALE TRANSACTION ALWAYS HIGHER THAN PRIMARY.. THIS YEAE WE MIGHT SEE THE RATIO ON SUBSALE TRANSACTION COULD FURTHER INCREASE.. DONT SKEW MY WORDS ..  READ MORE NEWS PAPER, STATISTICS AND UPDATE URSELF.

I SAY.. IN PROPERTY TRANSACTION RATIO, SUBSALE TRANSACTION ALWAYS HIGHER THAN PRIMARY.. THIS YEAE WE MIGHT SEE THE RATIO ON SUBSALE TRANSACTION COULD FURTHER INCREASE.. DONT SKEW MY WORDS ..  READ MORE NEWS PAPER, STATISTICS AND UPDATE URSELF.

Hihi wat is reasonable price in ur mind??

Because of DIBS + zero entry mah. Many of them are Gen Y in the 20s who, if without DIBS+zero entry, can never afford to buy.

These Gen Y with double household income can genuinely afford the monthly installment one. Some can even afford 2 properties. If without DIBS + zero entry, they can't even afford a single property. 15% deposit just killed the demand from these category of investor

So the demand in the previous 2-3 years are supported by these people. In 2014. the demand from these people are all wiped out

yes...if you read my post...i say long term, can say 10 years...guarantee up...so if the price is RM750k now....sure can earn but i did not say sure RM1.75mil...

even conservative 6% earn, make it super simple, 10 years get 60%, so probably 1.2mil 10 years later...

but if the price is RM850k after 10 years, my statement also correct what... guarantee up !!!
but of course earn RM100k over 10 years not so worth la... 

agree or not that guarantee UP !

yes, i said price guarantee UP, so it's definitely UP UP UP.
BUT, if the price UP not so much, after your calculation example, then it is not worth it, but the price is still UP ...

that is the main point i'm trying to drill in... i've seen example of property price drop after the 97 crisis but eventually it will be UP and more than the purchase price and it's uptrend if consider today's price...

come on...you have to agree with me on this, the price will definitely go up in the long run... 10 years time frame...

double every 10yr is normal. the same mee goreng that you pay rm5 now will cost you rm10 in 10yr and become rm20 in 20yr.

when i went standard1 the curry mee in school canteen only sell 10cent.

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

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.

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.

Tis is true. Agree

Cny soon. Why so doomed???

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 ..     

Investors of each generation have their own set of calculator. Like others have shared, the baby boomers like uncle aunties' strategy are buy and never sell. Know few uncles accumulate palm oil lands for the last 30 years, and they will never sell. These uncles never study bubbles bursting, stocks candle lights report, inflation and unemployment statistics. But they are doing good!!

Another uncle of mine only buy shoplots and rented to banks, telcos and insurance companies. These are prompt paymasters. Use the tenancy agreements income prove to rolled over and buy more shoplots units.

Boss isn't tat the correct way to calculate??? I dun wanna let those marney sacking analysts to decide direction of my investment. I still use the evergreen but obsolete way. Cocr, interest, rental, tax. Simple and nice. But I'm not sure wat r they looking for. Maybe the palace with rumah papan price.

Study and research can be gain through experience..have you apply loan nowadays and tell me which stupid banker not check your credit history in CCRIS before approve your loan.

Has anybody thought why banks, telcos and insurance companies never bought shoplots themselves, if property is such a fantastic investment ? I guess whether they either thought property is a lousy investment or they can get better return with their money.

he is complementing on ur -ve partial truth story to provide balance on it. So, furumers here can hv better picture of both +ve and -ve stories, and more choise of property to invest..

1. I knew of a banker told me that this can be done. Once loan approve, you can do reconversion to another property subjected to the new property valuation is ok.

2. I knew of bankers did help investors/flippers do the above.

3. A lot banker/mortgage sales people will do their best even to "clean & spruce" up their customer documentations to get the loan approval.

4. I knew few investors/flippers who use fake income documentation to get the loan approve.

Based on what I knew above, I knew it's a matter of time before things will get ugly. It shall be sooner than much later. We just have to wait a see lar. No point arguing who is right or who is wrong. Everyone shall just know the consequences if things move either way. If prices continues to go up, then congratulation to the flippers. If price came comes down, I would love to congratulate all the bankrupt flippers as well. That's my take.

Anyway no one will foresee the future so any decision is very personal. Also what I know is, if buyers cannot afford to buy from developer, then they are worst off buying in secondary market. Bank valuation is not on par with the asking price, the transfer duty which is expensive, legal fees as well and others.
Based on my own analysis, I assume the following scenario:-

A person regardless of age, which is still single and working in the city and have a monthly income of RM 5000. Below is my assumptions:-

Calculation of gross income:-
Average Gross Income: RM 5000/month
Nett Income: 5000 - 550 (EPF) - 191.70 (PCB Tax) - 14.75 (SOCSO) = 4243.55

Calculation of car installment:-
Car is essential for city living, so I assume any working person will own a car. For simplicity let's assume Myvi Standard Auto which cost retail price of RM 44,924.30.

Loan Tenure: 9 years
Downpayment: 10%
Interest: 2.8%
Monthly Installment: RM 469

Calculation of Available Margin for Home Loan:-
Debt Service Ratio of 70% of Nett Income: 4243.55 x 70% = 2970.485
Balance Available for House Loan: 2970.485 - 469 (Car Installment) = RM 2501.485

Therefore assuming the following for home loan:-
Loan Tenure: 35 years
Interest: 4.6% (BLR-2%)
Downpayment: 10%
Monthly Installment: RM 2500 (Round to full figure from 2501.485)

Based on the monthly installment of RM 2500, the maximum loan amount is RM 521,411; therefore this individual can only afford to buy a property that cost a maximum of RM 579,345.56

So to conclude:-
Monthly Nett Salary: 4243.55
Car Installment: 469
House Installment: 2500
Balance of Salary after commitment: RM 1274.55 for everything else (Car insurance, medical insurance, petrol, toll, food, contigencies, and etc)
Another problem is Property Valuation is not on par on what is the asking price of properties. I personally knew of a property that has an asking price of RM 450,000 but the bank only valuated that particular property at RM 380,000. So for buyer to buy that property:

90% Loan of the Valuation price: 380,000 x 90% = RM 342,000
Therefore the buyer has to fork up 450000-342000(Loan Amount) = RM 108,000 (Downpayment amount)
Other fees (Based on 450,000 S&P price):-
S&P Legal Fees: 3600
S&P Stamp Duty: 8000
Loan Agreement Stamp Duty: 2250
Loan Agreement Legal Fees: 3600

So total cash upfront to buy that property would be RM 125,450. For just RM 450k property, the buyer has to fork out 125k cash; if this person can pay 125k, he/she will be able to buy RM 646,861 (521,411 Loan Amount + 125,450 Cash) from developer directly. If he can't buy from developer at this price, then he definately won't be able to buy a 450k subsale property.

So with all new property above 750,000 now, the person has to have atleast a minimum of RM 8000/month which I doubt many average Malaysian can earn that amount.