I predict stagnant for a few months, then around 4Q 2014 / 1Q 2015 start show reduction in prices of 10%-15%. Full blown crush although nice to see, but quite difficult to achieve

Is my eye blur ? I thought I saw 2 options for bubble, 2 option for no bubble ?

In Kapar ? Wow that's expensive

Didn't know people can physically punch you through LYN

Bro, it has a "No" in front of the sentence I don't see any clearer than that which a person can interpret otherwise. A "No" is "not a definite No" ?

Read the answer together with the question again. It is very clear lah

Fixed

cybermaster98,

Just to let you know my feelings. For me I don't care whether your thread or cranx thread. As long as it is a thread which discuss UUU or DDD it is a good thread. These type of thread is not easy to survive in LYN. Whether there is a reference point or a poll it didn't matter. Any thread of UUU and DDD will have good points and rubbish points and we have to accept that

And please be reminded the more we are off topic like now, the more likely the moderator will just lock the thread again. They do not need to justify the reasons to you. They are just doing what they think is right. No offence to you and apologies if I did

+1

Wow, that is definitely bubble bursting !!!!!!

Where is the house man ? 2.5 storey landed in KV for RM653k ? I want !!!! Got link ?

Bro, your link is priced at RM729k end lot 2.5 storey. After bidding, don't know how much leh

The house you mentioned price came down to RM653k is another auction which is 2 storey corner. Different house leh

http://www.iproperty.com.my/propertylistin...k-house-forsale

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

bearbear,
We still don't know 100% whether these people can actually afford the loan. In theory they can lah. Banks vet through them when they give them loan. DSR 50% or 60% is workable. In practical I think they also can, PROVIDED they always have jobs. So, all depends on the economy lah. If economy still ok, they hang on to their jobs, they can service the loan installment. If economy down, they lose jobs, then all hell break loose

And when they hold the property longer, as to how much they can earn when they flip, it is another story. They may even make losses if they hold long long time as calculated by gspirit01

Got kang tow remember to inform me

The problem of US sub-prime is the banks literally are lending to "sub-prime" borrowers, and repackage it and market it to other banks at high interest. Google and find out more. It is different from our banks here

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

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

Do you believe that MBSB's main business is not in property loans ? (Although its name is Malaysia Building Society Berhad). Based on 2012, its weighing of its property loans to total loan portfolio is only 20%. Its main business is now personal loans which accounted for ~60%. Please refer link here http://www.theedgemalaysia.com/first/25026...d-for-mbsb.html

About MBSB Non-performing loan, from google results, MBSB's NPL has reduced actually :

"In addition, MBSB has also been reducing its total net NPL ratios over the years to 4.5% in FY12 from a high of 19.54% in 2009."

http://www.thestar.com.my/Business/Busines...nder-spotlight/

Bro, first I must say that like you, I expect the property price to come down starting 2014. At the very least, property price should stay stagnant. It wouldn't increase like in the past few years

And from your replies, I notice that you have dead set your sight to see a Property Armageddon. As such, whatever you think, your lines of thought are set to justify a popping property bubble. Whatever you see, there is a link to property bubble. Your ends is now justifying your means

While I wanted to see property prices to go down by 30%-50% (so that I can pick up dead chicken), I must be realistic at the same time. Malaysian property loan is nowhere similar to USA sub-prime loans. If ever there is a property bubble bursting, it would not be caused by something similar to sub-prime. Instead, it could be due to other factors such as economic crisis which leads to high employment rate, or some other causes.

Let's be realistic. Until today, there is still no signs of an all out property bubble burst, which honestly I am somewhat disappointed. We could be witnessing a soft landing instead

Can't deny there are some fish that escape from the fishing net. The last paragraph of my posting you quoted I acknowledged that. #1 - #4 are illegal acts to the flippers in respect of BAFIA. For the bankers who help the flipper, it constitutes criminal breach of trust. If there are people who could risk their life to commit drug trafficking, the deceit on banks and BNM is small matter in comparison