i have said it many many many times....

all the price appreciation after 2009 is caused by China's money, as they have released, USD 12,000 Billion into the market since early 2009. caused many countries properties prices to soar.

and malaysians as usual are ignorant at all the things happening outside of malaysia.

China is tightening now as we speak, a lot of companies are selling assets to pay their loans.
steel, copper is at 4 year low. overstock pile at China.

China will not consume so much as before, expect commodities price to go down.
since early 2012, china business already dropping. Factories orders dropping, debt keep on increasing, house price keep on increasing.

our local Malaysian market here keeps on running on local stimulus.
how long can you think it can keep on running ?

najib already doubled our national debt from RM 200Bil to RM 550Bil.

it's called asset propping. Housing growth/bubble cause the biggest bubble of all, because people can borrow more equity of the house that they hold.

when big nations central banks does one thing, the small nations will usually follow.
Like lowering interest rates, and allowing massive loans to be released.
It's simple, if u borrow 2% from china, our banks still offer 8% FD, there will be carry trade, means they borrow Chinese money to throw into our FD. If our banks have too much money in FD, they also cant generate back so much of returns.
So smaller countries follows what big nation central banks does.
US Federal Reserve has already hinted of tightening, and over Asia, about USD 1,000 Billion has been shifted away from SEA markets altogether, all these money are in form of bonds, shares, loans and so on.


So all the chinese buyers went to HK, Singapore, UK to sapu their properties. So singaporeans come here to sapu ours.

In line with Najib's economic plans which is by housing growth.
In context of debt figures, when Abdullah stepped down, our nation's debt was at about RM 200+ bil.
now after 5 years, our nation debt is at RM 550bil.

Household debt is at 83% already.

The only way to continue this "enormous growth" is by 2 generation loan. Means prolonging the duration of loan.
You pay 30years, your son continue paying for you like in Japan.

I say very simple things. Everybody wants to have big bungalow, nice big cars.
Most of the people borrowed money from banks to buy all those above.
If banks dont want to lend money, where u find buyer ??

http://www.reuters.com/article/2014/03/19/...N0MG1B220140319

let me introduce you to a sure win tactic,

china buyers selling their HK property 20% below purchase price.

please go sapu all

ok, u win all la, house prices will increase 20% per year forever one la......
please buy more, use your mum's name, your dad's name, your sibling's name.....

ok, i talk cock and shiat, my stupid idiot theory,

ya, maybe wont drop so much, lets say roll back 2 years price would be great.
especially on sub sales unit. Actually now a lot of sub sales units are stuck d because people dont have enough cash for the DP.



i did not say property price will down, i am saying that economy will be down, as China and US is going to tighten and we will be waiting for who to buy our properties ? these few years' growth is all on local consumption.
There is no room for more debt unless the policy becomes 2 generation loan policy.

deep pocket buyers all waiting with cash at the bottom. whoever wanna throw cheaply, lets say 20% to 30% below market they will sapu only.

my dad's friend is very loaded, at anytime u can find 30% below market and need cash he can give you the cash within a day.



you can buy to stay, keep some to rent, but if bad economy, people lose jobs, can you handle zero rental income ?
worst still will be flippers case.

anyway, i keep some cash just in case, either share market crash or property cash can buy things cheaply.

PJ houses are on par with Chicago housing price d.
and we earn MYR compared to USD ??

my cousin settled down in Canada bought their landed outside Vancouver Suburb, if converted about RM 800k,
but their combined household income is more than RM 20k.

here if earn RM 20k buy RM 1.5mil house d

rich people buy land to keep la. they dunt buy vacant units.

once the return is not there (ROI not good), people dunt bother to buy.

hardcore buyers always assume that buyers will remain as buyers.

my grandmother area at Padang Serai, Kedah price also double within this 3 years and most of the previous shoplot projects turned into swiftlet rearing shoplot. RM 400k cant even collect 1.4k of rent. previously the shoplot was selling at RM 220k.

jack up the price and give rebate, then buyer dont need to put so much of DP
banks are tightening bank loans, now they deduct epf, car loan, all commitment then only get your net income.

so a lot of buyers wanna buy but dunt have the cash to pay for DP or banks reject their loans.

rich fellas are all in one la....UUU, DDD

they dunt care whether is up or down one.
when up they profit, when down they prepare case to sapu cheap stocks or houses.

economics 101 failed man.
everyone wants to buy cheap things, buy low sell high.

only here all the so called "rich" mentally people pray hard it goes up one way.
lmao, my friend's client, investor businessman (owns colleges, hotels), liquidated all of his excess properties (commercial buildings) since 2013.


please buy more properties....continue to make the wok hotter

previously banks considered gross income as income, means lets say you earn RM10k, so the calculation is based on that RM 10k.
now is net income.

RM 10k,
EPF + socso = RM 1.2k
car commitment = RM 1.5k
house commitment = RM 2k
so left over is RM 4.7k
so your net income is only RM 4.7k

so the loan rules have changed.

my gf tried to apply for RM 400k loan, they rejected because of skipped car installment for 2months even having RM 30k FD in the same bank.

even for rental income they might not consider into the net income.

practically those newly launched properties of RM 500k range for middle class buyers with husband and wife combined income only can buy.

so you got a lot of buyers but all of them are zombies that cannot obtain loans.

This post has been edited by AllnGap: Apr 8 2014, 11:15 AM

ya got pay income tax only consider. if not cant

malaysia banks have about 10% reserve ratio(if not mistaken), means they lend out 90% of the money.
you deposit RM 100, they lend out your RM 90.

all these depends in Central Bank or Bank Negara, and Bank Negara tracks what first world country Central Bank like US Federal Reserve does.

bank control cannot dictate the economy will be good forever bro.

during the 1998 crisis got one unker told me he was making RM 100k daily on share market alone.
remisier can buy ferrari and after that everything disappeared.

If you can make RM 100k daily u wanna flip houses kar ?
so blardy slow la

humans have herd mentality, previously all of them were frying share markets, these few years fry houses, what will be the next trend for next few years ? nobody knows yet.

people follow money, if next few years is other stuff, your friends will be, bro, you are damn outdated lo.

demand is there, buyer is there, but banks dont want to release money, so got demand and got buyer also no use.

you are buying something using bank loan, not open your wallet to pay cash

growth is all based on the massive amount of money banks released.

Basically central bank released money is like tsunami

during the
1998 Asia financial crisis = fueled by european banks
2008 US subprime crisis = fueled by US banks
next one ?? = fueled by China massive money printing.

Realistically, our country growth is fueled by local bank debts, increasing by about RM 100bil per year since najib came into power.


these money flowed into all sectors, shares, properties, cars, corporate loans, etc.....

You can ask around businessman, excluding their profits from properties, did their income increase ??

the average joe is feeling the pinch from rising cost of living, currency depreciation, impending GST, utilities increase,
the rich is getting richer on paper due to increase of property prices.

so how long can this continue ??

Recovery in the US ??

please read this article

http://www.zerohedge.com/news/2014-04-10/u...sing-370-stores

Commercial retail business is going down badly in US since 2008 crash.

And then we are doing the reverse even without increase in "real" income.

30% below previously asked price.......

please la go there sapu.....cheap man, 30% below market price

it's like going for party, your friends are all drunk but you are still awake....
then you see something wrong outside, police gonna raid soon.......
tried to pull your friends out, but they are still drunk and wanna party......

what can you do ?

rental cant cover mortgage ?
then need to top up extra how much per month actually ?

you wont realize it is a bubble until it's popped.
thats why it's hard to predict

what those billionaire does is that when they earn enough, they will sell and keep cash, and see what is cheap next and start buying.