I have to agree on this

you sure or not? 1 million are which groups buyers? there maybe many buyers and the property price may all reach 1 million (thanks to all holding power flippers) bank don't approve loans? how? rent lor, renting game locks your credits.... if rental too high, as hihg as installments, same dead end, if they can service the installments, they had bought the said property izzit? since you say developers launch...

Buy now. Make sure u hav sthg to rent out when props r no longer affordable.

Btw dun b like ur ex leader lying all the way.

Developers will look at their profits first. Who care u are affordable or not! U don't others still Q. ;-)

This post has been edited by CK15: Jun 21 2014, 09:44 PM

bearbear, if I look back, my DSL bought 20 years ago for RM195k is now close to RM1m. The apartment I bought 10 years ago for RM215k is now about RM600k. At that time of purchase I never thought it could go up to the price today. Exactly the same question you ask now - can the apartment go up to RM1m ? Got people buy apartment at RM600k and DSL at RM1m ? How their income can cope ?

In Malaysia, take a long term position, property prices will go up in 10, 20 years time. As long as you buy within your capability, able to service bank loans, you will gain from it.

For the DSL I bought 20 years ago, the bubble has to burst 80% before I lose money. For the apartment I bought 10 years ago, the bubble has to burst 65% before I lose money.

But if you intend to flip short term, then it is another story all together

This post has been edited by Showtime747: Jun 21 2014, 09:48 PM

so if I got cash for downpayment, can get for loan ,and can hold , should BBB mode?

People who have additional cash to buy prop worth rm750k is not me la. I looking at below rm400k prop only.

Deleted

This post has been edited by kradun: Jun 21 2014, 09:52 PM

totally agree.

who cares about developers, the first purchaser of 1 million properties will end in renting game, so far as clients i have seen, China buyers buying more than 1 million prop got.. Malaysian, mostly i see working class comes from O&G and management.. even then these groups are stingy...

20 years ago= 195k, i round it up 200k

20 years later= 1million

total increase 800k for 20 years, means yearly increase 40k..

but nowadays after speculations

2.5 years ago bought = 450k

2.5 years after that = 720k

total increase = 270k

yearly increase = 108k

that is around 2.5 fold compared to your example and it is PJ matured areas, this 270k increase is TTDI kAJANG Phase 4.. hmm maybe your analogy cannot work di..

by all means, using yearly 40k increase, TTDI only took 2.5 years to complete, the price sould be as :

1 year =40k
2.5 years = 100k increase only (given the equal weight of PJ land are equivalent to Kajang)

the selling price should 550k, but it is not, then again how demand come about? it just got keys.. the price was set by agents and the owners and NOT by demands..

the owner may have wished to dispose around 650k, agents marked up 70k.. definitely will fail loan application for 90%

by 2018, if these property still cannot finish selling, how to expect to hit 1 million?

and property could have ended just China, correction occurs..

This post has been edited by bearbearwong: Jun 21 2014, 10:30 PM

bearbear, property is an investment. What is investment ? It is a way to make money. At the same time, it also could lose money. And property investment is a relatively high risk tool compare to other investment like FDs, UT. If you expect 100% to make money in investment, then property is not for you. Try FDs.

Why people make so much money for the past 5-6 years ? They take a lot of risk. Bubble could have burst and instead they lose money (but bubble didn't burst).

Your mindset of investment in property should re-align. High risk high return. No paiin no gain. There is always risky to invest in property. And if you are game to take up the risk, you could be rewarded. But you could also be burnt

If i buying 1mil property, I will buy 1.1mil developer one because free legal fees. Imagine the saving lol.

Some more i will live among 1.1mil buyer. Subsale 1mil originally sell RM500k means i am living with poor 500k condo buyer. Very sad case.

Why compare malaysia with china? u sure we have reached that "stage" already now and not in the next 10 years?
I'm not an expert; just to ensure that your comparison is with proper basis.

if that is happening, it locks the owners credit, and if you service the loans for 20 years later, the original property price of 550k:

loan sum =500k
max stretch 35 years, monthly installments excluding MRTA , assuming interest at 6.6-2.45 (if you get) = RM2.1K
20 years = 20 X 12 = 240 months
240 months X 2.1 k= RM504K..(you had service), do check with bankers, at the point you start to service installments, portion of money serviced goes to interest rather than principal which is alot:

i got table from maybank source, a 400k property, 360k loan say you start now:

Year Interest Principal LTV Balance
2014 10,282.67 2992.61 89.3 357,007.39
2015 15,260.33 4562.59 88.1 352,354.80
2016 15,056.28 4856.64 86.9 347,498.16
2017 14,843.28 5096.64 85.6 342,428.52
2018 14,620.94 5291.98 84.3 337,136.54
....
2039 6,878.69 13,034.23 38.2 152,863.04

from the above, if a vendor property is:

prop price: 400k
loan sums : 360k
monthly service: 2.1 k
tenure: 35 years
as you can observe, say you started in 2014, after 4 years of loan servicing, you plan to sell and ask for banks redemption statements

lets analyse,

RM2.1K (assuming interest rates stays) X 48 months (being 4 years) = you service to bank RM100,800. you thought you had service 100k and therefore redemption statement should be around (360k loan sum - 100k) left with 260k, but look again, redemption statement despite 100k paid is 337,136.54 that is like 340k -260k = 80k short.. so check carefully by 20 years with high entry limited by price increase, do some calculation..

in normal buy and sell activity, this step asking for redemption statements cost money and time, and only will be done after S&P signed, so price fixed.. try amplyfying the 80k short to a property worth 600k.. vendors will short of 160k (if i am not wrong)..

This post has been edited by bearbearwong: Jun 21 2014, 10:47 PM

I will think u high probably will meet all the 1mil subsales buyer because almost whole building had change its owners, no more 500k buyer still holding the flipable prop that complimented with monthly negative cash flow.

This post has been edited by kradun: Jun 21 2014, 10:29 PM

this part, i cant make any conclusion yet, as i am really not an investor..

Those who bought 500k property is poor meh

i gotta a friend who thinks like this, and subsequently bought V residensy 2 rooms Old Klang road rather than Tiara Mutiara 1, Tiara Mutiara 2 , or even OUG parklane.. of which are 400k marks only as compared to some 650k or 680k 2 roomer.. haizzz..

it's true, but why you always prove to ppl you are the stupid one ?

and more worst, just like a whore wor, keep telling people how rich you are, how many properties you buy...sometimes, i really pity you. you are too desperate for people's attention. but your behaviour, cant blame a lot of ppl try to run away