Being able to borrow for a (or very low) down payment means unqualified borrowers are getting mortgages, a practice that led to the U.S. housing crash in 2007, according to Standard & Poor’s.

Low down payment lending to subprime borrowers, those with poor credit and limited cash, also contributed to the surge in foreclosures in the U.S.

“The less of the homeowner’s own money is put into the payment, the more likely he or she will default” when asset prices plunge, Centaline’s Zhang said. “The risk is brewing slowly.”


Either economists will be out of job or the herd will be over the cliff.

Me too. But r u sure u r not???

i answer for you, It a dumb f*** to have buy 700k 3 years down the road for Midfields 2... I be the bad guy for you...  I one of you 

We will see who will have the last laugh. Long term equilibrium or the herd.

If I lose, I will pay for chocolate sundae and if I win, I will pay for double chocolate sundae. If you don't like chocolate, I can change to strawberry.

you know their friend under table practice right? u mean to say, that bought proeprty at 350k, upon vp sell at 600k, and if valuation give such figure , then market rate?

like this no problem lor... 350k , in 3 years become 600k, that is 250k 3 years, one year 80k..

so when I buy at 600k and wait 3 years, it become 600k + 3 x (80k yearly)= 840k?

question is you wanna buy at 840k? the market rate suddenly surge to 600k and stop? if it stop, means as times goes, investors losing moeny to loan sums? coz cant get valuation right?

Hi Bear, lets go into specific on Bukit Beruntung.

TBH, I am an old man, already pushing 45, so I was old enough to know about Bukit Beruntung and could have even bought into Bukit Beruntung.

Today, we look at why Property prices are depressed in Bukit Beruntung.

The Answer is simple - cos there is ready supply in terms of completed and abandoned homes but there is NO demand. Hence, Prices are Low.

Now why there is No demand, cos the Centre of Gravity is towards the Southern Corridor.

Brief History Lesson.

In the early to mid 90s, in the times of TDM,the talk in town was that the Centre of Gravity would be in the Northern Corridor, Linking Selangor to the Silver State (Perak)

Land & General wanted to be the front runner and bought huge parcels of Land and decided to sell and many people were enticed to buy. I was in my 20s and amohst our friends, we talked about buying a unit there but at the end, we did not.

Then, two things happened, the first being the Asian Financial Crisis and TDM announcing that the Airport will be in KLIA and togeter, the development of the Southern Corridor now known as Putrajaya and Cyberjaya and Bukit Beruntung, Rawang was abandoned. L&G wend under and the situation has changed little for past 20++ years.

Today, we look at your comparison of Setia Alam and Semenyih vs Bukit Beruntung.

The Analogy is not comparable.

When Bukit Beruntung was abandoned, there was hardly any infrastructure there.

No 3-Lane Highways

No Public Transportation

No Malls of any kind.

The country went through a Financial Crisis / Recession.

Even if a Developer were to revive the Projects, it would not be viable without the necessary infrastructure.

In fact, only with LATAR, etc, is Rawang becoming viable and some Developers like Mah Sing starting to build there again.

Now we look at Setia Alam.  It has a highway.

It has a Mall - filled with outsiders as u may claim.

But the houses are completed.  Yes, it may be vacant but its not abandoned.
.
If SP Setia decides to give up on Setia Alam, there will be ready takers in form of other developers, the issue being only pricing

We look at Semenyih.

It has PLUS Highway to Kajang.  MRT also stops at Kajang.

It has SILK Highway

It has LEKAS Highway.

Kajang is almost fully developed with only small parcels of Land, so the natural progression is either Bangi or Semenyih.

Problem with Bangi is most Land are Bumi Land so, there won't be huge developments there.

Of course, Southville, etc is there but that's about it for the time being.

The issue with Semenyih is only on pricing.

Is it overpriced - the answer is YES, cos they are selling at Kajang prices already

But will it end up Abandoned like Bukit Beruntung - the answer is NO.

Subsequent phases might be delayed until the right time but it WILL NOT be Abandoned like Bukit Beruntung.

It does not matter if there are many Vacant Units. To Developers, sales has been done and its up to the Secondary Market to find the equilibrium price.

Now on the population part.

Pricing is always a function of Demand and Supply.

If you are the Supply Side, u also will not Supply 1,000 units if there is anticipated 1,000 Demand.

To build momentum, future profitibility, you will build at most 50% to 60% of anticipated demand.

This is cos

1) Not all of anticipated demand will translate into real sales

2) Company must always be a going concern - if u build 100% today, tomorrow u will go bust

Now the real issue of this anticipated demand, how much is

1) Genuine own stay
2) BBGC - Buy Bu Give Children / Long Term Investment
3) Buy to Flip

The above is based on desirability of demand to the overall industry

A bit of speculation is good

Excesive speculation is bad

Demand in SG has dropped cos the Govt has imposed additional stamp duty on foreign purchasers

HK also imposed additional stamp duty to deter excessive speculation

China has a huge risk of property bubble popping anytime
\

come and offer sepang 200 acres full take over... can curi GST reality que..

can share some insight to Midfields 2 upon vp? any chance touching:

a) 600k
b) 700k
c) above a & b

will Midfields 1 prices on par with Midfields 2? longer property higher the price right? yearly inflation?

u no reply consider you dunno lor..

wow, that does not make you right what?

btw , so it is clear that older properties tend to be lower price? means those newly vp if are unable to sell say more than 1 year going to have hard time?

can Midfields 2 hit 700k? since it started at 500k?

opinion, u no buy Midfields, Midfields 1 & 2 very near HTC , nirvana views sumore

do you mean can reach 700... but cant sell? if i buy 800k new launch means sure to go up in amatter of time?

like goodview? 730k, after vp 1 million? u dunwant 300k?

Bearbear u really silly...YTL never practice discount from downpayment...

All YTL property u need minimum full 10%

U damm silly ...even after discount n rebate u still need full 10%

U kantoi again this time 

U always comment based on your own imagination n without get the fact first

U think market really no people can afford 60k downpayment n u think 60k very big meh...

today very unhappy... most BBB they are really paying 5k for project and 1 k for project respectively, and many units still , also no investors wanna sapu? very bad di..

today many not not happy why?  u also forget the current market situation izzit?

share something I went bukit beruntung shops: Semenyih & Setia Alam, some say Sekinchan too
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