Continue from V13

https://forum.lowyat.net/topic/3392892

http://www.theguardian.com/business/econom...ty-stocks-bonds

http://www.businessspectator.com.au/articl...ubble-it-bursts

This post has been edited by jolokia: Nov 18 2014, 12:12 PM

Forum member post with sense :clap"

By Showtime747

@bearbearwong is a very interesting forum member in LYN. His behaviour brought us lots of fun and at the same time, he showed us many things which we should avoid. There are many mistakes he made, and below are 6 mistakes made by bearbear which I think home buyers and investors alike can "learn" from him and avoid them in their future purchases :

Mistake #1 Confused objective
bearbear's intention to buy a property is for own stay. For own stay, the objective is totally different from investment. For own stay, it is 1 of the 4 daily needs (clothing, food, dwelling and transport). Just like clothing, food and transport, we buy a house when we need it (like marriage). We should not delay because it is our need. We can always choose a budget that suits us. But bearbear wanted designer cloth and BMW instead of something more affordable. He wanted those mid-high end housing >RM600k instead of those RM300k+ which is his actual affordable budget.

Moreover, for own stay, the future rise and fall of market price does not affect him. He still have to own the house if the market price increase by 100%. He can't sell it for profit otherwise he has no roof over his head. Likewise, if the market falls by 50%, he will not sell either. A house for own stay is a need, not an investment which could turn into profit or loss due to price movement


Mistake #2 Buying a property is a 1 time decision
bearbear thought that buying a house is a 1 time decision (like marriage). But in fact, almost everyone have the opportunity to upgrade their house in the future. Therefore, we should buy a property based on our own financial ability at that time. We should not think that we will be stuck with a property for whole life. We can always sell it and upgrade to a better property in the future. Thinking buying a property and will stay in it for the rest of you life will make your purchase decision very difficult


Mistake #3 Timing the market
Nobody knows the timing of market ups and downs. It applies to any market including stock and property. So, it is foolish to time the market for best price. Instead, the best time to buy a property is when you are financially ready and comfortable. Timing the market is like gambling. If you time the market wrongly, the loss is substantial. Just like the DDDs for the last 5-6 years, they have missed the great opportunity of riding the super bull run which has never been seen in malaysia property market history

Over long term, in malaysia property market history, market price will increase between 5%-10% pa on long term average. So, in 20 years time and beyond, the property will appreciate at least 3 times. Of course, there are ups and downs during the 20 years period, but if a person holds a long term view, the price is on an upward linear trend as history has shown us


Mistake #4 want to wear too big a hat
bearbear's salary is only RM4k gross. His saving is only RM40k. But he aspire to buy property in the region of RM600k-RM700k. He has over-stretched his budget. The result would be catastrophic. A property buyer should not over-stretch their financial ability, unless he has backup from PAMA or spouse. With RM4k salary, bearbear should only be looking at property in the region of RM300k-RM400k. However, he even take into account his 3 credit card limit of RM50k in choosing his target property. Using credit card as part of the deposit is plainly a foolish decision

Be truthful to yourself. Weigh your financial ability objectively. Face and social status will be down the drain when repo man knocks on your door.


Mistake #5 getting influenced by his working life
bearbear has a "hazardous" job. His repomen job forces him to meet people who failed financially everyday. When he sees people bankrupt day in day out, he is influenced by them and giving him an impression that many people are facing financial trouble. This could have lead him to believe that most people are not prudent in their financial management and hence, most property buyers are vulnerable to fail. His mindset has become negative and pessimistic. Causing him to read any news and deduce his own findings negatively.

His world becomes doom and gloom and market will crash soon. He cannot see the market objectively anymore. As such, his market outlook causes him to think crash is coming and he should delay his purchase decision.

Property purchase is 1 of our biggest decision. We should be more objective when making such decision. Try to get advice from as many people as possible instead of being influenced by people around you.


Mistake #6 wish the environment to come down to meet his wants instead of working towards achieving his wish
He already has a job. He can work hard to improve his income. If he works towards improving his income by double to RM8k, buying the property of his choice is no more an issue. However, instead of working hard to achieve higher income, he blame the market instead. He whine about the UUU, the flippers, the government etc for causing the price to inflate exponentially until his current salary could not afford.

Instead of working hard, he spend a big proportion of his productive time from 7am - 12 midnight in the forum argue with the UUU and other property buyers. He did not realise he is spending his time unproductively and will not help in his career. He should have use his productive time to work towards how to achieve better career path instead.

We should always bear in mind in this cruel world, nothing will come to you unless you make an effort to achieve it. Ie. there is no free lunch and complaining wouldn't help you get what you wish



I am sure there are more bearbear's mistakes which we can learn. Feel free to add on



This post has been edited by jolokia: Nov 30 2014, 07:54 AM

More Sensible post by member

By Latuk ManutdGiggs (Property Talk Typhoon of 2014 winner)

Bro bear, just to share with u. Since lately ur comrade has been playing with ice cream, let's TOK bout ice cream.

I blif u hav no idea how much profit an ice cream franchise holder is making. Or how high the margin for an ice cream trader.

Tis real life story is bout my Fren hor. Not me har. He is a franchisee, not even a franchiser for a well known ice cream brand. Operating onli one huge kiosk. At the same time he has 2 local cuisine restaurant. All together he has bout 35 staffs. No proper management cos he is running it as it is. 3 outlets onli. He jaga 2 his adik jaga 1.

Nett profit for last financial yr is 2.5m n tis yr approaching 3m b4 closing.

Biz is tough??? Yes. He oso kao beh kao bu saying susah ni susah tu but moolah stil keep flowing in. He is in the rite ind with the rite product. So even during market down, all here stil need to eat. And u need to eat the food tat v can regularly get in town. Fortunately he is in tis category. So dai kui fatt tat hor.

I'm surprise to c some here stil not able to accept tat there r a grp of ppl able to overcome the rough surface ahead. I can't deny majority might b facing trouble in loan but it doesn't prove ddd rite as bro bear did claim tat lotsa hidden income fr lawyers bankers runners or whoeva. Until they show all tis extra incomes kept in dark due to greed n evil intention, banks would not b so silly to just approve the loan to any td&h lo.

I oso seen a guy earning big pocketing oversea income getting loan approved here in malai by showing those docs to banks. Banks Luv them cos they know they r rich in reality but not in malai. And it's pretty sad to c many here working too hard but not justified in term of their income by banks here.

Another FREN came to me last nite who works closely with gov arms providing consultations. He charge 500.00 for an hr Tok. All expenses covered by gov agencies to make sure he reach the destination and back home, with nice accommodation and transportation, but no char boh la. As long as he can keep toking, he has the moolah in his pockets. He is oso act as a sourcing agent to gov agency. Income earned in between is not mandatory to file in irb cos its thru commission basis with recorded in suppliers acc.

Anw, just for sharing. Not saying u r wrong. It's just so unfortunate so happen u r in the wrong ind. maybe u would like to think of the next move in order to make u a beta person at least mentally. U r currently having no trust to prop market yet die die must Hav one super cheap but super gd deal. I can onli say it onli happen in dream tat I'm living in sentosa cove with sgd100k.

This post has been edited by jolokia: Nov 30 2014, 06:51 PM

Reserved

Closed till V13 reaches limit.

This post has been edited by jolokia: Nov 16 2014, 06:06 PM

Reserved

lol... reserved for what items?

Neo bear go get v13 filled up first. Dun kacao here la.

Welcome everyone

your biodata!

https://m.facebook.com/jayel.lord?refsrc=ht....com.my%2F&_rdr

Neo bear, go to Lord. He can help. Make sure in January.

He says he Farking luv science wo. U le??? U Farking luv troll ar???


Attached thumbnail(s)

For good & sensible comments.

As an appreciation & motivating factor for member contribution.

1 of of it is to paste your CV provided you allowed me to do so & don't go lippot..

dunno who leh?

lol post cv? related to property bubble? sumore dupe... trying to make the threads as rubbish as possible? so than ppl stop seeing and posting? can change the market meh?

BBB are getting very funny, dun believe in bubble, but spend time in bubble, dun believe in bubble, but trying to host and troll..what is wrong?

Bearbear you really think this thread will change the market direction meh ?

How many uuu buy property for investment this year? If not why?

they say they hate profiting a lot of monies wor... apparently

what do you mean!!! you really think that talking bad can change the market?

well you guys are pretty much trying isn't?

Lu got watch lard of the ring mou.