QUOTE(Gravity @ Nov 18 2014, 04:55 PM)
Point 1 - construction cost
what im trying to convey is that cost is continuing to rise. Bulk of the cost will falls under land acquisition cost. Land cost and construction cost will not fall unless major global event happen. On top of that, developer will want to make some money out of the project. Hence, the price will always match the vacinity. Thus, maintaining the price at a higher than market value level.
Point 2 - foreign investment
I was basically refering to FDI. If you're investor and you realized there are high capital appreciation gain investing in KL, why would you go for jakarta or Bangkok which price is already hitting a probable ceiling. Hence, people will still come back to KL for investment. No doubt the government has implemented many ways to curb the speculation, but for me, when there's a will, there's a way. The rich can still invest via different route.
It's all about ROI. Property gives you 10-30% of your purchase value, not your investment amount. With leverage from banks, a property of RM500K, you only need around RM50K and say RM10K for expenses. A 10% rice in your market value will be already RM50K, hence there's effectively almost 100% ROI on your RM50K investment.
how come other coutries will face correction? we have Malaysia had crash in property price before..
Insider news from major Insurance company and banks, audit reports suggested cost cutting in all departments, inclusive both local banks and foreign banks..
still on property BBB mode , please buy more..
many Malaysians seems to failed to fork out 40k to 80k to buy the mass market supplies which worth 400k to 800k region, and left it empty for more than 1 year, some genuis say renovation wor, some super genuis whole year no time to go in , some genius also forgot that same time yllow banners are up for sale
hi I am BBW..
This post has been edited by bearbearwong: Nov 18 2014, 07:23 PM