That is what I read too. They just want to cover their outstanding. Banks where go time to go check inside, owners wouldn't give also. Banks have power or attorney can sell it anytime they want. They will only need to sell it at a price enough to cover their outstanding plus other fees

But we are now talking about newly completed property head straight into lelong. Price drop few times until below the early bird launch price 4-5 years ago. After deducting all rebates given by developer, lelong price still significantly cheaper.

Low reserve price is due to no interest. Nobody wants to bid. Will drop 10% in prices each round.

If you scroll back this thread, you will find a property in Puchong-Cyberjaya sold at 60% off after 10 rounds of price drop. A brand new property just completed market value 1M sold at 400k in lelong.

I guess this is the current trend. Buying new units off from the lelong market. Minimal risk. Good for cash rich investors.

If can recover the outstanding. I doubt that Vision Residence unit S&P price over 1M but sold at 400k in lelong, bank will recover anything out of that.

Continue and chase the default owner? No idea what other action can the bank takes to get back the money.

No what I mean is that it would start from the bank trying to recover their O/S... if they fail to get that, then they would just have to bite the bullet and start reducing the reserve price from that point foward, as you have mentioned

If the bank can recover their outstanding, the defaulter owner wont be declared bankrupt. but if they can't the defaulted owner can be sued for bankrupcy and their possessions can be confiscated like any other bankrupcy cases. right? I am just a salesman, these things years beyond sales is somewhat beyond my levels

Also, I heard that valuers will get in trouble if the banks can't sell their properties for the price they have valued...

This post has been edited by wild_card_my: Jun 22 2018, 01:42 PM

Reserved price for first auction is usually from valuation report or outstanding loan amount, whichever is higher. Subsequent auction reserved price is 10% lower than previous.

In current auction market, many units are virgin, never been occupied since vp, chance of damages is low. Anyhow, auction is not for novice buyer. For reasons, auction is only attractive if price is substantially cheaper than market.

Before title is issued, national land code is applied; with p.a on hand, bank is empowered by borrow to sell at any price it deem fit.

Many failed to realize auction price has detrimental effect on valuation of other units in the vicinity. With enough number of units sold at below market price, subsequent valuation price for other units in the vicinity will be cheaper.

This post has been edited by icemanfx: Jun 22 2018, 02:01 PM

Opening of this unit with plenty of free gifts.
Good catch.

D market is correcting healthily, not dying.

Seriously, I thinking of going into auction market...but sked...

good buy, can do air bnb

quick search on semiD-bungalow, can get below 300k in kundang

A quick search in lelong for newly completed unit that head straight into auction market.
Can see that majority owner got burnt from newly completed property gang is from the late 80s.

Here few example:


Silk Sky, owner born year 1984:
https://www.ngchanmau.com/pos/4188/pos_en?v=1529650908



Lakepark Residence, owner born year 1986:
https://www.ngchanmau.com/pos/4095/pos_en?v=1529651050



BTP 5, Acacia Park, owner born year 1989 & 1991:
https://www.ngchanmau.com/pos/4014/pos_en?v=1529651084



M Residence 2, owner born year 1986 & 1989:
https://www.ngchanmau.com/pos/3939/pos_en?v=1529650797

Those born in 1980's and 90's have not experienced economic recession as a adult, only know low interest rate and easy credit, bought under peers pressure; not at all surprised, many of foreclosure belongs to this group.

D'sara Sentral - i wanna target this.. haha

So in conclusion, can we safely say that there was a bubble and some of them are bursting now?

In 2007 u.s subprime crisis, home price took 6 years to bottom. Believe this is only the beginning of kv property price decline.

Also because they got conned back in 2013-2015 during the peak of the bull run by those property gurus seminars asking them to BBB UUU on luxury condos. I know many friends who even join names to get those luxury condos hoping to profit by the time the development is completed due to being influenced by those gurus and end up now all also dying to pay the installments since can’t sell at the price they want and can’t get high enough rental rates.

Depends on your definition of burst, for some ppl, prices don’t drop to below pre 2009 prices then not considered as burst.


Doubt will be that long, still sticking to my prediction that downtrend until 2020-2021 then slow reversal

My peer: claimed his prop bought 2 yrs ago raised by 100k. Say from mouth sounds nice 100k. Then I slowly deduct all his ASSOCIATED costs from both buying and selling and maintaining plus contra 4% fd rate. End up become 30-40k profit subjected to if his transacted match the asking. Every month as we speak, bank takes a chunk on interest payment from reducing balance type of loan eating the profit away.

His case considered lucky have some profit as location good. I believe majority are burning through their pocket to the banks. If ppl are not ignorant and calculate properly, they make realised loss

No income over the past 2 years?
If capital outlay is just 10% of purchase price, return still appears good.

Until oversupply is consumed, price is unlikely to rise.

It is unrealistic to expect price to drop below 2009 because of inflation. As most bought property with bank loan, price stagnant for a few years, loan interest incurred could deemed burst for that buyer/investor.

This post has been edited by icemanfx: Jun 22 2018, 09:50 PM

Did he already sell his prop or his so called 100k gains is just Imaginary based on “market price” quoted by agent?

If prices drops low enough sure won’t take long to consume the existing supply.

Yes it’s unrealistic to expect drop to pre 2009 but quite a few people are expecting that still, being unrealistic. Haha