Leverage amplify profits as well as losses.


This post has been edited by icemanfx: Dec 21 2018, 10:35 AM

Not really, but when you are young you have time on your side.

I have noticed that for the past year or so, many newly VP houses (mostly less than 1 year) already entered into lelong market. Is this normal under a growing economic cycle?

normal under a growing economic cycle? why?

it's normal for a bursting bubble i guess?

Under a textbook case, lelong only happen when owner failed to pay its installment. Caused by economic slow down, lost of job etc etc.

And under this kind of scenario, it would not normally happen to a newly vp unit. Since technically we are still experiencing economic growth, job market still intact, Low unemployment, it is considered abnormal for newly vp unit to go under hammer? Just curious.

Wonder how many of this subprime has yet to unearth.

Interested in meaning of limited freehold. Asked my developer, they said no such thing?

Developer of course got interest in selling you the property. Place to check is the authority land office.

All cyberjaya POS although is freehold property come wuth this clause: There Is a Restriction-In-Interest i.e. “Tanah yang diberi milik ini tidak boleh dipindah milik, dipajak atau digadai
melainkan dengan kebenaran Pihak Berkuasa Negeri”.

For info this clause is the same for all leasehold property. Elsewhere for freehold property such as in KL or most other area in Klang Valley, no such restriction.

Hence, the term "limited freehold" is used for property in Cyberjaya.

Hi where can I read about this

Higher number of auctions coming from projects offering big rebate / high cash back. No idea in the first place how the bank can value the project so highly priced. But in reality, the market today, not able to accept such pricing yet.

Taking for example, mirage by the lake cyberjaya. When launching in 2013, able to loan up to 900k. Big cashout. Today want to sell at 600k also no buyer. This cause high number of lelong units all transacting at only 400k.

Got ppl state before 1st year after VP will flush out all wannabe investors that buy just to flip. But this is not the case now. As further down the road, more lelong units coming up. Due to many more owners no longer able to hold.
Example M City and The Elements, already more than 2 years completion. The number of auction units from there at record rate now. Never ending. All sizes available from studio to big size.

So conclusion, beware of buying overpriced / inflated price / future priced undercon project. Such as already factor in future Bandar Malaysia, HSR, MRT station into the pricing. It will never end up well. And true enough coz those 3 big booster is not gonna happen at Sg Besi / Taman Desa as of today.

Until recently, developer could price it's unit at his whim and fancy, and accepted by bank.

Some bank give over stretched flippers second chance by restructuring the loan. Hence, auction happen 2 years after vped.

During bull run be it property, btc, gold or oil, any reason is a reason for price rise. Those couldn't tell wheats from chaffs would suffer.

In a way I feel guilty.

But if it is not through me, than they would do it with others.

Will a sales person bad mouth their own product? Seriously if u hear all property gurus only able to say one thing. It always goes up. If not buy now, rugi. If u don't buy property, u are losing out, sht like that.

The logic is simple
How many Malaysian household income above RM5k today?

RM700k is like RM3.5k installment a month
Very illogical to purchase this type of property for flipping purpose

You were only a facilitator that gives these over stretched investors a second chance; Nothing to and shouldn't feel guilty. It is those re agents, gurus, uuu/bbb that tricked them to buy should be guilty.

This post has been edited by icemanfx: Dec 23 2018, 05:04 PM

Many were blinded by greed, hope for a easy, quick and big cocr.

The chairman of a leading Chinese state bank on Sunday warned Chinese investors not to buy property now because “there’s no money to be made” due to high prices and alarming vacancy rates.

Tian Guoli, the chairman of China Construction Bank, which provides mortgage loans to millions of Chinese households, said that the room for further property price rises was limited and it was unwise to buy at current rates, according to the portal Sina.com.

“There’s no money to be made if you buy a flat nowadays. If you insist on buying a home, aren’t you trapped at the high price level?” Tian told a forum organised by Peking University’s Guanghua school of management.

https://m.scmp.com/economy/china-economy/ar...ng-property-now

PETALING JAYA: Malaysia is entering 2019 with unsold completed residential units rising to 30,115 units as at Sept 30, 2018, an increase of 48.35% from the 20,304 units a year ago.

According to the Valuation and Property Services Department’s (JPPH) latest figures released on Saturday, the total value was RM19.54bil, a 56.44% rise from RM12.49bil a year ago. Should serviced apartments and small offices home offices (SoHos) be included, the overhang value rose to 40,916 units, valued at RM27.38bil.

https://www.thestar.com.my/business/busines...igher-overhang/

Until overhang is reduced substantially, price is either stagnant or on downtrend.

For non bumis guess they r not affected?

Property price is among if not the least transparent in investment assets. Transacted snp price could be highly inflated.