Are some homebuyers in Malaysia paid to borrow and buy?







https://www.edgeprop.my/content/1824379/are...-borrow-and-buy

Apartment Freehold @198K.

alexkos

Apartment Freehold @198K.

alexkos

Cheras is flood zone ka?

If NET rental yield cannot get above 5%, chill, continue waiting only, no rush to buy, let BBB UUU catching falling knife players go in 1st. Cause rental rate might continue dropping.

https://www.thestar.com.my/business/busines...rm101bil-burden
The grossly oversupplied property market is not only weighing on developers in the primary market segment, anecdotal evidence from the secondary market tells almost the same story. Secondary prices have generally been weak in most geographical areas while rentals too have been poor with rental rates at best staying at previously contracted rates or worse, trending down.

You might find this data useful. With so many incoming supplies (faster than market demand, overhand units will increase further), fiercer rental war will be there, hence rental yield is likely to drop further. If rental yield cannot go up, logically property prices will remain suppressed

Year - number of overhang residential units
2017 - 24k units
2018 - 32k units
2019 - 48k units
2020 - 55k units
2021 - still waiting for data

Ppl talking about this since 2000?
Not tired?

1. If the urbanisation continues, more people continues flow from rural area to city



2. Only when BNM tighten the control + increase the BR will cool down the market.

3. Lelong units needs to have a look at its segregation, whether this is from below 500K or 1Mil above unit, this would justify the market purchasing trend.

So cheap this auction

https://www.ngchanmau.com/property/44101?ut...mpaign=20210430

Freehold, serviced apartment @270K

not cheap. less than 600sqft need to drop below 200k

Okie thank you. that remind me of 60sqm only

actually got 2 lelong for this project last year people bid and win at 236k and 242k. so thats the benchmark

Last year. OK. so this year must press further down.  212k?

i think will about last year's price, if can get lower than 230k, good catch

My humble view, last 20 years easier to do leverage. Mainly due to Malaysia still developing at fast pace with real rising income. Nowadays harder unless you buy with cash. If not you are just helping the bank.

My humble view is property is still for long term, due to the current crisis you need to have holding power. Even now those who can buy cash will reconsider due to the over supply plus ecommerce. So many shops nowadays become a luxury due to online commerce.

But property will always be a good hedge against inflation since raw materials price will always increase. You made the valid point, property price will go up in future. But maybe other better investments might give better return.

To me though I feel buying property is safer, but also depends on how many more years you think you will live (unless u don't mind giving it to your children or siblings etc). Selling a house is so much trouble plus maintaining it. I just sold a terrace house last year Nov. Now I still haven't get my money despite way overdue. Also properties of more than 15 years you really need to maintain it. But lucky for us we will manage to sell it at a profit, but considering the return over the years not really up a lot. Maybe if we keep another 10 years we can sell at a higher price, but do consider the opportunity costs. I still have another house that's not rented out. The grass etc requires tons of maintenance, trust me it is a nightmare.

If you are young, yes property is somewhat a safer investments. For me the hassle is too much. Especially when you can't rent out your property, worse is when you get tenants from hell.... trust me you rather earn less with money in FD.

I think price drop maybe not so much now. Already a lot down 10 to 30% from peak. But most buyers do have holding power. They rather see their property get lelong than sell at 50% discount. Don't ask me why, kind of human behaviour.

And yes, due to the pandemic plus oversuppy, rental is going to drop and drop. So many empty properties now and so many people do not dare to start new business now. And we lack the foreigners to come in to rent, just the student market drop tons.

IMHO hunting for a good deal in real estate is seriously tough work. Go see and see and the owner all will not want to decrease the price. So now I would only buy a property if it is really good deal or for own stay. Your money can be put to better use at other investment instruments.