Thanks for the input

I stand corrected, thanks for the input.

Where can I get these lelong units transaction prices though?

So much to learn from you property sifus.

Just buy anytime you are ready, with the right "boosters" you will never go wrong. The problem with people that bought properties "wrongly" was that they bought because of other factors such as peer-pressure and deceitful marketing. If you can pass through all that, then you are good to go.

How do we keep track of the number of rounds a property has gone through auctions?

From what I noticed flippers are already having a hard time. Due to government initiatives like PRIMA, RumaWIP, and SelangorKu, lower-middle end buyers are having an easier time to secure a roof on their head.

As it is, they may be contend with what they have (800 sq ft close to the city with good access), and may spend their money else where.

Not necessarily. Demand and supply plays a role. A house is a necessity, but in people's opinion, an 800sq ft. may be sufficient - and there are plenty of supplies for these types of houses now. Despite economic recoveries, people may turn to other things to spend their money on, like children's education, retirement, insurances; and other lifestyle choices like travelling, food/dining. Those with excess cash may invest in properties but it has such a high entry-cost (10% deposit, legal fees) as well as hidden-costs (agent fees, insurances, maintenance, bad tenant) that they may turn many away

Can you believe it? I myself prefer to put my money into more liquid funds like UT and stocks.

I am sure there are gems out there, but it isn't as easy and sure-fire as it was in pre-2010 where you can just throw any stone and buy that property the stone hits and it would have appreciated a few tens percentage points.

For those who are not sure about the property market going forward, of have done very little studies, and if the are able to, to invest in ASB and holding out for the time being, this is because ASB and/or ASB-financing can be redeemed at a moment's notice (well, takes about a month for the ASB-financed units to be redeemed). But it is liquid in that sense, better than your money sitting and not doing anything.

Since, you have bought properties and I am sure that you are aware of the hidden fees, upfront charges, and lack of liquidity of these properties. I know people who are in a limbo, whereby their property MV is now lower than their O/S, meaning they cannot sell without topping up to pay the differences. And their rentals are significantly lower than their costs of maintaining the property (installments, maintenance, taxes, insurance, damages), and not to mention the rental gaps between renters

Now they are stuck forever. This is why I hate the mantra "accumulate wealth by buying properties". Every investment vehicles have their pros and cons, its just that people tend to be conned into buying properties - thank you real estate agents.

Just so you know, I work for all 3 - mortgage, asb-f, and am a REN

And yet my advice is always to study your needs, will-power, investment horizon, before making a life-changing decision like buying a property or insurance. These decisions last forever even if you get to refinance/sell the property due to the upfront charges and missed opportunities.

Yeah, loan compression is subprime. When the bank deems you unworthy to get those financing buy you did anyways by cheating the system, you are a subprime. This is illegal but sometimes the bankers would not know because the applicants would be doing this on their own by making multiple submissions with different banks and bankers on their own. When I see multiple applications in their CCRIS and inquire them about it, they would sometimes admit to it, but those who didn't I would not know.

This post has been edited by wild_card_my: Sep 11 2018, 12:31 PM

"the time to buy is when there's blood in the streets" Baron Rothschild

Arguments should be made with statistics, not isolated cases. You can cherry pick any "real-life cases" out there.

you are talking about "nodes". These are known, but there are arguments about which nodes are important. Otherwise people can blindly follow these nodes and make a bank, alas the downtrun has shown that the nodes are just one piece of the puzzle.

"Location x3" is just a mantra. Area study has still to be made.

btw, any idea "how" the property prices would bounce back?

Other than supply and demand that is.. perhaps elaborate? Maybe a boom in the younger workforce? better economies? Are we facing this down trend for decades?

how closely has BNM followed FR in the past?

Perhaps I get the idea on "subject to MYR exchange rate" part, but can you elaborate a little on "market liquidity"? In relation to our OPR to the FR rate that is.

This post has been edited by wild_card_my: Sep 27 2018, 11:36 PM

Prices will drop regardless right? new development agents are having a hard time. I mean, used to be that the developers wont even engage property agents to sell the houses. but to cut cost (overhead of employees, marketing), they decided agents are the way to go.

Doesn't make sense though. These agents are driven by money. When you ad another middleman into the transaction, you would increase the price of the property, not reduce them.

Those are lelong units. They are unable to repay the installments so the banks exercised their power of attorney to force-sell the unit. Unfortunately, even the banks can't sell it to cover the principal outstanding, and the difference still has to be paid back by the borrower.

Yes, as far as I understood from the thread, the ex owners can be chased for the difference and can be sued to bankruptcy by the creditors.

I would say that all the owners of empty units that got auctioned off at 30% less than the purchase price are the casualties...

From my experience for bumiputra buyers there are risks that your application to transfer the lease to a non-bumiputra would be rejected by the state government. No problem that I know of for non-bumi to transfer to either a bumi or a non-bumi.

Yeap, that's how I understand it too. The comments above about difficulty to transfer the lease from Bumi to Non-bumi came from the lawyers that I engage with (I have to deal with them for my clients' conveyancing needs). These are the people that do it on a daily basis (as opposed to talking crap).

??? i was referring to subsale though. I may have misunderstood your comment, can you rephrase?

Yeah, well I am sure when they say "dengan pihak berkuasa negeri" the negeri would have power to deny the transfer. But my point is that it is much more likely for a transfer from bumi-leasehold to non-bumi-leasehold to be blocked by the state

It goes without saying that a freehold would be preferable, but for bumis, the disadvantage is much more apparent when buying leasehold, their secondary-market would be severely limited. Not so much for non-bumi-leasehold transfer to non-bumi, it may happen, sure but not as bad.

As I mentioned above, these are from conveyancing lawyers, so I'd take their word

This post has been edited by wild_card_my: Dec 12 2018, 01:17 PM