haha sounds contradictory, but i was surprised too when it was bought at the price. valuation can be off, but at this price... the seller must have been desperate

As a broker who handles multiple cases each day for the past 7 years (I was a banker too)... house price have definitely droppped in many areas.. it used to be that getting the MV to match the selling price was almost impossible unless I beg beg beg hahaha...

now the MV is actually HIGHER than the selling price.

GOod luck guys, you keep on buying and selling ya. hehe

Not the banks, but the valuers. The banks empanel the valuers which are different entities to the banks, to get a 3-rd party valuation of the properties, within reason. Usually they will use past transactions, but during hot times, the prices went up up and up (!!!) that the rencet transactions did not catch up fast enough..

so people were like "well last month someone bought it at RM500k, how come I can't get RM520k valuation for this property?!"

If the valuation doesnt match the selling price, that is fine, the house can still be sold/bought but the loan will be based on which ever is lower, either the MV or the selling price... so if the property was sold at RM520k, but the MV was only RM500k, loan would be given based on the RM500k.. there will be a shortfall and the buyer will have to fork out more cash...

This is the dangers of subprime cirisis. That is why I love it when Zeti made it difficult to borrow money, because the easy of credit will only make the house price go uncontrolably higher. I'm a good broker, I don't need speculation to drive sales because my services are tip-top. I would find it more difficult to run the business if the market crashes, than if the market is being tightened.

Topping out is difficult, since not many have cash in hand, all they are doing is investing using other people's money. And when the credit is easy to get for everyone, you get an inflation. That's why sub-prime crisis leads to a bubble and everyone bought - except for TAN SRI ZETI the heroine.

Buyers would still need to pay the 10% of the price, so they actually believe that the price is "right" but they simply dont have the money to top up, and rely on the bank's money - and my begging the valuers to match the price.

Yes, this is true, the many valuers face sanctions during my time... some were delisted by the banks for giving out outrageous valuation (if bank needs to lelong the property and the valuation did not match the previous valuation, the banks will kena lah)

Nowadays, such a thing isnt an issue, MV is usually higher than the selling price - but that bring about a different set of issues, some of which you smart gentlement ca probably figure out.

You mean bubble burst already or not? If it has burst we would know.. right now everyone is saying either that we are in an bubble or there is no bubble...

but if it has burst, everyone would be in agreement.

I fully agree, and this is because of BNM's and the ministry's having taken the steps to cool off the market in the past few years with the (re)introduction of the RPGT, the 70% MOF limit on the 3rd residential property loan, the minimum price for the foreigners to purchase their properties, the use of the net income to calculate eligibility vs gross as per previous etc.

When the lending is made more difficult, the market will cool down, and in a way this is good, because better to deflate than to burst.

Problem is, properties are usually invested with a loan.. if the price deflates, even for a little, may cause issues for the investor. The bank may even do a margin call and ask for a payment, you don't need to wait for the price to bottom up like shares to face issues.

I just had to deal with 2 of them recently... 1 was a newbie, the other a senior

For the senior one the property price was 900k, my client ended up not buying at all. He lost out.. the property was on listing since January. Dumb.

I actually like Zeti's initiative to control the credit - mortgages, credit cards, etc. Now there is a limit to the maximum cc limit you can get, about 2x of your gross perhaps?

Property game is so illiquid... Im sure plenty ex-owners of the properties that got auctioned off actually wanted to let them go at cheaper prices, but couldn't due to the slow nature of getting a buyer, the mortgage approvals, and the process of transfer.

Eventhough im in the industry I would not recommend buying properties just for the sake of it.

Btw, how is prima able to sell at 20% discount compared to other developers? Im in mortgage but I dont know much about properties at all - there are too many of them and I couldnt be bothered

its an on going topic, properties are usually bought using a long-term commitment, so this topic will always need revisioning...

Sime Darby just had their MSS recently. a few other big companies too that I have heard of.

Regardless my wife just moved a job and got a big increment, so i guess we are just hearing random noises?

the company doing MSS i was talking about was sime darby.. as you know, SD is restructuring, splitting up. plantation will be on their own (i think?) but property will leave the group and join other property companies to make a mega property company.. hence the MSS since there will be redundancy.. so the split and rejoin thing is probably to maximize the strengths of each company in the market. instead of integrating non-related companies (what does property has to do with industry and plantation? some la but not much)... maybe has something to do with the economy (if the companies are strong they dont need to band together ma)

kesian, nasib baik I work on my own hahhahahaha.

This post has been edited by wild_card_my: Jul 11 2017, 04:45 PM

MSS from one company, not even a top developer is too small a sample size. If we want to talk about sample size, I know of an earth work engineer working one of the biggest property developers, who is getting 8 months bonus on his 8k income for the past 3 years

Also, last year, petronas employees are not getting bonuses, this year, they are getting ~4 months bonuses, even in the current economic/oil-price conditions.

Im not saying you are wrong or I am right, we got to look at the bigger picture. I thought you'd be the first person to know that.

We are not in the cyberjaya thread are we?

I am being asked if I would like to buy 2 properties in one of the serviced apartments there for the owners loan outstanding.. the property was bought more than 5 years ago, no more RPGT, and the owner still doesnt mind letting it go for nothing (he's getting nothing, after 5 years)

Sorry I am behind the acronyms a little. What isUUU and BBBb? WI do not know what you guys ar etalking about since I am not an investor

Well, it is one of the many serviced-residents there. 500+ sq ft, won't mention the exact place though.

Also, I dont plan on buying any property in CyberJaya, no offence to them. But I prefer Putrajaya, there is much more food and leisure variety there. The water feature is much more vast, the people are more relatable (if you know what I mean), and as such the food is more appealing to me thatn Cyber's.

I got a very cheap rent in Cyber, which is the reason we took it, wife works in Putrajaya which is just 10 minutes away; if I had the choice though, I would have stayed in Putrajaya instead.

isnt that why we buy/rent houses, to live in it? so personal choice is important when it comes to choosing where to stay.

Putrajaya > Cyberjaya personally, but both are leagues above Puchon, Saujana Putra, Bangi, Kajang, etc. which are also nearby. Investment properties are a whole different game compared to personal location choice, but one thing for sure is that there are too many empty properties here in Cyberjaya which may make it unappealing to some investors - short and long term.

But it is funny how there are still properties being launched here, angled for the investor market, while the population density is still very low and very slowly climbing

Would you say it is currently a bear or a bull market?

Sorry noob question, I am not invested into shares.

So much primary sources to read when reading your replies... which is good because you back your assertions and arguments up.