No lah. It’s for Ice’s benefit. Wanting to gain from her insights but only got two paragraphs.

But anyway, she’s not far off lah. Even BN is sounding warning now.

https://www.facebook.com/groups/11517943520...58472290873183/

U sure those above 1m in price can b brought down ga🤔🤔🤔

Share more please?

I do have trustable friend in property industry said this year is the best year to buy - but obviously everyone see the glass differently

“This situation could worsen if the current supply-demand conditions persist. Within the country, Johor is poised to have the largest property market imbalances (highest number of unsold residential properties and potentially the largest excess supply of retail space). As such, it is timely for all parties to act now to mitigate any potential risks to macroeconomic and financial stability,” it said.
Read more at http://www.thestar.com.my/business/busines...Iv8xly3z1kir.99

How practical to lower the price since the seller hv no issue to pay thier loan and not willing to let go with low price? Base on current situation, buyer will still need to buy with the inflated price and this could happen in more obvious on later time where demand is absorbing the supply. Afterall, our property price is still not that expensive, compare to wat we earned. Buyer still afford to buy and pay for a decent highrise.

Actually invest in prop don't need silver or gold mountain...if u hv vested then may be understand.

as expected, the experts only good at tabulating figures and report the obvious.

why they don't control the supply from the start???????????? AK how many launches tis year already?

brown envelope tok.

then dev will build more sub 1mil props, overflooding this sector pulak. lol.

I don't understand the intention to limit building of > $1m property.

The overhang units majority not from this category.

The owners have higher witholding power.

The more supplies the price will come down faster which should be a good thing.

Why this restriction?

More like to help existing players to sell their > $1m stocks.

In a worst case senario if a burst does happen, you all needn't worry.

If the market value of the property falls way below the banks valuation / loan valuation and if you cannot have the $$ to make your installments, do not fret.

Banks won't foreclose.  It is bad business if they foreclose you and seize your properties.  Banks would restructure your loan and require you to pay off the property as it was previously.  So, if you were supposed to repay rm500k, banks would make sure you repay it, even if your property price becomes 50k.

Banks will not absorb the risk of
a) lower property price arising from foreclosure
b) having stuck with property as a Non-performing asset.

This can be referenced to the way the country manages NPLs by individuals.  There's AKPK.  The way this works in M'sia, it that you would have to service your loan till it really finished.  You are stuck with the property until you sell it.  In any case, the risk is with the owner of the property.

THIS IS DESPITE THAT  YOU SIGNED A DEED OF ASSIGNMENT WITH THE BANK.  Banks won't enforce it.

In the US subprime, legislation was put through to stop the above-mentioned practice by banks.  You can elect yourself to be foreclosed and just dump the property with the banks (complete wash hands)

In any case, you have to do financial due diligence as to whether you should continue to pay the banks or just dump it to the banks.

http://www.smh.com.au/business/the-economy...119-gzobxa.html

icemanfx pls comment n advise

I guess our beloved pea size brain ministers must hav read tis b4 making u turn.

Australia demand is supported by foreign purchase

Likewise, recently NZ stop allowing expatriate to own/purchase their houses as matter to curb the unreasonable housing prices

All countries have their own method/way doing after perform deep study. Not by just referring to foreign report.

If like you, then this country very fast go down sewage already

Just wondering how many actually know the hidden criteria for aussie prop tax tat caused the low resell value.

Not many know tat their new props r selling sky high but resell could b half the value.

And recently witnessed quite a number of local investors rushing to buy UK or aussie caused triggered by malai toilet paper value. All of them skedy cats takut rm goin down to drain so die die must pour to oversea props. Oopsi too bad currency loss is miscalculated.

Anw tats my pov. Vely personal wan. And alwiz wrong wan.

We probably underestimate the rich out there

In 1Q 2017, total unsold residential properties stood at 130,6903 units, the highest in a decade. This is nearly double the historical average of 72,239 units per year between 2004 and 2016.
About 83% of the total unsold units were in the above RM250,000 price category.

Read more at https://www.thestar.com.my/business/busines...AxkihBUebylp.99

Just see the top of iceberg wants to act as an expert.
The so call report is for fun only. Use more of your eyes and brain to see and analyze,  you will find multiple X higher than reported.

Not sure if this has been addressed but i think the key trigger for a property slowdown - continually stagnant prices for landed and significant correction to condos is the fact that the period of low interest rates are now over.

Property prices - in PG, KL, JB since 2011 has been driven purely by increased affordability arising from a sustained period of all time low interest rates NOT from salary/increase. Sure people still have their jobs, but the fundamentals of property - economic and wage growth has not been supporting the level of prices we are at now.

The US fed reserve is looking to hike rates 4x next year, BNM has already stated that it was hiking rates - (many expect 25-50 bps next year which will result in 5-7% increase in monthly mortgages) and stated that it will continue normalising interest rates over the course.  Leading up to 2020 effective lending rates will likely be closer to 6%.

So apart from the supply-demand imbalance, wages have to catch up to property prices on falling affordability levels.

I can go on with this, but my question ia...are asset holders due for a rude awakening soon with the end of a multi year cycle? and how long will the downcycle last considering we are stuck in a middle income trap?

Awaiting your insights :S

Well, just look surrounding you... how many ppl that you know in-person had invested in property beside own stay unit? I can easily come out around 30+ in a minute. Many of them had justified the purchase with various reasons; i.e: ringgit shrink and inflation, treat as long investment for kid education fund, xxx friend / relative bought a house @ 300K in few years back and now 1mil, peer influence, rental passive income, prop price only goes up and limited land bank etc.

Sentiment is changed lately, lots of negative elements kick-in like higher lending rates, exceed supply, increased of government subsidized houses, harder to get tenant, expat is leaving, elite is leaving the country, foreign prop investor is lesser and list goes on.

I believed in endowment effect... where ppl that already invested likely try drag it thru by subsidize the tenant and continue paying interest for bank so long their day-job is secured; instead of selling at loss now.  I feel the depress situation will be continue at least 2-3 years if we're lucky. It'll goes pretty bad if global recession really hit during this period.

Btw, the statement ""Leading up to 2020 effective lending rates will likely be closer to 6%""... it's a BNM indicative in their statement or purely a speculation?

It will goes up due to inflation in X years....and turned into long term player.... (don't want to sale at loss) < "strategy learned from pro stock investor"

That's just a common move for most investor who stuck regardless in stock or property...of course most of average ppl aware of the repayment and certainly had built up their own buffer...(discounted those high risk taker, flipper or pro investor). Again, exception happened right? Some "asset appreciation" might actually lower than loan interest.... is Sungei Wang still the same 10 years back.

One should see the negative side of holding these asset in long run too... eg: cost & time opportunity where you can gain from other investment vehicle, long term commitment will limit your opportunity (less appetite to start a new biz or job change, etc), tenancy problems or no tenanted, added stress, anxiety and self-doubt, degraded lifestyle, property run down etc.

If no more QE in coming years... god know when the next spike will come? Bear in mind factor like Malaysia become aging nation by 2035, city is be actually expanding (eg: greater KL to counter land limitation issue, we're not HK or SG), workforce pattern is changing for newer generation, flexi style and self-employed will affect property selection too (EFP SSP1M), middle income trap, etc

During market is hot, there's tone of good reasons lead you to BBB, once turn sour, many bad reason will sound worrying.

I would also add from a human being point of view.  Investing in property has been ... viewed as an achievement in one's life ...  I am a property investor title. 
But many failed to consider at when one is at 60/70 years old, would they rather have

1) 3 properties, rm1 million in cash

or

2) 1 property for own stay, or rm5 million in cash