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> Theory of property price take years to bottom., Whose theory?

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corleone74
post Jul 14 2018, 12:44 PM

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QUOTE(New Klang @ Jul 14 2018, 12:16 PM)
If property prices take years to bottom then it is a very good investment tool because it is almost sure not to lose much. Agree?
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if your property can continuously be tenanted out for years and years, and your location and the price you bought isn't at the peak, then agree.

you don't start a game hoping not to lose too much. you start the game to try to win it. right?

corleone74
post Jul 15 2018, 12:27 PM

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if you buy a property 620k, put 20k down only, loan is 600k, interest currently is more than 24k a year.
after 10 years if your property still hasn't appreciate a lot, you will lose money. that's almost 200k after 10 years interest. and that's provided the interest don't spike .
it's just basic math.
but if your property is easily rented out for 2k a month, at least you stand a chance to earn something after 10 years.

imagine you bought the wrong property. it become populated with undesirables. you end up with a 10 year nightmare.

so choose wisely and really no rush to buy anything, just rent for a few years pun boleh. In fact, in current climate, it may even better to rent for own stay, the landlord is subsidizing you to stay in some cases! (not like before, where tenant subsidizes LL to own the property)!


This post has been edited by corleone74: Jul 15 2018, 12:29 PM
corleone74
post Jul 15 2018, 03:55 PM

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QUOTE(aspartame @ Jul 15 2018, 01:40 PM)
This is very true. Either u stay there or u must ensure it is rented out. That's why only buy prime location. Buying property without maximising rentals is like taking France and give Croatia 2 balls. Can still win if U r damn lucky.
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you mean "its like take Croatia, and give france 2 balls" la. tongue.gif tongue.gif tongue.gif tongue.gif

This post has been edited by corleone74: Jul 15 2018, 03:55 PM
corleone74
post Jul 16 2018, 02:08 AM

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QUOTE(Mrkoala @ Jul 15 2018, 10:08 PM)
I like and share your view Corleone (michael corleone ... just wandering blink.gif )

Btw, iam a newbiee here at ly forum. I am also a foreigner whose wife is a malaysian. we been meaning to buy a propety since late 2016  and i have kept telling my wife not to rush because the market has more room for downward correction ( just my personal opinion).

I just wanna ask if in malaysia there is an interest only loan for buying investment property. If there is where to find data such as when majority of those interest only loan convert back to normal loan ie. interest and principal are repaid back. And how long is interest only loam usually?

the reason i asked this is because in australia almost 30 percent of property investment loans is interest only for 5 years and after 5 years the loan revert back to interest and principal.

thanks in advance for anyone who can share his or her knowledge
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I haven't seen any interest only loan in Malaysia (other than those schemes offered by developers of off-plan properties), but perhaps i'm not the best person to advise on this. Do contact the banks.

fyi some developers did provide interest free loan during construction (called DIBS - developer interest bearing scheme), before they were prohibited from doing so a couple of years back.


Perhaps you may want to inquire with OCBC.

https://www.imoney.my/home-loan/ocbc

"OCBC also offers a Graduated Home Loan programme catering to young working adults who are first time home buyers. This OCBC home loan gives you repayments that start pretty low. Borrowers are offered the flexibility of fixed or variable pricing (or a combination of both). Affordable starting repayments (interest only repayments) enable young homebuyers to ease into the home loan repayment[B][U] and financial management process.Other OCBC packages includes a special housing scheme for lower value properties and overseas property financing."

This post has been edited by corleone74: Jul 16 2018, 02:12 AM

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