there is a lot if property value drop to 20%

https://www.facebook.com/64839963085/posts/...58320712278086/

Drop by*

That is only one part of the bigger picture..

Depends on how you measure the performance.

If a property is cashflow positive and price is stagnant over 35 years (which is unlikely). You’ll end up with a fully paid off home.

That being said, it’s grossly oversimplified to make a point that even if price were to remain stagnant. You’ll come up top.

Yes

Property price stagnant last 35 years?

Rent stagnant last 35 years?

No one has experienced before? Refer to below for the period leading up to AFC in the 90s.


Let’s keep in mind that SEA is a developing region and GDP growth is stronger than many first world countries.

Let’s also set aside the fact that the world production is shifting out of China.

It’s okay, you can continue to stay hidden in your coconut and oyster shell.

Inflation is real.

We shall see, let's revisit this in time.

IMF: Malaysia's GDP to grow 9% in 2021

but that's too general statement. what about those who pay in cash.

i see it more as an opportunity cost. money not used to buy property may be invested somewhere else, e.g. topglove company which is doing well now

if you compare to fd, it's now only 2.65%... 

Don't forget the rental income if rented out, or own stay that you get a Home.

Stress tests done by BNM https://www.malaymail.com/news/malaysia/202...n-house/1853086

You mean 100%? Why do they have to?

It's a tangible asset that's relatively low volatility. Better than most "safe havens" during times like this. Those who are cash rich will leverage higher grads more and ordinary people like me would seize the opportunity to get samsui unit for own stay.

The real investment IMO is in our credit profile

No difference from following and listening to IBs and Brokers TP for shares. It gets revised as and when the situation changes.

You contradict your own point on another thread. I'm not sure how I came across as property guru advocate lol, when the truth is I'm so far from that.

The key to the leverage part are: before, During or after recession. One is in deep trouble when highly leverage BEFORE crisis. But same can't be said to those leverage during or after recession.

If anything, this will become depression rather than recession. In 6 months all will be clearer.

Recession is consecutive 2 QR of GDP decline. We're now in recession. Depression is when we don't take the lockdown seriously and end up being extended

The most serious drop in price.. Some house prices may fall by 70%

https://www.orientaldaily.com.my/news/natio...20/04/20/336681

An interesting question to ask is how many of the launched and in progress projects will be completed, instead of being abandoned.  I think it's common practise for developers to incorporate individual pte ltd company to undertake each project to insulate the holding company. The bigger companies may be worried about the damage to their reputation should they walk away from a loss making project.  Many other SME developers may care less and simply declare bankruptcy for the project company as we have witnessed many past cases of abandoned projects during economic downturns.  The banks will own the "project", land & whatever uncompleted buildings and lelong it out to new owner.  If banks had disbursed partially loans taken up, would buyers end up owing the banks and need to repay the loans with interest but with no property, nothing to show?

Well  that time very serious..
This time might be even worse 😣

I'm not going to go into the intricacies to explain why a correction that deep will not happen.

To keep it simple, for asset price to fall that much the rental yield will have to fall significantly.

With no sharp excess supply pouring into the market it is simply not possible.

Unless COVID-20 appears and kills 90% of the world population. 

That is a fair assumption, correction is to be expected. But nowhere that as deep and wife, and will be short lived.

Developers have already and will slow down launches in the short medium term.

For those that are not strong, let them wind up.

Pity the buyers.

i am cautiously optimistic that our country may not suffered much from this and expected to recover with a strong pace.
the last few days has shown very encouraging results and the bank moratorium provided a very huge relief on a lot of parties.

take china for example. start of epidemic to lockdown to uplifting. what is the total period and its implication towards their economy and growth?
and by drawing similar comparison of theirs to us, i can see similarities.

fingers crossed the worst has already passed.

ambank FD promo 3.5% for 6 or 12 months
thank you for your succint summary. i think you are corect. people still need a place to stay , regardless of whether they buy or rent.

our population will continue growing. urban areas will continue to host foreign labor.