Haha most people are quite optimistic. Few days back I started a poll asking what people are doing to prepare for recession and most people are confident that our economy will remain strong even if US which is the biggest consumer of goods, goes into a recession.

While in parallel you see people complaining opr going up, inflation going up, people requesting for epf withdrawal.

Ploperty flippers will face reckoning soon. 15 years of non stop printing allowed them to party for so long. Now there's no more moratorium or EPF withdrawals to help them stay afloat.

For those who say material labor cost up, how can ploperty price go down? Just look at US. When nobody buys, the market doesn't give a fuck if your cost has increased. You sell cheap or gulung tikar.

When there is a major recession, most will be affected but not all. Also, it doesn't have to drop like 90%. Even I don't want this country to be like Sri Lanka. But in a major recession it can drop 30% to 50%. Again using US as reference, during the GFC, properties dropped as much as 50%. Right now, even before an official recession, luxury homes have already dropped 30% while commercial real estate CRE some have dropped as much as 80%.

I really don't understand why Malaysians are so confident of our property market like our economy is so strong. Even China is struggling in their property market.

The stupidest comment I always here is labour and material price increase. Like people must buy property and can't rent. Rental market is hot now, any guesses why?

A concept most people fail to understand.

US inflation berlambak gila but property price falling like flies. Nobody says material and labor cost naik price must naik?

So the property market in US how? No rich people there?

https://www.zerohedge.com/personal-finance/...e-35-crazy-peak

35% drop

https://www.wsj.com/articles/san-francisco-...ldings-471742ea

80% drop

Eh search yourself la haha. Already gave you a sample. Bay Area ya, not some ulu place.

4 out of 10 people I know have negative equity on their property. Even mine dropped 20% from peak but because I went in early they are still over 50% profit for me. If you think will never drop, feel free to buy.

Actually have you ever wondered why you spend so much time telling people on the internet that property price can and will fall? What do they give you? What do you gain?

I also asked myself that question. Also asked why do I spend so much time explaining why leasehold is different from freehold.

It's a waste of time. But I can't stop myself because I do have quiet a bit of time.

Perhaps we should just keep quiet. If you wanna be evil, maybe encourage others to buy.

This post has been edited by Sihambodoh: May 6 2023, 11:35 AM

I too have many. But people won't believe until they sendiri kena I guess. Ask anyone underwater and they will tell you they regret buying property.

For those gurus agents who keep encouraging others to buy, they will face their own karma. We can't control everything.

Not all who are calling for property correction are newbies who own and know nothing or will be affected by a major recession.

Most can't or dare not buy, but what makes you think the so called newbies won't buy in a crash? You assume they are salary man like yourself?

Making money is not about having the balls. It is about using the brain. If you wanna use your balls, use in a fist fight but even that you might lose to someone who uses their brain.

I got my net worth and my 2 fully paid using my brain. And I sure as hell won't use my balls in my future purchase decisions. That's what separates you from me.

LOL, am I supposed to say "oh no please don't add me to your ignore list?" Please don't I am so sadding.

I never said never buy. I only said property market can and will crash. I used my brains and bought two when the price is low and the seller is desperate. He probably never thought he had to sell his property at a loss.

Anyway I yield. You can buy more if you think the price can only go up. I will be rotting here without salary waiting for the crash and then I'll snap my third one.

Cheers

When in a recession, there will be lots of desperate people. You don't need to try to find one.

The question is do you want to be part of the desperate people group or do you want to be the group 'helping' these desperate people offload their properties?

For me, when the market is good, just put your money else where - dividend paying stocks, EPF if you have above a million, ASM etc. When the market falls, then almost everyone will be thankful you are buying their properties at a discount.

To reiterate, I am never against buying properties. I am merely saying like all investment instruments, there will be ups and downs. Those who think it will always be up are either oblivious of market cycles or arrogant. They can be trapped when they buy a property at the all time high just before a crash/recession.

For example if you buy the Mirage by the Lake at 1m and now subsale 450 - 500k, yes they are right that in the long run it will go back to 1m and in some ways 'properties will only go up'. But why wanna be caught buying at the all time high and only break even 20 years later? 1 million can be worth a lot in 20 years if invested properly, but those who bought at ATH will be the bag holder until 20 years later, already lose to inflation.

My principle is never buy anything at all time high, you have more to lose than more to gain. Nothing to do with whether you have balls or not. So many people like to buy high sell low, maybe they use their balls to do their thinking.

Just to add to jojolicia's comment, if you are dependent on your job to fund your property purchases, then he is right that in the event of a market crash, you may lose your income and lose the ability to buy cheap properties.

This applies to most, not all.

Another comment. I think people like TrialGone, iceman and myself have no agenda telling others the possibility of a recession/market correction.

Yes we are more than happy to buy cheap properties, but our words are not going to influence the entire market that it actually corrects itself. It will correct itself not because of our words but because of greed and arrogance.

What we are doing here, or at least myself, is trying to help others have a different perspective after seeing others make the mistake of assuming properties can only go up.

if you don't believe it is really fine. It is your money after all.

I have to disagree with your statement that if for own stay price movement has no impact. Taking the example of Mirage by the Lake, if you bought at 1m, now subsale 500k, are you sure you won't feel anything? I know I would be so butthurt lol.

Well nobody can predict if the price will go up or down but some times it is quite obvious. For example now, global tightening, interest rates going up, banks collapsing, companies retrenching, EPF no more withdrawals, what do you think the price of properties will be like 12 months from now?

So why buy now when you can get a better deal 6 to 12 months later? Instead of paying 5k installment, you could be paying 3.5k and have 1.5k extra to put into ASM. Just saying.

This post has been edited by Sihambodoh: May 7 2023, 05:54 PM

Past lelong purchase price is a good indicator of fair value for a property.

You sounded so butthurt, haha. It's your money ya. You don't have to be angry because someone on the internet tells you the property price might drop in 6 months.

Rileks brother.

Or maybe they are property 'owners' on 30 year lease from the bank. Sure butthurt if they have negative equity.

Buy from bank 800k, after 5 years subsale 700k. Lol