Hi All,
Is it good to invest in property now, in this current situation?Just curious to know... Since the PPR is keep on increasing and election is around the corner, will it affect the property market or price in near future?

Oh no ! Not another same topic

buy buy buy..

If you are asking this kind of questions, it means you are not ready ..

Always buy later, plenty of choices

I used to ask this question. Now thinking back how much time I wasted without doing anything but just thinking only.

My advice, do it first, then decide how to tackle it later. That's life.

buy now to lock in the price

price will never go down

I used to ask this question. Now thinking back how much time I wasted without doing anything but just asking myself and thinking only.

My advice, do it first, then decide how to tackle it later. That's life.


This post has been edited by lewissac: Nov 3 2022, 11:33 AM

if landed, now is the time

if high rise, later is better cause there will be alot of units left

What location, class, land status, budget?

Anytime is a good time if one has the money.

Have property but no money is only a dream.

commit now is better, few years time you will thank yourselves. many people age already still no house and getting harder to loan as they age. end up no house

If you are buying for own stay.... no need to think more, just find an affordable and suitable unit for you and buy. If you are thinking of investment... can wait

Hi, kindly advise you read this thread first before making decision:
Thread topic:[will you think property market will fall soon?]
https://forum.lowyat.net/topic/5290620/+460#entry105746136

My advice: buy for ownstay can, investment just No. There’s no investment will always win, if always win one that’s not call investment already.

Just think of it.....
What would happen if ringgit
keep depreciation?

Terrible time and economy to buy for strictly investment purposes unless you have money to burn and to hold for long term.

For own stay, there's not really a wrong time to buy, as long as you can afford it, the property is sold at fair market rate, and the property fits your minimum criteria.

ssume u work in SG, u buy a condo in Msia for ownstay. Ringgit depreciates. Happy for you.... use less SGD to pay for instalment.

rate hike again leh, put in FD much more promising compare to invest in property.

cash is king

Noted.. TQVM....

Precisely why we should get property (for ownstay definitely). "Cash value" always depreciates overtime. Investment is a good way to mitigate that. But I don't buy the idea of using property as investment. Especially those Gurus or SA who kept saying buy then rent out until breakeven then buy again.

This post has been edited by lewissac: Nov 3 2022, 02:37 PM

U can invest anytime if you have the extra money. Largely depend on your own financial situation. Nobody can predict the future.

There is no right time to buy a property. There perhaps was a sliver of added opportunity during Covid when business opportunities were lower. You have to consider your goals with available opportunities at the time. Even then, the aftermath of Covid still presents many buying opportunities at the expense of others misfortune. But that’s the way it goes - real transference of wealth always has a winning and losing party.

Buying direct from a developer is like buying direct from a retail shop, rarely is it good value. If you want real good value, then you gotta go the factory outlets, clearance sales etc. Same principles apply for property given that high rises particularly are just a seasonal product.

This post has been edited by Cavatzu: Nov 3 2022, 03:56 PM

If own stay. Is your financial status makes the call.

Unless you can confirm or guarantee your investments can give you a near or 5 digit return per month then you don't need a property, just rent entire life

This post has been edited by elimi8z: Nov 3 2022, 11:04 PM

yes it is good to invest now, if u hold long term.. and PPR price not so outrageous like most condo.. if u can afford why not go ahead.. 5 years time definitely will appreciate

Like all investable assets, there is time to buy, hold, sell and abstain.

Until poorperly overhang is reduced substantially, price will remain suppressed. Poorperly price rise slower than loan interest and expenses incurred is a financial losses or under water.

Leverage amplify profit as well as losses. Historically, rising interest rate and liquidity tightening will reduce demand and vv.

This post has been edited by icemanfx: Nov 4 2022, 04:28 AM

If you look at the forums about 8 years ago, everyone seemed to expect average unit prices to be above 1k psf but it hasn’t happened of course save for blue chip areas. In that case, prices have pretty much stagnated since then and in some cases regressed with developers building smaller and more densely.

There’s definitely good opportunities to buy but be smart about it and pick wisely. For investment, you need to be even more on the ball with the figures.

If you’re a first home buyer now compared to back in 2015, you’re in a much better position. Those who dipped their toes back in the day most likely are carrying an equity loss if not lost their property because prices were sky high and supply is not like how it is now.

This post has been edited by Cavatzu: Nov 4 2022, 08:15 AM

Based on the FED and recession, I would say its a buyer market now. More and more property will be let go at fair price rather than inflated price if you are patient and wait until 2023

Material cost increased, Labour cost increased too...in future maybe the same price can only get smaller unit, just my opinion

Its not opinion, its factual.

The funny part with ppl here, i demand gaji tinggi so&so, but in denial to accept his/her gaji is part of the costing to the value chain.

This post has been edited by jojolicia: Nov 4 2022, 10:25 PM

I will say the best timing to buy property have 2, one is 10year ago. And another one is now when your loan profile is ready and doing enough homework.

Materials cost and labour cost increase have zero impact on completed or subsale poorperly. over 80% napic transaction is subsale.

if one die die must buy overpriced new unit then no one could help you.

Yes.

And i wonder if subsale property is benched to kangkung price index in your logic?
You now try buy a free market 10 year old property (2012) of then purchased price, then only talk

Or you now want try to buy the then 30 year single storey landed rumah murah (public housing) sold then at rm25k. There are many still standing (tho many renovated, till like rumah murah istana, some even 2-sty now)

I doubt if you understand valuation

This post has been edited by jojolicia: Nov 4 2022, 06:49 PM

Yes indeed, valuation is the key to a transaction.
Price of a house is based on the perceived value.
Willing buyer, willing seller.

I have been seeing you repeating this over and over, all over the forums.
Let me be frank with you- it’s not zero impact. You are wrong.

Let’s assume that for a particular location, a recently VP condo A was around 400K - SPA price.
Due to price hike in materials and labors, a new condo B, directly beside condo A has to now be priced around 500k - assume the land title, unit sqft, facilities are the same for both condo.

Now let me ask you - as a buyer, will you get a 400k condo A assuming you have enough for the DP and fees? The answer is yes. If you say no, there will be others fighting to buy and it will probably be sold at 450-460k.

And there you go - easily 10% rise in price. You have to understand valuation - it is a key to transactions.

The moment you pause and then ask whether good time to buy or not, interest rate also raise. Then soon material price also increase, and then property price also raise.

So ask yourself whether still a good time to pause and ask those question? Instead of bite the bullet and just get it.

This post has been edited by lewissac: Nov 4 2022, 09:38 PM

to be honest if you got money then anytime is the best time haha

if got hair nobody wanna be baldy

you wan forkout 100k cash to buy a 500k subsale (downpayment legal fees & rennovation) or save the 100k to buy a new property of SPA price 600k selling at future value of 50k-60k extra with fully furnish?

ownstay maybe yes, investment wise i doubt forking out 100k on property is a good investment, I rather pay 10-20k max for a new property and remaining 80k into EPF

In bold basically is a cost effect that translate to the value chain.

Does one think in particular highrise resi (commercial title) shot up from 450 to 700 (base band index), high and higher density plot ratio for no reason?

The red tapping pass down cost is one. If you know, you will know what i mean in the new Mix Income Living urbanisation module

This post has been edited by jojolicia: Nov 5 2022, 03:55 PM

Agreed. If buy with the intention of ownstay mindset, maybe wont so heartpain.

I have same thought process as yours. But since I dont have enough cash, then no choice, make use of rebates offered + 90% loan. Otherwise, I would go for subsale too if available and suit my preference.

If you are in poorperly market would know; there is price difference between developer and subsale of older unit of similar size in the same area. during bull run, subsale may track new launch price in the vicinity but not current market sentiment, and price different could be significant. for reasons, subsale poorperly transacted price will remain largely stagnant for the next few years.

There is no free lunch, legal fees, etc is included in spa price. if one couldn't save enough for down payment and legal fees, ze shouldn't be buying poorperly of that value. if one die die must buy overpriced new launch, no one could stop him.

leverage amplify profit as well as losses. for reasons, why many flippers are financially stressed.

This post has been edited by icemanfx: Nov 4 2022, 10:48 PM

If highrise, you may consider minimumly 1) use that rebate cash value (or allocate some) to pay up for piling and structure stage drawdown. 2) if you stop there at structure, for subsequent stages drawdown, pay up its incurred progressive interest till you commence your 1st instalment.

There are reasons for this outlay.


This post has been edited by jojolicia: Nov 5 2022, 12:09 PM

very simple, you got money u go buy subsale
u got no money then buy overprice new launch, since rebate, legal fees & furnishing already factor in

difference is you wan pay the upfront cost now or pay by installment with interest

one could pay by installment (buy new project) and put the remaining saving into epf

If one couldn't save enough for 10% down payment and legal fees, could be stressed to make loan repayment.

In an ideal world, buying subsale from someone who has fully done up the place and is still quite new could be a good buy. But as pointed out, the bank loan process doesn’t really support this.

But the virgin complex is still very strong with local buyers and there’s many cashed up buyers who still opt to buy under con things.

Rate keeps going up, make sure to consider this. Ensure if you need to repay immediately from subsale, then consider rm200 to 300 extra per mth on top of your bank loan. If not u die standing later. Many only consider bank loan as mthly commitment but forgot to consider rate can go up and mthly installment will go up.

That is why now plenty auctions for just VP and rather new units. If i were u, i consider auctions now, easily 30 to 40% below market. Some even below developer price. Just make sure to use proper agents to check all backgrounds before bidding.

Buying within own affordability range will not normally lead to any serious financial implications.

If at all the country facing financial crisis, majority will be affected ... doesnt matter good or bad buying decision.

In worst scenario, if borrowers suffers TPD, mrta will kick in, provided ada beli and the correct amount coverage.

This post has been edited by mini orchard: Nov 5 2022, 07:12 AM

Best time to buy is now. Jusr dont over commit to the loan

Higher home loan repayments may see OPR hike become an election issue
Jason Thomas -November 5, 2022 7:00 AM

Borrowers will now pay more for their mortgages, which is not a good idea given the economic challenges, according to economics lecturer Goh Lim Thye.

PETALING JAYA: Bank Negara Malaysia’s (BNM) decision to hike the overnight policy rate (OPR) by 25 basis points (bps) to 2.75% yesterday may affect voter sentiment at the upcoming general election (GE15), especially for those struggling with the increased cost of living.

In a bid to address rising inflation as the country’s economy emerges from a series of Covid-19 lockdowns, BNM has increased the interest rate by a total of 100bps since May from a historic low of 1.75% during the pandemic — driving mortgage payments sharply higher for property owners.

Speaking to FMT Business, Goh Lim Thye, a senior economics lecturer at Universiti Malaya, said Malaysians may be agreeable to the rate hikes if the economy was booming, prices were stable, and they had additional savings that could be pumped into repaying the higher mortgages.

“But people are struggling to make ends meet and prices don’t seem to be coming down at the moment. I am definitely not in favour of policymakers increasing rates at a time like this,” he said.

“They should be thinking about what they can do to lessen the burden of the people who have to deal with higher prices in addition to the interest rates… instead of OPR hikes, which do not seem to be effective right now.

“I don’t think the timing is right based on the current economic and political sentiments (and) it may lead to anger, thus affecting voters’ sentiments,” Goh said.

On Twitter, licensed financial planner Hann Liew explained that a 25bps increase amounts to an extra RM35 per month for every RM250,000 of a loan’s principal.

The rate hike, which is BNM’s fourth in a row, also comes as the ringgit ended at an all-time low of RM4.74 against the US dollar yesterday, thus increasing the cost of imports.

This is key considering how the country’s dependence on food imports has been rising. Malaysia imported RM17.8 billion worth of food products in just the first quarter of this year. The food import bill amounted to RM63 billion the whole of last year.

The central bank said on Thursday that the latest OPR adjustment would “pre-emptively manage” the risk of excessive demand on price pressures.

Facing criticism over the hikes in September, finance minister Tengku Zafrul Aziz then said that the government does not intervene in OPR decisions as they are determined by BNM’s monetary policy committee, adding that the country’s OPR before the Covid-19 pandemic was at least 3% since 2013.

Although he didn’t think the OPR hike would be an issue at the Nov 19 polls, Center for Market Education CEO Carmelo Ferlito described Zafrul’s statement that the government had no hand in the rate hikes was “only partially true”.

Ferlito acknowledged that while the government does not interfere in BNM’s decisions to raise or lower the OPR, he said the current rate hikes were aimed at addressing inflationary pressures that were created in part by the government’s RM530 billion worth of economic stimulus packages during the Covid-19 pandemic.

“We have inflation pressure because of the excess of money in circulation at the moment (due to the) mix of different packages during the lockdown (and) money creation, money printing, money borrowing and extremely low interest rates,” Ferlito said.

“So what Zafrul is saying is only part of the story. The rising (OPR rate) is a reaction to past decisions for which both the government and BNM have a (shared) responsibility,” he added.

After ge15, bnm opr rate will likely rise higher else RM will devalue further and inflation rate remain at elevated level.

Hmm during pandemic, government want to stimulates the market and bnm reduce the interest rate not only want to help people who are struggling, but also attract the winner (certain industry) to spend more. But the lowest opr rate also trigger the purchase desire for those who are normal status (not affacted by pandemic but not get benefit from pandemic industry). So the struggle one for sure will not buy property during lowest opr period, the winner industry buy alot buy it's ok. The opr hiking cause those normal status people struggle now. Opr increasment not only can't defend the inflation, at the same time opr increase the living cost.

I believe now is only a start point. The real economic recession will come when the opr rate come higher than 3.25 (which is highest point during 2019 march ore pandemic period)

Increase opr is one of the very few tools available to bnm to tame inflation. If opr doesn't rise high enough, RM will devalue further and inflation rate will remain at elevated level.

This post has been edited by icemanfx: Nov 5 2022, 01:30 PM

This, agree.
Another way, increase income.
Don't be mistaken as given income (demand) but instead Gov to create income generation down the value chain. Not ekonomy kangkong

This post has been edited by jojolicia: Nov 5 2022, 03:18 PM

One quick way to increase disposable income is to reduce taxes and red tape.

Much as we’d want to go up the value chain, it seems the opportunity has come and gone. Why hasn’t MAlaysia been able to secure much of the contract outflows from China? It’s all primarily gone to Vietnam and Singapore as HQ.

Why fdi need to face many restrictions, unfriendly posture, expensive opex, etc.

Agree. Red tapping cost, it sure is.

I know increase opr is a tool to control inflation, but at Malaysia it's situation is very special. RM devalue further is not the issued ready care by majority of the citizen, but living cost is.

Example, a plate of chicken rice. Before MCO opr rate is 3.25 per pax is around Rm6

During MCO it rise to Rm 6.5, during the time opr rate is 1.75

and post MCO it rise to Rm 7, opr increase at 2.75

Why this happen? Refer to cooking oil price and raw chicken price. Because government setting the maximum price and reduce the chicken farm subsidies. So the chicken farm have a small period have shortage issues. Then government start to restrict export chicken to Singapore. But the real issue is, if sell to Singapore the chicken farm can still get profile dur to currency but sell to local is rugi money.

Chicken rice, coffee, sugar etc is the thing Malaysian eat a lot, it ready affected Thier living. So from this situation you can see. The increasing of opr was increasing the people burden. And I believe chicken rice will never drop to below rm7 anymore. (For example scenario, I believe some seller want to do clarity or certain rural area still sell cheaper price).

Not ever gonna happen ........ in fact public sector employees will keep expanding until we become Sri Lanka #2 or #3 😵‍💫

Chicken feed, sugar, coffee, fertilizer, etc, over half of food stuffs are imported. Devalued RM and rise in minimum wages has caused production cost to gone up. If selling price is not profitable, it is natural for producer to reduce production.

Bnm opr rate rise is to tame inflation rate and strengthening RM else inflation could be out of control. Continue RM devaluation will cause inflation rate to rise further e.g turkey, Pakistan, Sri Lanka, etc.

If majority of people didn't learn from the experience of the last 60 years then they deserve the outcome.

You need to fall before you get back up again ....... Karma is a bitch after all 🤷

The harder the fall, the better the changes.

Changes may not be for the better ........ and will take double the time just to recover back to pre-fall, so good luck to those peons still around by then 😅🤞

It’s not about the quick crash fall. It’s the agony of being slowly suffocated for years like in a crowd crush before you lose all will to live. Wouldn’t wish it on my worst enemy.

This post has been edited by Cavatzu: Nov 6 2022, 09:37 AM

After afc 1997; gomen chose slow suffocating treatment. hence, the economy and market didn't recover until after 2010. as next gomen whoever may be, will lack political will to take drastic measure, will likely follow post afc 1997 policy.