This will result in the property market crashing but in the long run will be good for economy. Landlords will reap the benefits as young folks will be unable to afford their first home for years. The good thing is that lowering the DSR will actually stop those highly leveraged investors.

The real way for the property market to grow is to improve economy and raise people's salaries. Now it's all "artificial".

Back in those days before the emergence of corona virus, many developers want to sell the large number of unsold units despite openly and shamelessly shouting "last unit for sale to be your ideal home."

These developers engaged multiple sifus and gurus who then organize seminars to "educate" the mostly innocent public at large on how to join property investment with the ultimate objective of selling them lower-than-bank value property. Those property price is in fact jacked up. Then the cash back gimmick starts to come along. Remember those compressed loan news articles? Those are the ones.

After some time, even banks don't want to do any more. Developers have no choice, then they do bulk bulk purchase. For first few projects, it did succeed, but after that a lot of projects using same trick got burned.

Few years later, the developers had to change their tactics. You know what, they now talk about cash flow cash flow cash flow, you know why? because those are for suckers. MCO strike and people are afraid of losing rentals. So they adapt at whatever market want and continue to do their seminars. The best part? You had to pay a shitload of money to join these seminars as buy ins, once you joined it there will be package offered. You will definitely take it cause you already paid for the seminars.

Now it worked like this, previously it was the property selling, now it was the renovation/airbnb package selling, see the difference? after they execute the package, they promised to find tenants and subsidies the tenant to stay for a while. How they subsidies it? They can even request rebates from the agents, think about that lah! Imagine those owner take out RM70k package, they had been promised RM5-6k, for first two years they get the tenants to cover for them, then the rental follows market rate RM3-4k, this type of scenario I seen too much."

Yet there must be differences between fully furnished nicely renovated unit and a bare empty unit, right?

An acquaintance of mine bought quite a few units at KLCC along with his staffs and friends. All rich guys with listed co background. My acquaintance renovated RM100k and rented it out at RM3k. His staff just rented it out bare at RM2k. The difference of one thousand ringgit. That is in KLCC. Imagine here at Bangsar South. Think about it. For the difference of one thousand, you'll need to first spend RM100k for it. In ordinary cases, even taking whatever package will cost the owner a whopping RM70k, it is a risky propositions.

And along with it a lots of owners are thinking the same and everyone else doing the same, it is not easy to fight for the same group of renters who are willing to pay such hefty rent? RM5000 is not a small amount. Look at that super atas building, they want RM7k rental, what they end up with? --- Low occupancy.

What about the property agents? They mentioned they rented out? and keep on emphasizing got strong demand?

Well, property agents who list with high price are only trying to get wealthy owners' profile and data. If property agents list low price means they want to get tenant contact and offer them to rent somewhere else.

There are many apples on sale from kaki lima, pasar pagi/malam, mydin, tesco, jusco, jaya grocer etc etc different seller, different source of origin, different season of the year

Pick one lo, or not eat apple at all. You can pick a rose apple over 5 for $20 ones, right?

Why not getting to the point?

You have any bad experiences with property purchased? Sale person? Red tape? Procedures? Timing? Developer cajole you?

Come share because i have herebefore read what you posted above (along that lines of yours) at other thread. Copy over and paste here.

This post has been edited by jojolicia: Feb 3 2023, 01:13 PM

When Mah Sing launched this project next to a highway with no public transportation link, I could already see the problem when they advertised 400k+ units. Just take it as a lesson learnt to not blindly trust the developer pricing.

I have one unit with LRT link connected to unit and even this one quite a struggle to get decent rent or sell but at least the market price barely goes up from initial purchase, in case purchaser feels need to offload.

Wait until u hear this nightmare proj in Kuchai Lama, near MRT, sold out proj yet go ABANDON…buyers suffered massive devaluation with losses no end in sight…still have to pay interest to bank…those who unable to pay will defaulted and masuk AKPK, very famous and rocked the Malaysia property industry

When the going gets tough, the tough gets lelong

FOMO will likely trapped.

My guess is that they didn't plan properly. An experienced developer will normally be able to start construction once they sold 50% or if they have deep pockets. If you are fully sold, there should be enough cash flow to complete the project with profits to be taken at the last few billings. Either the moneys for the construction were utilised for other purposes or there was unexpected red tape or they grossly miscalculated the costs or the contractors refused to start because they will lose money. MCO, labour costs, material costs etc all contributed.

With all these long list of possibilties, how does HDA comes into its role to protect these housebuyers? Or implementing build-then-sell will be the best solution?