hi, i'm new to Property Talk.

I have a 2-sty house.... if i sell it now i will get some profit, but according to my brother and News from newspaper this year all the houses/apartment.... will increase price from 5-20% because of all the building materials are increasing price.

I'm very confused now please

Is there any expert here? Who can share about your comments and opinions?

it will increase............property is a lagging market, so if anything happen to the economy now, i.e fall, the property market will not fall so soon yet.......maybe it will be affected next year or somethuing

Prices of raw material had increase drastically over the years and recently the raise in steels.
So the effects might leads to a slow down in property market but it wouldn't effect the existing property price much. It would effect mostly new developments.
Basically your property would have a much more higher chances of selling off as I predict consumers would start looking for 2nd hand property.
So if your property is selling slightly lower than the market price whereby I also predict everyone would be riding the waves and increase their selling price, you have a higher chance of disposing your property quite fast.
But obviously you need to make sure you gain substantial profits to your returns.

yes, I think it will increase since the demand > supply (2nd hand property).....

So i think I will wait another 1 month... see what will happen first... hehe...

will not drop in a night... lot of factors to count in

Is the property still under loan?

Well, depending on what kind of theory you believe.

I had talks with lawyers & bankers this past few weeks.

The lawyers are telling me, the number of S&P & loan cases is on the decline. Which translate to the buying power of consumer or the demand is on the decline.

The bankers are telling me, based on the current scale of disposable income of most assignor/chargor, if the BLR go up by 1.5-2% in the next couple of years & assuming their income didn't increase. A lot of property will be put up for auction (yeah, as though now still not much enough).

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Added on January 8, 2008, 11:17 pmOn the other hand, building material prices will only go up & land is something not in production anymore.

So if your property is at a reasonably good location & better if it's landed. Rest assured that the value will only go up.

Although the price might stumble from time to time. Hey, supply & demand theory applies.

This post has been edited by scorgio: Jan 8 2008, 11:17 PM

Landed property home price would increase in the future as material cost keep increasing and less land for development especially in Klang Valley.

Can't say the same for Condo/Apartment as there's always a new Condo project as the footprint is small and the density is high. I believe highrise apartments/condo price would be stagnant for now. just look at the number of auctions for the newspaper. This however does not apply to KLCC area.

However, having said the above, landed property sales is kind of "slow" nowadays and most developers are going into higher end lifestyle/boutique development where there is still a market for it.

This post has been edited by Gen-X: Jan 9 2008, 04:30 AM

Yes, my 2try house is still under loan, actually I got my house key mid of last year. Now they are few buyers negotiating and thinking of buying my house.

Do you mean BLR go up by 1.5-2% in this year?? Really?? I don't think so, otherwise why so many banks and insurance companies offering Fixed Rate at 5.X% ??

That's what i'm thinking, but actually my house has increased 40% of the price i bought it. So do you think it will still increase because of building materials are increasing a lot ??



Perhaps I shouldn't consider too much... just sell it and earn the profit of 30% of the price i bought. (10% goes for agent commission and bank interest)

Read the fine print on your loan agreement regarding early settlement (since you mentioned getting the key last year).
If I'm not wrong your assumptions on 10% goes to agent commission and interest is not that accurate. An interest penalty is higher at the start of the loan.
So if the you're tied down to 5 years rule, the 5 years starts upon final and full disbursement by the bank and not on the initial signature of the loan.

So read back and calculate your actual earnings after you've paid the bank's penalty and also lawyer fees in changing hands and settlement of loans.

imo, prices will go up. Future cost of construction and land acquisition will only go up, and ctrong foreign investments will only drive the price up further.

This is before we even consider the upcoming rising inflation.

Like I said, it depends on what theory you believe in.
If you think your hse might worth more, then hold it.
If you think the value is at a high now, perhaps u could opt to realise gain & look for new opportunities.

And with regards to interested buyer. There're a lot of unknown factors. Until the money's in your hand, nothing is certain.
Factors like buyer couldn't secure loan, or couldn't secure necessary amount of loan etc.

Eg. my uncle's hse in Kelana Jaya, got agent called & said someone offer RM400k but uncle wanted RM420k. So the so call interested buyer said he's ok with RM420k but want to wait till CF issued. After CF issued, fella can't be contacted. And the hse's vacant for 18 months till now with For Sale/To Let sign at the gate.

Eg. a friend owns a unit at Heritage, Mines. Studio unit. Buyer offered RM250k (same price as developer price but friend's unit got little more extras). Bank's valuer value the property at RM150k only. Buyer failed to secure enough loan. Deal blown.

I'm no banker & I don't know anyone at BNM. So I can't judge the fluctuation of BLR.

What I meant was, if the BLR really go up & assuming salary don't. A lot of people would have problem with their respective instalments.

Yes, I'm aware of it. I also count that in...
Agent commission is 2%
Early settlement is 5%
Interest pay to bank is like 3-5%

That's why i said 10% ... hehe


Yes, for the interested buyer. I fully agree with you. I have 3 interested buyers, three of them also want to get a loan before they pay me deposit. I think is good to delay so that I don't need to make a decision on whether sell or hold.. perhaps when they want to pay me the deposit I would have increase the selling price

I really think in the coming 1-2 years there wouldn't be a big change on BLR...otherwise bank and insurance company wouldn't offer fixed rate at 5.X%

definitely property price will up. raw material all up. But, of course no matter how high the buyer shout for the offer price, it eventually will have to wait till the pay u deposit.

by the way, since u just got the key, it might be a very good ideal to sell since it had 30% profit.

early settlement 5% ? well, i thought it is 3 % which based on the remaining loan. from what i know, u can totally waive this as long as the new buyer get the same loan from the same bank at the same branch.

Keeping might be an ideal option if you re hitting for the long term, but if you are in need of cash and there is a good profit ratio, why not?

I have a single story terrace home in JB (Taman Rinting). Any insights on this? I bought it in 1995 and fully paid for it. Market has been going down since than. Looking forward for a forecast since I want to sell it. Should I wait a bit before selling it? Where can I post an ad. if I want to sell in this great forum?

price going down? i believe it is the thing every owner dont fancy.

by the way, can you please specified what is the nearest and highest offer price from any buyer from you or any recently transacted house in this area ?

lastly, i believe u should have know the reason why the price goes down. can u also please highlight here ?

good luck.

how much did u bought it btw?

Just to update to you guys, I have sold my house.

Good for you!!
Anyway, care to share how much the actual profit returned? Is is the initial estimation of 30%?

I bought my 2 storey terrace at year 2000 is rm 268k(used)but now the market value is around rm190k-200k cos of too many new house project at JB.

better buy landed if u can afford in KL.. Prices rising extremely fast.

overall property market shud b stable this year if not boosted ... however investing in property is not juz looking the market overall ....

main thing is location .... if u buy at kota puteri / rawang / ulu yam ... dun expect to earn ... consider lucky if u dun make losses ... ( its a wrong notion tht every1 tot property will not make losses )

haf to c location ... design/concept ... targeted market segment ( is it large enuf ) ... similar projects nearby .... future development ( if a place is near 100% developed like cheras taman midah .. i doubt the price will increase drastically but these place stil can fetch a decent rental n very stable as the neighbour matured ) .... long term / short term ....