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.

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.

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.

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.

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.