Mate, totally disagree with your notion that the economy is tumbling down. From early 2007 till the recent election, we had the best stock and property run in years and the economy is gowing on a steady pace. This is the reason why banks can afford to offer such attaractive rates early this year and you could see it today.

Bottomline : Economy good -> we get good rates. My bet is that the moment BNM gives a 50bp rate hike, very unlikely that banks will offer such attractive rates anymore.

i heard from an expert that the property prices would go down soon as some of those who took up loan would not be able to repay the loan, and then let to bank selling off the properties.....and these would lead to cheap buys

economics at work

Look around you. There are so many freaking properties around. This means supply.

And we, suffer from economic downturn and high inflation wouldn't not want to simply spend. This means demand.

So, if demand is low and supply is high... what do you think?

In short, in the next few years at a minimum in general property prices will remains unless those exceptional good properties...

India increase BLR by 0.25% (inflation 8.24% ), Brazil 0.25%, Russia 0.5%. China central bank increase reserved fund by 1%. all got freak out by the economy down turn in Vietnam, inflation 25%, BLR up by 2% to 14%. China is next on focus point for economy crisis, if she falls, we all fall.

I only cut n paste.

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Added on June 14, 2008, 12:01 amwait for 25th July BNM meeting, we shall know whether BLR will be adjusted , by tht time the effect of petrol price hike will be fully reflected on the economy / inflation.

This post has been edited by yewkhuay: Jun 14 2008, 12:01 AM

quote of the day "let's strike"

It's ok. We can agree to disagree

ok

My friend,..... surely u are not telling me that our BNM is getting ready for a bank collapse, right ? And therefore putting in this PIDM mechanism as a way of "washing their hands off" ?

Please talk to me/us........

Auction properties are troublesome and risky for the inexperienced...

With prudent planning, buffer savings and spending cutbacks - majority of existing home buyers will ride through the recent petrol price increases.

Right now the full impact of building materials increase and petrol hike has not been fully realized in the pricing of existing properties.

There's never been a better time to buy new ready build properties. Supply is high and demand is low so why wait for foreclosure/auction houses

Anyway I'm not a investor my views are just casual observations what do you guys think?

Cash is king? Not so with the impending onset of inflation.

@joe_mamak,
It still is cause it's 'liquid'. With cash, U be able to do and buy what U want during a recession. And if buyer's desperate enough, U get it for a relatively good price.

If U've got ur cash locked up in properties, U will need to liquidate it off first and may lose out in a recession.

This post has been edited by tinkerbel: Jun 16 2008, 01:04 PM

I get your point about it being liquid. But looking at how inflation is going to hit us, holding on to cash is also not a good thing.

Maybe we should look into other forms of investment. Something that is not cash which is not keeping in pace with inflation and not properties which lock up your money long term.

For Bumis, I suggest ASB. Just mafan a bit to sign form, go counter and queue up to withdraw your money.

@joe_mamak,
And just what exactly do U suggest as an alternate form of 'investment'?

I really haven't figured that out yet. I actually have most of my money in FDs.

3.7% p.a. returns only. And I am pretty sure the real inflation rate is higher than that.

Lets see, unit trusts. So many out there and some are not really giving that good returns. But I read that Public Mutual won many awards recently for good performance in their unit trusts recently.

Share market. Too busy to monitor. Also got burnt (a bit) before....once bitten twice shy.

@joe_mamak,
If U want to beat inflation, keeping the $ in FD isn't the best way though it's the safest. But in light of the soft economic situation, I still think CASH is KING

If you are bullish on commodities, you can consider gold and commodities(CRB) ETF listed in SGX. In the short term, there is 'noise' to curb excessive speculation in oil market.

Note:commodity stocks and commodity futures behave differently during equity bear market. In equity bear market, a commodity stock follows closer to direction of general market than direction of price of a commodity.

This post has been edited by oumind: Jun 16 2008, 05:26 PM

@oumind,
I haven't bothered looking at other alternatives just yet as I've put my funds into a property *grins* [I know it's weird esp since I been advocating this 'cash is king' concept]

I'd say anytime is a good time to buy a property with the RIGHT fundamentals.

Hi, I'm newbie here. This my opinion on how the rise of petrol can affects properties price. I think the price will increase because people tend to seek a property that is in vicinity of their working area to save petrol cost.