Both I think, as there was a case recently whereby a RE agent had advised a owner to mark up their original asking price by 30% and the owner is happily doing so and felt fortunate that they didn't sell it earlier. The house is still not yet sold.

This post has been edited by qooconcept: Oct 25 2010, 02:17 PM

I thought about going, but didn't.
I also thought about investing in a property that hadn't appreciated that much yet, but after much thinking decided not to.
Reason was that even though it hadn't appreciated that much, ie about 20%, I still think it's too much, and the risk is not worth it. I'll wait and see if it drops back to a level I'm comfortable with. If it doesn't I'll wait for another opportunity.

If I had an investment property now I would try to sell it of asap at cheaper price then usual asking price. Anyway, I'm a risk averse person.

http://thestar.com.my/news/story.asp?file=...6176&sec=nation

another idiot suggestion from our minister.
if buy a house need to extended the loan to second gen, that mean m'sia in a very worst situation.

haha~ our G hardly foresee or care much bout the future... same goes for cronies, they will get watever available as of now...

the joke of the year i wonder if our minister feel stupid for himself to say this

I went there as just nice pass by, they were up to their usual tricks again. Try to enquire for some units, all already has red sticker indicating "SOLD OUT" already, padahal their booth no people at all.

With all these crazy price increases, it is proof that the property bubble is already happening. As with all bubbles. it will burst and those who have bought at much inflated prices will pay a heavy price. Only upscale and stable areas will be safe. So please do not even consider buying properties in non - prime areas at these over inflated prices.
__________________________________________________________________________________________________________________________

Property investment in the new decade

The times have been good for property investors in the past couple of years. Prices in certain areas, particularly in selected areas of Kuala Lumpur and Petaling Jaya have risen significantly, some as high as 50 percent. And as a result of this rise, practically all property investors had made money. In fact, some people have seen their net worth jump up by 30 or 40 percent because of the price rise. For example, a young colleague who purchased their house two years ago saw the value of their house increase from RM950,000 to RM1.3 million today. Of course, the owner was all smiles when they told me the story.

I am happy for them. As an avid property investor, I have benefitted from the rise myself, so I am certainly not complaining. At the same time, I must admit that I have some reservation about the whole scenario. The price rise has distorted reality to many investors, including my colleague. Because the price climbed up as soon as he bought the property, and remained at a high level even today, his view on property investment is seriously distorted. He thinks that:

1. Prices will go up as soon you buy a property.
2. The gains will be in double digits per annum.
3. This is normal.
4. Prices always go up.
5. It is easy to make money in properties.
6. He is a super genius when it comes to property investment!

Long-term property investors will quickly point out that none of the above are true. That’s right – none! For starters, I can tell you the current situation is exceptional. It wasn’t like this five years ago, and certainly not ten years ago. I can also tell you that times are not going to remain this good forever. Prices do not rise to the sky, and interest rates do not stay low forever. In fact, interest rates has already climbed (or to use the toned down term of ‘normalised’) by 75 basis points already this year.

Why am I so sure of this? Simple; I have seen similar euphoria before (the first in the mid-1980s and then in year 1997 during the Asian Currency Crisis), and the story did not end well on both occasions. Like most bubbles, prices edged up slowly initially. The initial buyers made money and this attracted others to invest into properties as well. And as prices climbed higher and higher, the euphoria got to the levels that some people were rushing to buy because they were scared that the prices will spiral out of their reach if they do not act then. But when the market crashed, as all bubbles eventually do, a lot of people were seriously hit, a lot of money was lost, and that included seeing their properties being auctioned off by the banks.I see the same story being repeated today. On top of the ever present dangers, there will be massive challenges in this new decade. There will be much turbulence in the coming days, and some of them will be unlike what you and I have seen or experienced before. This may include double-digit interest rates, multiple bank failures, currency crashes and explosion of the derivatives market.

As a result of the new challenges, the investors using the current success formula of buying five properties at one go (by paying the minimum down payment and borrowing to the hilt) will be seriously hammered. They will experience much pain, to put it mildly. Some people will lose their properties, some will lose more than money and yes, some will become ex-millionaires.

This post has been edited by cybermaster98: Oct 26 2010, 11:22 AM

Gila.

First born baby coming to world already in debt.

i agree but there is still no one listen your advise

This is Azizi's recent article rite? Few things :

1. He claimed to be an avid prop investor - Not so sure about this. His best purchase was during 97-98 crisis, and he only made 100% returns over 12 years. Can think of many others within my circle of frens who's done better, so technically they r more "avid" than him? This fella clearly makes more money selling books n seminar VS his prop investments.

2. Whats the point of predicting a downturn but dont share exactly when? Eventually he will be proven right but that doesnt make him a super genius investor? As an example, I could also predict that it will rain this week but that doesnt make me a genius weather forecaster right? Eventually it will rain, anyone can predict the same.

3. This guy, does he share his real portfoollio to public.......? A good author doesnt maketh a good investor............

Those who cant do teach!

just want to know, if i am offered to sell my property for 20% more compared to current market value, can i say that this is a good deal?

Depends on your property value. For example 20% of a 200K property is only 20K. The costs of the lawyer fees , etc wont be worth it. But if your property is 1 mil then 20% would mean 200K which should be good.

If your estimation of market value is correct: the answer is yes.

The question you should ask yourself is why would somebody pay you 20% more then market value?

Feng shui?

This post has been edited by qooconcept: Oct 26 2010, 05:17 PM

Possible.
eg. your house is renovated, facing playground, and maybe other value add.

Just do a simulation of your real profit after minusing all the lawyer fees, bank penalty etc and do a nett profit% instead of market rate profit%.

hahahha...pity the new generation
they will curse their own parents later

some stupid minister.... borrowing across generation... what had happened that screw his brain so much? profit from developer, cronies,???