Just example. Now a lot ppls suffering to service car loan, then how about housing loan? 2-3 times more required per month compare to car loan. From this thread some believe property price going to drop (included me), some believe prime location will stagnant or increase, some believe KEEP INCREASING due to raw material. As I said, if 1st time buyer have enough backup money, just go ahead for their dream house. 1st house... normally is use for own stay, not investment.

Just my 2 cents.

Agreed, but same mindset also applied to bank loan, they stretched to 33% of income... some even stretched to 40% from bank. I found that 2 major reasons they will do this:
1) Money values keep depreciate (inflation, weak buying power in future for same money value)
2) They think their income will keep increase thru annual increment/other sources/etc.

P/S: Zero downpayment programme, it also happened to some housing development project (just need booking fee, free S & P and downpayment) ^^

(1) we are going to have recession ( i personally think it is rubbish )

Everyone needs to make sure that the get a FIXED mortgage loan for their house purchase. Interest rates are at its lowest at 6% in Malaysia history.

House of prices would stay stagnant for a few years and it will boom up again.

Raw material increase would force developers to abandon projects or sell with lower margin (price might be higher or same as now but cost has increased to lower down margins)

Steel, cement and etc have risen on average of 30%-40% a house you use to buy for RM 280k might now cost 380k. Developors should be able to sell between this region.

Consumers might not have buying power, so rental would be a good business. (ps: ppl still have to stay somewhere if they didn't buy a more expensive house) Rich ppl would still be able to afford those price and rents would be higher. So the rich get richer.

However price of current houses would stay stagnant, ppl won't buy and won't sell too low. there are about 5% would not be able to sustain would give some lucky buggers a cheap price. For bank to reposses a house it would take 3 years which anytime if the owner wants to restart payment could do so.

cherroy,

One MAJOR difference between the coming recession and previous 2.  We do not have the OIL MONEY to bail out.  In previous 2 recessions, instead of reforming GLC, we used OIL MONEY to bail them out.  So, in the next recession, GLC will be hit badly and the economy will go down with it.

A) How can you teach people that has NEVER work for 20 to 30 years to work in a real world??

B) How can you get people that learn close to nothing in local public university to do REAL work??

I had seen some of (A) from GLC's VSS.  It is close to impossible.

So, I do not believe that Malaysia can recover from (A) and (B).  We will fallen down to an even lower level.

Dreamer

The best way to predict future is to make it happen.

well, although it's a good time to get under construction properties now, it's unlikely to get very good loan packages, even with the developer's panel of banks.

dear all, just to share
http://biz.thestar.com.my/news/story.asp?f...47&sec=business
as highlighted earlier, i believe these are the effect of "willing seller willing buyer" concept practiced by the market during prime time, sellers pushed their property price higher and higher to stir the market...now thats the time to bite the bullet...

If the BNM lower the interest, also the blr will drop.

Well, it's for my own stay... will areas around TTDI (condos) be really affected? I have a feeling that the selling price may not drop much due to the seller(s) not being in dire need of cash.

Now look at property investments, if you speak to 10 ppl who have invested in prime areas (keyword is prime), you can see that not only the capital is preserved, you get cashflow if you rent it out, and inflation is usually factored in the market price. This is not a surefire guarantee that this is the best investment, but it sure gives me better sleep at night.

Tell you another thing, this is just my plan, sometime in the faraway future . I'm planning to get one house for one child I plan to have (I'm not married, so can only plan now). I'm getting good COCR, leave it on more or less autorun, and look for another, so in the future one kid can get one property for their needs (education and healthcare mainly). This will help me, the family, and them in the long run. It's very much easier said than done, but when you have a goal, and the passion to pursue it, I think it's a blessing anyway. In short, one "cow" per child.

Hi Phoeni,
Would you be so kind as to share your investment strategy (and to retire at 35)? If public domain is too intrusive, we can discuss off-line

How many properties you have so far???

And I have a couple of the completed ones as well, but still could not beat the ones I get UC.

Sure.  Long story short - it's just a fancy way of saying that I buy undervalued.

1.  My net worth or equity increases immediately at point of purchase.

2.  It enables me to get a higher loan amount, provided both the vendor and I agree to put a higher figure on the S&P vs. the market value.

3.  It's so much easier to get a top up from my banker.....I just got an option to top up on one of my apartments after just 4 months of initial purchase.

UC is very risky to 'play' with especially with those smaller and non-reputable developers.

Abandoned under contruction property is the worst nightmare for every property buyer, which is quite common especially in economy bad time.

That's why some people prefer to pay some premium when a property is completed time as which you see price generally swing to a little upwards compared to its initial launching price after the property finally get its OC or CF.