LOL - you should practice what u preach then. Di-worse-fication is YOUR SYSTEM. It is YOUR choice. It is NOT suitable for me.

LOL - I know what I know about you too. And, I also know how to verify what I know.

cheers chief.

Hi Chief, my my - emotions running high? Take a chill pill.

1. Firstly - you were the one stating that it's not a very smart thing to do by putting all your Eggs in ONE BASKET. I won't bother copying and pasting your post. I'm pretty sure it's still there. It started all the way from there. Fine - let's not debate semantics. Your strategy is yours. My strategy is mine. We'll leave it as that.

2. I have my answer. Oh believe me, I do. However, why should I discuss this with someone that does not even invest in properties? Are u able to relate? How many investment properties do you own? Do you know anything about tenant selection? Tenant management? How do you ensure collection of payments? How do you engage in a market valuation? Do you know how to do a demographic profile? Do you know how to validate target areas? What's your definition of a prime area? What's a blue collar and white collar worker to you? Do you know how to structure your financing terms? Do you know how to even negotiate a deal?

Oh - by the way, if those things above appear alien to you - it's very easy and convenient to just talk and debate about the likelihood of the property market crashing. That's your issue. You don't see things holistically - and just jump to a very simplistic conclusion.

As such, I'm not going to bother answering your question - as you wouldn't understand anyway.

Let's just say you can't really talk to someone about the Sistine Chapel when that person hasn't been there before.

cheers bud

This post has been edited by Phoeni_142: Mar 25 2009, 07:54 PM

So....what are u trying to say?

Is demand > supply? Supply > demand? Or are u sitting on the fence and giving a "mixed" response?

Please elaborate.

Yeah, and you read too much of the news....literally. It's so easy to parrot and follow the herd with that view.

Hi Onemorething and Pai,

1. Actually - the destructive party in the USA is still not over yet. If u see recent stats, prices of homes in Florida, Nevada, Arizona and California is still expected to come down by at least 30% in the next financial year.

2. The bubble in the US was devastating. 23% of Home loans in the states are in negative equity. 1 out of every 12 homeowners are hard core delinquent or in the midst of foreclosure. In M'sia - you don't see these kind of numbers yet. M'sia's delinquency rate is approx 20% of the US at the moment.

3. It's nice talking about the global landscape, isn't it? But how does this affect little old m'sia? My opinion is that we'll just scuttle along with 3 to 4% GDP growth and pretend that we can be a "high income" nation by 2020 or whatever. One thing's for sure - like most asean countries, M'sia was far too dependent on exports - which caused us to be hit. We do not have a clear economic proposition whatsoever. This is different story.

4. Assuming this pathetic scenario in point 3 above happens - I do not see PRIME LANDED RESIDENTIAL properties being hit whatsoever. Can u share with me which areas u feel are overpriced by 30%? Before I become too "cheong hay", let me just explain briefly - the demographics of residents or buyers in prime areas like damansara, ttdi, bangsar or bukit d'sara are very different from the rest of country. Number one, most of them already own the friggin place. Number 2, most people that buy it are affluent or old farts - and they put substantial downpayments of 25% or more. They definitely do not take housing loans of 30 years. And most of them do not buy to feed their speculative fantasies.

6. Anyway, most banks have already tightened policy. Some banks do not even bother focusing on the mortgage business anymore. What type of margin is there to earn from BLR - 1.9%? The bank loses money for the first 5 years! They are HOPING AND PRAYING u will break the lock-in period so that they can charge u penalties. That's why most of those idiot banks have finally woken up an agreed to "standardize" their pricing for the time being.

7. But I do agree with you on one point though. There's heavy speculation in the air in certain areas. Certain banks are very very very very concerned about the 5/95, 1/99 or 2/98 or sexy financing terms they have just created. It's obvious that some buyers are just buying for speculation because their holding cost during the period under construction is negligible. If the economy turns south, or the unemployment rate rises by 5%, or whatever - our own mini subprime will be created.

8. I won't promote which areas I invest in lah. After some people come and hantam me. Agree with Pai that there's so much room and opportunity for investment, and anytime's a good time. Ok bye.

This isn't addressed to anyone in particular. Just my thoughts.

1. Analysts for equities and properties are really useful. As a rule of thumb, I tend to do the OPPOSITE of what they recommend

2. The same can be said for respected economists like paul krugman. It's easy to analyse in hindsight, but what practical experience does he have? I tend to read these analyst reports with huge skepticism.

3. Anyway, I can pretty much infer that the guys from OSK who wrote the article above may not be investors. It may be easy to analyse trends. But again - where's the practical experience?

4. Banks have ample liquidity and want to lend? Again, I'm shaking my head, because I may have an insider view on that. Banks are under EXTREME pressure to shore up more liquidity! Why do u think there are tons of aggressive deposit campaigns suddenly popping up? Some banks are giving 5% FD for fun? Have we ever asked ourselves why? (The rationale behind this is worth another separate post) Now, these jokers from OSK want to say that banks have ample liquidity. Sheesh.

5. Our beloved Central Bank is finally waking up, with its "hints" of tightening in the Mortgage and Unsecured market. Again, my fear is that they have moved far too slowly. Perhaps "vested parties" have been exerting too much pressure on them via our mainstream media

This post has been edited by Phoeni_142: Sep 20 2010, 11:10 PM