Been thinking: people say that the population keeps increasing, therefore the demand will always be there.

But, the demand is actually not based on heads, but on how many can actually afford it.

If a single guy whose been saving and holding out can't afford a new home in the future. Do you think the new generation would do any better?

This post has been edited by TheDoer: Feb 10 2011, 07:37 PM

Pls allow me to explain.

If u cant afford to go travel. Even on a budget trip, dont go for it. Same with buying a house. If u cant afford yet, work harder, im sure u can finally afford it.

My point is, if u want to travel to hongkong (your dream of owning your own house, or buying a house for investment), u can either opt to fly with airasia to stop at Macau and ferry to HK. Or u can direct flight to HK.

Flying airasia to Macau is like buying hse at outskirt or outside the KL radius because it is much more afffordable. So, if u work in KL, u travel to KL, much like u travel from Macau to HK.

If u get direct flight to HK, definitely the fare is more expensive.

U may argue, flying to airasia is way way more affordable, and somemore, u can get those super cheap ticket. But, those tickets only available online (limited channel), possible midnight (limited time frame), and limited destination (It dont fly to HK - not strategic?)

Also, when buying airfare, usually the earlier u buy, the cheaper it is. Yes u may wait for the next promotion or plan way ahead, but in property life cycle, the next promotion, or next trip may takes u many years.

If one cant afford to travel to HK, sure u wait for next year. But, how many next year u have?

Waiting for SARS to hit hong kong, and hence cheaper traveling expenses? How often Sars or any other macro factors that affect traveling expenses occur? Do u really want to go to HK when SARS time? Some will really take risk, good for u then, u gotta enjoy a cheap travel, but u also increase your risk of getting infected (Just like if economy downturn, housing price drop, with unemployment and fear for losing your job around, and many many other factors, do u really want to buy a house then? Note: Exception for those investor who buy when drop price, as long as they know what they are doing, they take the risk for bigger gain)

The important thing is, u able to reach your destination. be it flying airasia or MAS. With more $, u get to fly with MAS, better service, easier point of service, more spacious, come with food etc. For budget travel, u fly with airasia, budget and free frill.

If u dont fly at all, because its too expensive, then u never get to HK.

Im sure my little Airasia-MAS-Macau-HK story have plenty of flaws, but pls bear with me.

Cheers

i do agree that recent new launches are expensive, and sub-sales have increased a lot. but i just dont get it, why must a person only interested in new property? why must buy a high end unit? which they cant afford and then keep complaining they cant afford a property.

if one cannot afford to buy in pj, then buy in rawang; if one cannot afford to buy 1400sf high end condo, then buy mid cost 900sf apartment. when one is desperate enough, whats wrong with staying in 700sf low cost apartment? go to iproperty and check, there are hundred of pages of listing which are still below 200k, i mean pages, not units.

i just don't get it...but if one want to start arguing about the environment, the accessibility, yeah right...keep on arguing make oneself feel better.

i seen people who complained they cant afford a house after working for so many years, but i also seen young man (early 20s) who has not even finish his university study already owning more than 1 investment property.

for all those complainers, come on, their circumstances is merely a reflection of themselve. the fact that they are still complaining rather than making things happen says a lot about them. work harder, work smarter, there are people who can make it, and they did it already. this is something i learn from my old man, dont complain about the price is expensive, but go and make more money yourself!

This post has been edited by property101: Feb 10 2011, 09:22 PM

Agree. Should work harder to make more money. Huat ar!!!

Yes, well, something seriously wrong with this right?

They either come from well to do families, or the banks are going on a lending spree.

Well, if they come from well to do families, then you can't compare them to those who work hard, and yet when they thought of buying, they found that they have entered the market late. Guys who come from well to do families, are a minority, they won't make up the demand.

If the bank is on a lending spree, then we all should be worried.

No one wanna comment on my Airasia-MAS-Macau-HK story? come mon,i spend a good 20 mins writing it. :-)

I have to agree, it makes more sense now. But there are some points to consider.

The problem now is that even the outskirts are getting expensive. The property rush has spilled over. This is further worsen by Developers concentrating on medium-high developments. As the investors tend to go for those for some reason. So it's like Air Asia flying less to Macau, but instead make more direct flights to HK.

Which means that some people will not be able to fly at all, until and adjustment is made. And unlike flying, which is a luxury. Housing is a necessity. Yes, we can even live on the streets if we are desperate. But it isn't right.

Yes, and just like air asia, we simply can't afford it now.
Soon more and more people will be effected too.

If one expects these people to aim lower, well, probably it will happen eventually, you'd find what should be the middle class living in low cost homes in the middle of no where. Then who is the target market for your medium cost homes?

Ah... that's just the problem. In this case, it's not about not buying during a crisis and avoid the crisis. In this case, whether you like it or not, if you've bought a house, these will multiply your problems. You'll be stuck with debts.

---

Added on February 10, 2011, 9:44 pm

I respect that, it was a good explanation. give me some time, I was replying

This post has been edited by TheDoer: Feb 10 2011, 09:44 PM

the young man did not grow up in well to do family, he grow up in below average family.
when he was 18-19, he used to wake up in mid night to pick up newspaper, do newspaper delivery, the remaining sell newspaper in pasar
and lots of odd jobs that he has done since he was 13
when he has got a professional career, while his friends are taking overseas vacation, he is eating lunch box brought from home.
for the people who complain cannot afford a property, do you see why now?

Actually, you can't just compare people head to head. You are asking everyone at the age of 18 - 19 to go out pick-up and deliver newspaper? Do alot of odd job during 13?
In our life, there are a lot of decisions have to be made. I strongly believe, when someone at the age of 13 / 18, he or she should focus on hs her studies. (Remind you, not everyone is born genius, no need to study also can excel).
My point is, see who you are and do what is right for you. Focus on your responsibility and do what you should do when you are in your specific phase of life.
Remember, decisions are difficult to make and also "regret" is always there is the decision is made wrongly. (For example, go into selling newpapers telling yourself "don't worry, i can properly manage my time, i still can excel in my studies". Congrats for those who can do so, but sadly majority will either fail or cannot do well.

This post has been edited by liyonglim: Feb 10 2011, 10:37 PM

Buying for own stay and for investment is totally different story, dun mess up. Investment must put location as 1st consideration

dun worry so much lah, the wealth transition opp is always there from time to time (due to wrong decision making in business, stock market or property, 3 items can up/rally and down/crash), remember wealth is hardly to transfer to 3rd/4th generation, sometime this family is rich n after 100 years, the poor family will be rich again...... repeat.......

-------------------------
Property is going to drop? Interesting
10 years ago, when I purchase my 1st house, I saw long queue, camps in the wee hours just to buy some units.
10 years later, it is still the same if the developer is hot or I should also say even not so hot also people still buy.
-----------------------------------------------
Observe the country like Japan,Singapore most of the youngster renting house. Though Malaysia has plenty of land, and not yet reach that advancement yet but in another 20,30,50,100 years time our condition might be the same as these develop country. The caring father mother have thought about these as well and buy as many as they can afford and inherit to the children, grandchildren, great grandchildren, grande children ....ha!ha! I fall into this category the kiasu club

This post has been edited by TheNew: Feb 11 2011, 12:14 PM

so price will drop or increase? nobody knows right? Wait and wait and see what happen next. Act now either BUY or DON'T BUY.


Party in property sector only just begun



http://www.theedgeproperty.com/news-a-view...just-begun.html


By The Edge Financial Daily
Thursday, 10 February 2011 13:28

Property sector
The public display of the approved Blue Line (Sungai Buloh-Kajang) should start soon, in order to gain feedback from the general public. Sneak previews for residents' associations began last month. The government's decision on the proposed Circle Line (around Kuala Lumpur city) and Orange Line (Ampang-Klang) may be announced by mid-2011, once consultant Halcrow reverts with its study in April-May.

The Circle Line will likely be approved, given its significance in the integration of all existing railway networks in KL. Although there could be alignment changes, we believe the MRT will need to pass through high-density high-commercial value areas to be viable (KLCC-Bukit Bintang, KL Sentral, Pusat Bandar Damansara-Damansara Heights, KL Eco-City-Midvalley, Sentul); along with major government projects (Warisan Merdeka, KLIFD, RMAF@Sungai Besi, Matrade, Kampung Baru).

The first construction tender could be called by April, with groundbreaking in July (targeted completion by 2016-2020). But property prices will start moving ahead as developers price in improved accessibility and higher traffic from the MRT. Policies will likely remain accommodative to attract foreign/private investment to support the government's initiatives.

S P Setia Bhd's RM6 billion KL Eco-City is the first project to be marketed as a potential transportation hub with an MRT stop, commanding about 30% premium over neighbouring properties. The strata offices soft launch at end-January chalked up 80% take-up despite a premium average selling price (ASP) of RM1,100 psf (RM1.1m/unit). Its boutique offices, sold en bloc (RM60 million per quadrant), are already 75% booked, while indicative response to the first condominium tower (711 units, 650 to 850 square feet) to be launched in March/April is overwhelming even with ASP raised by 20% to RM1,200 psf.

Other upcoming launches to watch: (i) YTL Land's Capers condo at Sentul East (RM700 psf, 460 units); (ii) Selangor Properties' Batai condo in Damansara Heights in 1HCY11 (RM1,000psf); and (iii) Guocoland's RM2 billion Damansara City in 3Q11 (RM1,000 psf, first high-density mixed development at Pusat Bandar Damansara).

S P Setia got the ball rolling by buying two plots of land in January (prime 40-acre Jalan Bangsar land swap, 266-acre township land in Tebrau, Johor). There could be more landbanking on the cards (especially in the Klang Valley) as S P Setia beefs up its balance sheet with RM1.1 billion placement proceeds in March. The master plan for the 2,680-acre RRIM@Sungai Buloh (MRT Blue Line terminal station) may be unveiled as early as mid-2011, which could see tenders called in 2HCY11. Front-runners include Malaysian Resources Corp Bhd, S P Setia and Bolton Bhd. The Cochrane and former Pudu jail sites could also see news flow in 1H11. We do not discount the possibility of more M&A and joint ventures as large landowners look for partners with execution track record and vice versa. — HwangDBS Vickers Research, Feb 9

This post has been edited by GlobalKL: Feb 11 2011, 12:33 PM

that is correct with wat i said, come to 3rd/4th generation, the wealth of the datuk/nenek already distributed,

rules r meant to be broken, to conserve & grow wealth beyond 3rd/4th generation, for fun reading
http://www.osktrustees.com.my/OSKSignet/pr...ntent.jsp?id=33

So, how did some of the richest people in the early 1900s, such as John D Rockefeller, Henry Ford and the Carnegies, successfully pass on their fortunes to their present-day descendants? Rockefeller, reported by the New York Times as America's first billionaire, for example, created as many as 70 trusts for his descendants before his death in 1937. Nelson Rockefeller and his generation are believed to be reducing their personal holdings via the creation of still more trusts for their grandchildren and great grandchildren. According to one source, there are "well over 100 and perhaps 250 individual Rockefeller trusts" now. The living descendants of Rockefeller are apparently worth only a little over US$1 billion. The bulk of the Rockefellers' wealth, reported to be some US$70 billion, is in trusts, which holds, among other things, stocks in Exxon, Mobil Oil, Standard of Indiana, Standard of California, Chevron, Quaker Oats, IBM, Chase Manhattan Bank, Eastman Kodak, General Electric, Texas Instruments and Minnesota Mining and Manufacturing

Today makan near one posh shopping centre in town ... walau, food court price also increase by 20% right after CNY! So, Gong Xi Fatt Cai to all be it Cina, Melayu, India dll!

Road side kopitiams/hawker stalls more efficient. Price hike 20% right after 1st Jan countdown happy new year 2011!

Property price in KV hike above 30% in less than 2 yrs.

Ron 97' increase how many % already?

Gomen said inflation only 3-4%. Hahaha, you go ask them are You from the MOON??! Go fly kite!

Just ask yourself if employment in the country cap below 5% despise all the fear of Eu/US instability, do you think bubble will burst esp old establish properties (not referring to crazy new properties from the developers where price hike 100% above sub-sale).

For those who miss the boat but die die must buy new stay in landed, you have to blame yourselves lah ... no comment.

For those genuine buyers who miss the boat and thinking for future roof overhead and children and cucu-cicit, do keep an eye and do more study on properties at the both end of MRT line. Yup, Kajang and Sungai Buloh. Look for properties with schools, shops and easy access to MRT.

Yup, there have been plenty of empty talk of MRT/LRT/KTM blah blah over the yrs. But this time round seem tat they are quite serious else in mid term KV traffic show and steadily choking city folks to death. In the process if still empty talks, coming GEs they, the you-know-who shall continue to lose State of Selangor aka The Cash Cow. So they got no other choice. City folks are boiling hot. They want to see improvement in public transportation and not just listen to empty talks singing empty slogans!

So, when to buy? When they award MRT contract, or when you see first pile for MRT line planted in the ground. You decide! It's your money anyway!

Just think about it. Happy wkend!

This post has been edited by Bobby C: Feb 11 2011, 05:42 PM

I think the landed property price will stay or slightly reduce a bit, for apartment & super condominium will drop like crazy once if there is another economy crisis strike.

if we are hit by bad economy crisis, would demand for rental property increase? since people cant afford to buy their own home and even lose their current home.

interesting
guess at that time, medium cost apartment / condo will be the easiest to rent out. medium cost apartment / condo are still the safest game

What make you say so?

Didn't you see bank lelong on bungalow, semi-d, condo, apartment, flats etc.

Nothing is spare. Overprice properties be it landed/strata all on the same boats. New area/overpriced/least occupied ie least demand/supply will be the hardest hit. So evaluate your risk before enter. Rather than try to time the market. Many people including some experts forget they are not playing stocks.

This post has been edited by Bobby C: Feb 11 2011, 07:06 PM