Chief, I reckon you dont buy REs for passive income?

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Added on September 20, 2010, 1:19 am

what a BS........... 

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

could you elaborate more on this?

http://www.youtube.com/watch?v=6G3Qefbt0n4

Some of the stuff Peter Schiff said made absolute sense.

There must be a lot of people still out there thinking about this question, definitely more then when the thread was started in 2008.
In general of course some property prices have already dropped, some will drop and some won't. It depends on too many factors.

Anyway, I'd like to offer some advice for people buying for own stay. When you are buying for own stay, please take a long time comparing new and older properties in your target location. An older property in the same neighborhood might be a lot cheaper.
You are going to pay for it and live there for a long period of time. Make sure you actually love what you are buying. Don't just buy because there is some cheap financing option. It might be better to save up some money and buy a cheaper place somewhere else a bit later. My advise, if you have time, would be to rent around your target location first if you don't know it so well.

If you are an investor you must know more then me so I can't give you any advice but can wish you good luck.

my question is when the correction will come?
could we still buy now and sell 1 year later with profit?

It is very dangerous to have this kind of mindset, aka try to time the market.

This is not called investment, it is purely a speculation mindset to start with.

No offence. 

err... capital appreciation? 

http://rockybru.com.my/2010/10/in-kl-prope...g-to-burst.html

hurmm...editor of the Malay Mail thought on Malaysian property bubble

For those who believe in rental, do take a look at this brief explanation from a guru.

http://www.starproperty.my/PropertyGuide/Finance/7358/0/0

May be we should keep our mouth shut so there will be more tenants around .

nteresting  so, wat action do we take in tis age of liquidity?
just shout? put cash under mattress? pretend nothing happens? or let 9 year old toss the coin? 

ya .. sure jack up the price..to cover the 30%

Lol !! some more, the mark up to cover the RPGT is base the selling price before the "jacked up" price wuor!! 

Budget: Expect Tighter Regulations For Credit Card & Property Sector

KUALA LUMPUR, Oct 13 (Bernama) -- The Government is expected to adopt tighter regulations in the 2011 Budget to curb potential dangerous run-up in consumer credit card spending and speculative activities in the property market.

"We believe Bank Negara Malaysia (BNM) is focusing on tackling household debt in 2011 to promote healthy credit card spending," said Kenanga Research.

In its 2011 "Wish List", Kenanga said the central bank should consider imposing tighter borrowing limit for the property sector to avert potential over-leveraging on the household segment and speculations.

It said bank loans should be lowered to between 70 and 80 per cent value ratio for third mortgage, it said.

Bank Negara should also consider capping maximum of two mortgages for each borrower, it said, adding that such a rule would slow down housing price appreciation rate, going forward.

Should tighter borrowing rules be enforced in 2011, it would not have any impact on loan growth this year as borrowings are anticipated to remain strong till year-end, it said.

"But we are cautiously optimistic on business loans as businesses in the next six months may be negatively impacted by global economic turmoil and Malaysia's economy is not immuned from moderating global growth," it said.

The research house said it was cautious for the second half of this year due to healthy loan growth but increasing risk on slower growth in the business segment, namely manufacturing and exports.

"Profit margin squeeze is directly triggered by the wave of intensely- competitive pricing, moderate growth expectation and possibility of a slowdown on mortgages if 70 per cent to 80 per cent loan-to-value ratio (LVR) is implemented.

"We see the implementation of a blanket 70 per cent to 80 per cent LVR cap as a real challenge to the industry's loan growth next year and could put pressure on retail banks," it said.

However, strong asset quality suggested lower credit charge-off, going forward, compensating net profit for the lower top line growth, it said.

As for credit cards, Kenanga said new measures should see tougher limits on the number of cards a person could hold and lower credit limit on each card.

Bank Negara should restrict a consumer to own only two credit cards from two banks of their choice and allow people with an annual income of above RM24,000 to own a credit card from the current minimum requirement of RM18,000.

The central bank should also reduce spending limit by 1.5 times their monthly salary (currently 2.5-3.0 times), set at the bank's discretion for first-time applicants.

"In our view, stricter credit card rules are prudent and limit the risk of rising household non-performing loans. It will curb spending-spree cultures that have surfaced in certain segments of the population recently," it added.

-- BERNAMA

The property bubble will burst if the government make it to, in other term ' over-react ' , i believe it is still rather a small and healthy bubble compare to US case, where ppls there can simply walk away or default the loan when they house value drop, the worst bank take over the house and sustain the loss itself, scenario here in Malaysia is very much different , where greater responsibility toward the owner if they default payment.

control is good and a gentle measurement is also good, too drastic change on RPGT and tighten loan did not help to grow the economy.

Definitely tat is madness!! 80K is nt a joke n within 2 months for tat location is so dam unethical... Wish our goverment can do something bout it but since tis boleh land we can juz... 

The last three property booms peaked in 1973, 1985, 1997. In our view, we are in the early stages of the next boom 
http://www.freesubmitwebsiteurl.net/busine...w.aiqglobal.com

do u consider yr 2008 msia encounter mild recession? if yes, then next phase could be 2013-2018   
http://eprints.utm.my/1311/1/norhaya-REER_SEMINAR.pdf

if no, we should be due for one anytime    this never ending argument will only have 1 conclusion
the market shall decide - good luck doomers & gloomers  http://www.mip.org.my/forms/land1.pdf

i think he know what he talking about, just that he need to delay it until all his aunties/uncles unload the struck properties first 

btw, since when our goven got caution/tell bad news to normal rakyat like us. 
after we all hit right into brick wall & scream for help, then goven will say help is on the way  

as far as i know, the properties price are preparing to go down
recently i got to know a 2.5 storey property in Puchong Jaya although the transaction price there around 650k above but the PBB valuation only around 550k(reason given, PBB said will value it on lowest valuation report)
& another case in Sg. Kapar Klang 1.5 storey, the buyer are first time buyer properties for own stay also cannot get 90% loan, can get max 80% only

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............ 

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