If you like the locality and product, just buy it as market will not wait for you.

before the sub prime crisis in the US everyone also said like that and believe property value will never drop. must buy now later cannot afford already.

China major cities are 30 times. The bull in properties will continue for years in malaysia before burst together with china, hk, sg, th etc

Years? Try months? 18-24 of them!

malaysia dont have a massive population and booming economy like china.

you see china are now 30 times, this causing huge problem to the people there to buy house in major cities, need to pay three generation to clear the loan

a market where the government have done a very good job in controlling the rise of house price is germany, they ratio is just 3 times even in berlin.

This post has been edited by robertngo: Sep 9 2010, 11:43 PM

where can u get that? show some proof

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Added on September 10, 2010, 1:33 amproperties in asia should continue to climb without worries of bursting. anyone who want to wait till it burst can wait as long as you can.


This post has been edited by 106127: Sep 10 2010, 01:33 AM

many financial advisor recommend only buying house less than 3 times your annual salary.

http://money.cnn.com/magazines/moneymag/money101/lesson8/

https://www.nwcu.com/knowledge_center/tips/...ing_a_home.aspx

http://www.mymoneyhelp.com/education-cente...rdability.shtml

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Added on September 10, 2010, 2:13 amwhat is the basis for support this kind of increase when the income did not rise as fast?

This post has been edited by robertngo: Sep 10 2010, 02:13 AM

Quite simply the same increases have occurred in Malaysia and Asia as a whole on the back of the Western Credit Expansion. Without this expansion over the last 30 years to build Asia (exports) and especially the underhanded money printing going on for the last 12-13 years and now massive stimulus to shore up the financial crisis, how do any of you justify further increases in KL, KV or Malaysia as a whole.

For the record, affordability of 2.5x salary was acceptable back in the 60's and 70's when single incomes were still in place. Cheap money, loose lending and going off the gold standard gave banks every opporunity along with governments to monitize the whole system. This momentum just pushed up housing prices forcing single person incomes to turn into 1.5x perons incomes (through part time) and to the point where you need two incomes to service your household debt. This level was sustainable at 3.5x income but the last 10 year run up was all a ponzi scheme. It should have corrected after the High Tech Meltdown but government - banks started playing the new game which made money even more easy to obtain.

It's typical of a government looking only at surviving it's term in office instead of seeing the big picture and doing the correct things for a country. Instead of regulating the flow of cheap money and instead of the consumer taking the opportunity to pay off debt quicker, the party started and just kept going hense the 10x incomes needed to service a mortgage payment.

This cycle is now coming to a close with sovereign debt, boomers coming of age and while interest rates are still at all time lows, there is not enough demand, jobs and income to support this anymore. It will not end well for many...the top if any is in...KL high end properties on are the market right now looking for buyers and price drops have been occuring for months now. It will be only time before the 30% comes off these props again and then down to secondary markets prime KL and then KV. It will be slower than the last shock almost two years ago.

This is a global thing and there is nothing left to do but watch it all unfold. Global leadership G7 or G10 are so disconnected on how to handle debt right now, this will only make matters worse. The choice to hold (if you purchased at least 3-5 years ago) is likely to be okay. You will potentially only loose your perceived profits, keep your RE and this might be okay for the average home owner who has a secured job and family however for investement in general, you should have sold by now.

I reckon u stretch ur loan hoping to flip fast for profit? Good luck to u...

All the classic signs of an impending property implosion are already here in KL, including many vacant units, excessive speculation and the tightening of easy bank lending policies. It is a question of time when the party will end. Just needs a trigger to set it off. Speculators, beware. No party goes on forever, the higher prices have gone; the harder the fall to come.

I agree on the issue of vacant units in condo. Some are actually vacant for long time. That means the deal is technically "off market". Some facts showing Condo units are already oversupply.

if u can flip. it dont matter if the property is up or down.
if it is up, then you can flip higher or hold on to it. but if property comes down, there are always property that are cheap and still flip for a profit.

If you can flip - what if you cannot? What if, in a depressed property market, you are holding on to a property without tenants that you cannot sell except at a big loss, and have a large bank loan on it? If you sell at a price insufficient to repay the bank, they will come after you. That's the downside of a flip, you might get tails instead of heads; like in a coin flip, there's always 2 sides.

Flipping properties was so 10 years ago in the western world...been there done that...did well but you need to know when to take profits, see the trends and move on !

I have just seen the error of this in KL in Bangsar with the new condos at BSC area. These were speculated and already cant be sold. Asking $1000/sqft, I have heard some are being let go for $700 per. The owners have lost the 10% down (around RM400K), now built cannot rent to carry the prop so OUT! These early dumpers are smart, others will go into denial and loose more. It's true, many can cover the losses easily but most cannot.

Right now volitility has become the new market norm. Dont expect fundamentals to play a part for the next 3 years minimum.

Even Nuriel Rubini is stating a 40% chance of a double dip in the USA and EURO on Par with USD.

Listen, if you fear the new rules of 20-30% down are going to price you out of the market down the road, you shouldnt be buying property in the first place. Put it this way, and this is simple stuff, you buy now, property drops 10%, your downpayment is gone. Inflation is kicking in while asset deflation is as well so all it takes is a jump in interest rates and your done! btw, I'm trying to be optimistic at 10%. Save you money and be ready to make your move.

I agree that if you buy in the right location in KV you might survive but why even risk it!

I love your posts! keep it up man.

for those bangsar condos, 10% = RM400k, ,meaning it was priced at RM 4 million! impressive.

also where did you hear about the new rule of 20~30% downpayment? does that apply to first time owner as well?
cant wait for stricter policy to curb the current speculation in Klang Valley.

Check out One Menurung condominium project adjacent to Bangsar Shopping Complex, KL, and you will appreciate how a speculator caught on the wrong foot can lose RM400k more or less. Great location, big luxurious units 3-8000 ft2, now largely vacant with many units looking for tenants and buyers. Selling price? Asking around RM750-1250 psf still.

if the asking price is still high, means the investors could afford to hold on to it.
for now atleast.

how much is the asking rental price psf?

Please note this was the min lost of 400K, at 700/per they will loose 1.2M!

There is no policy yet but it will come to as you say curb the enthusiasm and emotional train wreck on the RE path right now. This will likely be implemented I understand on higher end properties to start or highly speculated properties and 2nd, 3rd and on residences.

Hey, guess what the insanity continues down under, bank willing to offer you 105% of the mortgage. That's called 0 down and cash back of 5%. Aussies have lost their minds!

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Added on September 13, 2010, 5:18 pmthis is the one! where's there's smoke, there's fire!

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Added on September 13, 2010, 5:21 pmRental price, too high, expectations too high, reality....priceless!

This is why some are dumping at $700/per...cannot carry them even after the loss!

Again, why would you! Take your punches, leave the ring before you get KO'd, lick your wounds, live and learn!

This post has been edited by Onemorething: Sep 13 2010, 05:21 PM

Asking rental for One Menurung smallish 3000 plus ft2 unit, semi furnished, is some RM13k per month. Not many can afford such rental.

maybe they can continue paying maintenance fees for vacant unit for next fews years

Many developers also have many fully furnished units for lower rents how to fight?

where got so many gwailo in kl nowadays, investing on property based on listening facts thhat are more 3 years old , the last who buys always kena teruk