Let's take stock of the western world which dictates "at least for now" where we are headed based on the ecomony.

Conceived in the optimistic haze of a post-war world, raised amid continuous inflation, growth and creation of suburbs, Boomers were the best-educated, healthiest, most urbane, materialistic and narcissistic generation ever. It was all about them. Still is. And their RE.

And this is a problem.

More than half of this 30% of the population have less than $250K US saved.  In the US these numbers are worse given there is no end to the housing bust.  About seven in ten have no pensions. Life expectancy is pushing 85, even for cholesterol-reduced guys. So what are they going to live on?

This is another reason why RE correction may await us in our little country of Malaysia.  To a sickly economy, asset deflation, household and public debt, rising taxes and no jobs, you can add demographics. Several 100's of million couples in their sixties will have no alternative over the next five years but to liquidate their real estate.

This will go on until 2015 until this situation is flushed out.  This is an unprecidented time when the boomer demographic and RE prices both have hit the top and only downside continues for those already correcting or those in waiting.

China is sitting on edge of Asset Deflation and Price Inflation just like the rest of the world.  This combination is the deadliest of all and will become an unstoppable force.  2015-2020 is the rebuilding phase, when Asia takes the reins but leadin up to it, those in non-liquid assets will take losses, some managable but most not!

actually, i asked some loan officers before... the general rule ranges between 33% to 40% some banks allow up to 40%.

however, if you are one of the high earners (e.g. 20-30k a month), the banks will relax the limit for you... but this one got no fixed guidelines... go case by case...

*the above is only what i hear from the bank officers - i cannot confirm true or not*

main reason property price went up was due to speculation of new launch properties. FLIPPING.
30% of RPGT will affect FLIPPING. if implemented, property price will go down, that's for sure.

those who say prices will go further up are mainly vested parties who reluctant to see this tax eat into their profits.

This guy must be on crack. Or maybe where he's sitting is too high up to see what's happening on ground level.

Try going back to 1970/71 ( the aftermath of May 13 ) and 1987/88 ( recession & Ops Lallang ) for the experience of a property market slump. If the government had not imposed capital controls in 1998 during the Asian financial crisis, and then brought down interest rates sharply, properties would have followed the stock market and crashed as well. During the worst of the crisis in 1998,  short term Rgt interest rates went up to 15% as capital fled the country.

Why not? Selayang Spring condo already gave 20% for some buyers... I can see developers going upgrade this trick again as long they can convince bankers...

how come this time dont see any comment like "jack up the price 30%"???
 

u miss the point dude, jack up was not mean to get higher loan, it is just a move to get back 90% loan, it mean for new development where developer will offer u 20% discount in return, read back the previous post by others so u know what i am talking about.

bank n developer will happy of such trick, but gov will bz figuring out the controlling measure, und??

You guys need to put all the pieces together here, it's all in support of the bubble.  You can be part of it in it's final stage or be smart and watch it's demise.

Quote from Canadian RE expert - Canada is noted as one of the big bubble countries yet to pop!

Sales fall first. Prices later. Usually a lot later. For example the US housing market peaked in the autumn of 2005 in terms of sales, but prices did not crest until two years later. The reason is simple. There are always people ready to buy a house who don’t follow the capital markets, monetary policy or leading indicators. Instead they have hormones, emotions and parents screaming at them to grow a set and get a mortgage.

So sales may decline, but prices stick. And as fewer foolish buyers show up with offers, more homeowners take their properties off the market. So listings fall (they are down 14% across the country from last year) while prices don’t (they’re within 1% of 2009 levels). This stage can last for some time – maybe a year, even – until economic conditions change, forcing people to sell their homes.

Those could include a moribund economy in which families have too much debt, rising interest rates or taxes, another financial crisis, or it could be house-rich retiring boomers realizing all of the above. Whatever. Once real estate has achieved unaffordable levels, and people realize it is both overpriced and vulnerable, then falling sales become falling prices.

"Of the 6,401 new residential units launched during the third quarter, which was a far cry from the 14,588 units launched in the previous corresponding quarter, only 20.2% found buyers."

why stilll see a lot of forumers say sold out sold out at recent launches one?

Typical Government brainwashing. Thats the crap the Gov has been feeding us with for the last 53 years. You only do a currency conversion when you are a tourist. If ure living and earning in the local currency of that country you do not do a currency conversion.

Same with prices of cars. Why convert a USD$45,000 BMW 3 series to local RM when comparing with our damn Proton? U earn in USD, u pay taxes in USD, your daily expenses are in USD and your property and car purchase is in USD. So why the heck do u convert the currency to RM and claim the BMW is expensive???

Ask those who have worked and lived in the US. You can buy a nice hillside bungalow house overlooking the ocean in California for about USD650K. What can you get for RM650K in KL? Even my 18 year condo in TTDI costs RM 670K now.

And you still wanna say cost of living in Malaysia is low??? 

well, let me clarify again and listen properly:-
27k + tax amount for the 150k means 18% tax, every single dollar above 150k is 27% tax.

Eric is the big boss of Crest Builder.

but of course a developer's view will be.... tehehehehe

Good! If the demand decrease, as everyone can't catch up with the prices, the seller will soon turn into desperate sellers. My reasoning is, since a lot of sellers are actually speculators, so their aim is to sell as soon as possible once the price of property increased to a certain value. If they are unable to sell their properties, the longer they hold, the longer they have to cough out monthly mortgage payments, which is not in their original plan. They will soon are willing to sell at lower than market prices.

Just to clarify with some more experienced investors, am I right? This is basically my logical opinion.