yeah investors will be shy away from msia market/properties
Time to pick up some cheap shares or properties

poor chap like me has to take risk buying propeties and "pray" for decent returns.....

Org kaya can afford to have only 3% return, and I personally would do the same if I had couple of millions in da bank, heheheheh 

Agree if u ask around with people doing business locally, u will basically know how bad the situation is. 

and my view is the same with you guys. I know that we are and will going thru tougher times, in fact I've been saying the same thing all this while, but strongly disagree with claims that we r heading for a recession as there is no evidence or signs apart from the "oil-money" argument, which is only half right. 

A lot of our contractor is complaining that the cost of construction material is keep on increasing. Even though the fuel cost is reducing slightly, it doesnt have any significant effect on the material cost as looking from the previous years, it will take a long time for the materials to reach a stable price..

So, most likely that the new houses nowadays will not come cheap.. Already the new houses cost rise to about 5-10%.

True. Wasn't there a statistic showing that there were less than 10% of Malaysians with a household income of more than RM10,000/month? I cannot recall where I saw that now though...

There are very few Malaysians who can afford to rent luxury properties and quite frankly, if they are that wealthy - they can purchase their own properties rather than rent right?

I wonder when the luxury condo trend will stop. There are only so many deep pockets that developers can go and dig after... Unless of course Malaysia is prepared to let foreign investors own the most expensive condo's in KL. *shrugs*

this is very true. But I think very few are stretched finacially due to properties. Most of them are due to car loans and cards debt.

Its not uncommon for a family living in a RM500 p/m flat to have 2 cars 

so rich man got 2 cars & staying in flat??

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Added on August 4, 2008, 8:02 am
Can tell us which bank give free car? We all wanna join that bank Better if can get free petrol too

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Added on August 4, 2008, 8:10 am
Pai,

good comment but you are really in your own world

Just read the latest news in the star today

Malacca Building Contractors' Association chairman Liw Chong Liong said the current crisis was even worse than the last recession.
“Previously, we had recession. Now it's stagflation."

Read another news about car sales in the star

"THE motor vehicle sector is bracing for tougher times as demand for cars and commercial vehicles may falter on concerns over high inflation and weak economic growth."

Motor vehicle sales trend are monitored closely as a gauge for consumer spending.

RHB Research Institute, in an update on the motor sector last week, said consumers would likely hold back big-ticket purchases, including new cars, amid increased inflationary pressure.

A car is probably the second most expensive purchase for most households in the country after home mortgage.

The consumer sentiment index tracked by Malaysian Institute of Economic Research (MIER) plunged to an all-time low in the second quarter after the Government in early June raised petrol and diesel prices by 41% and 63% respectively.

Rising grocery bills and steeper petrol prices, coupled with weak stock market and stagnant wages, had, for most people, translate into lower disposable income.

Pai - i was told not to touch NZD, although the interest given is exteremly high. i am looking at AUD & SGD at the moment. just need a few days to think about it.

joe - gold is a good alternative, but i am not too savvy with gold investments, and i am not aware of the risks involved, so better not!

I was considering trying the NZD FD myself. Any reason why you were warned off it? If not NZD then alternatively, AUD is the other currency I will stash in...

As for gold, it is a relatively stable investment option right? I mean for medium-long term investment of course. The only sad thing is no interest or dividends  lol. If no need money then I guess it is the way to go but like you I haven't read up enough to know risks so not an option for me right now. Must read more...

@shawdowz,
I don't know what U haf found out about dual currency investment; or assuming U intend to just put $ in those countries; but for Australia taxes are rather high.

have not visit Lowyat forum for some time yet there are many nursery school comments on property.

ok, so the conclusion is -

(1) we are going to have recession ( i personally think it is rubbish )
(2) dont buy property, wait for few years till the property decrease in price. ( if can't afford it, dont give all those lame excuses )
(3) i think there are many COLLEGE STUDENTS or SECONDARY KIDS here in this forum, thus, a lot of times, it transform this forum to become an   inappropriate place to discuss real issue.

suddenly we have so many "uncles" "experts" "kids" here arguing about recession slowdown

most probably new property price wont be going down...

Garden A (2006, 2007)
Phase 1: RM293k
Phase 2: RM298k
= Difference RM5k

Garden B (2008)
Phase 1: RM308k
Phase 2: RM353k (going to launch 21th this month)
= Difference RM45k

Garden C (2008) - 1 phase only for small garden
Before: RM265k
Now: RM285k
= Difference RM20k

The difference of pricing said thousand words...

Note:
All the houses within the same garden 99% same exterior design and same land size,
Just slightly 5-10% difference for the interior design

us mortgage rate going up 0.3%, government want investor move their $ into market share. estimate will increase to 6% by early next year.
any news that saying malaysia will increase brl in future, after the increase of 0.25%.

http://hosted.ap.org/dynamic/stories/U/US_...EMPLATE=DEFAULT

IMO- if purchasers hv bought for own stay- making the monthly installments wont be much of an issue.. but personally, i think most of the units which have been bought.. newly launced and also those that are recently completed are bought for investment purposes.. namely for rental.. but there are only so many tenants to go around and those which have bought for this latter may have issues making the monthly payments when they cant get tenants to offset the monthly commitment..

just my 2 cents..

High-end condo owners caught with rents down

http://www.themalaysianinsider.com/busines...ith-rents-down/

First sign of property bubble going to burst....

niceeee.... 

i wouldn't put it as bubble burst but rather a sign that the property market needs to really cool down and re-evaluate. I notice more and more auction signs are put up around TTDI and Mont Kiara, about time for the government to do something about the property market. to me it shows that the speculations has taken a new turn and hopefully the price may lower down a whole lot..

all in all, just hope for a more affordable place to call 'my house'. 

I have also been monitoring 3 condos I am keen to purchase to stay. Sadly the prices have been climbing steadily over the past 3mths or so. I did check with 2 friends in the Banking industry and it seems I have to fork out a whopping 23% on the downpayment based on their valuation as compared to the selling price.

Since I am in no hurry... I shall wait and see how things pan out by next year or 2013.

think so. wait till fuel and food prices go up 30% in the next 2 years. see if people will buy high price homes or pay high rentals or stick to basics like food, utilities, transportation, etc.. food will be esp tricky since here, little food production, only build-build-build. and not production factories.

http://www.themalaysianinsider.com/busines...-modest-growth/

See 2 generation home loan. 
http://www.thestar.com.my/news/story.asp?f...6176&sec=nation

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Added on January 28, 2011, 11:12 am

I am old fashioned type of people, I only know 30-35 years home loan.

As after 30-35 years, already reaching retirement age, whether fit for working to generate income again or not to pay the home loan, nobody knows.
That's why 30-35 years should be the max logical tenure.

This strategy also works but subject to few points:-

i. Cash flow, how well you manage? If either one loss their job, would they loss their home also?

ii. Location. Wat if bought wrong locations with inflated price like Bukit Berugi or Lembah Berapi, cry 10-15 yrs also no tears liaw.

iii. What you do with your surplus cash due to longer loan? Buy debts (cars) or buy assets/invest?

In general KV and some Penang properties can apply to this strategy but not other states.

Ok, assuming this Datuk Wira CCH Minister is correct, correct, correct with 2 generation loan strategy in this developing country (still cheap not even cp with Jap, HK, Spore already 2 generation loan) ... what is the same minister gonna tell the 3rd generation 20yrs down the road. Go take 3 generation loan, good luck, I'm not around liaw? Short sighted minister giving short term solution to long term trouble.

++ baby/babies, edu & insurance... haha, ++ furniture, after 10 years to change car. ++ petrol, food

2 generation loan is crazy.

  If our parents did not give us any burden and already we need to apply for a 2 generation loan, then what about our kids? Ask them get a 3 generation loan? lol.

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Added on January 28, 2011, 3:44 pmand yes.  Never count the bonuses and future income. The bank doesn't and for a reason. You are only taking a risk. What if things do not turn out the way you planned it?

And as sampool mentioned, there are alot of unforseen cost of living, I such as child support, (milk, clothes, toys, school accessories, school fees) even if you don't have children now, you can't say for certain you won't have one within 10 years time. It happens even if you're trying not to have.

since the fren is indecisive, means he expect prop price drop & not a risk taker, better put in fd, less stress 
after 3-5 years, can come back here to update us which was the right decision   
there r 2 camps here & await further opinions from next camp 

of coz got lots of unforseen cost of living, tat is y live within ur means & aim for the tree, not sky

the introductory of 2 generation loan is an indication that the property price is so high that an average malaysian cannot pay off their mortgage in their life time, therefore need to pass down to 2nd generation.

Yes, it is another product, but seriously this is not something very encouraging and healthy one.
This is just like a modified subprime loan

It is just like you only paying credit card the minimum payment every month, and let the credit passed to second generation.

Just my personal view.
It could drive the properties price further higher only.
As previously not affordable people now becoming affordable due to 2 generation loan.

But if properties price goes reversed time, or interest rate become higher time, the 2x generation loan could induce another RE crisis and might as well threatening the financial system just like what had happened in 2008 financial crisis.
And how about no offspring?
Or the child refuse to pay the loan?
The whole financial system can be affected as well.

Seem like the lesson of 2008 crisis is totally forgotten.