what I'm saying is, if the price of property does not drop, so it's not quite beneficial if we buy for cash.

one may noticed even big time developers also coming out with those offers...eg.pay 5% only, interest free during construction, free spa/loan fee package...etc

i personally find that the developers are coping hard with the quiet market..

as for subsale market, i think ppl tend to wait and see if price dropping..and i think price for subsale market may be reduced to woo buyers. Before the fuel price increased last year july, the subsale market prices are pretty high where owner tend to follow "wiling seller willing buyer" concept, putting up price that they think "acceptable" for themselves NOT the market.

yes, i always believe in landed property even though it may not be first choice for property investor...

i am of the view that the prices for landed property in coming months may be stagnant rather then slight increase due to the fear of commitment by the ppl in purchasing property. In fact, sub sale cases are reducing in Banks since Jan ..

I am currently have an offer to purchase a leasehold double storey terrace house at a slight below market price but undetermine if i shud proceed for the purchase and same time keep my existing freehold single storey ....

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Added on March 4, 2009, 12:27 pm
hi sir, for those with cash on hand, it may be good time to grab KLCC property and keep it for few years...i believe the market will bounce back by then just like 1997.

I had frens who got dirt cheap KLCC area property back in 1997 and the return was tremendous after 2000.

if only i have d $...

Its very low %tage, speculator have zero loan for their units. Yes, the BLR has come down and allowing a lower repayment, but if their main income is lowering beyond the blr reduction gain, they will let go eventually. Those that zero loan, may not be speculator. COuld be old money or inherited properties in no rush to sell. If one is willing to keep the house empty unrented and unsold for a full year despite a lowered selling price offered, must be either a complete ignorant fool or super rich, got nothing better to do than keeping existing properties and let it sit idle. If the offer price is not too low (breaching his/her oppty cost), they should sell it off and pour the money into other investment instrument. Although FD is the worst investment tool there is for comparison. Even selling it off cash at RM780K for that properties in TTDI, even at lousy 2.5%, that is RM19.5K a year. Assuming that they are not capital gain tax or any other cost involved further on the selling. Beside an empty house can be subjected to some cost that will seriously devalue the property especially unkempt or poorly maintained. And in 5 years, that is 100K gain! Houses in TTDI may have great holding value, but they do not gain rapidly either. Same goes for established neigborhood, they just gain slowly but steadily. As long as the gain exceed other oppty cost that the owner contend with, its unlikely to be sold.

Prime and established area may have less drops but keep your eye open, you will see some good oppty. Of course, the near completed project especially those speculated one, the developer are throwing in goodies like waived S&P, stamping, extra parking lot, etc etc. That can be a good chunk off your acquisition cost.

Got friend on property and development business, the impression and outlook from them is not pretty. They are facing a very tight credit from bank and new phases unable to be launched due all the down factors.

They seems to be expected a worsening nos from Q3 onward.

Both, but more towards cashflow. It's refreshing to see that to Phoeni, the capital gain for condo is a plus/bonus, and not an expectation.

I look for new properties at good locations, which USUALLY appreciate upon completion. Location is really key, and there must be some confidence in the potential tenancy. So a factor of no-rent are put in, so when the wheel starts turning (tenancy is in), I get to enjoy both.

I view both types as a cow; capital gain is like the cow growing, but if you slaughter it you get the meat, but it's a one-off gain. My philosophy in property investment should be always for cashflow, unless there is a good opportunity to flip. So as you may have guessed it, cash flow is like milking the cow, and this is what I need in my retirement later.

Boss you got PM 

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Added on March 8, 2009, 12:29 pm
No specific answers, but if you must know ---> Not enough 

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Added on March 8, 2009, 12:37 pm

Same here 

My best investment was an undercon prop, gave me a 6 figure appreciation and above 40% COCR 1 year after CF 

Phoeni, mind explaining what you meant by instant equity?

Got it, exactly one of the reasons I buy UC prop

IMO, undercon risk can be vastly reduced or even "eliminated" via :

1. Go for reputable dev.

2. For the not so reputable ones, due a proper due diligence on the company and its capabilities to complete a project should the unthinkable happens.

Very simple my fren, just check their existing/completed projects. 

Plus when I say not so reputable, I dont mean newbies. Im referring to developers with less than 3 completed projects to date, not to those who r new to property development. 

Very simple my fren, just check their existing/completed projects. 

Plus when I say not so reputable, I dont mean newbies. Im referring to developers with less than 3 completed projects to date, not to those who r new to property development. 

For ordinary people out there, there is no way for them to do due diligence on the company financial health especially in time like this, some developers financial situation can change dramatically in the recession time.

Previous completed project or properties can be a good benchmark how responsible and work ethic, but this doesn't mean the developers still financial sound to carry out future development.

In a recession economy, the risk of UC become higher particular for those unknown and smaller developers.

Just my 2 cents.

ahh....he edited his post already I've seen sign of slowdowns..... but we have yet to reach 97/98 recession levels

anyway wodenus, in your opinion, when do u think we will bottom out?

meejawa,

<<1) How many actually spend the increase on properties?>>

The pay increase is sustaining the domestic consumption for a while so that LOCAL economy is growing a bit to compensate for reduction in export.

<<Having RCECap in place already almost guarantee their existing monthly mortgage paid.>>

Which is guaranteed by the government.

<< who will be the target group offered VSS/get retrenched >>

Which I had told you.  Now, EVERYTHING is sustained by government's expenditure and bail out.  There will be a POINT when it is NO LONGER sustainable.  At that point, GLC and Government will have VSS.  Then, the property market will melt down in Klang Valley.

How long do you think this CAN continue??

Dreamer

Bought 400k cash house yesterday........my third house at age of 24....

hahahaha....two house bought cash....another one got loan..The only area can cover loan is in Sandakan.....

A person's WEALTH should not be DEPENDENT on ANY single country in the world.  Putting ALL your eggs in ONE basket is not very smart.

Dreamer

Phoeni_142,

You are NOT in a wealth preservation phase of your life.  I am.  Return is NOT as important as safety.

This tell me how much money you have too.

Dreamer