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.

This post has been edited by gamenoob: Mar 5 2009, 08:29 AM

Hi Phoeni

You are right on your selection and focus on the area you mentioned. Obviously you done lots of your homework. And yes, when it come to investment, the combination is endless and and even on same area, diff folks focus on diff combo of investment. And that is diversity and diff folks have diff risk/fund threshold.

As for me that area is beyond my budget. My current investment is mainly on equities (unit trust and my co stock purchase) plus the Option given. 2 years ago, I chose to plonk in some funds into a private company as peanut shareholders. Will only able to cash out in the next 5 years. That should give at least a total of 15% per annum.

Return on equities... about 10% per year if I cash out, but recent glut has diluted the return somewhat.... arggh!

So now I want to check up on the property although limited budget which is why Puchong area is what I'm looking at. I need to move out my equities fund once it hit my targeted threshold again. Reading up and checking up some small apt/condo near Jalil area. Not expecting much, but aiming to do rental return and if its giving me at least 7% return on my downpayment(very plausible given current BLR and bank loan package), I'm happy. The capital at the end of the loan period gain will offset the inflation cost by the time I retire, I hope.

This post has been edited by gamenoob: Mar 8 2009, 11:29 AM