Some say…But decision still on yourself

Some say’s…

It’s interesting about life when everyone have their own view about our property market. Some say

….It’s going to boom further

….Some says it will end soon

….Some still blur blur don’t know what to do

Which one would be the real answer for you or us?

Continuous upturn for our market

 It’s a bit skeptical to say that our market will continue to climb knowing the prices have reached beyond average people affordability. Rental yield in general has drop, appreciation has slow down. Some asset especially like condominium will continue to flood the market with much better view, design, location, furnishing, and competitive pricing which eventually will affect the overall rental yield and appreciation speed. Besides that, majority local expertise that I met daily also views our property market negatively in the near future. Thus careful accumulation is highly recommended to all first time investor or those who are average investors simply cannot afford to fail.

Some say market will end soon

“The Sky is falling down”? I believe most of your have watched the horrible movie “2012”? Everything seems like ending and we need to start all over again. Do you believe that? Some of the people I met believe it will. Maybe they are right. This group of investors virtually keeps waiting for the market to drop since 2005. Like what they say, market should come down every 10 years. It should be corrected in 2008/2009 but too bad, our property market has pushed the prices to all time high. I remember back in 2005, average terrace house in prime location like Likas, BDC, Damai & Kingfisher are transacted less than RM250K with average land size of 2000sf. But today the price has increase above RM450K. Yes even if the economy downturn, do you think the prices will fall below RM300K? Will you have the chance to buy at 30%-50% discount? Experience telling me you will not buying if market really turn that bad!!! Right?

Some say still thinking

Till today I still met a lot of investors, yes virgin investor with clean, fresh and still unclear on what to buy and when to buy. They have been searching, looking around and expecting the best bet in life. But it’s seem like the bet requirement is getting bigger in value. Smallest bet and worth to bet like Beverly Hills apartment also has reached above RM200K with rental yield of RM1000 per month which few years ago only lingering around RM140K-160K for 3 bedroom (866sf). Everything has reach beyond and worst the newly launched apartment which smaller size, 2nd class location, and of course with better design are priced at 80%-100% more. Today, looking at all the newly developed condo, all prices are above RM500 psf.  Maybe waiting would be the best for this group of investor unless you have deep pocket. Clear picture shows when some newly obtained OC condominium which priced between RM400K-RM900K only rented for RM1200-2800 per month (Average rental yield of 3.7%).   

Whatever it is, but bear in mind the rich would never care how affordability of the people. In fact they only take care of their own wealth. They will continue acquiring despite knowing the market reach the peak. With the loaded cash in hand, deep pocket and nothing to invest some of them are investing more. But definitely not for me, I have been careful invest since last year. Just need to remember that, rental yield will continue to fall and appreciation would be a bit doubtful for certain asset. Happy Investing.

You cannot Grow Land..CK Wong & MY RiCH DAD

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Tagged as: capital appreciation, rental Yield