Properties a.k.a Real Estate

Many thanks to Kye for sharing this email
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Property prices world wide US/Canada, Australia & Europe have fallen
drastically. The property plunge has now reached Asia. The biggest economic
giant in Asia - China is the latest victim to property crash.

http://thestar.com.my/news/story.asp?file=/2008/2/25/business/20424985&sec=business

Malaysia's property prices are expected to drop by 30%-50% in 2008/9 due to
the global slowdown. Sales of new projects have slowed down drastically
despite many incentives thrown in.

Main reasons why property prices will drop are:

* Too many new housing projects. This is despite the fact that many
existing completed housing estates are either vacant or abandoned. Just
take a drive around your neighbourhood, and you will see many "For
Rent/Sale" posters.
* Property prices sky high beyond reach of people - eg. an university
graduate can barely buy a house with his/her salary. At the end of the day,
price will fall to supply & demand forces. No one can fight the forces of
nature.
* Higher cost of living has reduced everybody's disposal income. You need
to pay for food, clothes, education, petrol, etc. downgrade to cheaper
house, or rent instead of buy. For the middle & upper class, they have less
money available for property investment too.
* Professionals are investing in overseas cheaper properties with a view of
migration. Malaysia has been suffering from serious brain drain.


SOME ADVICES:

* Recession is coming, DON'T TRUST what politicians say.
* Postpone all major expenditures, eg. buying houses, cars & house renovation - CASH is KING during bad times.
* If you have excess property baggage, sell & cash out now - cut losses. Keep the money for reinvestment later.
* Avoid taking any new loans
* Buy only Fully Completed house if you must buy one.

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Disclaimer : the above advices are opinions of the author. The author should not be hold liable for any consequences caused by adhering to these advices.