Property Investment 101 :1

Hi boomerk, I wish i knew too. But i think that property is always the last to go down and the last to go up. As in, say a recession stocks are the first then at the end of the line will be property. Its kind of the same when things are picking up too i think.

For example just today, someone said that a condo unit that he bought for RM500k in 1997 when the prices were up is still somewhere around the same price today. But what he left out was that the price went down after the recession and is finally back to RM500k today. However, with time, inflation etc it probably still has some way to go before he gets the value of the RM500k he put in.

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Seems the property market is really lagging, KLSE is fundamentally superb, times are good, people have jobs and are making more and more money.

Actually not everybody has money. I think the richer are getting richer as usual but those of us with salaries are getting the same. Cost of things are going up, people can't afford to service their installments, so many auction properties especially low to medium-cost properties etc, so not necessarily more money in the economy. So many people last year never got a single month bonus also.

But after all this said, the spillover effect should take place and everyone should get a piece of the cake. Then we should see property prices doing better. More people will be able to afford properties thus more volume of transactions and higher value of transactions. What more with the new policies Pak lah has putting is place for the property market. I have a good feeling the boom is just around the corner. What do you think?