So now is the best time to buy property in malaysia?

And.. within this great crisis, there is a silver lining..... NOT.!!

So we are in the middle of a Covid Crisis. Waves of layoffs and unemployment is coming.  All sectors in businesses are experiencing a decline and salary cuts are a norm. People working in travel and hotel industry are expecting more than 50% salary cut with potential lay offs. Oil and gas industry in Malaysia are in a turmoil now. Multinational oil and gas companies are expected to exit Malaysia. New ones may come in. Oil palm is experiencing a very low price. The only industry which is booming in Malaysia is the rubber gloves industry. Un-emplyment is at 800k out of 6.8 million working population. And this figure does not yet include those who are not employed-officially. Those which are running small shops, and have no income tax, or EPF. Welcome to the new norm.  Talk to the banks, buy their data.. and you will find out that most credit card holder have already maximise 80%  of their credit limit and are holding multiple credit cards. The available disposable income had dropped by 50% and well all seems good. Welcome to post apocolypse, zombie fucks zombie with a nailed base ball bat!

However, one thing which is perplexing is.. there are a growth in properties sales, and properties prices are increasing. Well, according to Developers and those related in property business anyway. According to the edge properties, there are take ups up to 80% in some launches!! Woow the property business seems to be in good shape! The home ownership campaign (HOC) helped sell hundred of million of ringgit of properties! Well to be honest again, one house average 500k, RM 1 million is 2 houses.  

There is a huge contradicts in what they say and what NAPIC says.

According to the star articles and NAPIC: 

Based on data that was released by the National Property Information Centre (Napic), Malaysia saw the total overhang rising by 10.7% and 13.2% in volume and value to 63,063 units worth RM47bil as at the end of the second half of 2020 respectively, against 56,988 units valued at RM41.5bil a year ago.

Those priced RM300,000 to RM500,000 (7,883 units) formed 25.7% while more than RM500,000 (12,528 units) formed 40.9% of the total residential overhang.

But, guess what? The property sector’s market capitalisation is about to be overtaken by another monster and this is non other than the size of the overhang of the property market itself!

Based on data that was released by the National Property Information Centre (Napic), Malaysia saw the total overhang rising by 10.7% and 13.2% in volume and value to 63,063 units worth RM47bil as at the end of the second half of 2020 respectively, against 56,988 units valued at RM41.5bil a year ago.

With the total property overhang rising rapidly, the Malaysian property market is now at an infliction point as the market’s overhang value will soon overtake the entire market capitalisation of all listed property company, which stood at RM49.5bil as at Oct 1.

Question is , why is this  happening? A lot of articles are pointing that, there will be a recovery by the early next year towards the end. Economy will turn better , and people will be able to afford their properties. I cant help but wonder, if they have a magic crystal ball. Wala wala zoom boom boom, the magic balls says..economy turn better every year......... My balls more accurate than theirs la, mine produces sperm and shoot when needed. Anyway how, back to the main topic. Developers are fucking themselves in the backside with a bunch of rose branches. And they the rose smells nice while they screaming kimochi with a cat meow high pitched sound. 

The overhang units "supposely" value is higher than the entire market capitalization of the property companies. The banks are kidding themselves. They better call back the loan frm the developer and take back the money. If they cant, they better faster take the properties and auction before it hits their bottom line.  Until then they can still dream how much these properties loan they give out can make them, when the asset no value. The kimochi just became kimchi for the banks. Banks are on the list to become the sidedish of this economic downturn. Thanks to the developers serving them on the table next to the grill. 

Anyway lets talk, is it the best time to buy properties?

Lets talk about the past, how sales pitch were done and current practices. 

Sales pitch:

Low OPR rate! time to buy!

Well, OPR rate fluctuates. At most you can enjoy the low interest for maybe 4-5 years, and the interest rates may go up further. Now is the best time to afford a unit, but not neccasary that you can afford higher OPR and inflation in the future. FARK WEII, again crystal ball. OPR will remain low for the tenure of your loan!

Prices and discounts are at the high side!

Well, for a un-feasible size of 700-800 sq feet, i think those discounts should be higher. You can't have a family with such a small unit. No point buying. What discount on high side. the prices advertise they compare to KLCC price, then they call it discount. SO VAGUE. Its like giving discount for the price on an XSSS size no brand dress and based on an XL sized farking luis votton dress to fit a farking baby elephant. Then they convince u that the elephant dildo comes free. Thats for u to fuck yourself in the ass after u realised u have been had.

Your salary will go up in the future, then you can afford a bigger unit. Buy a small one first.! Or you will have more disposable income in the future when ur salary goes up, but buy a big one now first!

In actual, your salary may drop in the future! With covid and drop in economics, there are many cost cutting measures being implemented throughout all industries! You may end up with no job, and a huge liability which you cant sell! Well again guess what, malaysia have one of the lowest salary range for a mid income country. 20 years ago salary is 1800 ringgit for grad, now it is 3000 ringgit for grad! lol. AGAIN they have a farking big crystal ball between their legs. They think they know u better than yourself, and believe that you can gain 15% increment year after year, and then return to buy a second property after. Their crystal ball produces cat cum, its similar with human cum size.

Although the unit is far from town, it is cheaper and you can afford it better.

Cmon, 20-35 km from workplace? its a whole 50-70km you have to travel daily!. you will spend 2-3 hours travelling daily, and not including the jam you may have to face. You have only 24 hours a day, and you spend 10% of it travelling , which is not productive.  You could have spent that time with your family. You will also have to spend a big chunk of your salary travelling! Tol, parking and bus fare? Did you take account of that? Please place a fucking vibrator between your legs in the traffic jam, You will need it, 

600 sq feet for 550k! its a good price. Normally its close to rm 1000 per sq feet.

Generally i felt surrounding properties price cannot be compared. First of all, rental rates. lets say there is 20 units being rented out at 5k and there is another 40 units which cannot be rented out, and left empty. Hence rental rate cannot justify price per sq feet and purchase price. Secondly, different condos are built with different designs, access and also facilities. Hence near by condos cannot be made a bench mark.

 Older condo's prices are following the newer property prices. Look at the next condo, its 40% higher, this condo is 40% lower than benchmark price.

Again, this kinda of benchmarking is totally wrong. The benchmark should be what is the vacancy rate of the condo. What are the average rental price. Rental price and vacancy rate determine both affordability vs the "wants" of the general population. A good bench mark will be lelong prices. This is based on what people are "willing" to pay for that particular condo, rather then what the developers sells it at. They can predict future rent prices.

This area is full of expats, and they love to rent in this area.

Of course, yes in the past. Now most of them will be jobless and repatriated back to the home country. I wonder how long will this last.  And will the companies re-hires expat again? there will be a big drop in the expats community in Malaysia. Best part is, most condos and houses are rented out to "low income" expats working in restaurants and shopping mall. Overcrowding in these condos are a big norm. How many condos you have visited, which looks like a pig's pen? Multiple piglets demonic spawn, like what you have seen in ragnarok and diablo. this is the place where the king monster spawn, and they normally chosses a high end condo to do just that!! You never know what sort of  drugs they take inside there. many cum splattered wall, bloodied with a head bash. Dang!!  i seen multi million condos with 15 occupants before. They take turns during shift to sleep on the mattress!! Penthouses left empty for 15 years.

We forsee economy will turn for the better and overhang reduces by next year. 

Every fucking year, this big group "R****A" will make an announcement, next year economy will be better, and properties will pickup again! hahahahaah i wonder how they felt when they announce that. Straight of the bat , its like proclaiming the earth is flat.

R****A : We wonder why affordable properties <300k contribute to the majority of the overhang! "baffled"

So simple. People wanna buy car, they sell bicycle. They minus two tyres, engine, cover and change to a smaller frame, and they still wonder? Who on earth is so stupid to take a huge loan and risk for buying something they don't want? Yes and they still build SOHO SOFO SOGO SOBO BODOOOH properties year after year!! I hope my banks doesn't lend them money to build useless stuff! 

I felt the general population is quite Naive if they believe in these salesman pitch. They would be considered extremely stupid if they listened to a 25 years old "property GURU" pitch. They would be anywhere in between, if they listened to associations statements. 

While COVID 2nd 3rd and 4th wave is coming, hundreds and thousands of people unemployed.. yes they are right, people will throw in money buy more properties. Instead of stocking up food and drinks. yes,.. good choice.

Malaysians are Naive. They can believe few hundred millions turn up in a governemnt servant pocket as donations. They can surely believe in snake oil property sales pitch. My conclusion is,  Yes sir this is the best time to buy multiple properties! Take a cat's cock and stuff it up you ass.. see if it brings u back to sense or not.