Category Archives: economy

Is Malaysia already in recession? What can we do now?

Governments hate recession because voters tend to prefer good times to hard times. And government can’t stop the recession – it may make it worse. However, today’s depressed real estate market is the best time to start buying or investing houses and properties, even if credit is tight.

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Why banks are being fussy about who they lend to?

Regardless of what central banks around the world do with interest rates, banks are no longer keen to lend during this recession. Why’s that? Simple – because property prices aren’t rising any more. As we’ve always said – real estate investment is all about financing – it turns out that the most important supply and demand variable for the housing market is the supply and demand of credit, not of property. And that’s why it’s going to take a long time for prices to recover, or even to bottom out. Because banks won’t be keen to lend any time soon!!!

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Inflation may come back soon (or it has never left?)

Inflation is a friend of property investors. However, it is an enemy to all home buyers because they don’t earn income from their houses.

Now its ammo has been used up, America’s central bank only has one real option left – printing money. That’s a huge gamble for the world economy – an invitation to global INFLATION!

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Latest economic data affecting property market

The next 6 months are crucial to property market in Malaysia. If unemployment rate can be controlled in order not to depress the whole market further, with the aids and support from our financial sector, investors will be able to pick up more cheap properties, leverage for higher return with lower capital outlay, and rely on steady rental rate to maintain (if not increase) cash flow from their real estate investments.

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Will property price and rental fall further?

One side of the propert market is confirmed – supply has increased. However, expectation on rental hike during this tough period due to the reasons discussed here may be the explanation why there are more investors enquire for rental properties recently.

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