OVERVIEW OF THE RISING HOUSE PRICES

Report
PROPERTY SHARING EXPERINCES
Presented by
Bill Wong
OVERVIEW OF THE RISING HOUSE PRICES
 FIRST TIME HOUSE BUYERS VERY HARD TO AFFORD TO OWN A
PROPERTY
 PROPERTY DEMAND IS STILL HIGH IN THE AFFORDABLE PRICE RANGE
OF RM 300K –RM 500K
 HOUSES PRICE IN ESTABLISHED AREA WITH GOOD INFRA AND
AMENITIES WILL APPREICATE
 GOVERNMENT COOLING MEASURES TO CURB PROPERTY PRICES MAY
BACKFIRE THE RPOPERTY MARKET
 STRICTER BANK LENDING GUIDELINES
 FEWER TRANSACTIONS ON HIGH END PROPERTIES
WHY PROPERTY PRICE INCREASE?
 MALAYSIA IS BOOMING AND DEVELOPING COUNTRY,
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GOVERNMENT’S ETP PROGRAME
RISE OF INPUT COST SUCH AS LAND PRICE, CONSTRUCTION
MATERIALS , CONTRIBUTION COST TO RELEVANT AUTHORITIES
AND OTHERS
STABLE POLICTICAL AND ECONOMIC CONDITIONS
POPULATION INCREASING
STRONG GENUINE HOUSE DEMAND EXCEED SUPPLY
HIGH INFLATION RATE
DEVELOPER’S MOTIVE IS TO MAXIMIZES PROFIT FROM THEIR
PROJECTS
RISE OF COMMUTING COST DUE TO RISE OF PETROL PRICE MAKES
PURCHASER WANTS TO STAY NEARER TO CBD AND AMENITIES.
CHEAP PROPERTY NO GOOD, GOOD PROPERTY NO CHEAP
PROPERTY BUBBLE OR FAKE
BUBBLE?
BANGSAR DOUBLE STOREY HOUSE
 IN 1970’s, THE PRICE OF A DOUBLE STOREY HOUSE WAS RM 20,000.
TODAY, IT WENT UP TILL RM 1.3M. BUT NOBODY WANTS TO SELL IT
 DO YOU HEARD PEOPLE MENTIONING PROPERTY BUBBLE IN THE
MAKING IN BANGSAR DUE TO SUPER HIGH PRICE?
WHY?
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LOCATION, LOCATION, LOCATION
OWNER FINANCIAL HOLDING POWER
DON’T SELL YOUR PROPERTY DURING CRISIS TIME
PRICE OF HOUSES AT GOOD LOCATION WILL REBOUNCED BACK
FASTER AFTER PROPERTY CRISIS
HOW TO WE ENCOUNTER RISE OF HOUSE PRICES?
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ASK YOUR BOSS TO RAISE YOUR SALARY
FIND A BETTER JOB OR PART TIME JOB
START YOUR OWN BUSINESS OR BECOME A REAL ESTATE NEGOTIATOR
CUT YOUR MONTHLY EXPENSES
MARRY TO A SUPER RICH MAN OR WOMAN
STRIKE A JACKPOT
DON’T BUY HOUSE, JUST RENT
BUY RURAL AREA HOUSE
BUY AUCTION OR DEPRESSED HOUSE
REGISTER FOR PR1MA TO BUY AFFORDABLE HOMES
LOW COST FLATS IS STILL AVAILABLE BETWEEN 40K-80K IN KLANG VALLEY
 RULE#1 TO BEAT THE RISE OF HOUSE PRICE, FIRST YOU MUST
INVEST IN YOUSELF BY BUYING YOUR OWN HOUSE.
PRO OF DIBS
PURCHASER WINS
 PURCHASERS JUST PAY THE DIFFERENTIAL SUM BETWEEN SPA & LOAN
AMOUNT AND HOPING TO FLIP THE PROPERTY UPON COMPLETION
FOR A PROFIT WITHOUT HAVING THE PAIN TO PAY INTEREST DURING
CONSTRUCTION.
DEVELOPER WINS
 DIBS IS PROVEN TO BE A SUCCESSFUL MARKETING TOOL WHEREBY
DEVELOPER CAN SELL OUT ITS STOCKS WITHIN A SHORT PERIOD.
WITH DIBS, IT MAKES THEIR PROJECT VERY ATTRACTIVE TO
INVESTORS. SAVE ON MARKETING EXPENSES.
BANK WINS
 BANK WILL BE FACING LOWER RISK OF LOAN INTEREST REPAYMENT
DEFAULT AND EXPECTING PROMPT REPAYMENT OF LOAN INTEREST BY
DEVELOPER.
CONS OF DIBS
PURCHASER LOSE
 PURCHASERS ARE BUYING FUTURE PRICE. IF THE PROJECT IS ABANDON OR
DEVELOPER STOP PAYING INTEREST, THEN PURCHASER HAS TO CONTINUE TO
PAY THE INTEREST.
DEVELOPER WINS
 DEVELOPER HAS BUILT IN THE PROGRESSIVE INTEREST COST INSIDE THE FINAL
SELLING PRICE.
 EVER HEARD OF THIS WORD: “IN THE EVENT, IF YOU DON’T WANT DIBS
PACKAGE, ADDITIONAL REBATE OF 4% ON 1ST DRAWDOWN”. WHAT DOES THIS
MEANS?
 A FAMOUS CHINESE PHRASE “GOAT’S HAIR COMES OUT FROM GOAT’S BODY”.
WITH DIBS, A DEVELOPER RE-PHRASE THIS TO ME AS “GOAT’S HAIR COMES OUT
FROM YOUR BODY”.
BANK WINS
 DEVELOPER IS PAYING THE PROGRESSIVE INTEREST ON BEHALF OF THE
PURCHASER. PURCHASER IS THE ONE WHO SIGN THE LOAN AGREEMENT WITH
THE BANK. IN THE EVENT, THE DEVELOPER STOPS TO PAY THE PROGRESSIVE
INTEREST FOR WHATSOEVER REASONS, THE BANK WILL STILL GO AFTER THE
PUCHASER.
PROJECT ABC (DIBS) VS PROJECT XYZ (NON DIBS)
WHICH WOULD YOU INVEST?
Both projects is a 1,000sqft, condominium project next to each other
PROJECT CONDO ABC
DIBS
SELLING PRICE: RM 450,000 net
PROJECT CONDO XYZ
NON DIBS
SELLING PRICE: RM 425,000 net
FROM OUR EXPERIENCES
 PROJECT ABC IS A HOT PROJECT BECAUSE OF DIBS, BUT MOST
IMPORTANTLY DO YOU HAVE ANY LUBANG TO BUY A UNIT OF ABC.
 NEW HOT LAUNCHES WILL BE SAPU BY INTERNAL DIRECTORS, STAFFS,
VVIP, BUSINESS ASSCOCIATES, REPEAT BUYERS, REGISTRANTS, BULK
PUCHASERS AND OTHERS BEFORE RELEASING IT PUBLIC.
 YOU MAY NEED TO QUEUE UP EARLY IN THE MORNING ON THE FIRST
DAY OF SALES TO BUY A UNIT AT PROJECT ABC, IS IT A GOOD UNIT
/GOOD VIEW / DIRECTION?
 PROJECT ABC WILL SELL FASTER THAN XYZ.
 ONCE PROJECT ABC FULLY SOLD, PURCHASER WILL BUY PROJECT XYZ.
 PURCHASER OF PROJECT ABC IS AWARE OF THE PRICE IS HIGHER RM
25,000 THAN PROJECT XYZ, BUT UPON COMPLETION, PROJECT ABC
PRICE WILL STILL APPRECIATE.
 IF YOU CAN’T AFFORD TO BUY IT TODAY, YOU MAY NOT EVEN AFFORD
TO BUY IT IN THE FUTURE.
PROPERTY WORD OF WISDOM
Buyer: Bill, How much per sqft?
Bill: Sir, Its 700psf
Buyer: Are you crazy? So freaking expensive!
Bill: Yes Sir, “ YOU ARE BUYING THE MOST
EXPENSIVE PSF NOW, BUT AFTER 3 MONTHS,
YOU ARE NOT THE MOST EXPENSIVE”
THANK YOU
DON’T STOP BUYING
PROPERTIES
PRESENTED BY
BILL WONG
METROHOMES SDN BHD

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