1. Property investment is for long term gain.
2. LOCATION, LOCATION, LOCATION is still the key factor.
3. If you think location is right, price is right, home is right, you can lock-in the home you want to stay. You must have comfort with the home you buy.
4. For investments, you must have holding power and cashflow is OK with stable income. Never over-geared. Weak investors with alot of obligations should not commit.
5. If you have holding power, if there is a dip in property, you'll still make up the losses eventually (doesn't apply to places like Bukit Beruntung, etc). Historical chart shows market recovery begins after 1 or 2 years from a major dip - driven by a rebound in general economy.
6. Asking whether property prices will dip by more than 50% is like asking whether Chicken Rice can drop to RM2.50 per person. However, the need for Affordable Housing is greater and greater day-by-day. Affordable homes put a ceiling in prices targeted at the most-needed segment.
7. In a depressing market conditions, rentals drop thus yield falls. But eventuality of new property price stagnation is also high. If there is a dip, property developers would rather not launch new projects rather than cutting prices. Major developers can afford to hold back their projects on the land they already owned.
8. Inflation kicks in with a growing economy. Land cost is increasing. Construction cost is increasing. Part and parcel of inflationary pressures as long as GDP expands. Analysts say property prices is unlikely to see a major dip like in 1997.
9. The determinant factor in 2013 is the outcome of the General Elections. If environment is stable, no chaos, and economy is doing fairly OK, we can see a
growing middle class fueling the property sector.
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