Assalamualaikum w.b.t.,

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Saturday, March 10, 2012

House become more and more expensive why???

Assalamualaikum w.b.t.,

Congratulate, to Government Servant Employee for salary adjustment from 7% to 13%. Can private sector get the same adjustment? Ha!5, for private sector workers don't try to claim adjustment, may be the results more distructive like a letter showing your way to the door.

Now we can read comments everywhere afraid of good price hiking. My believe, "its now can't be avoided anymore". We ask for it, then we get it now....

Okey, come to issue, why house become more expensive now and may be in the future? I also don't know the actual reason. I put attachment here some news predicted the uprising of house price. What cause the rising? I think it is all related to domino effect of uprising of basic needs by people that work and don't work. By uprising goods price then more tax can be collected  to top up to pay relevant people salary and projects. Then when the pay high, so other support basic need such house also will be rising.

So, it can't be avoided.  Every raw or finish materials need to be transported. Petrol price hiking, transport fee increase and then final product price also rising. When the basic need hiking, then workers can't afford any longer will ask for salary increment or adjustment. For those can adjust salary so no problem but for private sectors when no longer competitive, then the only option is ceased operation or move to other country that more competitive. What will happen to workers? Can they get 64 years retirement benefit?

Jan 31, 2012 -

Leading property developers in Malaysia expect home prices to rise over the next 12 months, based on a report from the Real Estate Housing Developers' Association Malaysia (REHDA).
The research reveals that three-quarters of REHDA's members believed that residential prices will surge this year, with 36 percent predicting an increase of between 10 percent and 20 percent, while one in three members expects an increase of five percent to 10 percent.
However, business optimism and confidence levels in the country's property sector are lower compared to six months ago, said REHDA.
"Our members are more cautious towards market conditions due to more compliance requirements imposed on the housing industry, global economic uncertainty and inadequate information and data with regards to on-stream demand and supply," said Datuk Seri Michael Yam, Association President.
Meanwhile, the proposed new mortgage scheme for the low- and middle-income household bracket can keep the capital "thriving, vibrant and youthful," said REHDA.
This is a commendable plan. However, its conditions and terms must be well drafted for it to be a success. Factors like income limits and geographic boundaries must be properly defined.
"Another thing that should be considered is risk management," noted Yam.
Last Saturday, Prime Minister Datuk Seri Najib Tun Razak announced a special funding scheme to help low- and middle-income families own a house in the capital, which will take effect on 1 March. This will cover units under the National Economic Action Council's People Housing Programme and the public housing programme of city hall.
Many young Malaysians have stated positive views about the proposed scheme.
"It can improve living standards for those in the city," said Asyraf Syahir, a university student.
"I hope the scheme's terms will be favourable because houses in Kuala Lumpur are expensive. I would like to own a house here someday," said Christine Leong, IT specialist.

Jan 20, 2012 -
Most property developers expect real estate prices to continually rise in the first half of 2012 in tandem with rising costs, according to a recent survey by Real Estate and Housing Developers' Association Malaysia (REHDA).
The survey revealed that around 74 percent of the respondents believe that prices would be on an upward trend, primarily due to an increase in the development cost.
Datuk Seri Michael Yam, President of REHDA, noted that nearly 36 percent of the respondents indicated that property prices could increase between 10 percent and 20 percent. Meanwhile, 31 percent believe that prices might grow by less than 10 percent, and seven percent expect prices to rise by over 20 percent.
"The main reason cited was the escalation in land, building materials and labour costs. For example, steel bar price had climbed to RM2,589 per tonne in 2011 from RM2,285 in 2010, while cement had gone up to RM16.33 per bag in 2011 from RM15.64 in 2010," he said.
The two other crucial factors cited for the uptrend were Malaysia's higher property demand and the larger deposits needed in acquiring a housing development licence. The deposit for the licence is now three percent of the estimated project cost instead of the previous RM200,000.
Meanwhile, REHDA announced that the 2012 Malaysia Property Exposition (MAPEX), its three-day property expo, will take place at the Mid Valley Exhibition Centre on 2 March 2012.
Mapex is expected to get property sales of between RM50 million and RM100 million, bolstered by strong demand, according to Datuk Ng Sieng Liong, Organising Committee Chairman of MAPEX.
"The expo is set to be an ideal platform for industry players to showcase and market their projects," he added.

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