Speculation has taken its toll

I received an email this morning that introduced the sender as a cash buyer for any distressed property. This is interesting because opportunity for some is always on their doorstep at the time when trouble is blooming.

Is it true the housing market is in a difficult period? The evidence it is going through a tough time is yet to surface.

My neighbors don’t seem perturb. They bought their properties during low season and now are getting high return because of that. During the peak when price skyrocketed by four folds some had sold and moved on to better homes somewhere else. My neighborhood where my family lives in sees some ownership been transferred to young families who were eager to raise family in the area not long ago wasn’t that costly.

I see some of these families work late nights, meet less and cease outings as if raising family requires most of their time in home or at work. A neighbor two doors away took a sudden holiday to somewhere we didn’t know and had a Chinese man packed their belonging and furniture. When asked they said their father wanted to rent the house and that both mom and dad had been transferred to a distant post.

It’s almost 6 months later we know that the property was put under hammer by a bank and this auction was the reason the house was vacant for a long time. No one knows the neighbor’s where about. I give them my humble sympathy over what has happened and it serves me a lesson to not buying houses during a time when speculation is thriving.

I bought the unit we live in at something less than RM200, 000. At times, I almost wanted to sell when it reached over RM650, 000.00. That is a huge profit. At that price my neighbor would’ve forced to crop up some RM4, 000 a month for financing in buying a similar house that I live in. Moreover, with a family of five, it would be hard for them to live on a small income. I don’t know whether the father had lied about his income when obtaining the loan which something like that is getting nowhere at the banks nowadays, more so a new guideline by BN limits to only net disposable income.

I hope the government looks seriously into helping guys like that. When speculation worsens, corrective measures should’ve been put in place to stop it from worsening. What the government done with the issuing BN’s new guidelines is rather too late. House price has gone crazy over the past two years and it becomes a nightmare my neighbor wouldn’t forget.

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