In Kota Kinabalu, the price of houses keep going up. They said buyers come from Lahad Datu, Tawau, Brunei and overseas. The rich are getting richer. The poor are getting poorer. People who own Oil Palm plantation are making a lot of money as the world demand increases. Many have converted their land from rubber plantation, cocoa plantation, forest, into oil palm plantation.
I was told that the many apartments(condo) behind 1Borneo were bought by Japanese, Taiwanese and out-stationed people. They have excess money that they can buy with cash. In fact, many are left vacant because many bought just as investment. Is it wise to follow suit? Do you want to buy a property that may worth less than your housing loan, when you couldn't afford to pay in cash? Do you want to live in an apartment or flat when your neighbors choose to leave theirs vacant?
It seems impossible that the property price will drop because the price of property keeps going up. Looking at US, everything is possible. When your housing loan is more than the price of your house, the bank will make you pay the difference. This has never happened in Malaysia, but it may.
If you assume the property price inflates at 6%, instead of purchasing the property now, how about investing your money in bond that will very likely to give you such return? When the price of property drops, you can buy with the money that you have saved. Don't forget you have to pay interest to the bank if you borrow from them. Be a smart investor.
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