Are you serious?!

That was the response I gave myself when I read this letter below:

I am a firm believer in investing in property and in my years I have stumbled a few areas that seem to give the excellent returns. One of them happens to be Bandar Kinrara. Earlier in the year I almost went for balloting for the final phase of their terraced houses. They required for each applicant to come up with a RM30k bank draft just to be eligible for the balloting! At that time I didn't have that some of money available at short notice so I didn't go for the balloting. My friend who sis was isapointed as despite the relatively "overpriced" nature of the house prices so many people turned up for balloting that both he and his wife were not successful in the balloting. At that time the prices were minimum around RM500k, and apart from the higher than usual roof, I did not see why a place like that could warrant such a high price. I don't consider the area a posh area. And it's not very close to the city centre too. Am I missing something here?

Well, I guess I am missing alot of things cos the latest invitation to bid says that the house prices for the "Superlink" houses start from RM950k!! What?!! Are they crazy?!! Linked houses costing 1 million ringgit?! Despite the astronomical price, I have no doubt that as before, the balloting day will see thier office packed to the brim and alot of disapointed people will make their way home for lunch that day.

 Prices start at RM950k and can reach a silly 1.7 million Ringgit!

 This is despite having to come up with RM50k bank draft to be eligible for the balloting!

Yes, the letter say exactly what you're thinking - RM50k bank draft required...

So there you have it. House prices in certain parts of Kuala Lumpur are really getting out of hand. How many people can afford a million ringgit house? And that's just a superlink, 2 storey house. With the same money one could build oneself a very nice Bungalow in Bandar Sri Putra, Bangi, Gombak, Rawang and simmilar places. As time goes by, more and more people enter the job market and start workig in the capital. These people, with their low ish starting pay, in my opinion can never buy property in the mature townships in the Klang Valley. This is probably why the governement has limited the loan margin offered to a person who is buying their third property to only 70% of the house's selling price. They hope to curb property speculation like that.

So, before I get too sleepy, I would like to conclude with a few recommendations below:

1) As soon as you can afford to buy property! It'll be the best long term investment you can make. Get in early as prices at "hot"locations never reduce in price.
2) Property price have already come up to a point whereby the average salaried graduate will not be able to afford a house to put over his head..;)
3) the 70% rule for loan margin doesn't really help keep speculative investors at bay, though it does stop the average joe from investing in property

Okay, bed time already. Good night my dear readers.