Seriously, we should not listen too much to predictions of how the property market may become in the future. This is because predictions are usually false. However, reference to some advanced property markets may just be right. This is the advantage of a less developed property market. In fact, this is also why opportunities will be higher in less developed property markets versus developed ones, as long as the less developed ones are still progressively developing.
By the way, its not about buying in the youngest country in the world yeah. earlier article here. Also, every buyer has their own preference and needs and thus its very hard to follow someone just because they are buying because that property may be best for them but not us… I love high-rise properties because the landed ones which I like to buy are too expensive. However if a lover of landed property were to buy a high-rise because he wants to follow me, then he may be making a wrong decision… Now, lets learn some things from that advanced property market.
Article in bbc.com Think tank Resolution Foundation said that even as the number of millennials who own a home continue to fall, now one in 10 people owns an additional property. Wealth from owning a second property has risen since 2001 to almost £1 trillion.(RM5.25 trillion) Buy-to-let property is now the most common form of property wealth, having grown by 58% since 2006-08. The report suggests that only younger people who are rich can afford a second home. The Resolution Foundation wants to see policymakers step in to reform the housing market, in particular buy-to-let, in order to rebalance the housing market back towards first-time buyers. It said, “While young people in particular are less likely to own their own home than previous generations, those that do own are more likely to have more than one property.” Britain may become a country where getting ahead in life depends as much as what you inherit as what you earn.
The government said, “The Government is determined to ensure that a new generation can realise the dream of homeownership.Last year saw the highest number of first-time buyers in more than a decade. Since 2015, we have helped more than 300,000 people to purchase a home through schemes such as Help to Buy.” Please do read the full Article in bbc.com
I think it’s extremely relevant. Those who owns one property will usually be upgrading after many years of staying in the first one. Thus, their property investment journey begins. There are now many younger adults who become rich because of property investment. Government must step in with a rent-to-buy scheme (as what it’s called here) so that those who are a little behind could also own a home in the future. Life will really be based on what we inherit!! Not just how much we earn in the future.
Government continues to have to do a lot more to help the households who could not catch up with price increase to purchase a home. In the UK, the government has helped 300,000 people since 2015. Perhaps we try and find some numbers on how many has our government helped? I think it may be more because just within 2019, there would be 100,000 affordable homes coming into the market. Happy learning and understanding.
Article written and edited by Charles. News article summarised by Dina Batrisyia.
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