Too many bad news. Stop buying property.
What we read is not necessarily reflective of the market
The issue with social media these days is that we are tricked into believing what we read is the truth and that’s far from the truth. Engagement is key. Thus, social media platforms will do their very best to show you things you lik to read. What you like to read would then be the majority of things shown to you. As for property investment, it’s another thing which will have both sides of the story ALL THE TIME.
Today (6th Nov 2022), I google for “Property Price’ and these news popped up. If we like to We have many bad news, really. Here are three of them for everyone to take a look. If you like to read the full article, the link is inserted too.
Just bad news??
When we look at the above, it does seem that it’s bad news everywhere. Well, it’s really up to our interpretation yeah. Always remember that property prices cannot keep growing without any breather. Else, it would soon become a bubble and bubble is not something anyone likes. This is why it’s important to note that just after Covid-19 lockdowns were lifted, property prices have been moving up in many of these advanced property markets. The reason? Pent-up demand versus the small number of newly built homes during the lockdown days.
What about positive news then?
Here are three of them. All are talking about the same property markets which were all doom and bloom just within the articles above.
Property price is always dependent on the economy (and affected by the interest rates too)
If the economy does not show positive signs, then many may choose to delay their investment. When demand slows down, sellers would have to manage their expectations and sell at a lower price in order to sell. Some sellers may choose not to sell and prefer to hold instead. Meanwhile buyers could either see this as an opportunity to buy at a lower price or some may hold back and hope for a lower price instead.
Meanwhile interest rates have been raised and this is impacting the monthly repayments which would be higher now. Just remember yeah, higher rates are not the main reason whether to buy or not to buy. It’s the economy and it’s the salary of the people who will determine whether or not they will buy. Whether you are a seller or a buyer, I wish you all the best. There are always positive news for both sides. Cheers.
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