Property Investment 101: Property Investment cannot be fast and furious please.
Slowing down, is this a bad thing really?
I hate it when property market transactions rise because people were thinking that the next rush is coming and they fear of missing out. As everyone is now buying with a specutive mindset, the price is no longer the focus. Everyone thought the price will be ever higher when they sell in the future. It’s as if there’s always a better price tomorrow! Haha. Stop believing this kind of fairytale yeah.
Depending on who you speak to, they will continue to tell you this fairytale. There may not be ‘happily ever after’ to this fairytale when someone buys an overpriced property yeah. If it has grown just too high, then the whole market would need to slow down before it could rise again. This is something that’s happening to once super hot property market.
Article in channelnewsasia.com The real estate industry grew at lightning speed after restrictions were eased in 1998 across China where buying a home is a common prerequisite for marriage as well as for investment. For two decades, developers have been able to build at breakneck speed thanks to easy bank loans, but their debts swelled so much that authorities put a stop to that access to cash from 2020.
The property market experienced its “worst-ever slump” last year, with sales down 24 per cent, said Rosealea Yao of Gavekal-Dragonomics, a Beijing-based economic consultancy firm. But after a dark year, “China’s property market has shown signs of stabilising” since the beginning of 2023, according to Fitch Ratings.
In March, a representative survey of major cities across China recorded a significant increase in property prices, according to figures released last Saturday by the National Bureau of Statistics (NBS).
Of the 70 cities that make up the official list, 64 recorded a price increase — up from 55 in February and 36 in January. Please do read the full article with a lot more details here: Article in channelnewsasia.com
Stop believing that property prices would keep rising very fast (this is more like a gambling statement)
The rationale of “If a condo price in an area next to the prime area could rise from RM247,000 to RM640,000 in 12 years, surely that same property bought at RM640,000 could rise to RM1.2 million in the next 12 years?” Sorry, it does NOT happen this way. It could have risen because the prices were just too low (versus the world….) and it’s now expensive (by local country salary standard) and thus the increase moving forward would go back to a typical inflation pace. Or even slower until the salary starts to catch up.
Happy understanding that property investment is not supposed to be fast and furious. That’s for many other so-called investments but for property investments, it should be a sleep soundly and watch it rise steadily kind of investment. Unless of course we bought an overpriced investment in the first place yeah.
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