Property Investment 101: Increasing monthly rental versus paying higher monthly rental
From an article I read where the link is provided just below, it tells me that it is not just the working professionals who may face rental increase when the demand is higher than the supply of homes. Even the wealthier ones are also affected by rental increase. Yes, the wealthier ones also rent and does not necessarily own the place. 🙂 Imagine the person these wealthy ones are renting from. Below is a chart showing that Singapore has beaten New York in terms of luxury property rental growth.
Article in themalaysianreserve.com Singapore pushed New York off the top spot for the strongest growth in residential rents in the last quarter of 2022, fueled by a supply crunch and strong demand.
The city-state saw annual rents jump 28% in the quarter from a year earlier, according to a report by Knight Frank. New York followed with 19% growth, while London and Toronto took the third and fourth spots, according to the survey of prime residential rents across 10 cities. While prime rents have remained robust across many global cities, the overall rate of annual growth is starting to slow, Knight Frank said. Do read the full article here: Article in themalaysianreserve.com
If the wealthier ones are renting, why not the less wealthier ones?
Truth is, nothing should stop anyone from renting versus buying. As we can read from the article, rental is going up and all these data comes from the fact that rental has gone up but people are still renting. Else, if just rental going up but no one is renting, it does not show anything yeah. It means that the wealthier ones who are renting, they could afford all these increase. It also meant that for the owners of these premium homes, they would now become even more wealthier yeah. Which world would you prefer to be in this case? The one increasing the rental or the one paying higher rental?
Happy deciding.
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