Property Investment 101: No property may mean poverty
Every time someones tells me how hard it is to buy a property, I would ask why. The typical answer would be property prices are too high these days or that the salary is too low these days. Some would then put the blame on food prices or even bad bosses who refuse to pay them higher salaries. I shall not comment further but today, let’s look back at what happens when we really do not own a property or if we have no place to stay or could not afford simply because the rental is too high.
Article in nst.com.my Tens of thousands of people are priced out of rental and there is now a surge in homelessness in Canada despite Canada being a wealthy nation.
In Quebec, one in two homeless people can be found in rural parts of the eastern province, instead of mainly in Montreal as had been the case in the past, according to a new report published in September.
Danny Brodeur-Cote has lived for months in a makeshift camp in woodlands near a cemetery in Granby, a town of 70,000 inhabitants 80 kilometers (50 miles) east of Montreal, after being evicted in June from an apartment he rented with his girlfriend.
Nearly one in four homeless people found themselves on the street after being evicted from housing, according to the Quebec government report.
Between 2018 and 2022, the number of homeless people in Quebec increased by 44 percent, their numbers swelling to 10,000 last year. Indigenous people, who represent five percent of the Canadian population, are particularly over-represented in the streets, especially the Inuit, said Lussier. Article in nst.com.my
Malaysia’s not an advanced economy like Canada, yet
Real property choices? Still available. Meets all expectations? That may be the issue. Perhaps expectations may need to be adjusted slightly? Anyway, some choices as below: Source: PropertyGuru.com.my
Can prices stay low for many more years to come?
Super hard to answer this question. However, if we conclude that prices will just rise at half the rate of inflation per year, that’s something like 2% per annum? RM350,000 home will increase by RM7,000 every year and 5 years would mean an increase of RM35,000 yeah. Not a lot but we also cannot say it’s low enough that everyone could easily save enough just to be on top of this small increase every year. This is why delaying for 5 years may mean an even tougher time ahead.
Happy understanding yeah.
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Next suggested article: When rates rise, buying falls, financial logic right?
