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When the property market gets hotter, people get divorced to buy one. Erm…?

What do people go when property market gets hotter or as per what people say, starts to recover? Well, more people will be tempted to buy because their friends, their colleagues, their relatives may be telling them about the property market as well. Briefly, when sentiments get positive, everyone feels that the time is right. People feel confident that what they buy will be a good buy.

When the property market is not hot, sentiment is also negative and when no one buys, most of the time, even fewer people buys. Haha. Today, we look at how property prices are also encouraging a spike in divorce numbers. Funny as it may be, this is seriously true. Not in Malaysia, fortunately.

property market gets hotter
Photo by burak kostak on Pexels.com

Article in nst.com.my Chinese government is doing its best to keep the property market in check because of the resurgence in real estate prices in Shanghai and Shenzhen. Their cooling measures include plugging a loophole long exploited by buyers using FAKE DIVORCES to become eligible to purchase more properties or obtain mortgages.

The reason for this divorce case is because most Chinese cities limit home-buying demand by capping the number of properties a family can own. Thus, divorce becomes a way to bypass the restriction. Under the new rule, the number of homes owned by people who have been divorced for less than three years will be counted based on the total they had when they were still married. To read more of this entertaining news, please read here: Article in nst.com.my

Yes, some property markets are getting hotter again.

China is not the only country with this thought; cooling their property markets. Singapore’s top leader has also mentioned that low interest rates are causing too high interest on the property market and this is not a good sign. Earlier article here: Too high interest because of too low interest rate is a big issue. Of course the same sign which both these countries have would be that they have managed to put COVID-19 under control and both have started mass COVID-19 vaccinations too.

Look for opportunities in all markets

Personally, I do not think too much about cycles. The reason is a simple one. Do we want to conclude that there is nothing to buy / overvalued during an up cycle or that everything is good / undervalued to buy during a down cycle? If we say we want to wait, then have we identified anything that we want to keep an eye on? If we say we wanted to sell, have we decided on the lowest price we could accept? Thinking is easy, doing is much harder. This is why many may miss the potential opportunities.

Happy understanding yeah.

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Next suggested article: 7 advantages to buy in a slowing market

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Charles Tan The Founder The Writer Kopiandproperty
Charles Tan

Charles is Founder of kopiandproperty.com He writes from his investment experience for the the past 20 years in investments including property, stock, unit trust and more as well as readings and conversations with many property gurus in the industry. kopiandproperty.com is an independent property blog which is not affiliated to any media company, property developer or even real estate agencies.

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