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Financial Are property prices going to drop? V2, The heated debate continues

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aeiou228
post Feb 22 2011, 12:23 PM

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My friend told me he has put on hold the decision to buy a second house (upgrade) after some one told him this so called "theory".

The sharp price hike started in 2009 and continue to year 2010 as speculators and 1st time house buyers were buying up newly launched properties during these period. The commencement of the loan repayments are likely to start by end of this year or 2012. The theory foresee that the income of the speculators may not be sufficient to service the loan if they can't dispose off the houses due to stagnant income of the genuine house buyers. Thus the start of chain reaction of property price softening.

The theory sounds logic but no one knows for sure what will happen in 2012. Any sifu here can give some comments on this theory ?
aeiou228
post Feb 28 2011, 11:22 PM

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QUOTE(Bobby C @ Feb 28 2011, 04:20 PM)
Moral of the stories is, instead of focusing on external macro factors which is beyond our control unless you got a crystal ball, why don't we focus on internal factors that are within our reach ie how to increase your salary (passive/active income), other forms of investment that can alleviate your net worth, how to live below/within your means and stop comparing with your peers, try to study the properties that you are targeting whether overvalue or undervalue or stable (min chances of bubble bursting), how to mitigate risk etc etc.

Tell us prophets of doom since when we hear good news. Ever since 1997, seems that every 1-2 yrs we experience uncertainties and crisis after crisis. Life goes on and many still making good money from properties and other investments.

Ok, instead of being NATO, am also almost making up a deal to invest in some property that has potential to reap double triple quadruple return, Insha Allah of course, we can only do so much as human. But again, that is another playing field, road less travel, need plenty of perseverance and hardwork. Some might also think we are mad. Property boom or burst does not affect this kind of investment and it is not in KV.
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LOL, If I can tell accurately the name of this kind of investment, any present for me ? tongue.gif

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