QUOTE(jalsrix @ Dec 13 2015, 10:16 AM)
If you're buying for own stay, it's less of a problem.
But if you're buying to rent out or flip, you'll have trouble finding tenants or buyers because they have so many choices.
Property prices low. Rental can brings +ve cash flow to owner. Supply lower than demands. Many people willing to buy Subsales. Many ppl earn big bucks of money from property. Some become property gurus, property tycoons. Property club, bulk purchase club, exist in the market.
Property prices increase rapidly, can't get passive income from rental but still can cover monthly payments, Subsales still doable, flipping continues. Property gurus, tycoons, think of another way to earn big bucks of money from property by giving talks, books, developer advisors, agents, commissions from developer.
Property prices increasing rates faster than rental, rental no longer to cover monthly payments, needs to cash out small portion from salary for loan payments. But, owners still not feeling stressful.
Property prices increase, rental yields very low, owners have to cash out big portions from salary, start feeling stressful for the loan payments. Subsales slow down.
Property prices increase, supplies more than demands. Take longer time to rent out. Cash out alot for loans payments. Subsales stagnant. But asking prices still remain with some holding power.
Property prices increase. Supply continues growing faster than demand. Tenants limited. Owner fully pay for the loans payments. Cash out big portions from salary, feeling very stressful in life.
Property prices increase, both rental/subsale market stagnant, yrs holding power needs. Owners start to dispose their assets at lower market prices to reduce the burden.
Property prices increase, rental/ market continues stagnant, those who no holding power throw rental and Subsales below market prices, still no demand, throw at purchasing prices.
Property prices increase, economic downturn, living expenses increased, tenants limited, subsales no market. Owners red alert, those who no holding power start to dispose their property below purchasing prices.....
To be continued........