QUOTE(acepilot12 @ May 24 2017, 09:35 PM)
but i don't think our market will collapse easily.. just thinking i've got no experience in property houses.. what makes you think it will collapse?
because so many supply but demand so low,
since 2012, all the house buyers mindset is to buy the house and rent it out,
then use the rental to cover loan installment, after 35 years finished the loan, the house belong to them already,
they think this as a guarantee high profit investment..
that's why too many people have this thinking and jump into property market,
once demand increased, property price will follow increase..
hence caused property price so high today.
all these buyers that do it on year 2012 / 2013 has earned a big money,
because they are the first wave, during that time still alot tenants available..
but those people jump into property market in 2nd / 3rd / 4th wave are too late already,
because people that want to rent house already rented with 1st wave buyers.
therefore caused situation now too many house want to rent out, but no people want to rent..
now is just year 2017, the 2nd / 3rd / 4th wave house buyers still can barely cover the house installment,
because their house just completed and condo usually giving first 2 years free maintenance, and their previous saving still has remaining money to support,
but they definitely living in a struggle life and can't spend on additional things.
hence it form a loop cycle, less people spending, all business can't do well, so business start to cut cost start terminating staff cut down headcount, so economy down turn.
the impact go back to them again, the 2nd / 3rd / 4th wave house buyers some become jobless, can't pay the loan any more,
so either they sell the house with very cheap price or let bank take back the house and lelong it,
when situation getting terible, property market collapse.
the house developers are the ultimate winner, the rich become richer, the poor become poorer..
This post has been edited by o0o0: May 25 2017, 09:21 AM