When there are too many affordable housing, will it cause house prices to drop? Scary for owners and Happy for buyers…

Cost of operations

To me personally in the market, everyone talk about inflation, and this term of inflation is really too wide to cover most of the pricing issue, one the the main key factor why the price always up is the “Cost of operations” in every business.

Especially due to most recent spike of vegetable price rise, I believe soon or later before 2022, most hawker food will have increase of 10% to 20% of their price or either the portion of serve is much smaller than now.

The chain effect

Not only for property market, from the materials and other cost to be affected, if you are the property developer, will you built and sell it cheaper than your built cost?

Built cost not only materials affected ya, what I personally see is the shortage of man power and again the overall cost of operations is highly affected.

If you still think to wait and see the price will drop or not, since 2014 and there is many predictions:

Since 2014, we have always been having predictions after predictions that property price for the whole market is about to drop. There were even forecasts with details such as the exact time for it to happen and even the actual % which the price would drop to. Fortunately, all these forecasts did not happen and we still have a stable market.

Looking deeper, we would realise one major reason is because it’s NOT EASY to get a home loan approved. Ask around and one would understand that the banks are super conservative before they approve any new home loan applications. When the quality of borrowers are not just any Tom, Dick and Harry, they will also not suddenly stop paying the their home loans become non-performing loans.

Here the article by kopiandproperty.com “When affordable homes are too many, would this cause property prices to drop. Scary for owners and Happy for buyers?”

Property price always up in long run

If you keen to buy a property for own stay, congratulations, at least you are trying to stepping into property investment.

Especially for own stay, you will discover that after a 10 years cycle, you want to upgrade a bigger house, there is a lot of choices you can make and play with your current “asset”.

Either by rent it out with better price where it might cover your instalment since you bought it 10 years ago… Then you could afford a bigger house without double payment to mortgage instalment.

Or sell it after you have paid for 10 years, you will noticed that even you sell below market value at that time, you still have some cash out from the property sold.

I love rental income

To me, I love rental income since 2013 I am in the market for 8 years until now, served so many tenants and landlords.

There is bad tenant & good tenant, and majority is actually good tenant. But there is bad landlord and good landlord too!

So, if you want to get a good tenant, don’t be the bad landlord… Because how we treat people and it’s a cycle and return…

Lucky, by being a good landlord, I got most of my tenant which care my property like caring their own.

Buy now equal earn from now

Due to working or getting married, we might want to need a place which better convenient for our daily routine, rent is better or buy is better?

In short, for long term, buy always better and you will earn since the day you buy. A 10 years cycle will definitely see the positive of earnings.

Want to buy with better confident? Contact me @ chestonchoo.com