(17-09-2011, 09:20 PM)Behappyalways Wrote: [ -> ]When it hits, demand for commodities will fall as in 2008, and price of commodities may plunge, inflation will fall and demand for property might dry up. Which is why Redas is sounding the alert....I agreed with their assessment that if supply continues to be oncoming while demand for housing dries up....a lot of people/property developers might have problem.
I have differ view...no way inflation will fall.
Ppty is co-related with interest rate. The rich borrow money to become richer...why?
Current mortgage rate only 1% for my investment property, Inflation 5.4%, that mean i gain 4.4%...on the contrary if you park your money in bank FD only pay 1% and inflation 5.4%, mean you loss 4.4% in actual fact.
Next question, why people buy gold and silver...likewise ppty is a good hedge against inflation. Oh sorry stock also can hedge inflation,if you are a stock guru....but not for me.
Helicopter Ben already said interest rate will stay low for the next 2 years, mean till 2013...
No-one know yet will QE3 kick in after long delay..what next? sure come out something, could be twist to a long term loan strategy..i dunno but dun rule out.
Okay, next why I said property will not immediate crash and might stay flat for awhile...Here some figures to share with and there are facts:
1. From up-coming new projects data, over 50,000 new condos will be
completed in 2013 and 2014. However, demand for condos is aro 9,000 units. Last year's Highest Record in History is 15,000+.
2. KBW is going to increase supply of New HDB flats in year 2011 to 25,000 but only can be
completed in 3 yrs times.
3. HDB will build another 25,000 HDB flats for rental...but be
completed in next 3 yrs
Infact, you will be surprise current Rental rate across the board increased by 3%-5%...well prices maintained flat...latest Bishan new condo CapitaLand is selling at $1,450 PSF, and still got buyers.
But now is not the right time to buy property...that my personl view.