Feb 9, 2010
Rent not the reason for price spikes
I REFER to yesterday's letter from Mr Ng Kwong Yee ('Room for pragmatism').
I agree with most of his comments on appreciating values and preferences of flats in various locations, but not with his comments on rental.
The reason for ever rising valuation and cash-over-valuation of flats is clear - buying and selling.
Some buy to have a roof over their heads, whereas some sell and then buy again to upgrade. Then there are those who buy now to save money as it is cheaper than waiting until prices go up again. No matter how you look at it, when you buy or sell, the price is never the same.
From the main context of previous discussions, it is buying and selling that causes movement in the value of HDB flats - not rental. When one buys and then rents out, it actually relieves market tension by reducing the number of people who would otherwise be in the buying market. When more people rent, fewer people buy and prices are not driven higher. And when the landlords decide to keep their flats for rental, the speculative part of rental property also disappears.
Yeo Shuan Chee
Subscribe to:
Post Comments (Atom)
Pre-development Land Investing
In business for over 30 years, success in providing real estate investment opportunities to clients around the world is a simple, yet effective separation of roles and responsibilites. The four pillars of strength guide the land from the research and acquisition, through to the exit, including the distribution of proceeds to our clients ......
To know more how this is really work for you and your clients....
Please contact me Terence Tay @ (+65) 9387-5896 or email : terencetay.kh@gmail.com
To know more how this is really work for you and your clients....
Please contact me Terence Tay @ (+65) 9387-5896 or email : terencetay.kh@gmail.com
Posts
No comments:
Post a Comment