KA1
Senior Member
I know Ka1 you like to stir the pot.
I am not a doom or gloom sayer. Simply hopefully a realist.
I believe fundamentals are important and at some point (I can't say when) they will come back into play. If one chooses to ignore all fundamentals, then everything will just keep increasing at say 6%/year forever with no corrections. Oh, and rents will stay the same as they have for the past 10 years. And incomes will hardly rise, and people will just spend more and more of their income until housing represents 100% of disposable.
I think you get my point. At some point, there has to be a realignment. I believe it will be coming but governments so far have tried their best to meddle to prevent it. Even the government is now taking steps (30 year mortgages, larger downpayments for investors etc.) because they realize this is not sustainable. Ask yourself, this is not a politically popular move and yet they are doing it... shoud tell us that there are very real risks.
But in conclusion, we could be wrong and there is no bust.
that would really be nice. A new "norm".... everything only goes up from this point in history onwards.
I am sure Ka1 you appreciate my humour.
To start with, I am not stirring any pot -- just trying to educate myself.
I have neither heard nor read about investors/buyers of units -- rather residences -- in Ritz-carlton or Trump Plaza refusing to close the deals because of anticipated decline in the value of their units. Soon, residences in Shangri-La will also be up for closing. Any purchaser on this thread willing to openly declare that, in view of the anticipated decline in the values, he/she will not close the deal?
Obviously those investors know something that some of us do not know. Once again, I am just an observer. And I take a long term view of the situation. I bought a unit in RoCP1, where I live, in November 2001 -- deep in the middle of the recession. Staff in the sales office were desperate for a vistor and a sale. It took me 2 weeks to make a decision. I needed a unit -- rather a residence -- and I bought it, recession or no recession. There are plenty of indiviuals like myself, including investors from mainland China. Bubble? Perhaps. Bust? Definitely no.
Let the 'wise men' now educate me a bit more.