Looks Wall Street is not so optimistic that raising the debt ceiling will bail America out from its financial crisis although at one time the DJIA broke new highs before the 2008 financial meltdown. Unemployment is still high, job creation is still slow. Not much bright news recently. Will this kickstart recession and trigger property bubble to burst across Asia?
My friend who own a few properties recently ask me whether the property bubble going to burst. My answer is NO unless people start losing jobs due to retrenchment, etc. As long as strong holding power exists, the price will remain high.
NO retrenchments == NO property bubble bursting.
So KLCI decides to bleed 22 points today while the global stock market is in a sea of red.
No retrenchments, no property bubble bursting but does that mean have retrenchments, then there will be property bubble burst? :) It means different thing.
I meant to say that if there is mass retrenchments , the property bubble will burst. The main reason is that the middle income aka the average employees nowadays are having high debt ratios compared to their income.
Without their jobs, I don't think they can have any strong holding power on their speculative property investments. Everyone is joining the property investment bandwagon.
Hehehe... hopefully this won't happen. :)
I think the better question for everyone to try to answer is:
1.What do you going to do if recession hits and your property investment goes into the gutters?
2.Are you prepared?
3. What is your holding power like?
4. What is your backup plan?
Not sure if the following answers make sense. :D
1.What do you going to do if recession hits and your property investment goes into the gutters?
>> Hold it.
2.Are you prepared?
>> 70%. :)
3. What is your holding power like?
>> ~ 2 years.
4. What is your backup plan?
>> Get a new job with equivalent pay within 6 months.
ChampDog, looks like you are well covered :P
Not sure how many people are well covered like you.. :P