If we overextend financially, we take very high risks. I don’t think it’s necessary to take such a high risk in order to buy a property. Manage it by knowing what we can really afford. Once we buy, it’s a monthly repayment for the next 360 months or more. Please be aware of this.
Renting is absolutely fine. Just don’t spend as much money in the rent we pay. This will mean that we will rent, rent and rent forever. By the way, even if the owner is currently suffering from negative yields, the owner’s long-term financial future will be brighter than his/her tenant’s. This has been demonstrated in all advanced real estate markets to date.
It’s not easy for house prices to fall because the owners don’t want it, neither do the banks that technically own the property, and not even the government wants it to happen. Even home buyers, they want prices to fall, but once they buy a property, they don’t want prices to fall…
The economy will be a factor in confidence, as well as the ability to buy or not to buy because they have a job or a higher paying job.
Don’t believe what non-buyers say. They always talk about doom and gloom. Don’t believe what the real estate sales/developers say. They will always talk about zoom and boom. Frankly, back to basics. Search for typical rents to find out if the property price is right. Search the last transaction price to see the actual price and what people think. As MIEA President Chan said, “Always let data guide your decisions.”