In the past, housing market surely is one of the most prominent investment instrument. The Prices never fail to rise and rise again despite of the recession. In 1990, Japan who was in its peaks performance at the housing industry faces doom after its Government decide to increase Taxes. Not to say not so long before now, a great recession in 2008 happen because of mortgage crisis. And to add more for your consideration, with this US debt ceiling thing could affect much. If the government decide to increase taxes, more and more people will stay away from buying new property, causing decrease in demand.
With lenders filing foreclosures more slowly and an excess inventory of homes, housing prices could fall another 20 percent next year, says one economist. Gary Shilling, one of the economists who predicted the subprime mortgage crisis, says the "depressing effect" of two to 2.5 million homes in excess inventory will push prices down.
That is for US and other Western Country. How about for Housing market in other Eastern Country ?
That's depend on US too, US role as the centre of global economy means that if by some chance they really goes default, anything can really happen. That's why I said Gold is the safest investment. And fortunately for you who doesn't live in US. Like me, my country doesn't tax me much compared to US government did (Selling Gold will tax you by around 28% at minimum, WTH??).
So the choice is really Yours.
Still I don't think the price will decline by about 20%. It is too big, maybe I will bet for about 7%.
And yes, for me Property would going to be long term slump in US and other developed Country.
Related Posts
0 comments