Singapore Home Price Growth Slows, Rents Decline as Market Cools
Singapore home prices grew at a slower pace last quarter and rents fell, as the city-state’s property boom began to lose steam.
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Singapore home prices grew at a slower pace last quarter and rents fell, as the city-state’s property boom began to lose steam.
Hong Kong home prices rose for the first time in almost a year in March as the city’s removal of property curbs revived sales.
Greater China’s property market crisis and the challenges it poses for lenders will be on full display on Monday, when embattled developer China Vanke Co. and the region’s biggest banks report earnings.
China’s overseas investment is heading for an eight-year high as its dominant firms build more factories abroad, a shift that could soften criticism of Beijing’s export drive.
The Related Cos. founder is following the money flowing south by bringing his influence to everything from real estate to schools and health care.
May 26, 2021
Honestly, I hate being asked the question: “Is it better to buy a home or rent indefinitely?”
The reason I dislike the question is because my answer is almost always: “It depends.”
Contrary to popular belief, renting doesn't mean you are throwing money away or making your landlord richer at your expense. Nor does buying a home guarantee you wealth creation.
However, I will acknowledge that it does seem like having a mortgage is a right of passage into adulthood and there is still a belief buying a home is the more financially sound decision.
However, there are no guarantees.
Housing prices could fall and erode your wealth while renting costs may be stable and manageable while you invest discretionary money in the markets for wealth creation.
With renting, you know your costs and have the flexibility to relocate with relative ease. Home ownership includes the mortgage cost, a known cost for sure. However, the wildcards and expenses can add up if the roof leaks, the pipes burst or the furnace breaks down.
Don't get me wrong, I've been a long-time supporter of homeownership. Financially, the capital gains exemption on your principal residence and the tax break alone tip the scale for me. But I wondered if I was alone in this thought process. So I reached out to James Laird, co-founder of Ratehub.ca and president of CanWise Financial. Here is what he had to say:
"Purchasing real estate is almost always the best choice in the long term, but not necessarily in the short term. Therefore, if you can qualify for a mortgage to purchase the type of property that you want, and your life is fairly stable (i.e. job, household size, etc.) then purchasing is usually the better choice. If you have employment uncertainty, or you are entering or exiting a relationship, then it is best to wait for those parts of your life to stabilize."
I've heard all the reasons not to buy:
The point is you may be further ahead in the short term renting over owning but not necessarily in the long term.
So what would be the tipping point despite the financial case for renting?
Well, all I can say is I pulled the emotional trump card in our household when we decided to buy. The importance of belonging to a community, building a home and raising our family was more important than simply the financial considerations.
Plus, I knew the numbers and I knew we could afford it.
So the tipping point for those on the fence will likely be personal and carry more weight than simply dollars and cents.