Housing

Housing has been an inexorable issue to the United States for the past year in view of the chaos cooked up by the financial crisis.


In Asia however, the real estate market has started to pick up. Hong Kong is taking the lead on real estate with a surge in the sales of the houses sold. Singapore has also seen a peak rise after the 7th lunar month, which is also known as the Ghost month. People seems to comment that right now, they are looking for houses that are prestigious. Houses on great locations are also on the lookout by these potential buyers. They no longer seems to care whether there is a crisis or whether there is a scheme or incentives to aid them. Rather, they are looking for what they need and the potential worth of the house in the long run.

Conversely, in the United States, people are strongly reliant on the tax credits provided by the United States which comes up to a total of $8,000. Presumably, it will end by 1 Decemeber but there are speculations that the government might extend the period due to popular demand. However, I do notice that people are actually enter this foray as first time buyers and that most of them are making use of this $8,000 credit provided by the government. But, won't there be repercussions as a result in the long run?


First possibility, people who never thought they can afford houses are attemping to buy houses now because of the rare credits given along with unbelievably low interest rates. But what might happen is that many will eventually end up selling their house because they cannot afford the mortgage loans. It is definitely no easy feat to consistently pay for your mortgage loans along the way with the rising living standards and the possibly inflation after the crisis. At the end of the day, we might see a new set of foreclosures surging and the housing market will end up in a tornado once again.


Second possiblity is that the housing market will sink into depression once the credit is removed. If the credit is really going to be extended, the pain will just be further dragged on. The longer you give these people the credit relief, the more reliant they becomes on it and the painful it is going to get when you confiscate these credits. It is definitely less painful to take out a knife an hour after it is stabbed into you than to take it out a day later. When people start to wire themselves round this scheme, it is going to be an arduous task to get rid of them. There will be a huge impact on the housing market as a result when everyone just stops buying in hope of the government reviving the scheme once again. Who knows how long they are going to wait, a few months, or maybe a few years?


All in all, the housing market is definitely still not stable, but it is one of the best time to get yourself one for investment purposes because the price of the houses are definitely at an all-time low. Coupled with the low interest rates, you simply got the longer end of the stick !

Credit -bournemouth