eyeC
Senior Member
Is the asking rent for residential properties going up in 2013?real or fictitious
-wages are not increasing
-over supply of properties and new properties are still coming to the marekt
-rent cap
yet I see recent headlines suggesting rent is going up by 45% for 2013 and some as high as 95% how can this be possible your thoughts please.
I don't believe the demand for accommodation is real and the thought of demand not being met by the available supply is hard to digest.
as a result of such headlines the prices of the underlying property went up like a rocket to levels which are not justified in such a short time If you appraise as an income property and you consider the 5% net income on investment its not enough to compensate for the high risk of investing in a country where rules and regulations are still developing, infant strata law, and finally the geopolitical risk.
what goes up fast will drop just as fast.
-wages are not increasing
-over supply of properties and new properties are still coming to the marekt
-rent cap
yet I see recent headlines suggesting rent is going up by 45% for 2013 and some as high as 95% how can this be possible your thoughts please.
I don't believe the demand for accommodation is real and the thought of demand not being met by the available supply is hard to digest.
as a result of such headlines the prices of the underlying property went up like a rocket to levels which are not justified in such a short time If you appraise as an income property and you consider the 5% net income on investment its not enough to compensate for the high risk of investing in a country where rules and regulations are still developing, infant strata law, and finally the geopolitical risk.
what goes up fast will drop just as fast.
