PERSONAL OPINION ON HOUSING AND VALUATION Property values are over inflated, this is done deliberately by some major players in this market. The sad part is the bubble will eventually burst, but when it does a lot of banks or financial institutions will fail to recover loans by simply subjecting the attached properties to market sales. The loans will be acidic in the long run, creating losses for financial institutions, rendering them unable to finance new projects and affecting the economy in its entirety. It still baffles me to know that a house that is situate in a residential plot allocated for P0.00 with building materials and labour costs of P100 000.00 can be valued at P550 000.00 We can not allow our real estate market to be controlled by demand alone, demand changes from time to time and regardless of how we make people desperate for housing we cannot sustain that demand very high forever especially with diminishing buying power as a result of no salary increments for the majority of the working class. Demand with with no buying power eventually become limited to just desire... The Americans brought about the economic recession following the same trend we are following. Disclaimer: This is a personal opinion based only on observations and not any official research...
Posted on: Mon, 26 Jan 2015 13:37:15 +0000
Trending Topics
Recently Viewed Topics
© 2015