Posted to my FB page Sin Fong Chan Real Estate on 11/2/2015 at 2:23 PM (The Age does not accept comment)
Commenting on "Iron ore slide hits small property investors"
http://www.theage.com.au/money/iron-ore-slide-hits-small-property-investors-20150212-13cieq.html
If one holds property indefinitely, it is only value of the property is only the book value. Profit is made if the property is sold. The current property market is completely out of whack, and many people buying properties during low interest rate are prone to default when the rate increases.
One must not forget that there are ongoing rates and charges, opportunity loss on better class of investment, maintenance costs, etc. Past recessions did send many property owners on tail spin.
Commenting on "Iron ore slide hits small property investors"
http://www.theage.com.au/money/iron-ore-slide-hits-small-property-investors-20150212-13cieq.html
One must not forget that there are ongoing rates and charges, opportunity loss on better class of investment, maintenance costs, etc. Past recessions did send many property owners on tail spin.
