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Can the 18-year property cycle predict correctly the TIME in Malaysia as it has done for Australia?

Just as many think that Australia’s property boom cannot keep on going, controversial economist Phillip J Anderson reiterates that you’ve got 10 MORE YEARS of rising property prices to build a millionaire dollar real estate portfolio. Another 10 more years of rising prices in Australia might sound impossible. But Phillip J Anderson is no stranger to making outlandish forecasts. In 2006 he predicted the US housing market would bottom between 2008–2010 and begin recovering in 2011.

How property cycles moves the different assets classes and investors in an economy – Australia Case Study.

Phil Anderson says that if we understand the 18-year property cycle from various angles we will be able to see the structure of the economy repeating and will understand and see what is happening better/clearer. The events may vary but the underlining structure based on the speculation of rent remains. Your Playbook for the Australia Real Estate Cycle What does all this mean for asset prices? Here’s a road map for different asset classes and the economy for the next decade.

Lease Option – Benefits to Seller (Lessor) & Buyer (Lessee) – Continue from earlier blog post.

Benefits to Lessor Lease option tenants (Lessee) will generally tend to treat or take care of the house better since they will soon own the property compared to a tenant of the house. They will generally keep the house clean, take care of the flooring or carpet and will clean it more regularly and will generally take care of minor repairs too. Lessee may under the terms of the lease option be required to take or assume the minor repair or maintenance works as they will assume ownership of the property someday.

How the real estate cycle drives economies and investors. Is Malaysia property cycle still in an expansionary period?

Real estate speculation drives this cycle of boom and bust. Economic growth leads to higher real estate prices as demand for property (from expanding businesses and flush households) grows. This increase in property prices is ultimately driven by land values: a house costs much the same to build, in terms of labour and materials; regardless of where you build it it’s the location that makes the difference to the value.

Lease Option – One of The Latest Strategies Used By Property Investors

Rich dad forbade the words ‘I can’t afford it.’… Instead, rich dad required his children to say, ‘How can I afford it?’ His reasoning, >the words ‘I can’t afford it’ shut down your brain. It didn’t have to think anymore. ‘How can I afford it?’ opened up the brain. >Forced it to think and search for answers.” Lease Option strategies are one such creative tool that allows you to invest in properties with little or no money down.