Since we are living in a global world nowadays, whatever happens to a certain economy may and has been proven to affect the global market in its totality. In the recent economic slowdown of China, its effect had some impact on the real estate industry all over the world. In the following article of Mohamed El-Erian, he emphasized the cumulative impact of the said economic disruption:
China-related worries test global asset prices
If viewed on a standalone basis, recent developments in China strictly do not warrant the massive global stock market sell-off and financial dislocations that have followed.
Such a narrow assessment, however, ignores the cumulative impact of longer-term distortions that have taken root in the financial system, both inside and outside China. A major adjustment of policies is needed if these distortions are to be resolved in an orderly fashion. Otherwise, market forces could well force a reconciliation that will be a lot more disruptive to the financial system and the global economy. Read original article...
This said global economic impact has not only affected neighbouring countries such as Hong Kong and Singapore. For even European countries like UK is expected to be affected, particularly on the aspect of real estate.
In the following article of John Ficenec, he pointed out that the collapsing asset prices around the world due to the economic slowdown will not exempt United Kingdom:
UK house prices to crash as global asset prices unravel
Asset prices around the world soared as central bankers embarked on the greatest money printing experiment in history. While much of that money flowed into the stock market, a great deal also found its way into house prices. What we are now witnessing on trading screens around the world is the unwinding of the era of monetary excess, and house prices will not escape the fallout. Check full post...
This is not the first time the UK and other countries would perhaps experience a possible crash of housing market price. Now the question is whether one should sell now their property or wait for more time? Mike Holman gave some input regarding the said concern, on whether should you sell your house before the looming threat in the background:
Should You Sell Your House And Avoid The Market Crash?
If you can forecast a big enough drop in house prices and you can time it well enough to benefit from most of the drop, selling and renting for a while could be quite profitable.
The way I look it, there is too much downside risk for most people. Yes, you could make a good chunk of change if things work out, but you can easily lose just as much money. If you want to play roulette - go to Vegas. See original article...
