Does the demand for property disappear?

Does the demand for property disappear?

Hi, I’m Sunil, and in this
episode of Systematic Property, we’ll look at if the
demand for property ever
disappears. Let’s find out. Indian or Chinese? Not sure. What do you prefer, not
property? I’m talking about
food. I mean, you know, if you have
to go and eat something today, let’s say it’s lunchtime and
you’re hungry. Would you like a nice Indian
tikka masala with naans (it’s making my
mouth water ? Or maybe some Chinese chop
suey that’s also making my mouth
water. Well, of course, property and
food are not the same thing, but with food you have a
choice. If you go for Indian, you don’t
need Chinese. And if you go for Chinese, you
don’t need Indian. But that’s not the case for
property. See, the thing with property is
there’s no choice. If you want to live in a house,
you want to live in a house. There’s no… , maybe there’s a tent option,
but it’s not really a solid long term option. Maybe outside is an option
depending on where you live. Maybe it is. But really, there is no
alternative for living in a house. Yeah, you can buy or rent, but
that’s the same thing: living
in a house. So when we talk about the
demand for property, people wanting to buy
property, does that demand ever
disappear? And because there’s no real
option for that demand to go to. Let’s say, you know, there were all the Chinese restaurants
shut down and all the Indian
restaurants will be busy. It’s not the case with
property. The demand for property is
always there. It’s either inaction or out of
action. And of course, when it’s
inaction, you have buyers in
the market buying property and investing when it’s out of action. You have people renting
property because they still have to live in a
property. Now, if you think about it,
that’s really good news for us
property investors, because no matter
what’s happening, there’s somebody getting involved in
property. And if they’re not buying,
they’re renting. And of course, renters are
good for us. So the demand for property
never disappears. It just gets pent up. Why does it get pent up? Well,
it gets pent up because people don’t want to
take the action on that
demand. Maybe because prices are gone
too high, maybe because interest rates are too
low. That caused prices to go too
high. Maybe interest rates are too
high. Maybe there’s doom and gloom in
the market. Maybe everyone’s emotional
about the market because, oh, my gosh, it’s going to
all come to pieces. So the action gets curtailed. And of course, when the action
gets curtailed, banks get well… they want to lend money, don’t
they? So they come up with all
these crazy schemes of lending money when there is no action. And that can sometimes be a
sign that the market is going
to turn. So does the demand ever
disappear? No, because there’s no
alternative. It’s just the action that’s
taken on that demand appears and disappears
from time to time. Hope that’s food for thought. Thanks for watching.
I’m Sunil.

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