Property boom: Will it hang or will it hold?
IN SUMMARY
Last Thursday this newspaper ran a story that used indicators from other parts of the world to assess whether there are any tell-tale signs of a property bubble burst in Kenya. This is because, as speculators enter the market believing profits can be made through short-term buying and selling, they are pushing the demand for houses up. But this, our economic and industry analysts revealed, cannot be sustained in the long run, so when eventually the demand decreases or stagnates, it will herald a sharp drop in prices — and the bubble, many believe, will eventually burst. A housing boom is traditionally caused by low bank interest rates, variable rate loans, easy-to-get credit, a willingness among home buyers to take out second and third mortgages, long-term repayment terms, and mortgages that exceed the value of the home. Online, the arguments and counter-arguments on this topic have been quite enlightening and thought-provoking, which is why this week we bring you the thoughts of Kenyans on this astonishing property boom. Is it sustainable? We asked them:
http://www.nation.co.ke/Features/DN2/Property-boom-Will-it-hang-or-will-it-hold-/-/957860/1637200/-/12hmef/-/index.html |
