Real price is my twin brother, why didn't everyone even mention him when using me to measure property price?
10. mini 2012-05-26 15:11:47
We are waiting for Euro Bonds in some days while we can gradually increase the rents in accordance with the current inflation rates.
We do believe the U.S. CANNOT fix thestructural problems, huge debts, highjobless rates resulting from the financial tsunami and economic crisis within a few years. Also, there is No Quick Fix for reforming the EU 27 countries, such as over twenty languages, accounting practices, technical standards, national laws, political systems & cultures.
Back to Asia, we do have continuous FDI from our China which will show us how to increase to the personal incomes of the mainland, the investments in infrastructures, the reforms of land & taxation between 2011 and 2020.
I have been working in China for 20 years, I see the huge growth of China ecnonmy (from industrial to commerical and service & retailers selling) starting from early 80s. The US and European, Japanese wealth had been transferring from West to East as European people are lazy, US people like to spend rather than save money. Only Chinese working hard to save money,productive, worked in holidays, no time to spend money.
The China culture like to save these results in properties like bricks. With the RMB going up, and a series of macro economic effect : HK - low interest rates, currency benefits, freedom of ecnomy, safe place to store efforts through property, good way for offspring education, medical...
HK is a place becoming extremely attractive to them. So, these powers were originally coming from West, going through China, then amplified and going back to HK market. Do not underestimate this power.
The real truth is that Europe products is becoming less and less competitive, due to their low porductivity, their retirement scheme is too good to generate lazy people.
Also, NO need to fear th so called "export growth going down" ,
Fact is that China manufactured products still very competitive in the Whole World market ! because of its currency, its people low salary compared to the World, its still relatively low manufacturing cost, its rich land and natural resources.
Europe, US countries still need to import anyway, they can't just buy products generated themselves, because their cost and competitiveness is less than China. They preferred to buy high quality- well made, low cost products, though they may buy less than before. BUt it still a necessity.
So under a certain downwards trend, it would soon hit its bottom and return back to rise up again, this is unstoppable ! unless the Western countries trying to reduce their industrial/ manufacturing cost, Western people willing to reduce their salary.
Without the above, don't be naive to say that they will never rely on china manufacuturing products.
I had a customer from Swiss , and one from Germany
They told me that the Euro crisis were not only caused by the high class of social welfare, but mostly due to thegreedy fiancial bankers who irresponsible to encourage people to spend future money at almost no cost, very very low interest.
Also, they invest a huge amount of money in stock market, future index and those accumulators! and in higher profits, but very risky market, causing a big loss in banks, and for the government as well.
Actually it is quite similar to US crisis in 2008. I also heard that German had borrowed a huge amount of easy money to Greece during its Olympics games several years ago. German sold also a very enhanced weapons to Greece to earn a lot of Euros, making this small country in heavy and huge debts though they know the amt of borrow is already well exceed its GDP !
36. HK guy 2012-05-27 10:01:48
What I guess the World will be :
1) Euro will have to depreciate , and central Euro committe have to print money to fill up the holes, they will not let Greece, Spain to collapse, as it finally will definitely affect themselves economy and Euro position as well, (they spends tens of years of efforts to estimate this Euro, I see no reason they will just let it go)
2) US will start their OT2 or QE3 again, as they foresee the Euro sitation ;
3) China export will definitely drop , but it will drop to a certain extent, and rebounce again, as the demand are still there ;
4) China will further boost its internal needs, and create jobs, and sales inland ;
5) China will use loose money policy again ;
6) With the macro ecnomy going down, China will loose its property control policy in future- this may help the economy downturn.
--- I would be more thinking that German have to take up the burden rather let Greece to go bankrupcy, they will continue to give funds to Greece, but still changing the direction like Obama say : 1) reduce the unnecessary expenses(full retirement schemes), 2) increase the necessary expenses or helpful expenses (like building a new bridge, invest in tourist attractions, hold some international events... ) to boost up the ecnomy
Unless you inherit a big lump sum from your parents, where do you get the money to invest??? Basically I agree people should all have some skills & work hard, but looking for apartments to trade & sell is also very professional. You don't just buy & let them sit forever, sometimes like certain experts say:you have to prioritize & make your properties combination look more promising & profitable. That's alot of research & maths........
Anyway, to collect rents as income sounds like an old trick but it's not something alot of people can do......BTW, it feels more relaxing & fun to go out to work if you have 5/6 apartments at hand!
