Weak regulation threatens to burst real estate bubble

[Sir X]

When we have these high interest rates, it also affects the developers, the cost to borrow to fund that development goes up. There's only a limited extent to which they [developers] can pass on this increased cost to the consumers. The fact is that these apartment buildings which are where the market is right now are already so expensive there's only so much more that they can go."

https://www.jamaicaobserver.com/news...estate-bubble/

I hope you geniuses can put 2 and 2 together, the common theme is inflation, high interest rates , the other article by the economist mentioned being worried about overseas buyers drying up. Thats the kicker to me because as he stated they are the main ones purchasing these properties. If as I expect we go into a recession or stagnation for the next 2 years , the local market will feel pressure, compounding that will be the chinese are having a real estate bubble and supply chain supply issues that affects the world. The last recession in 2008 the world could depend on CHINA to buy US and Western Europe debt, today thats not going to happen on the past scale. Africa, Latin America and S. Ameriaca could depend on massive Chinese investment , not today. All those factors helped the west get out of their recession. As for the 3rd and developed world high oil prices drain central banks from supporting their economies, its eaten up by that expenditure , where its passed onto the consumers causing chaos on all facets on the local economy, from agriculture , mining and manufactoring. Expecting tourist to subsidized that defecit is crack head thinking , when that market is struggling with a recession/stagnation or inflation.

I hope the genuises understand ,if not , cant say I didnt try. .

[Assasin]

"Weak regulation threatens to burst real estate bubble". Topic says it all. While this maybe true, what is missing is the data for me to agree. This is the same regulation we have been operating under for a long time.

[Sir X]

Data: Isn't the high interest rates data , what's the correlation of high interest rates on the housing market , builders,buyers and sellers ? . Answer that , now compute that into an unregulated one? .

You are clueless. I expect given the drop in home prices , decrease in sale contracts in the USA with interest rates at 7 , might hit 8 , buyers are going to wait until rates come down, that's bad for builders, some might even go bankrupt, and so given that data ,why would Jamaica be any different, if it's believed from the data provided by the economist that overseas buyers are the main purchasers of developmental properties. Any builder from the USA ,U K ,Jamaica to Europe,Africa and China is sh*ttibg Bricks

Dude wants data, that's in his face...lol

[Assasin]

All of a sudden high interest rate is a problem when you supported it all through 90s - 2010s. Yes it will cause a slow down but no necessary a crash if the government can flood the market with NHT houses and if people overseas continue to buy for cash and high downpayment. If tourism continue to flourish.

You guys said Tourism would be dead because of Covid, the housing marking would be dead because of Covid. I also thought housing would be affected because of Covid but it wasn't. You went to Jamaica and was awake for a minute an you fall back a sleep. We could have a downturn but if the government is proactive we could also avoid it. Not until the data is showing downturn will I believe it. It is most likely a downturn in the upscale houses but there will be some growth in middle class and lower income houses.

[Sir X]

1st Tribalist , who is you guys ? 2nd mek sense ,3td perception isn't reality . The government itself states it's trying to get the economy back to pre pandemic levels. That means your rosy ass - sumptions is just that, in other words wishful thinking until it's attained. Your problem or the government problem is the reality of today. Something is wrong with you when the government states it's economy hit a downturn , in that it's trying to get back to a prepandemic level with high interest rates and high oil prices and you can't see it.Yuh a wait for data ....lol.

[Assasin]

Sit down and watch. When the housing downturn come you can chat but it is not here yet. See how surprise you were on your visit?? Just maybe Ja can ride it out.

[Sir X]

Cognitive dissonance on your part , you are not connecting the dots as usual , 1st let's accept the data from the government that the economy contracted in COVID and is trying to get to pre pandemic levels .2nd my assessment that construction was booming doesn't translate to success, hence my position builders are ****ting Bricks . Construction or building does not translate to sales , it's speculative based on projected sales. Now that relates to an economy that was contracted . The hope was post pandemic that would be one of the engines to drive the economy forward based on projected sales. To sum it up that doesn't mean the economy is doing well , in no way. Contextualize that with a US economy and European economy awash with pandemic cash( the government literally gave away cash in the developed world ). That rug was pulled from under the global economy with high inflation , a war , China supply chain issues and real estate market crash , compounding that is high gas prices.

You reason too simple for a so called man that dabled in economics. You seem impressed with catch phrases , sound bites and personal analogies to justify pipe dreams , basically ignoring reality on what ifs.


Look nice chatting with you , I am out, you need to raise your level. I agree with you that we should wait and see, by next summer I predicted some serious government bawling .

[Assasin]

Up to now you show no data that real estate is collapsing. You show the word of a few people in the industry. That is not showing there is any contraction whatsoever.

[Jangle]

US$100-million investment
Resort-style housing, residential and commercial complex for Hip Strip

MONTEGO BAY, St James — Montego Bay Resorts Development Limited on Friday broke ground for a US$100-million complex which will feature luxurious, mixed resort-style living along with residential and commercial spaces on the famous Hip Strip in this tourist resort city.

The development, which is expected to be completed in 48 months, is a joint venture between C & H Property Development Company Limited and MoneyMasters Real Estate and Infrastructure Investment Limited.

It is expected to generate 300 jobs during construction and will be done in four phases. Phase one will see the development of 30 units consisting of one-bedroom and two-bedroom suites, a loft unit, as well as two 1,075-square-foot penthouse units. Phases two, three and four will each include residential and commercial spaces. Each tower will comprise studios, one-bedroom, and two bedroom suites as well as approximately 10,000 square feet of commercial space.

https://www.jamaicaobserver.com/?fromt=yes

[Assasin]

wha, him nuh see collapse yet?

[Sir X]

One swallow doesn't make a summer Johnny , you have to look at the overall numbers of investment. I know investors buying properties because they see the fall in prices as an opportunity to rent , it's a renters market. That said sellers are nervous , as I said give it by summer to the end of next year to see hear the bawling. The US market is more readable , it takes no less than 3 months to read the data. The Jamaican market is slow in reporting numbers and the government is prone to selling political narratives that clowns lap up and promote as success. .

As I said news analogies, catch phrases and sound bites get you too easy , yuh frighten easy when it fits your agenda.

[Bricktop]

The US market is more readable , it takes no less than 3 months to read the data. The Jamaican market is slow in reporting numbers and the government is prone to selling political narratives that clowns lap up and promote as success. .

the amount of rubbish this bredda spouts...he is clueless...jamaican market is slow to report numbers when NHT accounts for around 80 per cent of housing starts and finish? yuh have sense?

[Sir X]

Lol...suh Brick overseas buyers are buying properties with NHT loans ???. Aren't we talking about a market driven by overseas buyers . If you want to talk about the local low income housing market ,please start another thread.
Clown

https://www.nht.gov.jm/loans/who-qualifies

[Bricktop]

what are you not understanding? 80% of the houses brought to market each year are built by NHT...20% by private developers...capiche?

p.s. this look like low income housing to you? https://www.nht.gov.jm/node/1752

[Sir X]

Lol...so you bringing low income housing into the equation for overseas buyers , is that who private developers are selling to , NHT buyers. That said getting numbers or data on private developers, projects , units , sellers , buyers , days on the market is next to impossible for the average buyer. You have to have certain skill sets to read that.

You can't make this up....lol.