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SG S's picture
5 years 8 months ago
SG S - It'd be good to understand the following while making an evaluation: loan ratios or average down payment, are the purchases reliant on prices increasing in the short term (Are people flipping houses?), the rental property market (are there even buildings that are rent only?), is the rental value enough to cover the payments on the loan? What is the liquidity position of the actual buyers? These are all important because if there is credit crunch, the price level will only be impacted if the buyers are in a liquidity bind. If however they can sit on it and have staying power, then they simply won't sell. Finally, what is the average sqm that can be afforded? Is new construction in Beirut for large apartments or small? What may happen is simply smaller units that are more affordable. That is what happened in Europe and the populated cities in the US.