Monday, December 29, 2008

United States House Price to Rent Ratio

Above is a chart of the US' house price to rent ratio for the last 23 years. Taken in isolation, this chart shows that a very obvious bubble grew from about 1999 onwards.

On a more personal level, I'm wondering whether a similar bubble exists in the KL high end property market. For example, the house price to rent ratio for landed Bangsar properties is in the region of 2.5 to 3 times, which is far more expensive than the US bubble.

I feel that Malaysians in general should strongly consider renting instead of buying a house.

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