The Best Time to Get Rich: Robert Kiyosaki Reveals How to Capitalize on a Market Crash

Editorial, CNBC Indonesia

Market

Sunday, 17/09/2023 20:52 IWST

Photo: Infographics/Robert Kiyosaki: It’s time for poor people to become rich, here’s how/Ilham Restu

Jakarta, CNBC Indonesia – Everyone definitely wants success and wealth in their life. It’s not surprising that many are looking for a quick way to get rich.

The author of the book Rich Dad Poor Dad, Robert Kiyosaki said that the best time to become rich is now market crash. Now, this situation is happening in the real estate industry.

“AirBnb will soon lead (all of us) to a market crash in the real estate industry. If you want to buy a house, the happy days will soon come. The same goes for those who want to rent out a house. The best time to get rich is when it happens market crash. Good luck,” Kiyosaki tweeted on his X (formerly Twitter) social media account.

Kiyosaki did not explain why Airbnb was the cause of the destruction of the property industry. However, he only predicted that there would be a decline in property prices when there were problems in the market.

One example is the property crisis that hit the United States (US) in 2008. This incident occurred two years after property prices were hit due to an increase in the US benchmark interest rate.

The then Governor of the US Central Bank, The Federal Reserve, Alan Greenspan, decided to increase the Fed Rate four times, namely to 5.25%.

At the same time, a report by the National Association of Realtors revealed that home prices fell 1.7% and were the worst in 11 years. At that time, 3.9 million homes in the US were not selling and applications for new home construction fell by 28%.

Meanwhile, after the Covid-19 recovery, the property sector was recorded as the weakest. Throughout 2023, demand will decrease in several developed countries such as the US, UK and Japan.

In the US, home sales fell 2.2% from the previous month to a seasonally adjusted annual rate of 4.07 million units last July. That was the lowest level since January 2023 and below market expectations of 4.15 million units.

The decline in home sales in the US occurred due to higher mortgage interest rates. Apart from that, there is also a limited supply of houses.

In England, house sales this year are the lowest since 2012. It is estimated that throughout 2023, the decline will reach 21% compared to last year.

The property industry in China is also in a state of crisis. The decline in new home sales during the first seven months of 2023 was down 4.7% across 100 developers compared to the previous year.

Meanwhile in Japan, property prices are increasing. However, this is accompanied by weak demand and slow economic projections.

For land sales, there was a decline of 10.1% yoy or 2,296 units in the first quarter of 2023 in Tokyo. However, a different trend occurred in Osaka, where land sales increased 9% or 1,567 units in the same period. The city experienced a decline of 15.5% throughout 2022.

Watch the video below: