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So many people have been waiting the market to slow down from last year, some of them have the down payment to purchase this spring.
' Z' T2 ^: k# W& O t% FHowever, they are so afraid of the high price then. Now they have missed a great chance to have their first property this year.% P, c8 |. u# a4 I# E) ?1 b
It is always better to buy when it is on the way up than it is on the way down.( q3 U* X @/ R4 K- i! i7 x6 w* J
For example, the condo average price is around $240,000 this March, now it is $270,000.
1 G; Z; Z1 ^0 P1 E& S/ fSay, it is at its prime now even though there is no sign in the condo section yet. Can any body guess, when it will come down to $240,000.
2 \8 e$ F6 N8 U/ M" [: I: hI will give it another 6 months if the market go down x months in a row. because house is not like stocks, it cannot go down too fast.
/ `3 Y E* H5 ZIf you have purchased that unit this March, you will get the interest rate at 5.0. If you get it now, you may get 5.6. If you get it in 6 months,# r! B8 b4 }1 D; W3 ^& Q) j
your mortgage interest rate may have reached 6%.3 ~) ]/ a& M9 i3 O% h2 q6 B. Q
House market will not go down if the interest rate is low, so if you want to buy a low price house when it is over priced, you will have bear the high interest rate.9 p6 a3 ~; J' Z' i$ a1 M
& w$ U+ p# h7 V- A. i5 ]# aOK, if you bought this March, $240,000, interest rate 5%. Best deal, total interest in 5years $60,000 Total:$300,000
- {/ y0 ~# ?: h% z8 R9 z6 V. uif you buy it now, $270,000, interest rate 5.6%. interest(4 years and 6 months) $68040 plus 6 months rent = $6000 (you may not get the same 5 Y& K J) c+ n( {; G
condo with $1000/month rent) Total: $344,040( i! ]% e6 E. t' Q ?1 G( N
if you buy it next March, $240,000, interest rate 6%. interest(4 Years) $57,600 plus 12 months rent = $12000 Total: $30,9600
9 f, S! E5 i- ^6 @We can see what is the best, when it is on its way up, worst?when it is prime(peak).
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So, those who have waited, may have to wait another 6 months. However, who can say the price in next March will be $240,000." l; Z) M* t+ w5 z; A" L4 `
Cannot it be $270,000? Cannot it be $280,000?% q5 o( e2 G6 w0 l
So, when to buy, it is always a puzzle. If everybody know when to buy, what is the world like? cannot imagine.
5 n. n$ l, ]( h+ S, k+ i- _5 [For me as a property investor, I will always tell everyboy, it is a good time to buy,5 }; b+ V' S2 J7 q2 W5 x/ C
For those without a house and try to buy a lower price one, will always try to convince people not to buy, then the market will go down,2 R. o- Z! G& l* ?, o5 ~. {0 b
then they will switch to my line and try to "HouHou" to push the market up.
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Human weakness.
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Well, we are human, we have it. |
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