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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.* h$ b( \, m: ]1 u( X; b
However, they are so afraid of the high price then. Now they have missed a great chance to have their first property this year.# a' V' y& ^1 H: @
It is always better to buy when it is on the way up than it is on the way down.8 H5 D/ {# M' r
For example, the condo average price is around $240,000 this March, now it is $270,000.3 \9 I% T( k5 v3 [5 t6 A. K4 g& u7 h
Say, 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.
* H* F/ J1 ]7 u9 A c' K- U0 j" ZI 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.
, D7 T* b9 Q8 T1 K0 Z, Q5 _2 \If 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,% F/ ]' h% g% {0 {' q
your mortgage interest rate may have reached 6%.
: j8 U& C: K |/ IHouse 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.
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5 c3 I! l9 ]8 J; x- b2 f5 b9 h* lOK, if you bought this March, $240,000, interest rate 5%. Best deal, total interest in 5years $60,000 Total:$300,0007 ]/ Z5 l' w5 ^* k. k! _
if 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 1 L& Q; I, b" q4 M6 S# n1 ?
condo with $1000/month rent) Total: $344,040
# w- G( |5 @ ~if you buy it next March, $240,000, interest rate 6%. interest(4 Years) $57,600 plus 12 months rent = $12000 Total: $30,9600, Q" l9 U' N7 v( i
We can see what is the best, when it is on its way up, worst?when it is prime(peak).% s- K# K' ~0 B/ D
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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 $240,000.6 W/ o! H, v: s% {/ F
Cannot it be $270,000? Cannot it be $280,000?% H% Q! p$ @' D6 J/ ?2 I+ s
So, when to buy, it is always a puzzle. If everybody know when to buy, what is the world like? cannot imagine.% k: g/ w% e1 ~& o, ? ~- S, ~
For me as a property investor, I will always tell everyboy, it is a good time to buy,' d* t3 _* ~% i0 }: w! l
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,5 W+ J5 M Y: g4 C$ Z
then they will switch to my line and try to "HouHou" to push the market up.
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/ ?0 G6 n3 e% d$ v; KHuman weakness.) h/ d' R0 c0 C$ \0 C' r( G
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Well, we are human, we have it. |
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