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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.
C( I( E) o4 PHowever, they are so afraid of the high price then. Now they have missed a great chance to have their first property this year.# o- Z @4 J. W7 _, H( E
It is always better to buy when it is on the way up than it is on the way down.
0 R/ L1 O# @& h$ B+ \. ?For example, the condo average price is around $240,000 this March, now it is $270,000.) f7 `6 g% U0 ]4 u
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 $240,000.& t5 q' \$ u+ R+ c' u) Y" q- M% Y* R
I will give it another 6 months if the market go down x months in a row. because house is not like stocks, it cannot go down too fast.
s' i; v; A$ \# y3 b0 U' j! JIf 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,
y3 l. i$ F- n7 b' ayour mortgage interest rate may have reached 6%.9 _2 C, Z( o3 z
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.
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+ Q& y ]- U1 r, V! [OK, if you bought this March, $240,000, interest rate 5%. Best deal, total interest in 5years $60,000 Total:$300,000' B' [ w2 e4 U- ]- x
if you buy it now, $270,000, interest rate 5.6%. interest(4 years and 6 months) $68040 plus 6 months rent = $6000 (you may not get the same
2 w$ Q h9 M- u( s# Tcondo with $1000/month rent) Total: $344,040
( I- V+ V) k$ K1 R7 C! a# D2 |if you buy it next March, $240,000, interest rate 6%. interest(4 Years) $57,600 plus 12 months rent = $12000 Total: $30,96009 B' W# Y& N0 n% ]3 @3 }2 S
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 $240,000.
+ M2 z$ Y1 l1 t, ~- g2 w& \Cannot it be $270,000? Cannot it be $280,000?
' Q2 U+ `& T. I& V7 u) lSo, when to buy, it is always a puzzle. If everybody know when to buy, what is the world like? cannot imagine.* ]1 L3 t- P9 X
For me as a property investor, I will always tell everyboy, it is a good time to buy,
/ M6 ]: ?# `1 i6 I- H* SFor those without a house and try to buy a lower price one, will always try to convince people not to buy, then the market will go down,
( p2 t7 H8 I* M- }" G* Athen they will switch to my line and try to "HouHou" to push the market up.
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" N- U$ J$ N$ V; s2 B' AHuman weakness.
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Well, we are human, we have it. |
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