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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.
8 e2 J& Q$ r* b9 {) k rHowever, they are so afraid of the high price then. Now they have missed a great chance to have their first property this year." T! c% F6 j( L% U$ ]( j; T
It is always better to buy when it is on the way up than it is on the way down.
$ f7 I# v; q* [7 ~6 Z; kFor example, the condo average price is around $240,000 this March, now it is $270,000.5 b1 Z9 [0 R4 v% A% `8 p
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 $240,000.$ X# b8 D: g' a( r% d. O- r) o
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.: n! q V5 M- h. B" \0 a% K8 \. `
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,) s$ r, j1 l d9 k7 G
your mortgage interest rate may have reached 6%.. Y: k" w, a* y/ q6 |) N
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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9 ?& u( H6 {( ^" `OK, if you bought this March, $240,000, interest rate 5%. Best deal, total interest in 5years $60,000 Total:$300,000
3 [0 F! i2 I/ X) y5 hif 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 * B& l+ G" B0 ~4 j+ g! H
condo with $1000/month rent) Total: $344,040
% N, M. f/ D; M- o3 E. s) }if you buy it next March, $240,000, interest rate 6%. interest(4 Years) $57,600 plus 12 months rent = $12000 Total: $30,96006 v6 ^8 p- \( }2 C
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.+ D! X, J% a* e/ r! E8 ~6 h; t
Cannot it be $270,000? Cannot it be $280,000?5 X4 B% O* A# f+ A) y0 O( U
So, when to buy, it is always a puzzle. If everybody know when to buy, what is the world like? cannot imagine.
& L6 S3 J6 a' R6 ^* f: }For me as a property investor, I will always tell everyboy, it is a good time to buy,
8 H2 P& l. w9 V( M% G/ d1 P( }) GFor 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,- O4 e/ H" i8 o8 O; d- u# z' E9 ?
then they will switch to my line and try to "HouHou" to push the market up.) b/ J2 m6 p" \0 u8 }" I, T
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Human weakness.
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- M2 Z/ N; b) z; V+ [0 jWell, we are human, we have it. |
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