Home Ownership Made Easy
|Jan 16, 2004 10:41 pm
||re: Thank you, Allan!
| Michael Keong
|| Hello Jo ,
What Allan describes above is completely accurate and true.Home ownership is the best investment over long term. Overtime you gain in capital appreciation.Afterall, you need to pay rent which is like pouring money into the drain.
Having said that , you must remember that home ownership does come with additional expenses like maintenance , property taxes and insurance.
To answer your concerns Jo , real estate will keep going up over the long haul.If you draw a graph for all the spikes and dips over let's say a 10 year period , you can see that the graph goes up gradually.Therefore,taking this fact in mind ,plan always to keep it for minimum 5 years. But the key is to buy it at the right time.What I mean by that is .....if the real estate market is piping hot , I would advise that you sit on the sideline.
When it is sizzling hot....it indicates only one thing ! There is a herd mentality taking place.The value is very artificial.Cracker boxes or not. The value is in the land and has been inflated. The fear of being left behind in home ownership is the main culprit.
In reality , anything that goes up so fast must also come down. No different like we see in the stock market bubble.
Be patient and buy when everyone is telling you not to buy when there is gloom and doom all around you.
IMHO , the best way to see whether you should buy now or not is to chart a graph. See where the current real estate value is on the graph.If it is on the upside near the crest ,then I would wait.If it is at the upside at the low end of a trough, then I would go ahead and buy with discretion.
In the US right now and in Canada,the low interest rates environment has created a buying spree.Great for those that bought 2-3 years ago when real estate was in its doldrums.
Right now , you need to be extra cautious.Unless you come across a special situation like a foreclosure or a tax sale.
Jo ,I wish you well and hope what I have said will make you feel better.
> Jo Miller wrote:
> Thank you, Allan, for the warm welcome to Ryze and for inviting me to join your group!
>My dream is to own a home. I put an offer on a home two years ago, a 3 bedroom condo, it was listed for $370,000 but I was only pre-qualed for $350,000 so I offered $340,000 ... well, they didn't even counter and now, I rent a home RIGHT NEXT DOOR. It's depressing! But, that same model condo is now selling for $560,000 - $590,000.
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