3 November 2008
Up Markets and Down Markets, When to Buy and Sell. (Part 3)
Posted by Ryan Coffey under: Buying; Nanaimo Real Estate Market; When to Buy and Sell; selling .
Two weeks ago, I started to post a series where I explore some of the views/assumptions commonly held by people regarding how real estate markets work and what they mean to people who are buying themselves a home. The following is the third part of the series and intended to be read in the context of the rest of the series so I recommend reading the other posts to make this one make more sense.
Objection #3
“I just bought my home at the top of the market! If prices are falling, I’ve lost money! How can you tell me not to worry?”
You’ve only lost money if you decide to sell your home before it has had time to appreciate and are leaving the market. So, don’t sell it yet unless you have to. (Unless you’re moving to a more expensive property. See objection five.)
Remember that the first thing I said was that if you can make the payments, then it’s a good time to buy. But of course, things to change sometimes. Sometimes divorces happen, people lose jobs and so on. This is when you have to consider whether it’s better for you to take a hit in the pocketbook, or rent out one of the rooms until things get better.
But if you aren’t worried about being able to afford the payments, and don’t have to sell. What’s the problem?
If you do have to sell it before it has had time to appreciate and you’re buying something in the same market, the objection number five will be of interest to you.