Quote:
Originally Posted by Hehe
I think what many people fail to see in a down market is about the cashflow and opportunity cost.
Sure that in the very long term, RE always goes up because it adjusts itself to inflation.
However, if it costs you say $2000 per month on mortgage and the unit is generating 0 cashflows, then one should calculate to see if the opportunity cost of ownership outweighs the potential benefit.
With this, one could get a very good idea whether to sell or to buy into the market.
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yupp, sure you can float it for say 1 yr, but then when interest rates goes up, it becomes extremely hard the 2nd yr. Wait for it... when people really want to cut their losses, then you go in and buy.