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Buying a much bigger house
(Warren X) writes:
It sounds like your dispute depends on:
- Your current mortgage interest rate.
- The rate of appreciation on your current condo.
- Commission you'll have to pay when you sell it.
- Mortgage interest rate at the time when you buy "intermediate" house.
- The rate of appreciation on the "intermediate" house (which
may be quite different from that of a condo).
- The rate of appreciation on the "final" house (by the time you
are ready to "step up to it", it may already cost $2M ;-(
- The rate of return you could get on your investments if you do
not buy the "intermediate" house.
- The amount of money you can put aside now, and N years from now
(assuming you'll have a job, and will not have any major illness,
nor triplets ;-)
That's a lot of variables, many of which could only be guessed ...
Plug them into a spreadsheet, and play "what if" game ...
the market is at a high right now (area:
Toronto, Canada), and could conceivably "correct" in the next few
years once the glut of new homes are bought-up.
If there is a glut of new homes now, the correction will be *up*
when they are all bought-up and there is a shortage, not down.
Or am I missing something?
Cheers,
--
In order to understand recursion you must first understand recursion.
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