本文发表在 rolia.net 枫下论坛1. For the long term (10 - 30 years), should people buy real estate or rent to live? which one makes more economic sense?
2. Could you really argue the living standard is higher for most people/family (I don't deny the flexibility of renting)? Why people want to buy apartments both here and in China even though their prices are perceived to be high? (Again, I am talking about first home buyer instead of real estate investors)
3. Who can practically sell his/her property at the peak and start to rent. Then buy another house back when the price goes down? It makes economic sense to me, but I don't think many will do it. (Assuming you don't buy a few properties for investment purpose)
4. If the price is high now, which is probably the case. How long should potential buyer wait to buy his/her first condo/house? (6 months, 1 year or 3 years?)
5. Assuming the condo/house price drops by 3% in three month, should you buy or wait further? ( I think the answer should be wait, again back to question 4) What if price goes up by 3% in three month time, then what you do? (I guess you will go back to question 4 again and then question 5 again)
6. And you cannot discuss house price without looking at other investment alternatives if you view it purily as one type of investment. (return you expect to earn on GIC/stock market) How about medium to long term inflation expectation? ( are you expecting 3% or higher inflation rate in the next 1,3 5 years)
7. You are living on your own, renting a $400/ month place and making 10%+ return from your stock investing hobbies or you are living with a big family, renting a $1,800+/month place and not actively using your money to generate good returns elsewhere. It might be a good decision for the former to continue renting, but not such wise decision for the latter not buying his own house.
Hence if you think you can afford to buy a condo/house and consider it's important for your life, go ahead and buy the one you like. If you have the discipline to save and invest and are happy with your current life style, continue rent and enjoy the flexibility. Do you own homework or consult a professional for an informed decision based on your individual circumstance.
Gob bless us all.更多精彩文章及讨论，请光临枫下论坛 rolia.net
2. Could you really argue the living standard is higher for most people/family (I don't deny the flexibility of renting)? Why people want to buy apartments both here and in China even though their prices are perceived to be high? (Again, I am talking about first home buyer instead of real estate investors)
3. Who can practically sell his/her property at the peak and start to rent. Then buy another house back when the price goes down? It makes economic sense to me, but I don't think many will do it. (Assuming you don't buy a few properties for investment purpose)
4. If the price is high now, which is probably the case. How long should potential buyer wait to buy his/her first condo/house? (6 months, 1 year or 3 years?)
5. Assuming the condo/house price drops by 3% in three month, should you buy or wait further? ( I think the answer should be wait, again back to question 4) What if price goes up by 3% in three month time, then what you do? (I guess you will go back to question 4 again and then question 5 again)
6. And you cannot discuss house price without looking at other investment alternatives if you view it purily as one type of investment. (return you expect to earn on GIC/stock market) How about medium to long term inflation expectation? ( are you expecting 3% or higher inflation rate in the next 1,3 5 years)
7. You are living on your own, renting a $400/ month place and making 10%+ return from your stock investing hobbies or you are living with a big family, renting a $1,800+/month place and not actively using your money to generate good returns elsewhere. It might be a good decision for the former to continue renting, but not such wise decision for the latter not buying his own house.
Hence if you think you can afford to buy a condo/house and consider it's important for your life, go ahead and buy the one you like. If you have the discipline to save and invest and are happy with your current life style, continue rent and enjoy the flexibility. Do you own homework or consult a professional for an informed decision based on your individual circumstance.
Gob bless us all.更多精彩文章及讨论，请光临枫下论坛 rolia.net