Home Buyer's Tip Wednesday for Short
The short answer is you shall prioritize buying existing/resale properties if you have the mortgage power.
The reason is the current real estate market is slow and property prices have dropped.
Your permanent saving on the low purchasing price overrides your temporary loss on the high-interest rate.
Here’s how interest rate work: when you apply for a mortgage at the time of purchase, you can choose to get a fix-rate or variable rate based on the interest rate at the time of application. Usually, you choose a term of 1 - 5 years, be it a fixed rate or variable rate. Close to the end of your first term, you will have the opportunity to renew your interest rate, meaning you will be getting a new interest rate at this current time, for another term of 1-5 years.
Because we are predicting the interest rate will likely go down after 2024, you can choose for example a fixed rate right now for 1-2 years and renew your interest rate in 2024 or 2025 with a much lower predicted interest rate.
Presale projects are also a good option. Better choose projects that have:
Completion date later than Winter 2024.
Price NO higher than 10% of the existing/resale properties.
Large developers who can mostly guarantee the completion of the project.
A lot of developers are holding back their release of new presale projects due to the slower market right now.
Please consult with me before you buy a presale.
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