fa-tin,

1) Can you afford to pay the house loan if you lose income for long period of time??

2) Do you know what is the RIGHT price to buy your house?? If you do not know, you should not buy. Who cares whether the house price is going up or down?? You buying a house to stay. So, you NEED to know what you can afford and where you should stay. Whether the house price is going up or down is irrelevant. Be patient. Study first.

3) Buy completed house. The developer may go bankrupt and leave you with half completed house and you still have to pay the house loan.

Dreamer

This post has been edited by dreamer101: Jun 29 2008, 07:30 PM

robertngo,

<< you cannot expect the developer to sell at cheaper price even is sales is slow.>>

Who say so?? The developer is borrowing money from the bank to build the house. They pay interest on those loan. Every day that they do not sell the house, they lose money. Ditto on every single business that has inventory. It is a question of who has more staying power.

It is the same as people that who lost their job and has to sell their house. They have to do it even at a loss. Or else, they will go bankrupt.

Dreamer

All,

It does not matter whether the developer has thin or thick margin.

A) If the house is not selling, it MIGHT be more profitable for developer to abandon the project and leave sold house half completed.

B) If the project is completed, they may sell at any price just to stop the bleeding. Or, they will build mor ehouses.

<< Why build more house when there is less demand??>>

C) In USA, there are developer that is doing this now. They have to in order to get NEW LOAN and MORE MONEY to service the loan of the OLD project that cannot sell. They have to keep on building to stop going bankrupt.

D) This is similar to people applying and getting new credit card to pay the minimum balance of the OLD credit card debt.

Dreamer

kevyeoh,

<< they are risking all their money to build the houses...so it's proper for them to reap high rewards as well...>>

Come on. Please do not be so naive.

1) They get payment upfront from the buyer.

2) They borrowed money from the bank to build the house.

So, they are NOT risking their money. And, if things go bad, they can siphon the money out and abandon the project. And, you CAN'T do anything against them. All the risk is bear by the bank and the buyers.

Dreamer

Riuken,

But, they get certain amount of down payment from the house buyer when they sell without building ANYTHING other than model house.

Most of the risk is with house buyer and bank.

Dreamer

kevyeoh,

1) You need the connection to get approval in order to be developer.

2) Yes, he bear some risk but it is not as large as you think.

"Trust but verify"

3) You can do YOUR OWN critical thinking to figure out whether he is telling you the TRUTH.

4) Ask him when he actually put in his own money?? Only a small developer that CANNOT get loan from the bank has to bear larger portion of the risk.

Dreamer

---

Added on July 10, 2008, 9:56 amkevyeoh,

1) You need the connection to get approval in order to be developer.

2) Yes, he bear some risk but it is not as large as you think.

"Trust but verify"

3) You can do YOUR OWN critical thinking to figure out whether he is telling you the TRUTH.

4) Ask him when he actually put in his own money?? Only a small developer that CANNOT get loan from the bank has to bear larger portion of the risk.

Dreamer

This post has been edited by dreamer101: Jul 10 2008, 09:56 AM

tinkerbel,

One of my neighbor's house just sold for 180K. Another neighbor bought his house at 250K 6 years ago. This is going to be a VERY BAD recession like you have NEVER seen before. I bought my house at 145K 10 years ago.

Dreamer