Newsgroups: misc.invest.real-estate misc.consumers.house
Subject: Re: Buying a much bigger house
From: Paul Pluzhnikov 
Date: Mon, 28 Jul 2003 02:02:29 GMT

ahuahua@axxent.ca (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.