Rent or Buy1
John and Linda have been arguing about whether to buy a house for a long time.
They have been renting a small flat for several years and the rents keeps going up.
Last year, john wasn't sure about his job situation, so they agreed to delay the decision.
They also invested some money in the stock market, and their investments are doing well.
Linda really wants to have a place for her own.
She has growing impatient, and doesn't want to wait any longer.
She wants to sell some of their investments and put the money into a nice house.
What have they been arguing about?...whether to buy a new house.
How does Lind feel about not having a house of her own?...she's growing impatient.
John is against buying now because he thinks presses are too high.
He's also worried about the high cost of living in the area.
This is beginning to make the area less attractive to companies.
Unless a company is innovative and successful, it can't afford to do business in the area.
Salary levels have risen so quickly that companies can no longer afford to attract good workers.
Good workers won't come unless they are paid enough to buy a house.
So many companies are relocating or moving overseas where costs are lower.
What is one consequence of having a high cost of living in the area?...It makes it more difficult for companies to stay.
They delayed the decision because john was uncertain about his job.
She's growing of impatient and is tired of waiting.Unless a company is innovative and successful, it can't afford to do business in the area.
John is worried that once company start to leave, housing prices will come down.
Only fools are buying now, paying prices that are probably ten to 20 percent higher than they should be.
He wants to buy when prices have fallen to a more reasonable level.
Until then, it doesn't make sense to buy.
What is John waiting for?....he is waiting for prices to fall.
What can cause housing prices to come down?....If companies leave the area, people will lose their jobs, and the demand for housing will decline.
He remembers what happened to another countries, just a few years ago, when prices climbed and then fell 50%.
Many people lost their home because they owed more on their homes than the homes were worth.
When they lost their jobs, they couldn't pay their mortgage(按揭).
They could sell either, because the selling price was less than what they owed to the bank.
So they had to move out, and the banks took possession.
Now prices are rising again, so the same thing could happen again.
A cycle of boom and bust, which people tend to forget.
When people buy a house or flat, why do they go to the bank?...Unless they can pay cash, they'll need to get a loan from a bank to help pay for it.
A cycle of boom and bust occurs when ... an economy grows too fast, then takes a rapid fall, and the cycle begin again.
Linda has a different view.
She thinks he worries too much.
She thinks if they buy now, prices will continue to rise.
If they don't buy now, they will miss the opportunity and regret it later.
She isn't worry by the possibility that prices may drop in the future.
If they don't buy now, what does she think they will regret?..they will regret not having bought it.
She isn't sure, but she thinks prices will continue to rise.
She thinks if they buy now, prices will continue to rise.
She isn't worry by the possibility that prices may drop in the future.
网友评论