Wednesday, May 14, 2008
Fantasy article from Agents-7 Good reasons to buy now
An extract of their idiot innumerate reasoning below: Let's take a £300,000 property and look at two scenarios. Scenario 1 - The prices drop by a further 10% over the year Scenario 2 - We are at the bottom and prices will stabilise. The buyer who waits, notionally will save themselves £30,000 by holding off for a year, but to rent that same product will cost them approximately £300 per week or £15,000. So in truth, their gamble by waiting would save them only £15,000 and the money they paid in rent would have been used towards mortgage repayments on the loan. What about interest on 300 k at >300 p.week? or scenario 3 where prices fall 35%?