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10-08-2008, 09:02 PM
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Member
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Join Date: May 2008
58 posts, read 79,219 times
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Should I cancel real estate deal in Brooklyn?
I was about to buy a house in nice part of Brooklyn. But with all the recent issues with CDOs and CDSs and Money Markets and Comercial papers, I feel that house prices can decline sharply.
Should I get out of the deal and wait for some time. Let's say, it will cost me $20000 to cancel the deal. And the house was $710,000.
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10-08-2008, 09:37 PM
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Moderator
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Join Date: Jun 2008
Location: Washington, DC & New York
3,698 posts, read 2,565,773 times
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It's difficult to say. Is this a house that you plan to live in long term? How established is the area, and what are the comparable property sales? Is this a property that is at the peak, or is it undervalued in comparison to its neighbors?
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10-08-2008, 10:17 PM
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Member
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Join Date: May 2008
58 posts, read 79,219 times
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Quote:
Originally Posted by bmwguydc
It's difficult to say. Is this a house that you plan to live in long term? How established is the area, and what are the comparable property sales? Is this a property that is at the peak, or is it undervalued in comparison to its neighbors?
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It is in stable neiborhood, house price is 15% down from the peak. The house is priced comparably to the similar sales.
We plan to live there for quite some time, but you never know. |
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10-08-2008, 10:47 PM
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Moderator
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Join Date: Jun 2008
Location: Washington, DC & New York
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That's true, one never knows what's going to happen. Is it a single family house or does it have an income unit? Do you really like it, or could you find another similar house when the market stabilizes? It could lose in the short term, but longer term it probably would even out, but if you have an income unit that can offset the risk. Or, if it's just a house that you absolutely like, only you can determine if it's worth it, since that transcends the investment risk as it's a purchase of shelter.
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10-09-2008, 01:13 PM
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Stamforder
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Join Date: May 2007
Location: Stamford, CT
2,155 posts, read 2,509,058 times
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Quote:
Originally Posted by bobjohn
I was about to buy a house in nice part of Brooklyn. But with all the recent issues with CDOs and CDSs and Money Markets and Comercial papers, I feel that house prices can decline sharply.
Should I get out of the deal and wait for some time. Let's say, it will cost me $20000 to cancel the deal. And the house was $710,000.
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What neighborhood is the house in? That makes a HUGE difference, as to the location, and the potential of its decline in value. |
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