The truth is, if we could accurately judge the market, we'd all be millionaires and none of us would have negative equity. And if I could do that, then I'd get out of real estate and into the stock market! If you're from the UK or Canada, then hedging your currency against the dollar could be a far more important factor. With two dollars to the pound in the UK, you stand to lose a lot more by mis-timing the exchange rate. If the dollar strengthens and you start getting just $1.7 instead of $2.0 then you stand to lose a lot more than worrying if the house you want drops by another $5-10k. Here are a couple of blogs we've posted on the subject:
http://www.condometropolis.com/blog/2007/09/29/why-arent-buy
http://www.condometropolis.com/blog/2007/12/05/mortgage-term
http://www.condometropolis.com/blog/2007/11/12/overseas-cond
Good luck and feel free to contact us for further advice. We work with a lot of overseas buyers.
- Thu May 15 2008, 05:50