Late last year, I obtained pre-approval to purchase an apartment. It’s been on my mind for a while, and the timing was such that it made sense to start the process of apartment hunting. 2020 was a good year for me from a financial perspective. I was able to save money, kept my job during COVID-19, and was able to reduce my expenses without a noticeable impact to lifestyle. Property was also predicted to drop, so it made sense.
I’m also sceptical when a market crash is forecast. I’m not an expert. Far from it. Yet I recognise that there are many things outside of our control or forecast that affect market conditions. So when there is expert ‘certainty,’ I take it with a grain of salt. Looking back at events, one can see part of the complicated web of intrigacies that led to the outcome. It’s never a single event. Real time, I don’t think you can see all the little things that contribute.
That being said, I am optimistic, so I wanted to be ready. Just in case. I’ve had a look at a couple of places so far, although nothing I have fallen in love with. I’m contempt to keep looking.
One decision I’ve had to make is if I do want to buy in the coming weeks, no matter what. Do I decide that this is the dip and the market will increase, and therefore buy something that is good or pretty good? Do I forgo the ‘love it’ and just purchase? No. I’m happy to wait. If something doesn’t come up, that’s okay. Even if prices do go up, I’m in no immediate need at the moment. It just means more time to build a depost, and with luck, borrow less money. Of course, the market could sky rock and even with a bigger deposit, I may need to borrow more.
Time will tell.