My friend called me yesterday, she was thinking to lower her expenses so she was thinking maybe she will sell her house to downsize rent the condo and invest in Preconstruction condo. And she asked me what I think about the situation. I think the proper way is to buy the condo for yourself. Because when you pay your mortgage you're not just paying interest to the bank, so you paying part of your mortgage and plus the property goes up in price anyway even though it's condo, if you rent, you pay someone else's mortgage out and their property going up in price, right? If you want to invest in Preconstruction, preconstruction is good investment but it has to be in right time and it has to be for the right situation. So for example if you want to sell it and it will be wrong timing for you but you need to sell it and at that time everyone is selling it. For example, three-four years ago many people bought the preconstruction and now they cannot close the mortgage because pre-qualification is changed and mortgage rate is changed and many people are selling their assignments right now because they cannot close. And for example, if the same situation will happen when you need to sell so you will not even make the money, you can lose the money. So in this situation if you rent and you invest all the money in preconstruction so you lose on the profit from paying off your mortgage and property going up in price and plus you lose on the profit which you would thinking you will get from preconstruction condo. The proper way I think, to sell your house, to buy condo what you like and pay off some of your mortgage and if you have money left, so go ahead and invest in preconstruction because it will be second wheel for your investment and additional profit.
