【Episode 7 of the 2016 Family Debate Series】Should one buy a second home before paying off the loan, or wait until the loan is fully repaid?
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Now, as our standard of living improves, our demands for housing size and comfort are increasing, and it’s possible that the houses we buy at first are not entirely satisfactory to us. So we would choose two houses; especially when the loan burden associated with the first house isn’t too heavy, we might buy a smaller house for our parents who live elsewhere, or purchase a larger house to improve living conditions. So, should we choose to pay off the loan before buying a house, that is, to purchase a home when the pressure is relatively low, or should we buy a house while still having a loan outstanding on our first property? Rule out policy reasons.
It depends on your income level and affordability
Check how much spare money you have and act at the right time.
This real estate market is all bubbles. Buy first; as long as house prices don’t drop, it’s a profit ； House prices have dropped – well, what’s the big deal? There are precedents for this; seek compensation from the property management or the developer.
Buy it after you’ve paid it off, unless you have the means
Within the acceptable range, I would choose to buy a house first...
According to Chinese customs, it’s better to pay off the loan first before making a purchase, to avoid financial difficulties in case of emergencies.
If one has the income and is not under too much financial pressure, it is entirely possible to buy a second home even before the loan on the first home has been paid off. If one is short of money, then it’s a different matter
Buy in advance; there’s no need to wait for many things, as there are always endless matters to deal with.