Up Battle

About a little more than a year ago I was looking around for an apartment. I was considering buying this brand new apartment that was going to be finished in 2010. It was much more expensive, smaller, more trendy, more in central Oslo than the apartment I bought this summer.

The reason I remember is that I just got an email from these people and they were trying to get people to buy into another apartment project they wanted to sell.

Anyways, a year ago the thinking was that it could be an investment until 2010. Then I could sell the finished apartment hopefully for a higher price, or I could move into it myself hopefully making more money in a couple of years so it would not be that painfully financially to live there. Such delusions…

It went as far as I got an OK from the bank. And I was talking to a sales guy about it. I was shown a mini model of the building, and got a tour of a show room that was suppose to resemble the apartment. I got the papers, I just needed to sign them.

But I did not pull the trigger and I did not buy it. I dodged the bullet.

Looking back that was probably on the very top of the real estate bubble. So I am very happy I did not buy it.

Me getting a loan for that thing now would probably be impossible. But a year ago the the bank said yes.

Right now everything seems to be heading into the abyss so the worst case scenario would then have been to purchase that apartment in 2010 for full bubble price where I could not get a loan for it, and there is also a possibility that it would not be possible to sell it. If the Norwegian economy completely dies I would probably be out of a job also in 2010 unable to pay any loans.

That last part of being out of a job and not being able to sell is still a bit of a frightening possibility, but it would be more painful with that much more expensive apartment. So saving up some money for a rainy day is very smart because I think there is a good chance for some rain a head.