John and Linda have been arguing about whether to buy a house for a long time.

They have been renting a small flat for several years, and the rent keeps going up.

Last year, John wasn’t sure about his job situation, so they agreed to delay the decision.

They also invested some money in the stock market, and their investments are doing well.

Linda really wants to have a place of her own.

She is growing impatient and doesn’t want to wait any longer.

She wants to sell some of their investments and put the money into a nice house.

(She’s growing impatient and is tired of waiting.)

John is against buying now because he thinks prices are too high.

He is also worried about the high cost of living in the area.

This is beginning to make the area less attractive to companies.

Unless a company is innovative and successful, it can’t afford to do business in the area.

Salary levels have risen so quickly that companies can no longer afford to attract good workers.

Good workers won’t come unless they are paid enough to buy a house.

So many companies are relocating or moving overseas where costs are lower.

John is worried that once companies start to leave, housing prices will come down.

Only fools are buying now, paying prices that are probably 10 to 20% higher than they should be.

He wants to buy when prices have fallen to a more reasonable level.

Until then, it doesn’t make sense to buy.

He remembers what happened in other countries just a few years ago when prices climbed and then fell 50%.

Many people lost their homes because they owed more on their homes than the homes would worth.

When they lost their jobs, they couldn’t pay the mortgage.

They couldn’t sell either, because the selling price was less than what they owed to the bank.

So they had to move out and the banks took possession.

Now prices are rising again so the same thing could happen again.

A cycle of boom and bust which people tend to forget.

Linda has a different view.

She thinks he worries too much.

She thinks if they buy now, prices will continue to rise.

If they don’t buy now, they will miss the opportunity and regret it later.

She isn’t worried by the possibility that the prices may drop in the future.

(She thinks they will regret it later if they don’t buy now.

She thinks if they buy now, prices will continue to rise.)