My real estate investment (Not commercial) |
bhootnath
Senior Desi
Member since: Mar 11
Posts: 737
Location:
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Quote:
Originally posted by san-hugo
Bhoot Sirr , pls add one important option to the vote
"I should buy but holding on amid market fear" or " I am the chicken of the market" or whatever decent words you want to use for them.
Lets see how many are standing on the other side of edge? in other words how successful doomsayers are ?
señor San-Hugo, good suggestion but too late, I think I do not have option to change the poll. May be next one, once this gets boring or once the naysayer enjoy claim victory on small correction of housing prices  even if it is 5 years down the line.
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Last edited by: bhootnath on 09-02-12 18:44:50 |
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09-02-12 18:01:18 |
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Delhite
Senior Desi
Member since: Nov 04
Posts: 292
Location: Brampton
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Quote:
Originally posted by febpreet
If you find something, let me know too, as I am looking for an affordable semi-detached house in GTA as well .
I will suggest you to go for detached house - even if you have to settle for a smaller one.
Building your own custom house won't cost you cheaper. You can search acre+ old house in the range of 400 to 600 k. in Caledon area.
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A Delhite in Toronto
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09-02-12 18:09:54 |
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rahul_singh23
Senior Desi
Member since: Apr 05
Posts: 989
Location:
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Concern over Canadian bank exposure to overleveraged consumers
LINK
“Canadian household debt as a share of personal disposable income stood at a record 150.8% at the end of June this year.” said Mr. Beattie. “We are concerned that, while taking advantage of low interest rates, consumers are also taking on debt the may not be able to service when rates inevitably go up.”
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How do we have negative equity when price are higher?
When you are buyer then all data looks +positive trends and great time to buy. When you are a seller and crunch all the numbers ( commission, closing cost, mortgage penalties, mortgage interests, condos/townhouse fee, maintenance, upgrade) then it becomes a negative equity.
I can talk about at least Western Canada. I knew few families who have negative equity and can not get out even they want. Some of them have investment condo too and both are in negative equity and putting few hundred every month on top of the rent to cover investment mortgage+condo fee. There are tons of open house these days in Calgary. Real Estate board is changing their statistics algorithm in their favor.
How many new homeowners have fully loaded rrsp, resp, long term saving, 6 months rainy days funds, 20% down payment and your total debt serving is not more than 40% after tax salary. I may be too old fashion.
I heard there are some good realtors who take clients only who has 20% down payment. Just wondering how do they business if 90% first time buyers have 5%-10% down payment and it becomes negative equity from day one.
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Last edited by: rahul_singh23 on 12-02-12 02:44:30 |
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12-02-12 01:17:11 |
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bhootnath
Senior Desi
Member since: Mar 11
Posts: 737
Location:
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Just FYI, above concerns are discussed in detail and repeated for over last two years in following thread.
LINK
Although RRSP, RESP, long term saving, Life insurance, vacation fund, emergancy fund, car repair fund, dowry fund, funeral fund, doomsday fund, etc. are important but having your own home is equally important and one day can meet all the above needs.
If you start saving in all of these to its full extent then I am not sure if you will have enough money to even meet both ends meet.
Lets not divert from the topic..what really is needed from desi friends on this forum is to find out, from their opinion, if buying house is a mistake or is it really a right thing to do.
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12-02-12 23:39:07 |
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san-hugo
Senior Desi
Member since: Aug 10
Posts: 894
Location:
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Quote:
Originally posted by rahul_singh23
How many new homeowners have fully loaded rrsp, resp, long term saving, 6 months rainy days funds, 20% down payment and your total debt serving is not more than 40% after tax salary. I may be too old fashion.
Seems like our friend Rahul Singh have taken idiots guide to healthy savings too seriously.
You seems to be one of those who were born with silver spoon up your ... throat.
and clearly have no idea how houses are made by salaried people. Even in India,
my old fashioned dad , in early 90s took 5 years of partial constructions to complete all portions of house. We lived in the house without flooring for an year as money got exhausted , then after a year got the flooring done but no tiles in toilets and after another years tiles in the bathrooms. Thats how houses are built by hard working salaried people. House eats away all savings, all funds which are collected for years. Same is the story of many of us. Thats the Reality !. It takes many funds to build a house.
anyway back to the topic.... buying house is not a mistake till you have a stable job and skills to continue on it. If you are unsure of your earning prospect in future buying a house can cause some h-aches in coming times!
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13-02-12 00:43:08 |
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ashedfc
Senior Desi
Member since: Jun 10
Posts: 2156
Location: GTA
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Here is the trend setting long term interest rates since 1790 over 221 years of data.
This graph is ample proof that once the trend reverses, many -many debt holders at all levels (Govt/Private/Public/Individual/Household/etc) will be caught unprepared.. This trend is 30years in the making, so the rise can be expected for very long time (may be 1 or 2 or 3decades)..
Graph: http://jugglingdynamite.com/wp-content/uploads/2012/02/long-term-rates-since-1790.png
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20-02-12 16:24:41 |
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abroaduni1
Junior Desi
Member since: Oct 11
Posts: 8
Location:
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Thank You very much for sharing this very informative post regarding real estate investment.....
work permit canada
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23-02-12 02:55:38 |
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bhootnath
Senior Desi
Member since: Mar 11
Posts: 737
Location:
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So far only 2 voted for not happy....hmmm I wonder who those two would be 
Let me take a guess one of them could be the one who brings different charts from all over the world and second one who has lots of friends on BC area who cannot move because of overborrowing.
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23-02-12 10:17:34 |
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G13
Senior Desi
Member since: Jul 06
Posts: 550
Location: Amidst a glow in the sky.
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I own a property and I am glad I made that decision. However I would be cautious before making any final conclusions, the game is not over yet, time will tell who won and who lost :-)
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23-02-12 14:01:45 |
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ashedfc
Senior Desi
Member since: Jun 10
Posts: 2156
Location: GTA
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What else warning you guys want - this is coming straight from the top..
"Bank of Canada worries about potential for debt shock"
A 5% correction may mean nothing for a lot of us; we are homeowners (it doesn't matter); but the same 5% correction for an investor who is borrowed to the hilt can trigger a domino effect..... remember its the snowflake which creates the avalanche; or its the straw which breaks camels back..
For you info "Mr Bhootnath" I am not the one who voted Not happy;
I am a happy home owner, & I bought my house in 2007 (its just that going forward, I don't see much upside potential left in the housing & significant downside potential; & I want to hedge my risk exposure).
Yes there is potential in farmland, you are guaranteed to make money in this coming decade, & its just picking up momentum..
read here if you have time: http://ca.finance.yahoo.com/news/bank-canada-worries-potential-debt-153834782.html
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Last edited by: ashedfc on 23-02-12 16:15:21 |
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23-02-12 14:58:03 |
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Contributors:
abroaduni1(1) ashedfc(4) bhootnath(8) BlueLobster(1) Delhite(3) dudewheresmycar(1) elmer fudd(5)
febpreet(2) G13(1) metallurgy(1) rahul_singh23(1) san-hugo(2) |
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