My real estate investment (Not commercial)
| Poll:My real estate investment (Not commercial) | |||
| Choice | Stats | ||
| I own one property and glad that I took that decis | 81% (13) |    |
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| I own more than one property and glad that I took | 6% (1) | |
|
| I own(ed) one property and regret the decision | 13% (2) | |
|
| I own(ed) more than one property and regret the de | 0% (0) | |
|
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| Poll:My real estate investment (Not commercial) | |||
| Choice | Stats | ||
| I own one property and glad that I took that decis | 81% (13) | |
|
| I own more than one property and glad that I took | 6% (1) | |
|
| I own(ed) one property and regret the decision | 13% (2) | |
|
| I own(ed) more than one property and regret the de | 0% (0) | |
|
Posted on: 09-02-12 00:40:50
Few of the users are skepticle about real estate investment and discouraging the real estate investment. Open views will be helpful to whoever is in the market. This is only Canadian real estate investement.
Great post and a nice way to add some concreteness to a very fuzzy and opinionated discussion.
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Are you there?
Canadian property prices are on a knife edge..
Last 3 years of recession/economic slow down has seen property prices rise due to low interest rates.
Where things stand the market is not ideal for new home buyers..
Existing homeowners should have a lower risk exposure because they already bought their existing homes at lower prices before.
So what do new homebuyer should do? Wait for the correction to happen or not? (If it going to happen)
Does it make sense to go for property which is less appreciated relative to others? I.e. to buy a condo or town house for now and then when market stabilize go for detached or SD house.
Or to keep just renting? I am waiting since last 3 years in anticipation of correction to occur but instead market is behaving in opposite direction. The big question is how long should I wait?
I hope RE expert of this forum have some valuable suggestions for me and can throw some light. Thanks a lot in advance
It is a double whammy actually. If you buy the house and the market is doomed, you are as well. If you don't and the prices keep skyrocketing, you're anyway doomed as the rent that you're paying is going down the drain, for sure.
I am in the same bracket, where I am waiting to sell my house in Vancouver so I could buy a reasonable semi-detached in GTA. However, listening to all these dooms-day predictions make me wary. So, the best way is to buy something that you can afford in the long run and even after paying the mortgage every month, there's money left in your savings account(very important). Don't overboard yourself with the bigger house for now. This will not dampen your finances, and at the same time you have a roof on your head that you can call home at the end of the day.
But the question is, how long can you keep 'waiting and watching' game? They predicted it for 2011 and now it is 2012 and nothing happened so far. Yeah yeah, it will happen eventually - some day.
I might be wrong, but then who has seen the future.
Quote:
Originally posted by metallurgy
So what do new homebuyer should do? Wait for the correction to happen or not? (If it going to happen)
Does it make sense to go for property which is less appreciated relative to others? I.e. to buy a condo or town house for now and then when market stabilize go for detached or SD house.
Or to keep just renting? I am waiting since last 3 years in anticipation of correction to occur but instead market is behaving in opposite direction. The big question is how long should I wait?
I hope RE expert of this forum have some valuable suggestions for me and can throw some light. Thanks a lot in advance
As stated earlier many a times..If you are planning to buy a new house then it is recession proof because you are going to stay there. Even if you want a bigger house at later date, existing house would help you make that decision based on market condition.
If this is your first house then I would suggest take the advantage of locked in interest rate and go for it. What worst would happen , market will suddenly correct very next day you buy the house..but again as you are paying the rent your monthly exenditure would be same as though you are renting the house. If your work (job/business) is stable, go for it. I am sure many of the members would have had second thoughts or would have waited long because of negative outlook in other posts and US issues. That is the reason I thought I should start this post. There is no point in regretting that you did not buy a house 3 years back. There are many advantages of being a homeowner Vs renting a house. I know there are additional expenses such as utility, taxes, upgrades etc but if you buy a house with the monthly rent in view, you will be alright. No one knows how market will look in near future but one thing is sure going to go up is interest rate. Even if it takes 2 years, it is going to happen. So if you are buying first house, then you should not think much. It is the big investment and everyone is nervous with their first purchase.
If you do not mind driving little, then I would recommend start with new house from builder that too anything other than condo, go for townhouse, semi, detached... as they get appreciated much faster and you are in control of expenses. Whereas condos have maintainance cost which keeps increasing and price stays same sometimes depreciates.
Good luck and appreciate sharing your frank opinion/fear/experience.
Quote:
Originally posted by ashedfc
In tough times (whenever it happens), depending upon your nature of job; you might want to protect your mobility, as a better position elsewhere needs to be declined because you may not be able to sell your house. Its tied you are tied to the community (area) in good or bad times..
Unexpected geopolitical Events can trigger unexpected (or expected) outcomes.. always keep a cushion in your budgeting. Lot of people buy a home with almost negligible savings
(I mean house rich & cash poor - is the worst combination)
Man...you again hijacked my thread
by giving negative outlook about market..your view points that gave negatives of owning a house have been bombarded so much on other posts that the first time home buyers really are scared to make a move. And given the US real estate impact, everyone already scared. Whereas whoever took the bold step of buying a house (not condo) are enjoying the benefits. Market may correct but will not crash. Canadian banks which took a hit in US are freely giving the credit here in Canada. Despite this, they would not have been so leisure in extending credit if they had sensed similar issues here.I guess there will not be a single middle class homeowner who did not have the same fear of market getting corrected before buying first home. Go for it and you will be fine. Telling this from my personal experience and not from copy paste URLs and made stories that sky is falling and doomsday is here..
