financing for a house
- Thread starter jw01
- Start date
Good point. Don't buy a house right now. Wait for the housing market to crash so you can pick up the same property for less money.
Buying 7 - 10 years ago was a perfect time to buy in Toronto. I bought 6 years ago which was still a good time but I'm thinking that if the market crashes, the value of my home might go back to what it was 6 years ago. Mind you, things were getting really expensive 6 years ago, but it's crazier now. I wouldn't be able to buy my house today (ie. I'd be unwilling to carry such a large mortgage)
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It's so true. There's a lot of people on this thread that are just anti-renting and do not appear to have done any of the numbers.
10 years ago I wouldn't fucking dream of renting, that's for suckers. Today I wouldn't consider buying unless a. I have a massive down payment, b. it was an awesome place that I planned to stay in for a long time and c. was well within my budget (meaning I wouldn't buy anything close to what the max the bank was allowing me to borrow).
The prices are so fucking crazy right now that I'm thinking of selling my place and renting just to cash in on the fabulous appreciation I've enjoyed.
I hate to quote Garth Turner - I know his predictions are often wrong, but if you read some of his recent blogs he's broken down the numbers and even coming from him a 10 year old could see that buying now is a dumb move.
i know someone who had to that after a messy divorce, used conversion vans can be picked real cheap
paying mortgage = a goal that can be done and be finished in 20 - 30 years
paying rent = till your last breath
both would suck if you lose your job but while paying rent would suck more. no matter what they say, there is still value in a house that you put your sweat blood and tears. paying rent sends your landlord laughing all the way to pay his mortgage. unless you have a hot gf you can pimp when rent money is due, you're better off buying one...but at your current state, not just yet.
paying rent = till your last breath
both would suck if you lose your job but while paying rent would suck more. no matter what they say, there is still value in a house that you put your sweat blood and tears. paying rent sends your landlord laughing all the way to pay his mortgage. unless you have a hot gf you can pimp when rent money is due, you're better off buying one...but at your current state, not just yet.
'till your last breath'.. you talk like you're certain everyone will live till their 70's. Life is uncertain. One could die in a month or in 90 years. The only time one can be certain of is NOW. Do you really want to work like a slave during your youth, paying off a mortgage which you complete by 60 or 70? then start thinking about enjoying life in the feeble and weak state you've gotten to?
You have to pay one way or another. If not a mortgage, you have to pay rent. Why would somebody paying rent be able to enjoy life any more or less than somebody paying a mortgage?
If one is so fortunate to live to 60 and has their house paid off, isn't that better than being 60 and having to still pay rent and not own anything?
If one is so fortunate to live to 60 and has their house paid off, isn't that better than being 60 and having to still pay rent and not own anything?
Right now would be the wrong time to buy.
I'm merely replying to those suggesting that one shouldn't buy a house during their 'youth', even if they can afford to, and that life cannot be enjoyed if one has a mortgage.
I suppose that's possible but that takes dedication and good investments. How many people do you know that have used that strategy with success after 20 - 30 years?
Practically speaking, I did do exactly that, but for a much shorter period of time. Lived in a bachelor pad and saved. Lived with roommates so rent was cheaper, and saved. Maybe I should have lived a little during that time, but I I didn't. I just worked my ass off. It wasn't a fun time at all.
No regrets though. I know that if I lost focus for just a moment it would be my undoing. One beer turns in to 10 beers, one party turns into 20 parties, one vacation turns into 10 vacations. Before you know it, no money has been saved.
Caveat - my situation may not be completely applicable to most because I didn't have a "job" per se. I was doing my own startup business so I had no choice but to put all my energy into it. Unlike a salaried job where you go home from work at 5pm and have the rest of the night to yourself, and weekends too. The more I worked, the more I made, so I worked 24/7.
lets not bring those idiots into the discussion. I'm sure the thread starter is better than that
Garth Turner is a fucking IDIOT.
He has been singing that exact same tune forever. Hell, I remember when in 2000 he said that owning real estate was a fool's move (just like he is now in his blog accorrding to you) and he was saying that Nortel was a screaming buy at $65.00 a share.
Now if you invested 100 grand in Nortel shares in 2000 you would now have 0 dollars.
If you invested 100 grand in a $300,000.00 home, you would now have a house worth around $750,000. In short, if you listened to that idiot Garth Turner, you would have missed a huge run up in real estate values and you would have lost every penny buying nortel.
Oh, and that fool also said around 2005 (when the Canadian dollar was worth 60 cents) that Canada should adopt the US dollar because soon the loonie would be worth 50 cents. Well, now the dollar is at parity.
Garth Turner? Never has there been a greater contrarian indicator in the history of the Canadian marketplace.
I totally agree with you, normally. But his figures on rent/vs buy at the moment make perfect sense (unless you believe that the market will continue to rise). Even a broken clock is right twice a day.
Buying a home right now unless you're flush with cash is dumb. Even more so if it's a condo.
Ok so 3 years ago I bought my last house at $180 000 on power of sale. Spent 10 000 in renovations, major cleaning, cosmetics etc..I wont shit you..I put a lot of sweat into the place. My first year all my vacation time was used up just fixing the place up. Last year sold it for 212 000..Tell me how much you get back when you rent?????
Good for you if you have taken profits from flipping a property. But I don't
think anyone sensible would suggest that buying a house is NEVER the right
thing to do. Somehow I got the impression some of the posters are saying
that buying a house with borrowed money is always smarter than the alternative
regardless of the price.
BTW, a gain of $20K from an investment of $190,000
over a 3 year period is peanuts.
think anyone sensible would suggest that buying a house is NEVER the right
thing to do. Somehow I got the impression some of the posters are saying
that buying a house with borrowed money is always smarter than the alternative
regardless of the price.
BTW, a gain of $20K from an investment of $190,000
over a 3 year period is peanuts.
