Is it a good time to buy a home now?
- Thread starter newtohobby
- Start date
I am no expert on housing, but I suggest someone who is would need more info. Are you planning to buy to live in for a number of years or are you looking to flip?
If it's the first, then chances are good that whatever the price is now, several years down the road the price will be higher.
If it's the first, then chances are good that whatever the price is now, several years down the road the price will be higher.
With the blab today about likely rate rise and maybe again by the end of the year there will be good deals on takeovers coming as people who were overstretched at the low rates may not be able to make the nut at the new higher rate.
Even if it doesn't lead to general price moderation, cosy up to a few agents and let them know they can call you if they get any good vest pocket jobs.
Even if it doesn't lead to general price moderation, cosy up to a few agents and let them know they can call you if they get any good vest pocket jobs.
The one thing to consider is this new tax proposed by Toronto Council regarding land transfer fees. For the average home it means an additional $4000 in taxes. (They are taking the same amount the Province takes) If the motion is passed it comes into effect in january 08 . So by closing prior you will save a fairly decent amount of cash.
What this will mean to the housing market is pretty uncertain. Will it drive up prices because people sitting on the sidelines want to proceed and not pay the tax or will it mean people don't buy and therefore force a 4-6K price reduction on the home?
The tax is stupid in my opinion. It's a penalty more than anything else.
The city needs more income as the Province and the Feds have reneged on so much, but there has to be a way to not penalize people for buying a home.
I believe we need to be far more vocal to our Provincial and Federal reps about the unjust treatment Toronto is receiving. Wow..another budget surplus at Queens Park, another budget surplus in Ottawa. All the while our major city infrastructures are crumbling.
If we don't make it an issue they sure as hell won't.
M2
What this will mean to the housing market is pretty uncertain. Will it drive up prices because people sitting on the sidelines want to proceed and not pay the tax or will it mean people don't buy and therefore force a 4-6K price reduction on the home?
The tax is stupid in my opinion. It's a penalty more than anything else.
The city needs more income as the Province and the Feds have reneged on so much, but there has to be a way to not penalize people for buying a home.
I believe we need to be far more vocal to our Provincial and Federal reps about the unjust treatment Toronto is receiving. Wow..another budget surplus at Queens Park, another budget surplus in Ottawa. All the while our major city infrastructures are crumbling.
If we don't make it an issue they sure as hell won't.
M2
search some of my posts on real estate to get my opinion. my real estate agent told me to wait 3 more years before considering buying in the GTA.
i rent a beautiful country small acreage house in an upscale subdivision near Caledon/Georgetown (all lots are +1.5 acres)... my next door neighbours house sold 14 months ago for 1.25 million. i estimate the house I am in to be currently worth about $750,000... I pay rent of $1800/mth!!!
I will continue to do so for 7 years minimum... i act as if i own the house and am paying its true mortgage amount... the extra cash I put into the stock market.
I am hoping that by the time 7 years are up, I will buy my house for cash with the equity i have built up. (btw- I am almost there now... not 7 years- only going on 3, but the equity is already where i expected it to be at year 7) I am ready, right now, to buy a similar house to the one i live in for cash.
it pays to own a house... it pays more to rent and bank the difference...
i've been there done that on a small scale for real estate investing over the last few years... commercial, rental, businesses, small apartment complex, student rentals, wasaga recreational rentals etc... none compare to the stock market. (atleast for me... others on terb have done very well in RE investing such as Argocock, etc..)
since investing in mr. market, i have yet had a tenant from a stock i own call me at 11:30pm with a noise complaint from a neighbouring tenant... or worse yet, a toilet leak.
remember, across a broad market and long, long term, housing prices only keep up with inflation. that means that either inflation has to skyrocket to catch up, or housing prices need to drop to about the levels seen in 2001.
my suggestions: buy if it makes you feel good to OWN a home. buy if your beliefs differ from mine and you have logical reasoning to do so. buy ONLY if you can TRULY afford the mortgage payments for the price of house you want... and only if you can factor in a mortgage payment increase of 30% in case of inflationary risk. be very careful when taking on large amounts of debt.
don't buy because you feel the prices are only going to go up... that'll hurt you, mr. Nortel. that's purely speculation and stupid IMO.
or you can listen to the non-advice of the following:
2. principal residence. no capital gains tax on selling... a total moot point if you plan on living their and NOT selling once per year. and besides, if you do once a year flips, you pay land transfer taxes + higher than my .5% commission costs on the friction. also, for my home that i rent, yearly property taxes are $6,4000. I clearly am saving money as my annual rent is only $21,600. you can't beat that on a 60year mortgage.
3. AM I someone's bitch?? AM I? if so, then how? I have been a landlord... and i do know, the balance of power is with the tenant... especially if I can walk at any moment and buy a similar house down the street FOR CASH... no mortgage... no inflationary risks... the ONLY thing that has allowed my current predicament is the fact that I RENT and INVEST the DIFFERENCE. it has afforded me the possibilities to NEVER NEED A MORTGAGE... who's the real bitch?
i do get humour out of the fact that homeowners are so willing to boast about their pride of ownership. i've been a homeowner many times. i do feel that my present state is an enlightened one. hey. it works!
i rent a beautiful country small acreage house in an upscale subdivision near Caledon/Georgetown (all lots are +1.5 acres)... my next door neighbours house sold 14 months ago for 1.25 million. i estimate the house I am in to be currently worth about $750,000... I pay rent of $1800/mth!!!
I will continue to do so for 7 years minimum... i act as if i own the house and am paying its true mortgage amount... the extra cash I put into the stock market.
I am hoping that by the time 7 years are up, I will buy my house for cash with the equity i have built up. (btw- I am almost there now... not 7 years- only going on 3, but the equity is already where i expected it to be at year 7) I am ready, right now, to buy a similar house to the one i live in for cash.
it pays to own a house... it pays more to rent and bank the difference...
i've been there done that on a small scale for real estate investing over the last few years... commercial, rental, businesses, small apartment complex, student rentals, wasaga recreational rentals etc... none compare to the stock market. (atleast for me... others on terb have done very well in RE investing such as Argocock, etc..)
since investing in mr. market, i have yet had a tenant from a stock i own call me at 11:30pm with a noise complaint from a neighbouring tenant... or worse yet, a toilet leak.
remember, across a broad market and long, long term, housing prices only keep up with inflation. that means that either inflation has to skyrocket to catch up, or housing prices need to drop to about the levels seen in 2001.
my suggestions: buy if it makes you feel good to OWN a home. buy if your beliefs differ from mine and you have logical reasoning to do so. buy ONLY if you can TRULY afford the mortgage payments for the price of house you want... and only if you can factor in a mortgage payment increase of 30% in case of inflationary risk. be very careful when taking on large amounts of debt.
don't buy because you feel the prices are only going to go up... that'll hurt you, mr. Nortel. that's purely speculation and stupid IMO.
or you can listen to the non-advice of the following:
1. yes- my market earnings are taxable. capital gains over $100,000/yr works out to 24.3% ... but, i have yet to pay more than $20,000 in taxes on my stock portfolio in any given year... a benefit of buy and hold. most of my holdings take atleast 3 years to mature.johnyboy said:
2. principal residence. no capital gains tax on selling... a total moot point if you plan on living their and NOT selling once per year. and besides, if you do once a year flips, you pay land transfer taxes + higher than my .5% commission costs on the friction. also, for my home that i rent, yearly property taxes are $6,4000. I clearly am saving money as my annual rent is only $21,600. you can't beat that on a 60year mortgage.
3. AM I someone's bitch?? AM I? if so, then how? I have been a landlord... and i do know, the balance of power is with the tenant... especially if I can walk at any moment and buy a similar house down the street FOR CASH... no mortgage... no inflationary risks... the ONLY thing that has allowed my current predicament is the fact that I RENT and INVEST the DIFFERENCE. it has afforded me the possibilities to NEVER NEED A MORTGAGE... who's the real bitch?
i do get humour out of the fact that homeowners are so willing to boast about their pride of ownership. i've been a homeowner many times. i do feel that my present state is an enlightened one. hey. it works!
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21 one pro does not know his ass fromm page nine...is your market earnings taxable...is principle residence taxable ...oh snap..shut up renter boy until you have a clue about what you are talking about..when I open my front door I ain't no ones bitch..can you say that...(landlord) oh I am selling get out...oh snap hehehe
Just sold our house in edmonton and moving back east.Paid 178,000$ for it four years ago.....just sold for395,000$.You would not believe the market in this city.The saddest looking shanties that you wouldn't take a sh#t in, selling for over the 200,000$ mark
Ft.mcMurray is even worse .Mobile homes from the 70's selling for 150,000$ to 200,000$ dollars.Complete insanity.
Ft.mcMurray is even worse .Mobile homes from the 70's selling for 150,000$ to 200,000$ dollars.Complete insanity.
It is never a bad time to invest in property. But there are poor porperties to invest in. As mentioned before you need to decide on an area and them proceed from there. If you buy in a rual area you will find a bestter deal. Now if that area is showing signs of grown in the housing market you are likely to invest in property you can sell off at a later date as lots. Don't let the rates throw you off you can refinance when they drop. As for taxes they will always go up unless you find a way to reign in costs.
Considering, rent can only go up by 2.6% per year, it's a good hedge against property tax increases for sure.papasmerf said:
Here's a house that just recently sold for about $630,000. the new owners aren't yet ready to move in for a few years and are supposedly 'investing'... now, they are attempting to rent it out... guess what? at a negative cash flow... they are asking only $1,750/mth and it is on 1 acre of land, treed around for lots of privacy in a prestigious area of Caledon East off Airport Rd. (good commuting distance for a Peel region hobbyist or dancer, mpa, etc..) PRIVACY is nice when your neighbours 4 walls are more than 100ft away from yours.
http://www.mls.ca/PropertyDetails.a...rt=3&of=1&ps=10&o=A&Mode=0&PropertyID=6043386
the owners probably make monthly mortgage payments of around $3400, so I'd take this to be a deal if you can pocket the extra 50% you save and just put it into an HSBC 5% high interest savings account... hmmm... 5% , that's a greater average than what houses in Canada appreciate yearly in any 15 year period of all of Canada's history.
In less than the 15 years, for simplicity sake, you'd easily be able to buy the house with cash... no mortgage (unless you wanted one, of course)
that's alot better than being a bank's bitch, john boy. oh snap hehehe - whatever the hell that means...
the link for the 5% savings account:
http://www.hsbcdirect.ca/1/2/?WT.sr..._Google_%201&gclid=CPHsq5Sv6o0CFREpIgodWUgptA
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What savings account at Scotiabank is currently paying 5%? Can't seem to find it on their website.21pro said:
i goofed... i meant HSBC...dickydoem said:
http://www.hsbcdirect.ca/1/2/?WT.sr..._Google_%201&gclid=CPHsq5Sv6o0CFREpIgodWUgptA
Rates are going to rise, and it is predicted that the US market will continue to soften, which means an economic downturn up here.
You can count on it. Funny how people up here think we're immune from what's happening in the States. Their market went up first, presaging our rise, and it's now dropping.Compromised said:
There was a good article in "moneysense" magazine about real estate: it's way too pricey relative to historical averages in median real incomes (historically in 3-4 range in TO, currently north of 6 x median incomes) and relative to rents.
E
enduser1
Actually, I think 21Pro has made the right decision for his circumstances. Yours might be different. At least he has a plan.mtl_guy said:
As for buying a home, I own one. I pay less than rent because I bought it four years ago and have seen the prices in my neighborhood increase by thirty five percent. It is probably too late for 31 Pro to buy into this market.
EU
Rise rise rise are the rates .. i have a good friend of mine that is with REMAX.. let me know if u just want to get a feel for whats out
tjere with no obligation hun
tjere with no obligation hun
