The bubble finally deflating. not bursting.............

[GreenLantern]

Shh... let the renters keep renting, my suite needs to stay filled

[OMG!WTF!]

You also have to add the realtor fees and legal expenses when you sell. It's only a couple points now but I won't be surprised if we have land transfer taxes to consider someday which is a massive issue in Toronto. Add a small reno, legal and real estate fees and suddenly you're underwater by even more than your 5-10% down payment.

It's timing, timing, timing, more than anything. If you're in for less than 5 years you need to rent. 10 years is probably a draw. Longer than that I might buy. But even more so, timing the market is the key. If this is the start of an upswing you should buy. Renting during a down turn is prudent. If you want to live in a condo just rent one. People are starting to realize nothing can make the headache and risk of a condo board worthwhile.

http://www.cbc.ca/news/canada/calgar...-tax-1.3916070

June Donaldson, an advocate for condo owners in Calgary, says condo boards and property management companies have the power to raise fees and can justify the decision however they see fit. "Most condo owners have no idea how vulnerable they are," she said.
"It's wide open for condo boards and for condo managers to raise fees as much as they want, when they want, and how they want."

[automaton 3]

OP - I think your timing is good. If you see places that you're interested in, might be a good time to kick the tires a bit harder. You might find sellers that are ready to deal.

And as Troutman says above - certain neighborhoods are going to hold value better than others.

[CorsiHockeyLeague]

What neighbourhoods do people think hold value right now?

[Hockeyguy15]

Originally Posted by CorsiHockeyLeague

What neighbourhoods do people think hold value right now?

Obviously anything inner city. Hillhurst, Sunnyside, Airdrie.

[flamesfever]

Originally Posted by troutman

Location, location, location.

In some communities home values have stayed level.

Usually the market heats up in the Spring, but we are in unusual circumstances.

The above is key.

Whenever I have purchased property, I looked for that inner voice that said to me, "I want this property". If that happens to you, then when it comes time to sell it, there is a high probability it will happen to others.

I would look at land values...especially inner core. In some cases, the land is worth just slightly less than the house plus land. So in effect you are getting the property at a huge discount to replacement value.

IMO in the long run, you have to be in real property to offset inflation, and create wealth.

However, have said all that, Timing is everything, and waiting, until you can afford the risk, may be the right thing to do.

[Frequitude]

Originally Posted by troutman

The seller pays the realtor commissions. Lawyer fees are usually less than $1000 plus disbursements.

Right, that's what I'm saying. When you buy, make sure you're going to own it long enough that the agent and lawyer fees don't eat up your principal when you eventually go to sell. This is especially true for lower priced homes and condos where the 7% on the first $100K means that the agent's take on the home is higher on a % basis than it is for a higher value home (e.g. assuming the 7%/3% rule, $200K = 5% and $1M = 3.7%).

For context, at 30 years and 5% interest it takes about 3.5 years to pay off 5% of the principal. At 25 years and 3% interest it takes about 2 years.

That's why I say if you're going to buy you better be sure you're going to live there for at least 5 years based on agent fees alone.

[CroFlames]

Originally Posted by flamesfever

The above is key.

Whenever I have purchased property, I looked for that inner voice that said to me, "I want this property". If that happens to you, then when it comes time to sell it, there is a high probability it will happen to others.

I would look at land values...especially inner core. In some cases, the land is worth just slightly less than the house plus land. So in effect you are getting the property at a huge discount to replacement value.

IMO in the long run, you have to be in real property to offset inflation, and create wealth.

However, have said all that, Timing is everything, and waiting, until you can afford the risk, may be the right thing to do.

While this is all true, I don't view my primary residence as an investment. I found the house I like, close to my workplace and in a desirable neighborhood in my personal opinion, and not necessarily in the opinion of real estate gurus. When I moved back to Calgary, I chose to live in the suburbs because it works for me.

If I happen to move away in 10 or 15 years and make money off the place, then great. But my top priority was finding a house with the right floor plan that I enjoyed and in an area that worked for me. Everything else be damned.

As an aside though, I'm annoyed how small "double" garages are in Calgary suburbs.

[jammies]

Originally Posted by OMG!WTF!

People are starting to realize nothing can make the headache and risk of a condo board worthwhile.

Other than, you know, serving on the board yourself. It's much easier to complain than to take any responsibility.

I'd never own a condo again because I *was* on the board of mine, so I suppose either way you're hooped. It certainly gives you perspective on how people are almost uniformly clueless, and live in their own little sheltered realities.

Condo fees are a great example, you'd get the people vociferously complaining about them and accusing the board of being too lazy to figure out how to save money, as if the board didn't have to pay those exact same fees, and also put in their own time besides for the budgeting.

Moral of the story: never buy a condo. Plus, people suck.

[flamesfever]

I think, for most people, purchasing a house is the biggest investment they will ever make.

[puckedoff]

My realtor says it is a great time to buy


Edit: Should add, also says its a great time to sell.

[Kybosh]

It could be the apocalypse and a realtor would say it's a great time to buy.

[rubecube]

Originally Posted by flamesfever

I think for most people, purchasing a house is the biggest investment they will ever make.

Really going out on a limb with that take.

[troutman]

Originally Posted by CorsiHockeyLeague

What neighbourhoods do people think hold value right now?

Last month we saw some homes in NW communities like Tuscany sell quickly with multiple offers, and realizing close to or above list price.

[Regorium]

Originally Posted by OMG!WTF!

It's timing, timing, timing, more than anything. If you're in for less than 5 years you need to rent. 10 years is probably a draw. Longer than that I might buy. But even more so, timing the market is the key. If this is the start of an upswing you should buy. Renting during a down turn is prudent. If you want to live in a condo just rent one. People are starting to realize nothing can make the headache and risk of a condo board worthwhile.

If you can accurately predict upswings and downturns, you should be leveraging everything you have and putting it into the stock market. Forget properties.

Buy low, sell high. Excellent advice.

[CroFlames]

Originally Posted by flamesfever

I think for most people, purchasing a house is the biggest investment they will ever make.

That's just an old cliche. When I talk about investing, I mean buying a rental property or a property that I plan on flipping and selling, stocks, bonds and mutual funds. I don't consider my home I live in as an investment because you HAVE to live somewhere.

[burn_this_city]

Originally Posted by troutman

Last month we saw some homes in NW communities like Tuscany sell quickly with multiple offers, and realizing close to or above list price.

In early November we sold our townhouse in McKenzie Towne in 48 hours with multiple interested parties and got within $5k of ask. It's all about the product and location.

[OMG!WTF!]

Originally Posted by Regorium

If you can accurately predict upswings and downturns, you should be leveraging everything you have and putting it into the stock market. Forget properties.

Buy low, sell high. Excellent advice.

I'll show you exactly how to find market beating trends in the stock market if you want. But that's a different topic than real estate and it's more fun to just call bs. However there's no reason you can't look at the balance of economic probabilities and come up with what you think is the most likely direction for the real estate market. I had no idea real estate was so hot in 2005. I just bought a couple places because everyone else was. Looking back on it, the coming boom was painfully obvious. But I did know for sure I wanted out in 2014...actually 2011 but it took until '14 to get out. I think we will muddle along for a very long time or until policy makes it too difficult to buy/sell and we revert back to the cost of the wood plus the cost of government.

[shermanator]

To me, the allure of owning a home over renting is that one day, that mortgage payment goes away, which means my biggest bill twice a month is no longer around, opening up a massive financial freedom.

If you've found the house / neighbourhood you want to live in and don't plan on moving for a long time (ie. 10+ years), I don't know how much it matters when you buy. The same option might not be there if you wait.

[snootchiebootchies]

I personally think it would be worth waiting to see the effects of the new mortgage rules and the carbon tax on the housing market before making the biggest purchase of your life. However, I also think these new factors will exert most pressure on the higher end of the market. I would think if you're looking at the lower to middle range, say, around the benchmark price of $400k and below, it probably is ok to buy now.