Quote:
Originally Posted by I-Hate-Hulse
I'm quite the bear lately so sorry if this is a little too negative....
Like others have said, real estate only has down to go from here. At that point you want less exposure to real estate not more. Simple math will tell you a 10% decline in real estate will bite you a lot more if you have a 500K house vs a 300K house. It doesn't make a lot of sense to basically sign up for increased losses right now.
If you weren't taking on more debt - maybe I can get there... but that brings me to my next point...
How safe are your jobs in a recession? Could you get by on 1 of 2 incomes? There's going to be some nasty layoffs in January IMHO, and I think it'll be 12-18 months MINIMUM before we see the bottom. It's going to period of "what can I afford" vs "what would be nice" coming up.
At a @#$#@ minimum, as others have said, sell first then buy. I know someone who made the same decision as you but can't sell their old place for what they need for the new place, despite having signed papers for the new place. They are completely hooped - I think they are going to have to walk away.
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I did not want to state it this bluntly, but I agree 100% with this post. 12-18 months minimum until bottom. Personally I think Calgary is in for quite a ride. I think we are a couple years behind the U.S. and while I don't think we'll be hit quite as hard, as I said above I think this is just the beginning.