Calgarypuck Forums - The Unofficial Calgary Flames Fan Community - View Single Post

ken0042 · 01-22-2010, 01:52 PM

It doesn't matter that demand is high; it matters how much homes sell for.

Looking at their $200K houses- let's say it costs you $300K to get it shipped and setup. If houses are only selling for $200K- then you are better off to rent if you will be there 5 years.

Heck- even if you think you can still get $275K out of it you are still better to rent. Let's assume a mortgage of $300K at 5%. (I know there are cheaper rates right now; but you should never budget on the lowest rate.) In interest alone you would be paying $1250 per month. Even at 4% you are still at $1000 in interest.

My guess is the reason why there aren't homes to buy is that people don't make a return on their investment, so nobody bothers to build new homes. That is what you need to check out first.

01-22-2010, 01:52 PM	#15
ken0042 Playboy Mansion Poolboy Join Date: Apr 2004 Location: Close enough to make a beer run during a TV timeout Exp:	It doesn't matter that demand is high; it matters how much homes sell for. Looking at their $200K houses- let's say it costs you $300K to get it shipped and setup. If houses are only selling for $200K- then you are better off to rent if you will be there 5 years. Heck- even if you think you can still get $275K out of it you are still better to rent. Let's assume a mortgage of $300K at 5%. (I know there are cheaper rates right now; but you should never budget on the lowest rate.) In interest alone you would be paying $1250 per month. Even at 4% you are still at $1000 in interest. My guess is the reason why there aren't homes to buy is that people don't make a return on their investment, so nobody bothers to build new homes. That is what you need to check out first.