Calgarypuck Forums - The Unofficial Calgary Flames Fan Community - View Single Post - First Time Home Buyer

Mike Oxlong · 03-23-2006, 10:54 AM

I have a question for everyone saying not to buy a house right now. I am curious why he shouldn't?

I understand the market is crazy and skyrocketing everyday. But if he wants to get in the market the longer he waits the more expensive it is going to be.

Say the market remains really hot for the next 2 years. Prices go up say 15% a year. Then things level off and we start seeing moderate gains in the 5% a year increase level. Why is he better off to buy then?

A house he could buy for $250,000 today is going to be worth WAY more than that in 2 years. No matter how much you save by renting, it isn't going to be enough to keep pace with how fast Real Estate is going up.

I think building something new is the way to go right now. For the most part you don't get in bidding wars and you have a very good idea of the price you are going to pay for the place plus all the warranties that come along with a new place. You get all that free appreciation while it is being built and then when it is ready at least you are in the market. For the next few years while the market is crazy at least you own something that is going up in value at the same rate as everything else. Once the market cools down and things aren't as crazy then you can look at selling your place and taking all the equity you have in it and putting towards something more to your taste or location. At least with this option you are keeping pace with the market. If you wait 2 years then you are just that much further behind and houses are just that much more expensive.

The market might stabalize in a few years and prices won't be rising this quickly but there is no way they are going to drop down to 2002 or 2003 levels again.

03-23-2006, 10:54 AM	#61
Mike Oxlong Got Oliver Klozoff Join Date: Feb 2003 Exp:	I have a question for everyone saying not to buy a house right now. I am curious why he shouldn't? I understand the market is crazy and skyrocketing everyday. But if he wants to get in the market the longer he waits the more expensive it is going to be. Say the market remains really hot for the next 2 years. Prices go up say 15% a year. Then things level off and we start seeing moderate gains in the 5% a year increase level. Why is he better off to buy then? A house he could buy for $250,000 today is going to be worth WAY more than that in 2 years. No matter how much you save by renting, it isn't going to be enough to keep pace with how fast Real Estate is going up. I think building something new is the way to go right now. For the most part you don't get in bidding wars and you have a very good idea of the price you are going to pay for the place plus all the warranties that come along with a new place. You get all that free appreciation while it is being built and then when it is ready at least you are in the market. For the next few years while the market is crazy at least you own something that is going up in value at the same rate as everything else. Once the market cools down and things aren't as crazy then you can look at selling your place and taking all the equity you have in it and putting towards something more to your taste or location. At least with this option you are keeping pace with the market. If you wait 2 years then you are just that much further behind and houses are just that much more expensive. The market might stabalize in a few years and prices won't be rising this quickly but there is no way they are going to drop down to 2002 or 2003 levels again.