Quote:
Originally Posted by Buster
You have to compare equity in the old vs new, as the "sale" prices aren't as relevant. But you're on the right track.
I've been waiting for a correction in order to upgrade, for YEARS. The hard part now that it is here....is pulling the trigger while house prices are still going down. After all, that 785 house might not be worth 785 in a year. It might be worth 750. Convincing yourself to buy when that is a real possibility is harder to do than you think.
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I did, just didn't explain it further than the "downpayment". If equity is low in the fist you'd need a larger downpayment with the reciprocal being true should equity be higher.
Laziness on my part and the assumption that people would figure it out.
With respect to upgrading now and waiting.... I think we've got plenty more potential price softening especially in that higher end market. It'll be interesting to see how the US rate hike proceeds or doesn't proceed. Rates will go up, couple that with Alberta's current issues and you have substantial support for further impact to real estate prices. I think rates will be an impact item in the next 24 months which is why my prior post was "subject to current and future rates". I don't think I'd be porting and increasing my mortgage substantially if rates were in the 4.0% - 5.0% range. I'd hold out and try to get that paid down as quickly as possible to reach a happy debt service equilibrium.