Buy me a Home?

[MJK]

CalPuck faithful, I am once again seeking your superior knowledge. As many of you are aware I live in Chesterfield Inlet, Nunavut (google X0C0B0 if you want to see it). It is very remote and COLD. My fiance and I have been trying to buy a home here for the past year but there has been nothing for sale. We would like to stay here for maybe 5 more years and have a couple options:

1. Govenment Housing - Rental Unit (my current situation and $1200/month)
2. Build a house - $300,000 for just labour, materials not included.
3. Build my own home with the help of people from around town - not my first choice.
4. Buy a prebuilt house and ship it up on a barge.

I am interested in #4 and have been asked to check out igloo pre built homes.
http://www.igloo.ca/prebuilt/

Apparently they have been building homes and shipping them to the North for many years. They can make the home very specific to yuor needs.

Does anyone have any experience with these types of homes or this specific company? If anyone has any knowledge on these homes or this company please share!

Thanks

EDIT: Reasoning to Buy

Living in Nunavut has its perks. One of the perks is assistance programs that would see me get AT LEAST $50,000 to help buy/build. ALso, it would be extremely easy for me to rent my house when I leave to teachers, nurses, none of which really stay longer than 3 years. I an easily beat the government rent rates.

[3 Justin 3]

[Rerun]

I would never buy/build a home in some place remote or even some place small without much of turnover in home ownership.... unless you are planing on living there for a long time.
My brother in law bought a place in a really small town in BC and he is having a heck of a time selling it. Its been up for sale for almost a year. There just isn't the housing demand in a small town... particularly in this economy. He wants to leave town but now he can't until his house sells.... and god only knows when that will be.

My advice is rent.

[I-Hate-Hulse]

Out of curiosity, what brought you to there?

Reason why I ask is that I'd be somewhat worried about the demand side of the "supply and demand" equation in a resale situation 5 years from now.

[MJK]

I edited my original post to answer the question of : Why buy?

I came here to teach 3 years ago, met my soon to be wife, and I enjoy the simple way of life. Hunting, fishing and the people are great.

[Sliver]

Yeah I'd only buy something I could take back with me. Are there any kick-butt RVs that can be outfitted with super insulation and stuff you could have shipped up there and take back with you when you come home?

[MJK]

The demand is very high here to buy but no one is selling. I won't have any trouble selling when I leave.

[4X4]

Out of curiosity, how does land ownership work up there? Do you own a lot? Are you buying a lot? Do you just lease the land from the govt?

[MJK]

Originally Posted by 4X4

Out of curiosity, how does land ownership work up there? Do you own a lot? Are you buying a lot? Do you just lease the land from the govt?

You can't own land here, it is all leased land.

[REDVAN]

Originally Posted by MJK

The demand is very high here to buy but no one is selling. I won't have any trouble selling when I leave.

Yes, but that's NOW... what about in 5 years, you never know.

In Calgary 3 years ago, you couldn't find a place to rent, nowadays you can't find any renters...

Cost-wise:

$1200/month * 12months/yr * 5yrs = $72, 000

$300000 for labour + 100000 materials -50000 for assictance = way more than 72000.

I'd rent.

[MJK]

Originally Posted by REDVAN

Yes, but that's NOW... what about in 5 years, you never know.

In Calgary 3 years ago, you couldn't find a place to rent, nowadays you can't find any renters...

Cost-wise:

$1200/month * 12months/yr * 5yrs = $72, 000

$300000 for labour + 100000 materials -50000 for assictance = way more than 72000.

I'd rent.

I guess you guys just don't realize what it is like here. There is a HUGE housing demand. Most people here are classified by the government as homeless because there are not enough houses for everyone. Most houses have 8 people living in like a two bedroom place.

Finding someone to take the house when I go is not the issue. I am more looking for advice on building vs pre built homes more so than advice on whether to buy or not.

[Prototype]

How many Air Miles would you need?

[MJK]

Originally Posted by Prototype

How many Air Miles would you need?

Infinity

[REDVAN]

Then I'd buy a pre-fab one... they look pretty sharp in those photos, and then you don't have the hassle of building a whole house, just some supports, and doing some plumbing/wiring and so on.


P.S. Get the biggest one you can.

[ken0042]

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.

[Engine09]

I go up to Nunavut and the Territories a lot for work, the people are very friendly and I actually enjoy the Rankin Inlet visits.

But after 5 days I am absolutely dying to get out of there, and when my flight out gets delayed by a day or two which happens a lot, it's very depressing. Talk about being trapped.

As horrible as it sounds, when I drive around these towns I have one thought running through my head over and over, "Why do these people live here?".

[DownhillGoat]

I know a few people who've gone the pre-fab route. It's a great way to cut the prices down while still getting a decent place. They're not going to be quite as good as a custom built, but you'll certainly get your value out of it. I was looking at doing the same, but sadly there's no where near here where you can buy just a lot.

I can't vouch for the company, but can vouch for the pre-fabs. The important thing is to find out what isn't complete when it gets shipped. On the site they say it comes shipped at 70-90% completion. I'm assuming you're on your own for finishing the rest (tying into the electric grid, utils, what have you). Something you'll want to find out before you buy.

[MJK]

Originally Posted by Kryzsky

I go up to Nunavut and the Territories a lot for work, the people are very friendly and I actually enjoy the Rankin Inlet visits.

But after 5 days I am absolutely dying to get out of there, and when my flight out gets delayed by a day or two which happens a lot, it's very depressing. Talk about being trapped.

As horrible as it sounds, when I drive around these towns I have one thought running through my head over and over, "Why do these people live here?".

It's because you in Rankin Inlet, that is nothing like where I live. I am only a 20 minute plane ride from the "booming metropolis of Rankin" but I would not live there.

ken0042, that is actually not correct. Most people own there homes here and can get free housing if they wanted. They could technically sell their home for say $200K and then live rent free if they wanted in a house provided to them. They can't build houses fast enough here and there is a huge lineup for housing.

The bottom line is that I am stuck in a small 2 bedroom apartment paying $1200/month. There is not enough room so I need something else.

[Sliver]

Originally Posted by MJK

It's because you in Rankin Inlet, that is nothing like where I live. I am only a 20 minute plane ride from the "booming metropolis of Rankin" but I would not live there.

ken0042, that is actually not correct. Most people own there homes here and can get free housing if they wanted. They could technically sell their home for say $200K and then live rent free if they wanted in a house provided to them. They can't build houses fast enough here and there is a huge lineup for housing.

The bottom line is that I am stuck in a small 2 bedroom apartment paying $1200/month. There is not enough room so I need something else.

Hey MJK did you post pics of where you live once? I think you may have but I've forgotten. It'd be cool to see some pics of your town.

[ken0042]

Originally Posted by MJK

ken0042, that is actually not correct. Most people own there homes here and can get free housing if they wanted. They could technically sell their home for say $200K and then live rent free if they wanted in a house provided to them. They can't build houses fast enough here and there is a huge lineup for housing.

All I am saying is try to find out what houses do sell for. If there is a large native population that is able to get free or almost free housing; that can be a contributing factor in why people aren't building.

Also look at the mortgage aspect of it. You can be sure the bank isn't going to lend you $300K to buy a house that has a resale value of $200K.

Originally Posted by MJK

The bottom line is that I am stuck in a small 2 bedroom apartment paying $1200/month. There is not enough room so I need something else.

Once you have looked into everything- this may be your bottom line. If you have long terms plans on staying there; if quality of life is worth it then go for it.

Be sure you look into how much completion is done; and what shipping includes. Look into what kind of foundation you need/ you can build. Code might demand a 10 foot basement- but if you are in the Canadian Shield that can get a lot more expensive than here in Calgary.

Please keep in mind my intentions here- I'm just playing devil's advocate to make sure you have looked into everything.