cashing in on the realty boom - Calgarypuck Forums - The Unofficial Calgary Flames Fan Community

Flames_Gimp · 08-10-2007, 11:21 PM

anyone here sell their house with the inflated value and cash in?

if you had a chance to sell your house and walk away with 200k cash... would you? (i know you couldn't buy another house after you did but u could always assume a mortgage and invest the rest of your money)

psicodude · 08-10-2007, 11:46 PM

To really "cash in", you have to be willing to move out of Calgary, IMO. I know of 3 older coworkers that took a slightly early retirement, sold their house, and moved to Lethbridge, Medicine Hat, or the Okanagan. 2 of them told me that they were going to make well over 200k, even after buying a new house in the new city.

Flames_Gimp · 08-10-2007, 11:59 PM

If I was going to "cash in" i would think about assuming a few mortgages (rental properties) and then either move out of town for a while or rent. or assume a mortgage and flip the house

MelBridgeman · 08-11-2007, 12:10 AM

do you really cash in? say you bought a house in a nice community in Calgary for 250K in 1999. You sold it in 2005 for 500K - wow look at that doubled my investment - made 250K in 6 years...but now i dont have a house to live in and buying the same type home or better is going to cost me 500K +...do you really cash in...
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Azure · 08-11-2007, 12:12 AM

You cash in if you out of the city.

I love Calgary...but for such a return, I would certain look at early retirement and a house where I live right now.

ken0042 · 08-11-2007, 12:22 AM

Quote:

Originally Posted by Azure

You cash in if you (move) out of the city.

Or the other option is if you do a drastic downgrade. I bought in 2004 and with what I put down plus equity I would net around $200K. I could trade in my 3 BR house with a good sized yard and what is becoming a wicked garage for some 1 BR condo and have no mortgage.

So, in other words, not something I'm willing to do.

Dion · 08-11-2007, 01:16 AM

Quote:

Originally Posted by ken0042

Or the other option is if you do a drastic downgrade. I bought in 2004 and with what I put down plus equity I would net around $200K. I could trade in my 3 BR house with a good sized yard and what is becoming a wicked garage for some 1 BR condo and have no mortgage.

So, in other words, not something I'm willing to do.

I wouldn't do it either Ken.

Btw hows that garage coming? And did you find what you were looking for to protect the floor inside the garage?

Dion · 08-11-2007, 01:18 AM

Quote:

Originally Posted by MelBridgeman

do you really cash in? say you bought a house in a nice community in Calgary for 250K in 1999. You sold it in 2005 for 500K - wow look at that doubled my investment - made 250K in 6 years...but now i dont have a house to live in and buying the same type home or better is going to cost me 500K +...do you really cash in...

To me the only person that cashes in is the person who has a renta property along with his own place of residence

Incinerator · 08-11-2007, 01:26 AM

Quote:

Originally Posted by Dion

To me the only person that cashes in is the person who has a renta property along with his own place of residence

Or if you don't have any yet, you can take out a HELOC on your extra equity and buy some inner-city rentals

MelBridgeman · 08-11-2007, 01:42 AM

Quote:

Originally Posted by Dion

To me the only person that cashes in is the person who has a renta property along with his own place of residence

you need money to make money!
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Delthefunky · 08-11-2007, 02:34 AM

I'd sell and buy a place in N.S. if I were in some people's position... I know employments not the same but you could invest right with 5-600K over there.

Tron_fdc · 08-11-2007, 09:24 AM

Quote:

Originally Posted by Incinerator

Or if you don't have any yet, you can take out a HELOC on your extra equity and buy some inner-city rentals

Exactly what I did. The bank somehow arranged it so my original mortgage payments are the same, and I'm renting out my investment property for enough to cover my mortgage and some expenses.

Within a year I'll do some upgrades and dump it, and hopefully buy some land outside of town to sit on until I have enough equity in my original house to sell out and move.

West Karma · 08-11-2007, 10:10 AM

nm

photon · 08-11-2007, 11:35 AM

West Karma, NICE! Congratz, I love hearing about people's successes.

Yeah, that's the other option for people who want to cash in but don't want to sell; take equity out and increase your exposure to the market by buying additional properties.

Anyone who does it though should do it for the right reasons, knowing the overall economics. If an investor thinks the boom is over, why? If an investor thinks the boom will continue, why? Justify decisions with facts and economics, not because of a desire to either get in on the rush or get out because a bust is coming.

Plus being a landlord isn't for everyone. In those cases, sometimes you can buy a property elsewhere (Lethbridge, Red Deer, Edmonton, somewhere else) and get it managed.. then you don't have to worry about tenant issues.

ken0042 · 08-11-2007, 12:47 PM

Quote:

Originally Posted by Dion

Btw hows that garage coming? And did you find what you were looking for to protect the floor inside the garage?

Garage is essentially done, the rest is finishing (siding is this weekend) and its going slow. So far there hasn't been anything done to the floor- for the exact reasons I feared. It started with the soffit and facia needing a place to be stored. Then all the tools found their way in. Then a Father's day sale on siding. Which is why I wanted to do the floor right away, so I wouldn't have to move crap around to do it later.

But all in all I'm pretty happy.

photon · 08-11-2007, 01:04 PM

Quote:

Originally Posted by fotze

I'm also taking a wild guess and assuming that West Karma makes enough money on his job that even if that house went down $500k it would not put him on the streets.

Well of course, I wouldn't suggest to anyone to take risks that would put them out on the street. I wouldn't, though there are plenty of people that would take those risks and do very well because of it. No one ever found success by following the same road as everyone else.

tvp2003 · 08-11-2007, 07:21 PM

Quote:

Originally Posted by photon

West Karma, NICE! Congratz, I love hearing about people's successes.

How about those who just missed out (went away for school for 3 years with plans to move back to Calgary and buy a house, but didn't return until just after the boom), or moved out of Calgary before the boom and lost a potential $100K on the sale of their house?

I'm in the former, and I know a guy who is in the latter... unfortunately, it goes both ways

Flames_Gimp · 08-11-2007, 08:41 PM

I bought a house dec '05, right before the boom started, now the houses in my area (dover) are going for as high as $369 - $400K.

West Karma · 08-11-2007, 08:55 PM

nm

Winsor_Pilates · 08-11-2007, 09:11 PM

Quote:

Originally Posted by tvp2003

How about those who just missed out (went away for school for 3 years with plans to move back to Calgary and buy a house, but didn't return until just after the boom), or moved out of Calgary before the boom and lost a potential $100K on the sale of their house?

I'm in the former, and I know a guy who is in the latter... unfortunately, it goes both ways

I don't think it's too late. Calgary still has room to go up IMO.
It's still a rapidly growing city and developement is only starting to catch up.