cashing in on the realty boom

[Winsor_Pilates]

Originally Posted by West Karma

Your right, I have never believed in relying solely on a house to make you money but it is sure noce to have them go up in value. I don't think we should be buying our homes to make money, but it is sure nice when they go up in value.

I find it is really important with what you do with the proceeds as well. If all of a sudden, you make $400K on a house and you turn around and pay a premium for another house (in Calgary or where ever), then you are no further ahead in the long run. We think we did OK with our purchase in BC but only time will tell...

Cheers!!

just out of curiousity, what part of BC?

[Tron_fdc]

Originally Posted by Winsor_Pilates

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.

That's kind of what I'm banking on. The market is saturated right now with listings, but there is still migration going on from people moving here. It's only a matter of time before the listings start clearing out, creating a shortage.....and another price spike in real estate.

My opinion.

[Dion]

Originally Posted by photon

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.

I knew people who took the same risks during the last boom and lost everything.

[photon]

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

Yup, we sold the house we used to live in in Calgary before we moved out to Chestermere for almost no profit, after I had to replace the flooring downstairs 3 times, rip out everything and treat for mold once, rip out everything to 4 feet of the floor once, etc..

And if I would have waited 3 more months I could have made another $50,000. We were going to rent it but figured we'd be losing $100 a month so we didn't do it.

That's why I like to hear the successes, because it reminds me that sometimes you miss, but sometimes you don't.

[West Karma]

nm

[photon]

Originally Posted by Dion

I knew people who took the same risks during the last boom and lost everything.

What risk is that? Buying real estate because everyone else is?

You can never protect against all risks. Maybe the NDP somehow forms a government and then does something to make the NEP look like a walk in the park. Maybe someone invents a free cheap source of energy and all the oil companies are toast overnight.

I've spoken with people that lost everything too, and they've made it back and more since then, because they didn't quit trying.

[photon]

Originally Posted by West Karma

I bought at The Falls Golf Resort just outside Chilliwack. Snoop Dogg is performing next weekend about 4 miles from our house!! Snizzle!!

Is Chilliwack a logging town? I've been reading about this pine beetle thing in BC (and Alberta now too), and that scares me a lot about what impact it may have on some of those towns that are really dependant on the logging industry.

[ricosuave]

still, it works for some, doesnt for others, and you have to be able to 1-have the cash 2-be flexible and 3-move elsewhere

it simply isnt for everyone.

[Dion]

Originally Posted by photon

What risk is that? Buying real estate because everyone else is?

You can never protect against all risks. Maybe the NDP somehow forms a government and then does something to make the NEP look like a walk in the park. Maybe someone invents a free cheap source of energy and all the oil companies are toast overnight.

I've spoken with people that lost everything too, and they've made it back and more since then, because they didn't quit trying.

I was merely showing the opposite side of the coin.

No one ever thought the bust was going to happen back in the 80's. Much the same talk as I hear today.

You are correct, no one can predict the future as to what may or may not happen to the economy.

Don't get me wrong, I have the greatist respect for people who take risks.

[West Karma]

nm

[Sylvanfan]

Originally Posted by West Karma

No, Chilliwack is famous for it's farms - miles and miles of corn fields!! My wife's father is a logger 1 hour north of Kamloops and he can tell horror stories of the whole Pine Beetle thing up that way!!

Chilliwack is right on the Transcanada, about 60 miles east of Vancouver. Chilliwack is known to have a very low cost of living!

RW

To me Chilliwack was famous for it's call the mayor sign and that nice rich smell of dairy farms! Although the cost of living is much cheaper than closer to the rest of the coast it's no longer cheap by any stretch. Still it is a nice area.

My mom still lives in Kamloops and I actually would like to move back there myself (Unfortunately the rest of the world figured out what a crap hole Edmonton was and now I don't think I'll ever sell my fricken house here). But no doubt the beatle kill in the area is pretty significant. But a place like Kamloops is only partially dependent on forestry. If you want a one horse town, go to Prince George where it's pretty much all forestry and a city who's cycle can be pretty nasty. I first went there in 96 and things were okay. But 5 years later in 2001 when I left it was pretty ugly and many people who had bought houses 5 years earlier were happily taking a 50% bath to get out. But last I heard things are okay up there. But it's a rough cyclical town.

[tvp2003]

Originally Posted by photon

Yup, we sold the house we used to live in in Calgary before we moved out to Chestermere for almost no profit, after I had to replace the flooring downstairs 3 times, rip out everything and treat for mold once, rip out everything to 4 feet of the floor once, etc..

And if I would have waited 3 more months I could have made another $50,000. We were going to rent it but figured we'd be losing $100 a month so we didn't do it.

That's why I like to hear the successes, because it reminds me that sometimes you miss, but sometimes you don't.

Well, I would argue that your house in Chestermere has appreciated quite nicely as a result of the boom (ditto for the guy who sold his house to Flames_Gimp -- assuming he bought a new house in Calgary, he's still got a healthy profit), although I guess that's not really the point of this thread...

As it stands now, I'm fortunate enough to be able to afford a place "post-boom", although I'm probably paying 2x the mortgage that others are for similar if not better properties. I try not to dwell on it though -- I'm sure there are lots of people out there who can't afford anything right now and probably won't be able to anytime soon...

[ken0042]

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

If it was me, I'd look for the next boom town; ans my spider senses tell me its Saskatoon. Buy a house, hire a management company and rent it out. I don't think we are going to see the increases we saw 2 years ago here. So if you can gain $90K there and a house here would have gained $20K, you are still further ahead.

[BlackArcher101]

Originally Posted by ken0042

If it was me, I'd look for the next boom town; ans my spider senses tell me its Saskatoon. Buy a house, hire a management company and rent it out. I don't think we are going to see the increases we saw 2 years ago here. So if you can gain $90K there and a house here would have gained $20K, you are still further ahead.

Saskatoon is already months into the boom and prices have already increased 40% since 2006. Better get into it PRONTO or else it will be too late, just like here.

http://www.cbc.ca/canada/saskatchewa.../realtors.html
http://www.canada.com/reginaleaderpo...7-c725db57f3bf

[photon]

Saskatoon scares me a bit.. is there anything other than speculation driving the market there?

[Jayems]

The fiancee bought a condo before the boom, and before she's even moved in, smaller units in the place are selling for 200k more than hers.

[OracleOfCalgary]

To borrow from Mister Kennedy, "When the Saskatoon boy gives you real estate investment tips, you know it's time to get out of the market."

It's funny that we Calgarians can see with perfect clarity the bubble in the Saskatoon (or any other market) but hold fast onto our conviction that Calgary's doubling in real estate prices is purely Real. I've got some bad news. People aren't moving to Calgary any longer to pick up high paying energy sector jobs. In fact, I have a friend who works in an energy (gas) sector company that is losing money and looking to lay off staff. On the other hand, I know tonnes of people who work in housing (selling or building) and they all still think the sky is no limit.

More importantly, perhaps you missed it this week, but the US economy had it's clarion moment this week regarding the housing bubble and credit crisis, and some very, very bad things will be coming down the pipe the next two years. And it will be far worse than the dot com bubble.

What's in store for Calgary? By the end of 2008, prices will be off by 25% from today's peak. Interest rates will be up, and credit will be very tight. The rental market will be blooming as many places that are currently sitting vacant in the hopes of a "quick flip" will suddenly be forced onto the rental market as the owners will be unable to sell. There will be layoffs in the construction trades It will be a different world.

The Oracle has spoken.

[Incinerator]

Originally Posted by photon

Saskatoon scares me a bit.. is there anything other than speculation driving the market there?

Saskatchewan does have some oil, but unlike Calgary the only notable corporate HQs in Saskatoon have nothing to do with oil. (uranium and potash)

[Stormchaser]

Originally Posted by BlackArcher101

Saskatoon is already months into the boom and prices have already increased 40% since 2006. Better get into it PRONTO or else it will be too late, just like here.

http://www.cbc.ca/canada/saskatchewa.../realtors.html
http://www.canada.com/reginaleaderpo...7-c725db57f3bf

Most everywhere in Saskatchewan has gone up, not just saskatoon. I sold a year ago in Calgary and moved to Moose Jaw, no regrets. I bought my house free and clear here and I figure my house has increased about $100,000 since owning it. I've done a little fixing up around the place as well which has helped!

[Sylvanfan]

Looking around Canada a few months ago I thought Ottawa represented the best value myself. Looking around Ottawa features a large selection of decent looking houses in the 225 to 325 range.