Calgary's NE (newer communities)

[White Doors]

Originally Posted by shane_c

Sometimes a lot more. I've heard that sometimes the price is purposely put on the low side to try and encourage a bidding wore. That to me is pure greed on the part of the seller.

Greed? You should try to maximize the return on yoru investment. If you don't then you are just dumb.

greed? smart maybe, not greedy.
Home sellers are not charities.

[mykalberta]

Originally Posted by Eddie Bronze

shane,

Whatever I could tell you about the NE would be negative so I won't go there. But I've noticed you commenting on the fact you would like to buy for quite some time here on CP and I'm in a similar situation, although I'm single and I believe you said your situation involves two incomes.

The problem is that at the moment, it's strictly a sellers market. I know you're likely looking at renting the same way I do and it does feel like it's wasted money, but the other avenue of buying could see you wasting even more. You buy something right now, in an over-priced market and 5 or even 10 years down the road you go to sell it and maybe only get 3/4's of what you bought it for. That's not a guarantee, but it's a financial risk that could bite hard down the road.

I work in the construction industry and the price of stuff is climbing at an astronomical rate. We had a one month span earlier this year where the average price of a place went up over $20,000. It's impossible to predict whether the current rate of increase can continue, but right now it's looking like a really bad time to buy. When you hear the price of some of the building material has gone down, and significantly in some cases, but the price to buy something continues to go up, it's not a good sign. I'm not expert, but I would advise against buying at the moment. Giving it some time will probably save you a lot in the long run.

I was on that thinking as well but do house prices ever really drop in a normal market - even a slow down. Normally the rate of increase just slows or haults. Its not unless you have a tragic event like mass recession that home prices really drop.

My thinking was that I could continue to rent for 800 or for 500/month more I could own. I also got a really good rate which helps (10 year 5.1). I guess the game you need to play is that do you think that the market will drop with interest rates being this low, or will it take an interest rate hike to say 7-8 for the market to slow and maybe even drop slightly. If so you then have to work out whether its cheaper now with low IR or later with high IR.

MYK

[shane_c]

For the first time homebuyer trying to break into the market of course it would seem like the sellers are being greedy and getting a lot more than the houses are actually worth. But I'm sure if I was selling I'd be laughing all the way to the bank too and would not discourage a bidding war. But from the buyers point of view it is extremely frustrating when houses have gone up in price the way they have and then for sellers to put a price that encourages buyers to bid it up even more. And right now, I'm on the buyers side.

Originally Posted by White Doors

Greed? You should try to maximize the return on yoru investment. If you don't then you are just dumb.

greed? smart maybe, not greedy.
Home sellers are not charities.

[mykalberta]

Originally Posted by shane_c

And now to make things worse I get to the office this morning and get an email from our landlord saying that they are selling the house we are renting and want us out by the end of August. With the vacancy rates the way they are where the F are we going to live now.

If you need a place, I dont know your situation but I live in a 2 bedroom 700sq ft apartment in Sunnyside. I just bought a place and am putting in my 30 day notice today.

My lease is for end of September but I can get out easily because of the Market. I am sure if I could find someone to take over they would be ok with that.

PM me if interested.

MYK

[I-Hate-Hulse]

Originally Posted by shane_c

Sometimes a lot more. I've heard that sometimes the price is purposely put on the low side to try and encourage a bidding wore. That to me is pure greed on the part of the seller.

The tactic is sound, for maximizing your sales price. However it can also backfire - a house in the NW listed for $200,000 below market value. The Agent had 38 different offers to review, cooordinate, and then tell 37 of them to PFO.

Not greed IMHO, but I understand your frusturation. I think the greed label is better applied on the sell side, when for example someone lists a place for $900,000 when it's really worth $600K. That's what happened on the place I won, they had an open house with 100 people through and not a single offer, pretty much confirming they were unrealistic. Luckily I put in a reasonable (but still generous one IMHO) and they came down a good chunk. Ultimately we met in the middle and called it a day.

Just keep trying and patience is the key to winning this war. Hang in there.

[mykalberta]

Originally Posted by shane_c

For the first time homebuyer trying to break into the market of course it would seem like the sellers are being greedy and getting a lot more than the houses are actually worth. But I'm sure if I was selling I'd be laughing all the way to the bank too and would not discourage a bidding war. But from the buyers point of view it is extremely frustrating when houses have gone up in price the way they have and then for sellers to put a price that encourages buyers to bid it up even more. And right now, I'm on the buyers side.

Completely agree, I just bought a place and placed "blind" bids on 7 peoperties before I got mine for only 5K above asking (and I dont think it was over priced after what I have seen).

I dont mind the under listing (its dirty but it happens), I hate the blind bidding, I got into a thing where my bid was clean (no doc inspection) but the other guy was above mine. 10 bids seller came back to me and said like my bid but was to low and wouldnt tell me the price. That is dirty and I told my realator to just drive off after the seller left to go to the other car. The other bidder had outbid me by 35K, what did the seller think I was going to do - up my bid by 35K.

I was lucky to fill all but one criteria, 2 bedroom, 2 bathroom, 2 underground heated parking stalls, walk to work, just not by CTrain. Also I have found that Calgary has a lot of "racist" buyers that wont even look at a place if its remotely close to Chinatown. I got my place and its a Chinese building but I dont consider it Chinatown and my realator said it would be hard to sell because of that fact.

MYK
MYK

[Tron_fdc]

Originally Posted by fotze

I thought you moved into Marda Loop? Also where is volos, I can't find any good pizza joints around me.

19 street, 26 ave. I'm on top of the hill, but about a block or two North of Marda Loop. Volos pizza is a block from my house (on 19 street) and even though it's a little pricey, it's insanely good.

It's been about 7 days since I had it.....I think I just might have to order some this evening!!

[Tron_fdc]

Originally Posted by fotze

But you just said Bridgeland

Oops...meant Bankview.

Hey, I was close.

[Calgary Flames]

Originally Posted by Bobblehead

For listing communities that a first time buyer can go into, those are pretty poor suggestions. And I know they are doing construction to fix it, but isn't the rush hour traffic nasty? It was when I lived there 6 years ago (at least I see they built lanes so buses can pull off at their stops now)

I don't notice any traffic issues. Unless it snows. I dunno, maybe i'm just used to it. This hill is my stomping grounds, has been for 21 years.

It is expensive though

[White Doors]

Originally Posted by shane_c

For the first time homebuyer trying to break into the market of course it would seem like the sellers are being greedy and getting a lot more than the houses are actually worth. But I'm sure if I was selling I'd be laughing all the way to the bank too and would not discourage a bidding war. But from the buyers point of view it is extremely frustrating when houses have gone up in price the way they have and then for sellers to put a price that encourages buyers to bid it up even more. And right now, I'm on the buyers side.

well sure it's frustrating, but it's not the seller's fault. It's really the buyer's fault and the low supply. Homebuilders have 'stop sells' now as they can't even keep up as there is such a blue collar labour shortage in this town.

[Eddie Bronze]

Originally Posted by White Doors

Homebuilders have 'stop sells' now as they can't even keep up as there is such a blue collar labour shortage in this town.

That's another reason you see the price being driven up. No workers means you have to almost over-compensate the ones you do have just so the competition doesn't snatch them away. You also have to pay your labour more if you want quality work. I can 110% guarantee you right now that builders have lists of their tradespeople and the ones at the top of the list are making more, sometimes significantly more.

For anyone who cares to delve into the whole housing shortage thing, there's a nasty cycle going on and it's going to be hard to fix. High living costs and housing shortages keep some people from moving here, so you are short workers. Then you push the rate up on what you pay them so you don't lose them. Then you have to charge more for your product and people start complaining the prices are too high and then you see them leaving because of the housing shortage and high living costs. And on it goes.

[ken0042]

Originally Posted by White Doors

It's really the buyer's fault and the low supply.

I think you may be right. Shane- why are you looking at buying right now? Partly because prices keep going up. And people like me in a "starter home" look at upgrading bacause I can get a schwack of money out of my house and buy the new one with more than 25% down.

So indirectly buyers desperate to buy end up causing 2 houses to be sold. Then the guy who I buy from buys a house, and the whole thing snowballs.

The end to this cycle will come when renters keep renting for a while.

[Eddie Bronze]

Originally Posted by ken0042

The end to this cycle will come when renters keep renting for a while.

The thing is, now you see properties being rented up for sale. Shane said he just found out he has to be out of the place he's renting because it's being sold. The identical thing happened to me late last year.

[shane_c]

Originally Posted by ken0042

Shane- why are you looking at buying right now?

Main reasons are because between here the last 2 years and 3 yrs in NB we've been renters. We're tired of paying the mortgage for someone else. We come here and watch the prices climb $100,000 in the last year and the longer we wait I honestly don't think the prices are going to come down. So the longer we wait the less likely home ownership in Calgary will happen because let's face it peoples salaries aren't going up comparable to housing costs. So we're left with a few options really.... try to get a mortgage in the next few days and try to find a place that's available immediately, try to find adequate rental housing in a city with one of, if not the lowest vacancy rates in the country, or take our hard earned downpayment money pack up our belongings, quit our good jobs here and move somewhere else in the country and start a new life.

[ken0042]

Originally Posted by shane_c

We're tired of paying the mortgage for someone else.

Which is one of the reasosns listed in this article: The 3 worst reasons to buy a house

Of course some of what the article talks about doesn't apply to the current situation in Calgary. But it is important not to buy for the wrong reasons. Myself I am paying about $500 more per month for housing costs owning as opposed to renting- never mind the daily work around the house stuff that costs money.

Don't get me wrong; buying a house can be a great move for many people. But it isn't for everybody. One thing I miss from renting is being able to move whenever I wanted to. Moving was never fun, but getting a new house every year or two was always a bit of fun.

[I-Hate-Hulse]

Here's a link to a National Post story on the madness:

http://www.canada.com/nationalpost/f...f9f72a&k=35968

"The resale market is quite insane," said Mr. Clark, whose board is expected to release another set of stellar numbers on Friday that will almost certainly surpass the record high for home prices in the city set last month.

Man... I wonder what those Friday numbers will say. I actually think comments like "500/day" actually fan the flames, spooking people to "buy-buy-buy!!!" Now that I've found a new place I'm all for appreciation, but certainly I still remember the sense of dread everytime CREB would release it's numbers when I was buying.


The g/f and I debated this the other day. Your average entry level job for a new grad (ie AP clerk) in Calgary pays around 40,000 in Calgary. A person in that tax bracket pays about $8,000 a year in taxes, leaving about $2,600 monthly. At that pay rate it's pretty hard to buy a place without substantial savings.

But should there be an expectation to be able to buy at such a young stage of a person's life and career? In major cities like Vancouver, it's pretty tough to "buy" that 1st house outright, most people rent for a while and then go for the buy as income rises. In London, some people may go their entire lives without owning a place.

As Calgary evolves into a major city, should every person making $40,000 a year be able to buy a house or condo? Can a major city sustain that? Given trends in other major cities - I'd say no. (which sucks as we lose good people to other cities)

[shane_c]

Originally Posted by ken0042

Which is one of the reasosns listed in this article: The 3 worst reasons to buy a house

It's not the only reason Ken. One of many. We both like gardening and landscaping but can't do that when you rent, want a dog but can't have one, would like to be able to set up a wood working room in the basement, want something that will be an investment and build up our equity should we decide to sell at some point, would like to be able to change wall colours if we choose to, want something to call our own, absolutely tired of renting and moving.... the list goes on and on....

[V]

Y'know, if I was a landlord, I wouldn't have any problems at all with allowing the rentor to do some landscaping on the yard. They'd have to run everything by me first, just what they're planning on doing, but I see it mainly as an improvement to the property, and if someone wants to do it for me? Fill yer boots.

Same thing for painting walls. Again, I'd have to agree with the colour scheme, but I wouldn't have a problem that wasn't ridiculously bold like bright green in the kitchen or something like that.

In fact, if I was the landlord I would knock 50 bucks off of the rent each month with the condition that any small maintenance that has to be completed (within 50 bucks) would be taken care of by the rentor, and rent has to be paid on time that month. 50 bucks is more than worth it if it means I don't have to go to the rental property ever, and my cheques come in on time. Added bonus if the rentor wants to make some capital improvements to the lot on his own dime.

I wouldn't allow smoking or pets in the house, though.

[Bobblehead]

Originally Posted by shane_c

It's not the only reason Ken. One of many. We both like gardening and landscaping but can't do that when you rent, want a dog but can't have one, would like to be able to set up a wood working room in the basement, want something that will be an investment and build up our equity should we decide to sell at some point, would like to be able to change wall colours if we choose to, want something to call our own, absolutely tired of renting and moving.... the list goes on and on....

When I bought, I was tired of moving, and wanted to get some equity back for my money. And I saw that prices weren't going to go down, so I bought what I could afford.

Anyone else get their property tax bill yesterday? Sure is interesting to see the difference beteween the assessed value and the mls listings for the area.

[V]

My tax assessment is at least 100K lower than I could sell it for right now. Ridiculous, but you won't see me complaining!