Great answer PC. Annan, sorry about the challenge you are facing but the market is a mess now. Most of the buyers to my knowledge are second home buyers and the same people line up mostly for the new homes.
A lot of them are tapping their HELOC and equity from their primary home and they are making a joke of themselves.
I too get tagged along with "Keeping up with the Joneses" syndrome but have put a cap on my pursuit.
More to continue on this topic....
-----------------------------------------------------------------
The cowards never started,
The weak died on the way,
Only the strong arrived.
http://www.youtube.com/watch?v=_yK1i9cLAMM
Location: Brampton, Ont, Canada
Posted on: 17-05-16 22:35:46
Quote:
Originally posted by JRF
Great answer PC. Annan, sorry about the challenge you are facing but the market is a mess now. Most of the buyers to my knowledge are second home buyers and the same people line up mostly for the new homes.
A lot of them are tapping their HELOC and equity from their primary home and they are making a joke of themselves.
I too get tagged along with "Keeping up with the Joneses" syndrome but have put a cap on my pursuit.
More to continue on this topic....
First of all getting mortgage is not a problem bit you make sure u hv additional help..like joint family sharing cost or u put someone else in house for rent
My advice..real estate r damn costly so stay away
-----------------------------------------------------------------
'Some goals are so worthy, it's glorious even to fail.' (Param Vir Chakra awardee Lt. Manoj Pandey)
Location: God's own country
Posted on: 18-05-16 04:40:50
Adnan,
Though many have advised you, based on my perceptions, I give you the following advice.
If you take home pay is around $ 2900 and your housing costs you $ 2100, It is still very much worth it to go with this deal.
The only cavet is that is your job secure? if you job seems secure for 2 years, I would ask you to go ahead with this deal.
The other expenses that I see is $ 300 car insurance and $ 200 food expenses and $ 100 miscellaneous expenses. I would also immediately put the basement for rent for $ 800 and this will help you a lot.
The other way to go about it is to buy this house but you donot move in. You lease it out. I expect around $ 800 in basement rent and $ 2000 house rent.
The biggest asset that you have right now is your $10K upfront deposit $ 52 K annual income , a decent credit score and DESI's to get you the mortgage unethically. Use it.
It is a great oppertunity. If you are attached to the house, you can move into your basement and rent the upper portions of your house to get you atleast $ 1500-$ 2000 a month.
Remember, even if you own a house, you still can go to food banks for food, provided you canot afford for food. There likely will be no upward revision of interest rates for 1-2 years.
All the best. Donot waste / loose this oppertunity.
Murali
-----------------------------------------------------------------
I am a Gents and not a Ladies.
I agree with TK.
If you have strong determination to take the pressure and has will power to work the things your way, go for it. Many desi people in GTA who do not qualify financially to own a house are managing somehow and building up the equity. Beg, borrow, steal .... and try to have some backup for 6 months mortgage payments. Maintain good credit...... then you will be able to manage.
Location: God's own country
Posted on: 18-05-16 10:02:30
Thanks Gurram.
As per my knowledge, if you are reasonably confident of holding on to your job for the next 2 years, then you should go for it.
Not buying a house at this phase of your life in Canada will make you houseless in the times to come. If you want to make Canada your permanent home, then you should own a house.
House flipping or short term selling is not recommended in this market. If you are a first time buyer, you should go for it. Also if you aim is to stay around this place, you should go for it.
Let me also share a true story of one of my anglo-Indian friend who lives in Australia. The dude lives in Newman, a mining town. The nearest big city is Perth which is 1400 kms away. The dude told me that he bought a new house in Perth for 500K as he plans to relocate there in a few years and that he has given it to an agency for renting. I told him that he was a fool and that he should have bought the house in Newman and saved on rent and built the equity. Later when he is ready to move to Perth, he should have sold the newman house and bought it in Perth. He did not understand it nor did he say that it made sense to him.
Murali
-----------------------------------------------------------------
I am a Gents and not a Ladies.
Moving with the flow, I will advice to offer less than 1/2 the asking price - the seller may feel bad and even swear at you, but don't take it personally. If you follow this method for the next 10-15 house offers, one of them will eventually give in and you will have a house at half the market value. You can then divide that house and make it 4 times the market value, rent each room to 1 person for the day use and another person for night use. That way you will have 8 times the market value.
Advice is free and easy.
Hiren
Please do not over look PC's advice ... He is in the business !
In the end it is your call ..
If you are okay with it , go ahead and it would most likely result in capital gain.
If you are not okay / hesitant , you might lose your sleep.
Its your behaviour - if you are risk taker or risk averse which will decide it for you.
-----------------------------------------------------------------
Fido.
