Worst time to buy now..
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I agree with Rahul. Sometime this all industry seems a scam !!
The property rates are appreciated by commision sellers need to pay to the these real estate agents. For example, I buy a condo for $150, 000. After one year I need to sell and I just want to recover my cost.........I will have to sell it at $157, 500 to take care of commission (5%). I am not including any other hidden expenses.
Hence in Canada, the moment anybody buys a property, it is appreciated by 5% ??
A small observation, folks do we need to make these Charcha session, Advertising Session??
Why do some of us need to include our business designation every time with their mail??
Location: God's own country
Posted on: 26-07-07 09:14:41
Quote:
Originally posted by Shimla
Hence in Canada, the moment anybody buys a property, it is appreciated by 5% ??
No, It is not. It is actually depriciated by 5%.
If i buy a condo at 150,000, the true price of the condo. is actually 142,500. Actually , I consider the 5% of the value to have gone up in smoke (+ ownership change costs etc...). So when i sell the condo again for 155,000, I have actually sold it at a 9.5% profit. This unreasonable difference in price is the one that leads to the housing bust sooner reather than later. This is also one of the reason why the building bubble bursts so suddenly in NA whereas in India it is more gradual. The higher comission paid to brokers in NA accelarates the bubble burst.
I had touched upon this topic before and I am glad that you brought this up.
TK A
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I am a Gents and not a Ladies.
its amusing to read the thread & then this news
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http://www.680news.com/news/local/article.jsp?content=20070726_074657_5920
Dozens line up overnight to purchase condos
Thursday, July 26, 2007 - 07:46 AM
By: Carl Hanstke
Several spent the night outside to snag one of the almost 300 units. (Photo: Carl Hanstke/680News)
Many lined up Wednesday night to purchase the units, which go on sale at 6 p.m. Thursday. (Carl Hanstke/680News)
Toronto - Prospective buyers, including realtors, camped out at Park Lawn Road and Lakeshore Boulevard, to be among the first to buy new condominiums that have yet to be built - a sign of the real estate times.
More than 100 spent the night outside the Beyond the Sea condominium complex, developed by Empire Communities, camped with blankets and lawnchairs. Some arrived as early as 9 a.m. Wednesday morning.
They are hoping to snag one of the almost 300 units, which go on sale at 6 p.m. tonight. However, they won't be able to move in for at least three years.
Some people told 680News it's well-worth the wait for such prime real estate.
Real estate agents were among the ones who waited and said that since the Toronto condo market is so hot right now, campouts like these are not uncommon. One said this was her third time.
Phase one of development in June sold out in one day, so no one wanted to miss out on phase two, which is scheduled to completed in 2010.
For more on the condominiums visit: http://www.beyondtheseacondos.com." rel="nofollow">LINK
jhukti hai duniya jhukane wala chahiye...
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there is nothing greater than an I D E A whose time has come…
http://www.ghar-wala.com" rel="nofollow">LINK
Location: Canada-Glorious and Free
Posted on: 26-07-07 14:31:33
First, for those that think the market is in a bubble or those that value homes or properties based on 2, 3 or even 4 yrs ago are dreaming. Just because a home sold for $ 100k two years ago and now sells for $ 500k does not mean we are in a bubble. The same house that sold for $ 100k two years ago sold for only $ 5k 20 years ago. So what? The price of a property is what people are willing to pay for it and similar properties.
Yes, your equity in your HOME can be zero or negative. So what? Like I said it is not an investment; it is your home! Also your home, like your car and anything that you USE has the concept of "relative equity". The only way I can explain that is; your equity is preserved because all of the comparative properties have also dropped in value. So here is an example. You have the income to support the mortgage on a $ 300k home. Let us say the market drops incredibly and you know that $ 500k home you saw but could not afford back when, well it is now only $ 300k. You can take your $ 300 mortgage and move into that $ 500k home. Your equity is still zero in hard currency.
Also the fact is clear. Rentals do not build equity. Rahul_Singh put up fine arguments but he is fundamentally mistaken if he thinks landlords rent properties at a loss. The Landlord will collect the interest, the property tax and the repairs and upkeep from the rent. They are not charitable institutions. And you can also invest in stocks and bonds and other instruments while owning your home - just as you would after paying rent. Also the fact is your rent is a direct monthly expense. Your mortgage payment is part interest and part principal payment. The principal payment is equity building.
If you look at home buying as an investment - you are wrong. It will never work for you. Then you have to worry about bubbles etc. If you are buying to live in the house and make it a home - bring up a family - a stable base for you and family or whatever - you cannot go wrong. And that from someone who bought at the peak of the last "bubble".
BV
Quote:
Originally posted by Shimla
A small observation, folks do we need to make these Charcha session, Advertising Session??
Why do some of us need to include our business designation every time with their mail??
I dont know why, but it is true only for Realtors on this site.
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Mumbai Maazi Ladki ...
Location: God's own country
Posted on: 26-07-07 15:43:50
Quote:
Why do some of us need to include our business designation every time with their mail??
As a user who was in the forum the last time this question was raised, I kindly request you to search in the Charcha by using the "SEARCH" option. This question was answered by a Moderator.
TK A
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I am a Gents and not a Ladies.
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