Quote:
Originally posted by puttoo
Vancouver market has been falling for the last two years .... check http://www.canadiandesi.ca/read.php?TID=13541
Puttoo, unfortunately the link you provided is about another thread on CD. The ground reality is way too different. The real estate is hitting the roof in Vancouver like insane. Ask any Vancouverite, what is it like buying in Vancouver and then glance at their face and reaction. In Surrey (one of the suburb of Vancouver), 3 bedroom townhouse with no basement (forget about rental income) averages about $325,000. This is just one suburb I am talking about. I haven't touched base upon Burnaby and Richmond yet.
Location: Beautiful BritishColumbia
Posted on: 13-05-08 23:20:26
Interesting read:
http://www.greaterfool.ca/2008/05/08/the-lobby/
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"After climbing a great hill, one only finds that there are many more hills to climb." (Nelson Mandela)
Tourist: Nice link.
People have very short memory or do not like to see other side of border that we are following same path.
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Let say rent is $1500/month (maintenance, tax, condo fee included) for condo that price 399K in July 2007 and 360-370K in today’s market.
Condo ownership with 6.5% interest rate:
Monthly payment: 30 Years
Interest rate: 6.500%
Loan amount: $ 370,000.00
$ 2,338.65 a month
$330/ month condo fee
$50/month maintenance charge
$100/month Tax
Total: $2800/month app.
There is saving of $1300/month for down payment when price of property are falling so fast. There is no down payment in renting condo so people can invest down payment or monthly rent saving into mutual/index funds, RRSP, RESP or whatever.
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Right now people are ready to sale condo on same price as they signed the deal. But they bought in impression that they will sell before starting mortgage payment and make $$. Now they are in fix (10-15% down value+7% realtor fee) and even rent can not cover mortgage. At least they have to put $1000 to $1200 from their pocket every month. How long they can go like that?
2. “Canada home” is not related to buying home. I know lot of people who born in Canada (living from generations) but does not own a home too.
Canadian housing market slowing: Scotiabank
http://yourhome.ca/homes/article/425667
Location: Canada-Glorious and Free
Posted on: 15-05-08 10:45:53
Landlords will not rent a condo to you for $1500 that costs them $ 2800. You are comparing apples to oranges.
BV
Quote:
Originally posted by rahul_singh23
Tourist: Nice link.
People have very short memory or do not like to see other side of border that we are following same path.
--------------------------
Let say rent is $1500/month (maintenance, tax, condo fee included) for condo that price 399K in July 2007 and 360-370K in today’s market.
Condo ownership with 6.5% interest rate:
Monthly payment: 30 Years
Interest rate: 6.500%
Loan amount: $ 370,000.00
$ 2,338.65 a month
$330/ month condo fee
$50/month maintenance charge
$100/month Tax
Total: $2800/month app.
There is saving of $1300/month for down payment when price of property are falling so fast. There is no down payment in renting condo so people can invest down payment or monthly rent saving into mutual/index funds, RRSP, RESP or whatever.
------------------------------------
Right now people are ready to sale condo on same price as they signed the deal. But they bought in impression that they will sell before starting mortgage payment and make $$. Now they are in fix (10-15% down value+7% realtor fee) and even rent can not cover mortgage. At least they have to put $1000 to $1200 from their pocket every month. How long they can go like that?
2. “Canada home” is not related to buying home. I know lot of people who born in Canada (living from generations) but does not own a home too.
Big Vee,
No need to convert anyone with closed mind. Interesting thing is that they use the statistics provided by the REALTORS(R) to brow-beat them.
If the REALTORS(R) were able to influence the market all the time, then there would have never been a "slack time" in the market. People forget the simple economic concept of "Demand & Supply", and that the consumer alone dictates what a market shall bear. The market in the past was certainly overheated and is somewhat slowing down. It is however not coming to a halt. The present state reminds me of actually of the normal market....that is how it usually used to be.
It is still a sellers market in Mississauga at least, as I have been having hard time to find "good" homes for several clients in 400K-460K range. Anything good gets sold in few days, and for close to or over the asking price. And mind you, a couple of these clients are upgrading and rest 1st time home buyers!
My analysis of the current market is that lot of "speculators" who had purchased homes in the past have been riled by the reports (by unqualified reporters who have been creating news rather just report the news) and have panicked. Therefore, I see lots of homes (with tenants) on sale now since these speculators are scared of any downturn if it happens. "Investors" on the other hand are still investing in the "right" invetment!
Canadian report in Globe and Mail citing Scotiabank does not predict it to turn towards being a Buyers market and clearly calls it "cyclical"( http://www.reportonbusiness.com/servlet/story/RTGAM.20080515.wscotiahousing0515/BNStory/Business/home ) . And for some who love to look at the US for everthing that happens here, here is an article http://www.marketwatch.com/news/story/market-anomalies-skew-home-price-data/story.aspx?guid=%7BB242EC7A%2D7A08%2D49E4%2D8CB7%2DF0808F8EF52D%7D
I will continue to look at my glass half full....and I am enjoying every bit of the market now!
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Rajeev Narula, Broker, REALTOR®
ACE TEAM REALTY INC., Brokerage
10 Kingsbridge Garden Circle, Suite 704
(Opp Square One - HWY10/403)
Mississauga, ON L5R 3K6
Bus: 1-888-355-3155 Ext. 300
Fax: 1-888-443-3155
Email:
Web: http://www.RAJEEV.ca" rel="nofollow">LINK
Toronto downtown (harbour front) lofts costing around 350K are being rented at around 1.8-2K. Plus there is tax break (if investing to rent it out). So I guess the income and expense are atleast even + what ever equity being built up is savings.
I guess ownership of a house/condo goes beyond just $ numbers. There is an emotional angle to it as well. Anyways, whether to rent or buy is a personal choice. Doubt if there is a right answer.
P.S: I have a new neighbour. They landed here 2 weeks back from Dubai. Still searching for job with mine and other's help - But they have already bought a house with 50% downpayment!!
