To buy or to wait ?
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Posted on: 04-11-08 14:08:44
While I agree that the Calgary SF housing is just about double of what it is really worth, the numbers assumed by Garth (greater fool website) seem way out of whack. Looks like losing the election has made him a bit jaded!
However, I agree with Garth when he says that the SFH price in Calgary must come down by 20 to 40% in next 12 to 18 months.
Don't be surprised if you see over 2000 homes under foreclosure in Calgary soon - yes before 2008 ends...
I agree with Amit here.
"Don't spend more than 30% of household income on home ownership costs.".
How many renters or homeless qualify to buy 400K starter home (town home) in Calgary which keeps within 30%-35% of ownership costs and having good down payment? I think this group of people already own home except few.
People who overprice this RE market has nothing to loose and living paycheck to paycheck with $0 down/40 yrs mortgage. What you can do with them except sending notice or taxpayers money. These non-sense (more than 50%) are running this phony consumer base economy. These people must spend otherwise we are recession and we already seen that.
DATA SEEMS INCORRECT;
Taking the right nos. and assuming 5 % interest, 25 yr amortization, bi-weekly payment, this is how the data may look like.
After living in the property for 10 yrs, selling it thereafter and assuming 2% pa price increase:
Selling price= $561,000
Mortgage balance paid off= ($271,000)
selling costs=($28,000)
Sale proceeds= $262,000
Compare this with your: Downpayment cost (what $92,000 a year would earn in a 3% GIC): $2,760
Leverage plays an important role in real estate. And mind you, avg. desi is much smarter than many GREATER FOOLS out there.
Everyday I hear desis paying down their mortgages faster to live debt free. The trick is to live within one's means and buy a home that allows some savings. Don't spend more than 30% of household income on home ownership costs.
Viggy said it so right, "Pride of ownership and the possibility of greater financial freedom --- PRICELESS"
Yesterday I learnt that Last weekend Mattamy Opened Sales Office for 34' & 38' Detached only in their New Site in Brampton.
I think, It is usual practise to open in stages and the first Lot of 60 Houses (?) was Sold on Saturday itself. Line up was long (some were there starting Friday evening). Cops were called.
Talk about Slow Down ... ... ...
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Mumbai Maazi Ladki ...
Quote:So in just 2 years, you've had to get your driveway redone, windows replaced, roofing done, washrooms redone and replace appliances, etc.
Originally posted by pratickm
Can someone please take out the calulator and tell me how much I have spent in two and half years?
May I ask how old the house is?
Didn't you know all this work needs to be done when you were buying the house?
Did you get home inspection done on the house before buying?
Quote:How big is your backyard and garden and what are you doing that is costing over $500 a year?
Cost of maintaining garden and Back yard Over $500/year
May I ask how old the house is? 18 Years, newer houses were substantially more expensive and farther out thus adding to fuel and stress cost...every day
Didn't you know all this work needs to be done when you were buying the house? Driveway was known. Rest was not.
Did you get home inspection done on the house before buying? Yes and guess what........what will it cost me to sue the home inspector vs what I will get back from him?
Quote:How big is your backyard and garden and what are you doing that is costing over $500 a year? Not too big but I have a side and back yard plus big front lawn.
Cost of maintaining garden and Back yard Over $500/year
Have you bought seasonal plants and flowers P.? How much do they cost every year?
I am still waiting for someone to tell me how many thousands I have thrown away in past 2.5 years
Oh, don't forget to add the mortgage @ 1200/months till 2027 !!!!!!
Quote:
Originally posted by Gapodi
I am still waiting for someone to tell me how many thousands I have thrown away in past 2.5 years
Oh, don't forget to add the mortgage @ 1200/months till 2027 !!!!!!
If you just want to add cost and don't have Calculator home ... I'll suggest you use Calculator available with Operating System running on your computer. This Calculator Performs basic arithmetic tasks on-screen.
Follow this path of clicks -
'Start' --> 'All Programs' --> 'Accessories' --> 'Calculator'
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Mumbai Maazi Ladki ...
Gapodi is not a baby. I am sure everythign was pre determined and mind was made up for spending this amount. The backyard issue is a bit fishy fishy.
I bought a house where i had to purchase everything but knew that before hand I thus bought it below market.
What is that you do in your backyard man?
I will say this is a 15-20 years or then 30 years old house and the lot is huge thus you purchased snow blower worth $1800.. All the best
I recommend to everyone watch movie "I.O.U.S.A." and "Your Money" by Ali Velshi for this weekend. A lot of CD (including experts) will learn that you never thought in your dreams. It's better to understand and make yourself ready as early as possible. You can not keep yourself dry in heavy rain but umbrella (readiness) can help a little to keep head dry.
Financial advisors/RE experts/Govt./deliberately lairs may not agree.
http://www.greaterfool.ca/
“There is no official definition of depression. Here is mine: When the unemployment rate rises above 12.5% in conjunction with a stock market that is down close to 50%, the CPI (inflation) is negative, and nominal wages are stagnant, it’s an economic depression. We are in one.”
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They never give up throwing s**t on fan.
Buyers sitting tight as market stabilizes
http://www.canada.com/calgaryherald/news/newhomes/story.html?id=4c80f3a3-2ba3-41f7-8c8a-dd7e293edbf9
"All it's going to take is a little bit of positive news to bring some of those hesitant buyers back into the market again," says Lowell Martens, broker-owner of Re/Max Mountain-view. "Current speculation about the marketplace and the economy is scaring the average consumer."
Martens ( RE Agent) says much of the market correction is now in the past.
Prices have almost bottomed out and while there is still some work to be done cutting the existing inventory, the market is stabilizing.
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