Should we buy a house .... In view of the current volatile situation....
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Location: God's own country
Posted on: 09-08-11 02:42:06
Quote:
Originally posted by dudewheresmycar
Now my house price has probably gone up 10 to 15 % from my purchase price.. just about enough to cover broker charges.
This is very bad. Looks like you choose a wrong place. Before I left Canada, I noticed that there was around 80,000 to 100,000 increase in price in the past 3 years. As far as I know, there was only mininal correction (10,000-20,000) during the melt down in the GTA.
Having said this, one my my collegues booked a flat in 2009 in b'lore for Rs. 2400 per sq.ft. Today it is 3500 per. sq.ft.
So go figure. !
Peace to all
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I am a Gents and not a Ladies.
Thanks to all of those who took the time to respond.
I get the overall sentiment that since a home is a long term place to stay.... It is not an investment..... That we should go ahead and buy..... Provided we are have sufficient job security.....
Investing back home in India.... I have invested carefully and the property has increased in value manifold.... But then it's different here....where properties can go down in value in a recession....And take a while to appreciate back to the level where you bought......
We are now thinking of buying a smaller house than the one we finalized..... Since the one we liked was stretched to the max of our abilities to pay.....
My naara for the recession is always.... Job hai...... Toh jahaan hain....
Location: God's own country
Posted on: 09-08-11 09:04:33
Quote:
Originally posted by geetakhanna
My naara for the recession is always.... Job hai...... Toh jahaan hain....
True. However in the recession nothing is certain expect in the emerging markets.
Good luck
Peace to all
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I am a Gents and not a Ladies.
Quote:Gee, I wonder what the "elders" of Americans were telling them, house prices have lost nearly 60% value in 3 years.
Originally posted by peacock1
Our elders always used to advise, it is
When buying house, they are never expensive.
this is a really bad time to buy a new real estate porperty, whether for living or investing.
and more so in Toronto and GTA areas. it is completely nuts.
still people are buying.
the original poster seems to have made up his/her mind even though she asked for advice here.
it does not matter what we say or what is happening around us. when someone has made up their mind in advance it doesn't matter what you tell them.
this is known as 'confirmation bias'
I like what ashedfc said. there is a structural change underway.
house price will fall in 2 out of 2 scenraios - inflation and deflation.
this is the lull before the storm.
Quote:
Originally posted by DesiBabu70
Quote:Gee, I wonder what the "elders" of Americans were telling them, house prices have lost nearly 60% value in 3 years.
Originally posted by peacock1
Our elders always used to advise, it is
When buying house, they are never expensive.
this is a really bad time to buy a new real estate porperty, whether for living or investing.
and more so in Toronto and GTA areas. it is completely nuts.
still people are buying.
the original poster seems to have made up his/her mind even though she asked for advice here.
it does not matter what we say or what is happening around us. when someone has made up their mind in advance it doesn't matter what you tell them.
this is known as 'confirmation bias'
I like what ashedfc said. there is a structural change underway.
house price will fall in 2 out of 2 scenraios - inflation and deflation.
this is the lull before the storm.
House prices may fall in terms of GOLD. But I doubt it will fall in terms of dollar. Western Govt will unleash another set of QE. That means more printing of dollar. In case people do not want to buy home and save money. Then I guess money will be saved in value if peple buy gold and store somewhere in bank lockers.
Also interest rates if fall further and remain near zero just like in japan for long time. House prices will rise.
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infocan
Quote:
Originally posted by dudewheresmycar
GTA has seen steep changes in values on the west side
Renting is better from peace of mind point of view..
Buying is recommended for people who need more room, because a equivalent sized rental will run u the same amount u pay for mortgage..
I can tell from my experience 3 years back i bought a house, housing market crashed in 2 months and i can tell u i had spent 6 months stressing out about the house..
Finally i got used to it..
Now my house price has probably gone up 10 to 15 % from my purchase price.. just about enough to cover broker charges.
I agree with this. Especially in Canada where they do not allow tax deductions for the interest unless things have changed so it really get expensive when you take into account the property taxes and repairs. The peace of mind you mentioned is worth more than the pressure of falling prices and up again etc.
Good post.
I agree with earlier posters that the primary reason for a home should be as a place of residence and is correlated with your family situation. If you have a family with 2-3 kids, then a 3 bedroom rental will cost you anything between 1200-1500 /month, depending on the area and the amenities. With the current interest rates, you can basically carry a 400K home/townhouse with that amount. You gain in two ways - the equity that you will building over the years, as well as the appreciation of the property. The only thing that you have to be cognizant about is timing your entry into ownership and the buying/selling that you do along the way, as you upgrade your home.
