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Originally posted by san-hugo


Huh ! Canadian real estate market is not tanking, my guess - NEVER it will. Not for next 50 years. Wanna Bet ?? This is not US. ( having 50 states where influx of money is divided). There are not many Countries in world which invite aliens to take over the land, houses and lifestyle. Canada RE will continue to boom. Suburbs are flourishing. Read this projection on GTA 2015 till 2031 ...

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'Some goals are so worthy, it's glorious even to fail.' (Param Vir Chakra awardee Lt. Manoj Pandey)

The other issue is every time a correction starts to happen (say a 3-5% dip), people view this as a huge buying opportunity and jumping, correcting the correction back to the obscene valuation.

Never say never though, that is one thing the past 20 years have shown. You don't have to structure your life around it, but have to also factor in *some* worst-case scenario planning in your purchase of a home, because you never know what scandal or catastrophe is around the corner.

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As long as you keep your mortgage under $500k with some buffer/savings each month, you should do ok in case any such correction/crash do happen.

Make sure you save. Can't go wrong with TFSAs.

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Originally posted by febpreet

As long as you keep your mortgage under $500k with some buffer/savings each month, you should do ok in case any such correction/crash do happen.

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That's correct, BL. It entirely depends upon one's income. However, these days with low mortgage rates, I don't think having even 500k mortgage (not more) is a bad deal. Especially, Desis are good at renting out the basement suit that brings their mortgage liability down to a greater extent. Having said that, my hypothesis doesn't apply to the minimum wage earners. Might be good for the household making >100k.

Of-course, one must buy what they can afford. A little bit over doesn't harm though, but it should be - just a little bit over, not by $100s of thousands as is normally seen these days.

Agree. I think you make your best calculations and then leave a bit to lady luck too.

For instance, I bought my house about 8 years back. I bought what I thought was the right amount of house for my income at the time. Given how the RE market has performed, I would've been handsomely rewarded had I taken a much riskier decision and bought something much beyond my financial risk tolerance (few friends did that and came out on top, good for them).

But then it could've turned out to be the opposite as well. So I'm very content with what I got since it met my need and where I want to be with my mortgage.

Ultimately, the market may rise or drop. You need to give yourself the reasonable ability to ride out the storm if things go south.

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Hi Guys,

A question. I have seen a lot (with a small house) that looks promising. The only thing that is stopping me is a gas pipeline that runs right beside the property. The property is fully fenced though. How serious that would be or if it's really a problem? The lot's in a very good neighborhood, so I would like to give it a try. However, Gas pipeline is what's deterring me from going ahead.