Lonney Posted June 14, 2013 Report Share Posted June 14, 2013 You can't make general statements like that...it depends completely on the specific situation...in my situation, which isn't too out of the ordinary, if I sold now after 4 years of ownership I would come out ahead by around $40,000 compared to renting a similar place. I agree often it is not better to buy if you stay less than 5 years, but in many other cases it can work just fine. Thats why I said it depends on a lot of factor I would love to take a look at your numbers, 40k seems farfetch Link to comment Share on other sites More sharing options...
cassidybear Posted June 14, 2013 Author Report Share Posted June 14, 2013 Thanks for the great discussion guys Also thanks WtsupDoc for the clarification on the effect on OSAP much appreciated! Link to comment Share on other sites More sharing options...
schmitty Posted June 14, 2013 Report Share Posted June 14, 2013 Thats why I said it depends on a lot of factor I would love to take a look at your numbers, 40k seems farfetch Well, the average selling price for our unit in our building is now about $315,000 and we bought for $245,000 about 3.5 years ago. Purchasing closing costs were very cheap, like $1300. Closing costs for selling would probably be about 6.5 percent. Also, our apartment before was about 150 square feet less than our condo. Link to comment Share on other sites More sharing options...
rmorelan Posted June 15, 2013 Report Share Posted June 15, 2013 Well, the average selling price for our unit in our building is now about $315,000 and we bought for $245,000 about 3.5 years ago. Purchasing closing costs were very cheap, like $1300. Closing costs for selling would probably be about 6.5 percent. Also, our apartment before was about 150 square feet less than our condo. a growth rate which is great! - but how likely is that to be consistent in the future? that is the big question Link to comment Share on other sites More sharing options...
schmitty Posted June 15, 2013 Report Share Posted June 15, 2013 a growth rate which is great! - but how likely is that to be consistent in the future? that is the big question Not likely at that rate! If only... Link to comment Share on other sites More sharing options...
tinker Posted June 15, 2013 Report Share Posted June 15, 2013 My husband and I are likely going to buy a house next year while I am in school. He has a good job so we should be ok to get a reasonable mortgage on his salary. I have been doing a lot of research and my biggest concern is all the talk of the impending "correction" in house prices. The OECD released a report showing Canada's house prices are the third most overvalued in the world, by as much as 60% in some markets (TO and Van especially). Also, the Bank of Canada warned this week that Toronto's condo market is bad for the economy because of the huge number of unsold units. Essentially economists are saying this has to change... not likely by a crash but by a sow decrease or a freeze on home prices. Just something to think about if you are considering buying. Link to comment Share on other sites More sharing options...
aaronjw Posted June 15, 2013 Report Share Posted June 15, 2013 My husband and I are likely going to buy a house next year while I am in school. He has a good job so we should be ok to get a reasonable mortgage on his salary. I have been doing a lot of research and my biggest concern is all the talk of the impending "correction" in house prices. The OECD released a report showing Canada's house prices are the third most overvalued in the world, by as much as 60% in some markets (TO and Van especially). Also, the Bank of Canada warned this week that Toronto's condo market is bad for the economy because of the huge number of unsold units. Essentially economists are saying this has to change... not likely by a crash but by a sow decrease or a freeze on home prices. Just something to think about if you are considering buying. Housing prices aren't something you need to worry about if your goal as long as your goal isn't to sell in a few years after purchase A correction will happen but like as history has shown the market will rebound My wife and I have been considering selling our house (no mortgage do that certainly helps) in the next 6-12 months and renting until we see what the market will bare. We don't have to worry about the market that much where we are due to location therefore if we can wait til a correction then we're looking at purchasing something for 20% less. Now if we wanted to stay here another 7-10 years we wouldn't care about the correction as within that time period the market will have rebounded. What you should be concerned about is interest rates. I see a mild rate increase in the next year but after that who knows. One thing is for certain, rates won't rise to anywhere near late 80's early 90's levels lest Government and banks want to see the US housing crisis all over again except this time in Canada Link to comment Share on other sites More sharing options...
tinker Posted June 15, 2013 Report Share Posted June 15, 2013 Housing prices aren't something you need to worry about if your goal as long as your goal isn't to sell in a few years after purchase A correction will happen but like as history has shown the market will rebound My wife and I have been considering selling our house (no mortgage do that certainly helps) in the next 6-12 months and renting until we see what the market will bare. We don't have to worry about the market that much where we are due to location therefore if we can wait til a correction then we're looking at purchasing something for 20% less. Now if we wanted to stay here another 7-10 years we wouldn't care about the correction as within that time period the market will have rebounded. What you should be concerned about is interest rates. I see a mild rate increase in the next year but after that who knows. One thing is for certain, rates won't rise to anywhere near late 80's early 90's levels lest Government and banks want to see the US housing crisis all over again except this time in Canada You're right, interest rates are also scary and unpredictable! We are looking in Guelph so we are also outside of the scary markets but it seems that no one can predict the trends there either. The CMHC predicted 2013 would be slow in Guelph with a slump in sales and decreasing prices... as it turns out, sales are up and many homes under 350000 are getting multiple competing offers. I shouldn't complain though, my friend just bought a little 3 bed 2 bath here in San Diego for 600K!! Link to comment Share on other sites More sharing options...
Laika Posted June 15, 2013 Report Share Posted June 15, 2013 Now if we wanted to stay here another 7-10 years we wouldn't care about the correction as within that time period the market will have rebounded. (y-axis: Real house prices, 1975:1 = 100. Source: Paul Krugman's column, originally from the Economist) Will the US housing market correct to its peak value 7-10 years after the decline started? It's been about 8 years since prices started to drop and its nowhere near it's pre-crash value. What makes you so certain the Canadian one will recover so quickly if it undergoes a similar correction? Link to comment Share on other sites More sharing options...
osteon Posted June 15, 2013 Report Share Posted June 15, 2013 (y-axis: Real house prices, 1975:1 = 100. Source: Paul Krugman's column, originally from the Economist) Will the US housing market correct to its peak value 7-10 years after the decline started? It's been about 8 years since prices started to drop and its nowhere near it's pre-crash value. What makes you so certain the Canadian one will recover so quickly if it undergoes a similar correction? There's a difference between housing price correction and total economic failure. Link to comment Share on other sites More sharing options...
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