Buying A New House... Need Some Advice, Please!

[Paul1000RR]

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^ I'm also not expecting housing prices to increase beyond the rate of inflation (which has been negligible). Know what ... I don't care.

If this has driven speculators out of the market (as the article linked to suggests - good find) that is a GOOD thing.

A spike in interest rates would destroy not only the real estate market but also the fragile economy in general, which is why I'm not expecting it to happen. A slow rise in interest rates could very well happen.

A lot of people buy a lot more house than they can really afford. In Toronto, it's difficult to avoid. Too expensive.

$40,000 average income

30 percent income tax, another 13 percent on everything else.

500,000$ average home prices.

How does anyone think this makes sense? :lmao:

Does anyone own a calculator any more? But then again who needs calculators when you got credit cards...

 

[Dilligaf0220]

You're forgetting, as a male if you rent when your ex ends up with your rental unit when you split, you don't really care.
Home ownership is a secret plot of females for wealth transfer!


:lmao:

 

[Brian P]

And what happens when interest rates go through the roof? You lose your job, get ill etc...

Bank will come and take your house away and that roof that you thought was yours will be sold to pay off whatever you still owed to the bank

You're forgetting that I don't owe anything to anyone.

 

[Brian P]

$40,000 average income

30 percent income tax, another 13 percent on everything else.

500,000$ average home prices.

How does anyone think this makes sense? :lmao:

Does anyone own a calculator any more? But then again who needs calculators when you got credit cards...

It DOESN'T make sense.

But in the longer term, no one is going to buy a house at that price level and rent it to you for a song, either. There might be some people doing that right now and taking a loss because they have no choice in the matter ... but that situation cannot persist.

 

[Paul1000RR]

It DOESN'T make sense.

But in the longer term, no one is going to buy a house at that price level and rent it to you for a song, either. There might be some people doing that right now and taking a loss because they have no choice in the matter ... but that situation cannot persist.

I will agree with you on that, however rent in this city is kinda like motorcycle prices on kijiji and here. Everyone thinks they can get 8,000 for their 2001 gsxr, but when reality strikes and they're desperate they'll happily take that 2,000 to stay afloat.
Most people don't include all their expenses when it comes to "rental properties", believe im ive had these discussions multiple times. They keep subsidising the renter for a hope that once its paid for they'll cash out big...

 

[Red_Liner740]

....you know what, i'm done...

Its idiotic to sit here and try to explain to someone what the other side feels like, and then they have the balls to tell you that you're the dilusional one "set" in your ways.

If you have owned a home and went back to renting on your own free will because you thought it made better financial sense raise your hands.....

Right.

Most here have rented before purchasing a home so WE see both side of the coin and choose to stay on the ownership side....i wonder why that is?

Maybe, just like raising children, even though it makes ZERO economic sense, there is something about it that cannot be explained and has to be experienced??

Oh yea, guess what, if you buy a trailer park RV and live out of it, you can invest EVEN MORE AND HAVE AN EVEN BETTER ROI!!!!

 

[mimico_polak]

....you know what, i'm done...

Its idiotic to sit here and try to explain to someone what the other side feels like, and then they have the balls to tell you that you're the dilusional one "set" in your ways.

If you have owned a home and went back to renting on your own free will because you thought it made better financial sense raise your hands.....

Right.

Most here have rented before purchasing a home so WE see both side of the coin and choose to stay on the ownership side....i wonder why that is?

Maybe, just like raising children, even though it makes ZERO economic sense, there is something about it that cannot be explained and has to be experienced??

Oh yea, guess what, if you buy a trailer park RV and live out of it, you can invest EVEN MORE AND HAVE AN EVEN BETTER ROI!!!!

its simple pride of ownership and a sense of accomplishment. You can't touch or feel or see your investments in a physical sense. A lot of us have been taught...finish school, get married, get a house, not always in that order.

I'd love to buy a house in Toronto. But I can't afford it. I'm not willing to live on bread and peanut butter for the next 25 years of my life. If things change, I will buy a home, but until then I'm stuck in this apartment that I call home.

 

[rashidme]

new houses prices will be coming down because builders built too many and there aren't many buyers (especially in brampton). I bought an old house (my first house) has big backyard and i am very happy with it. As roof was recently done, new furnace, finished basement etc. do your homework, don't rush!!! It took me about two months of research and had to check lots of homes before buying this one. Also when you start checking homes you will get an idea of what price is right for a home. Sometimes you get lucky and people need money in which case you can get a really good price.

Good luck!

 

[Baggsy]

I will agree with you on that, however rent in this city is kinda like motorcycle prices on kijiji and here. Everyone thinks they can get 8,000 for their 2001 gsxr, but when reality strikes and they're desperate they'll happily take that 2,000 to stay afloat.
Most people don't include all their expenses when it comes to "rental properties", believe im ive had these discussions multiple times. They keep subsidising the renter for a hope that once its paid for they'll cash out big...

RR?

 

[Paul1000RR]

RR?

oo?

 

[Gary]

Im talking average prices, like i said you might have gotten a great deal, but this isnt the norm.

And you pay rent to whomever owns the place. Pretty straight forward no?



I answered your question, now answer me mine. What other "investment" charges you 1000-1500$ a month in interest and another 300-400 in property taxes?

And when i give you a best case scenario im "off the rails" but yours is the norm? Come on, lets be fair here...

Brian P answered the question Paul. Refer to post #86 and #87.
I was trying to get you to consider who the owner of your "rental" home is.
I've been mortgage free for over a decade.
When I did have a mortgage that was 'small', I switched it to a Line of Credit. That's long gone.
I don't owe a dime.
On another note. I tried selling my last home to my kid.
I would have held the mortgage - saved him & his g/f a ton. She opted out. I sold it.

 

[Baggsy]

oo?

Do you sell investments for a living? i.e. Registered Representative
You seem to push your ideas to a sales pitch frenzy, although you might just be very zealous.

 

[Paul1000RR]

Gary's point is that the person who owns that house and is renting it out but does not live there ... is an investor. They would not be doing that (owning the house and renting it out) if there were not a potential for profit in it. And that essentially means that if you are renting, you are paying all the costs to carry that house, including the property taxes, PLUS the owner's profit margin. People don't own houses and rent them out from the goodness of their own hearts. They do it to make money! Not all are successful at it ... but that's the objective.

Owning a house and paying interest and property taxes on it certainly costs you that interest and property taxes. But you can rest assured that if you are renting that same house, you are also paying that interest and property tax as part of your monthly rental. It might be buried ... but you are still paying it.

Renting is fine if you expect that you will not be living in a particular location for very long. If you expect to stay in one place for more than 4 or 5 years, it's better to buy.

I've lived in the same house for going on 10 years, and I will freely admit what my current interest payments are: 0. It's paid off.

You'd think so, but take a look at the ads on MLS.CA for what properties are selling, then look at what the rental is. Take a look at condos to see just how pathetic this "investment" really is...I'll do the numbers for you shortly on an example

The counterpoint is that you need to live somewhere. You are either going to be paying those property taxes directly, or through your rental payments. And you are either going to be paying that interest directly, or through your rental payments.

By the way, $300,000 mortgage at 4% (I know you can do better than that right now, but let's allow for a little future increase) is about $1000 per month but as you pay it down, that interest amount goes lower and lower as you pay off the principal.

Brian P answered the question Paul. Refer to post #86 and #87.
I was trying to get you to consider who the owner of your "rental" home is.
I've been mortgage free for over a decade.
When I did have a mortgage that was 'small', I switched it to a Line of Credit. That's long gone.
I don't owe a dime.
On another note. I tried selling my last home to my kid.
I would have held the mortgage - saved him & his g/f a ton. She opted out. I sold it.

The "owner" is the bank 90 percent of the time :lmao:

Just because someone lives in a 600,000 house, doesn't mean they "own" it. Once they pay the bank 850,000+ in 25 years then they own it. :lmao:
But by that time they've paid another 100,000k+ in property taxes and who knows what in maintenance and repairs

 

[Paul1000RR]

Do you sell investments for a living? i.e. Registered Representative
You seem to push your ideas to a sales pitch frenzy, although you might just be very zealous.

I sell dreams :lmao:




No i am not...

 

[Roomie]

$40,000 average income

30 percent income tax, another 13 percent on everything else.

500,000$ average home prices.

How does anyone think this makes sense? :lmao:

Does anyone own a calculator any more? But then again who needs calculators when you got credit cards...

This is the biggest problem with this ****** province. Everything goes up except the wages. Way too many people have buried themselves in real estate because tradition says married, two kids, nicer bmw than the neighbour and some monstrosity of a home. For all those owners, come on up here out of the city where the avg home price in my area is over 500k and that gets you a nice 1970's home that you need to drop another 100k into right off the top. The nice new areas are bargains starting at 650. Even making 100k a year that's no problem right? Maybe I can get a 911 for a driveway ornament too.


Sent from my piss poor iPhone while sitting on my squidly gixxxxxxxxxer

 

[Paul1000RR]

....you know what, i'm done...

Its idiotic to sit here and try to explain to someone what the other side feels like, and then they have the balls to tell you that you're the dilusional one "set" in your ways.

If you have owned a home and went back to renting on your own free will because you thought it made better financial sense raise your hands.....

Right.

Most here have rented before purchasing a home so WE see both side of the coin and choose to stay on the ownership side....i wonder why that is?

Maybe, just like raising children, even though it makes ZERO economic sense, there is something about it that cannot be explained and has to be experienced??

Oh yea, guess what, if you buy a trailer park RV and live out of it, you can invest EVEN MORE AND HAVE AN EVEN BETTER ROI!!!!

I'll agree with you 100%, but if thats the case then simply say you want to own a house cause you enjoy the benefits. But don't deny the numbers, they dont lie.

And im not saying a house never makes sense, but at this time it sure as hell doesn't in this city. You'd have to be mentally ill to buy a 600,000$ shoe box

 

[Red_Liner740]

I'll agree with you 100%, but if thats the case then simply say you want to own a house cause you enjoy the benefits. But don't deny the numbers, they dont lie.

And im not saying a house never makes sense, but at this time it sure as hell doesn't in this city. You'd have to be mentally ill to buy a 600,000$ shoe box

Nobody said the numbers dont lie, but owning a home is more than just "numbers" on the screen. We as humans hardly do whats "logical" and makes most "business sense"

We'd all be riding around on CBR125s and driving Toyota Corollas....

I certainly dont condone buying in Toronto, ANYWHERE....

I work north of GTA (Vaughan Mills area) and live even further north, think Alliston area.. My detached, two story, 3 bedroom finished basement, one car garage house cost me 236K. I make enough money to decently cover all the expenses plus double down on payments and cover it all with a single income (We have two....)

I made sure that even if i was to god forbig loose my job and have to go on unemployment we can still live comfortably.

What we should be discussing here is not proper monetary investment, whether property or stocks, but the fact that people go and max themselves out while the times are good not even thinking about what happens when times are bad.

 

[Roomie]

The issue for myself and many people I know is having to move way out towards places like Alliston to make it affordable. The more the city pushes people out the worse it gets up here. That and I don't know about your area but Caledon and my area taxes are an outrageous amount.


Sent from my piss poor iPhone while sitting on my squidly gixxxxxxxxxer

 

[mimico_polak]

The issue for myself and many people I know is having to move way out towards places like Alliston to make it affordable. The more the city pushes people out the worse it gets up here. That and I don't know about your area but Caledon and my area taxes are an outrageous amount.


Sent from my piss poor iPhone while sitting on my squidly gixxxxxxxxxer

I agree...with pricing going up and up in the area here for shacks more and more people are moving out of town....commute times go up, and it makes for a ****** situation all around. I'm in job search mode now, and frankly I want a job outside of Toronto, because I don't feel like paying just for the privilege of living here. Can't afford it. ... Red Liner - fully agree with your last sentence, it's like motorcycle riders never think they'll crash...can't happen to me...can't/won't lose my job as I'm safe blah blah blah. Well I felt safe too, until the company decided to shut down...oops! I'm sure glad I don't have a $2500/month mortgage payment with expenses...whew.

 

[infernobuster]

new houses prices will be coming down because builders built too many and there aren't many buyers (especially in brampton). I bought an old house (my first house) has big backyard and i am very happy with it. As roof was recently done, new furnace, finished basement etc. do your homework, don't rush!!! It took me about two months of research and had to check lots of homes before buying this one. Also when you start checking homes you will get an idea of what price is right for a home. Sometimes you get lucky and people need money in which case you can get a really good price.

Good luck!

Have you been to Brampton lately?

They cant build them fast enough for the buyers. The city's has projected that they would be built up to their borders by 2030.

That number is now down to 2018 i believe now. The N/W quadrant is blowing up like crazy ..

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