I wonder how long this insanity will last....
- Thread starter mimico_polak
- Start date
why do you think you have 2-3 families living in one home in brampton? :lmao:
Not true - If the Value for a comparable house in the area you want to live is let's say 500k but the seller in order to start a bidding war prices the house at 380k, you will gladly pay 100k over the asking price, because getting the house for 480k is still a deal in that area.
No?
Anyone who buys a house for 480k, knowing what 480k gets you here, should get their head examined.
This is what 480k gets you in the gta http://www.realtor.ca/propertyDetails.aspx?propertyId=13840321&PidKey=-186238319 :lmao:
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Yea, I pay a lot more than that in property tax.. like a lot more and I am not in Toronto
Because they dont know any different, and have alot of elders living there legit or non legit that dont work.
So the families pile into one house, to share expenses.
On top of that they put the grandparent(s) name on the title of property, which is fully insured. Once they kick the bucket .. well insurance kicks in and you know the rest.
The 480 was just a number
Home insurance for an elderly person should be through the roof, no?
Motorcycle Mike
Well-known member
One thing I have noticed about your posts, if you don't mind me saying, is that I think the reason you haven't saved $80k is yourself.
I've seen your posts where you bought a new Hyundia, then a few months later you tried to sell it, then you had a post about buying a sporty car. You also have two bikes listed in your signature -- sure, not expensive bikes, but it is still an expensive hobby.
I can tell you exactly how my wife and I saved over $70 for a down payment (and still had $20 to $30k on the side for incidentals) while not making a lot of money:
We had one car, and that car was a 15 year old beater.
We lived in a 1 bedroom apartment and did without any extras. That cost us $900/month utilities included.
I did not have a motorcycle or any other toys during that period.
I worked two jobs -- one was full time at $15/hour, the other was on-call casual work for $22/hour.
My wife worked two jobs, one part time at $10.85/hour, one on-call casual work for $22/hour.
In less than two years we saved that $90 to $100k by being frugal, it is not hard, you just need to sacrifice now to get what you want.
Now that I have a house and my work situation has jumped by leaps and bounds, now I can afford the toys again. Now I spend lots of money because I can. My only debt is my mortgage which is currently at roughly 60% of the value of my house... so 40% is paid off (20% was paid on purchase).
The wifey and I will have our place in London paid off in about 5 years.
2200 sq ft detached home, two car garage, bit lot for our Husky to run around in, nice part of town, value is around 340-350K.
Seriously, people living in the GTA paying those prices are nuts.
I've see this happen too
And if houses take a 30% cut where does that leave you?
Everyones rich when they factor in their ridiculous house price, but no one ever counts on the possibility that it will ever go the other way. Btw to "cash out" on your house dont forget the tens of thousands of dollars to the real estate agent. And just because someone thinks their house is worth x amount doesnt mean it is. Just take a look at the motorcycle prices and what people are asking vs what it actually sells for.
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Motorcycle Mike
Well-known member
One thing to bear in mind though, is that the value of your house likely will not increase at anywhere near the same pace as in the GTA and it will likely take you a lot longer to sell when the time comes. The advantage the GTA has is a lot of employment opportunities in all fields. If one or two major companies in London move away, London will take a hit. Another advantage is that a lot of the immigrants that come to this country settle in the largest cities. Sure, London gets its share, but not nearly the amount that the GTA does. Some of them bring a lot of money and consider Canada a bargain for real estate.
When the housing crisis struck its worst in USA, it was not New York, Los Angelas, or any other large city that took the hit, it was the smaller places with limited employment opportunities.
Saying that, I'd love to move to London as I am from not far from there and would love to own a house for only $300k. I think I will wait a few more years though.
Motorcycle Mike
Well-known member
If houses take a 30% hit I will still okay as the value of my house has increased by roughly the same amount in the last few years. I would just wait it out, values will go up again.
I agree with everything you wrote.
It's a trade off in my mind. A house is an investment but living in the GTA means there is a very large commitment to that investment. Sure it will be worth more down the road but at what cost?
I don't want to spend my life working just to pay for my house and sacrifice all the things I enjoy doing outside of work. Even my car payments are annoying, I have 13 months of car payments left then I'm selling my Edge and getting an old Bronco. I'm finally in a good position in a well paying job, soon I'll have no mortgage payments or car payments. I have some friends that are just getting into home ownership and even with the modest pricing in London they are looking at another 20+ years of mortgage payments.
And if at the same time you lose your job and have to sell?
They are nuts. And majority of them are ignorant of what their "investment" really costs. 600k house at todays rate of 3.5% and 5% down will cost you a cool 930,000 by the time its paid for. Thats not taking into account the 100k+ in property taxes, 100k+ more to pay for heat etc...+ maintenance :lmao: or inflation. And thats at todays record low interest rates...
Motorcycle Mike
Well-known member
Always a possibility, but I am not in a bad spot like a lot of home owners as I didn't over extend myself.
I am already paying more into my mortgage every two weeks than is required, and at the same time I am maxing out my TFSA, contributing to my pension plan, and putting money into RRSPs.
If I lost my job, I could live off my TFSAs for at least 6 months if not longer, and in that time I would look into any work... including going back to driving truck as I still have an AZ license. In the absolute worst case scenerio I would sell my bike, sell my guns and ammo, sell my guitars, and only at the very end would I sell my house. With the interest rates we have right now, I would have to be unable to raise $900 a month (that is the minimum I have to pay towards my mortgage) in order to have to sell.
