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Is it wise to purchase property?

Discussion in 'Housing' started by bharat999, Jan 14, 2015.

  1. But if you look at the recent multi-year low of the Canadian dollar, perhaps now is the right time to buy a house (especially if they are moving directly from a foreign country). They might gain a positive return when they sell later (if converted to their native currency).

    Also, there are various indicative information for people to judge whether it is suitable for them to move - if we are talking about better schools for their kids, we can look at the school reports at fraser institute; if we are looking for transit routes, we can look at the webpages of ttc, translink, calgary transit, etc. Although I'm not a real estate agent, I still suggest to buy immediately and sort it out later by selling or renting if they have other plans.

    As ALRIVAS had recommended, one can hire a realtor as that will help the person to have a better experience also they can show them what the best place is for the person according with their criteria.
     
  2. Hi guys as I said before I'm Realtor since 2002 that's provably way before you came to the country.
    I like to share this link from TREB so you understand more about the market.
    Please look at it and share your opinion based on facts.

    http://www.torontorealestateboard.com/market_news/market_watch/historic_stats/pdf/Historic_1412.pdf

    http://www.torontorealestateboard.com/market_news/market_watch/2014/mw1412.pdf
     
  3. There are many reports that the house prices will drop in Calgary by as much as 10% in the next 6 month. (However nobody will know exactly what would happen). But better to take an informed decision.
     
  4. That's Calgary and OP wish to know Edmonton. As for Vancouver, some reports said housing prices will go up 4% this year. (but again nobody will know exactly what would happen).
     
  5. I completely disagree. Doing so is completely logic and good financial decision especially if invest long term.
     
  6. I won't immediately buy a property too if I am new in a certain place. Even if I'm from other province or country moving to either Edmonton or Calgary.
    I would still agree to rent first for maybe six months or few months to keep track AB housing industry nowadays.
    I for one wanted to buy a house ever since I got PR status but for now I'm glad that I forego it.
    I'm from Edmonton and for the month of Jan alone there is a two-digit growth of new listings compared to Jan of 2014. And I think I will still monitor the housing industry for the next 6 months before I'll buy.
     
  7. This doesn't make sense to me, if the house prices are likely to drop. If someone wants to make more money in their native currency like that, it would be way more profitable to do Forex or just invest in CAD in more bullish market and later convert it.
     
  8. Hey thank you all so much for your kind advice. much appreciated - i feel with the current trend it is best to wait out...and purchase in the right area at the right time unless opportunity knocks... ;D
     
  9. Exactly. Make money on the exchange rate now and stay out of the housing market. With the recent drop in interest rates bidding wars in the GTA (and other popular centres) are going to increase further and prices are going to be pushed higher (already starting to see the start of this in my neighbourhood). Rent for now and then when the interest rates rise, get into the market.

    I'm already a home owner in downtown Toronto. But if I wasn't -the above is what I'd seriously consider doing.

    My husband and I are currently taking advantage of the low CAD to move money up from the US and pay off the majority of what remains of our mortgage.
     
  10. Ultimately it is a personal choice. Good luck to you.
     
  11. I've been in Canada since well before you became a realtor. Moreover, I've been in the investment game long enough to know not to trust fluff reports from the TREB that are obviously biased, and whose numbers fluctuate on an ongoing basis (i.e., check out the revisions to the same stats for the same period and you will see that the picture isn't nearly as rosy as they make it out to seem). But then, without such pieces pushing your agenda, there obviously wouldn't be enough business for agents.
     
  12. Do you have any reasons to support your views at all? If so, I'd like to hear them. From my perspective, if you look at the current market conditions, buying is: (i) substantially more expensive than renting (i.e., interest and tax costs are greater than the rent amount, and as a result, you are NOT building any equity); (ii) substantially riskier, as prices are already declining and are forecast to continue to do so; and (iii) less profitable, as the opportunity cost of not investing your down payment is significant given that the equity markets are offering significantly greater returns than real estate is yielding. Now your turn.
     
  13. Hey torontosm, don't just emphasis the current market conditions.

    Since in the other post, you said you have been living in Canada (only in Toronto?) before 2002, then give us some idea what the property market was like in the late 1990s compare to now. I know in Vancouver, property prices had been rose substantially at least for the past fifteen years. Also, you said prices are already declining and forecast to continue to do so - Like I mentioned earlier, some reports had said the prices may go up 4% this year and in my recent realtors.ca search, I don't see prices are declining - maybe Toronto? I'm still not sure about this because previously scylla said there were bidding wars in GTA and prices are going to push higher - I'm confused about the property market in GTA right now - one said property prices is declining while the other said it's going to push higher..

    On the other post, you said you don't trust reports from TREB that are obviously biased and whose number fluctuate on an ongoing basis. But the fact is market conditions in equity and property fluctuates also.
     
  14. I think it depends where you are and what you are selling in Toronto. I wouldn't expect a bidding war for a condo - totally different story for a house in the downtown core. I thought we paid a stupid amount for our small house a few years ago (and it was stupid) - but it's gotten significantly worse since (e.g. $700K for a tiny lot with a dilapidated house that has to be completely torn down). I do believe the prices will at some point level off and then drop - but not before the interest rate increases (not sure I agree with the interest rate drop but I'm obviously not in charge). When you look at downtown, there are still plenty of condos going up to meet new demand. But you can't manufacture land on which to build new downtown houses. What's there is there and it seems demand exceed availability. But again, I think this will shift once interest rates move. Of course the only question is when. :)
     
  15. Few years ago, I lost a bid for a condo in the downtown Vancouver core. :D
     

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