Comments on: Is Now A Good Time To Buy A House? http://www.moneysmartsblog.com/is-now-a-good-time-to-buy-a-house/ Investing and Personal Finance Sat, 11 Feb 2012 04:38:37 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: PS http://www.moneysmartsblog.com/is-now-a-good-time-to-buy-a-house/comment-page-1/#comment-91388 PS Tue, 30 Aug 2011 02:11:19 +0000 http://www.moneysmartsblog.com/?p=1305#comment-91388 I am thinking to buy the first time. It is a penthouse with 2 storeys & a deck on the top. It is in entertainment district in downtown Toronto. I am paying over $ 800000 for it. It is my first purchase ; I have been saving for it. But still, I am really nervous of making the purchase. I am self employed. I am sorta counting on selling it when I retire. Location is perfect. Still worried if U should buy now. 30 % slide , is it really possible ? My sis lives in US ; she told me that if you live in a prestigious neighbourhood in US, the price did not really drop any. Because rich folks always have more. I am thinking to buy the first time. It is a penthouse with 2 storeys & a deck on the top. It is in entertainment district in downtown Toronto. I am paying over $ 800000 for it. It is my first purchase ; I have been saving for it. But still, I am really nervous of making the purchase. I am self employed. I am sorta counting on selling it when I retire. Location is perfect. Still worried if U should buy now. 30 % slide , is it really possible ? My sis lives in US ; she told me that if you live in a prestigious neighbourhood in US, the price did not really drop any. Because rich folks always have more.

]]> By: Four Pillars http://www.moneysmartsblog.com/is-now-a-good-time-to-buy-a-house/comment-page-1/#comment-8537 Four Pillars Thu, 16 Oct 2008 17:15:59 +0000 http://www.moneysmartsblog.com/?p=1305#comment-8537 Ashley - nobody (not even us) know where real estate prices will go. All I'm saying is that there is a definite possibility that you could lose money on the house. Ashley – nobody (not even us) know where real estate prices will go. All I’m saying is that there is a definite possibility that you could lose money on the house.

]]> By: Ashley http://www.moneysmartsblog.com/is-now-a-good-time-to-buy-a-house/comment-page-1/#comment-8532 Ashley Thu, 16 Oct 2008 13:58:45 +0000 http://www.moneysmartsblog.com/?p=1305#comment-8532 So even if I buy a home now and stay there for 5 years the value of the home wil be lower than what I bought it for? Thank you all for your help:) So even if I buy a home now and stay there for 5 years the value of the home wil be lower than what I bought it for?

Thank you all for your help:)

]]> By: Four Pillars http://www.moneysmartsblog.com/is-now-a-good-time-to-buy-a-house/comment-page-1/#comment-8503 Four Pillars Tue, 14 Oct 2008 23:43:47 +0000 http://www.moneysmartsblog.com/?p=1305#comment-8503 I agree with Nobleea about the interest rates and house prices as well. To be honest I would not buy a house right now because the risk that it could go down significantly is fairly high. I may do a post on this but I think the fact that the housing prices in Toronto have started to go down for the first time in 10-15 years? is pretty significant. With all the gains in real estate over the last 10+ years, a 30% drop is not unreasonable. I agree with Nobleea about the interest rates and house prices as well.

To be honest I would not buy a house right now because the risk that it could go down significantly is fairly high. I may do a post on this but I think the fact that the housing prices in Toronto have started to go down for the first time in 10-15 years? is pretty significant. With all the gains in real estate over the last 10+ years, a 30% drop is not unreasonable.

]]> By: Mr. Cheap http://www.moneysmartsblog.com/is-now-a-good-time-to-buy-a-house/comment-page-1/#comment-8502 Mr. Cheap Tue, 14 Oct 2008 21:48:39 +0000 http://www.moneysmartsblog.com/?p=1305#comment-8502 Nobleea: That's my understanding too. Nobleea: That’s my understanding too.

]]> By: Jordan Clark http://www.moneysmartsblog.com/is-now-a-good-time-to-buy-a-house/comment-page-1/#comment-8501 Jordan Clark Tue, 14 Oct 2008 21:36:32 +0000 http://www.moneysmartsblog.com/?p=1305#comment-8501 Oh and I forgot to add, have a real down payment saved of at least 20% and try not to go over a 25 year amortization. Oh and I forgot to add, have a real down payment saved of at least 20% and try not to go over a 25 year amortization.

]]> By: nobleea http://www.moneysmartsblog.com/is-now-a-good-time-to-buy-a-house/comment-page-1/#comment-8500 nobleea Tue, 14 Oct 2008 21:06:11 +0000 http://www.moneysmartsblog.com/?p=1305#comment-8500 I think there is a cause and effect relationship between interest rates and house prices. But you have it mixed up. All else being equal, as interest rates go up, home prices will go down. This comes down to affordability. Increasing interest rates will increase the monthly payment that a new buyer will pay. Unless there is decent wage inflation to match the interest rate increase, then the house selling price will have to drop to keep affordability the same. That is assuming a rational, well priced housing market of course. I think there is a cause and effect relationship between interest rates and house prices. But you have it mixed up. All else being equal, as interest rates go up, home prices will go down. This comes down to affordability. Increasing interest rates will increase the monthly payment that a new buyer will pay. Unless there is decent wage inflation to match the interest rate increase, then the house selling price will have to drop to keep affordability the same.

That is assuming a rational, well priced housing market of course.

]]> By: Jordan Clark http://www.moneysmartsblog.com/is-now-a-good-time-to-buy-a-house/comment-page-1/#comment-8499 Jordan Clark Tue, 14 Oct 2008 20:52:46 +0000 http://www.moneysmartsblog.com/?p=1305#comment-8499 I don't think there is a direct cause and effect that when housing prices go down interest rates have to go up, it could happen. But no one can predict where interest rates will go. If the country continues down the road to recession the BoC can try and use interest rate cuts to bring it back. I don't know the Durham region, but if the area is seeing price reductions because prices are hitting an affordability limit of people's income (like Vancouver) then an interest rate hike will just increase downward pressure on prices. I've heard you should plan to buy only if you will live there for 5 or more years. I would do a rent vs. buy comparison and see which puts you further ahead. If you really value owning instead of renting, you are comfortable with the current prices & interest rates then go a head and buy. Just don't over extend yourself and don't buy out of fear. I don’t think there is a direct cause and effect that when housing prices go down interest rates have to go up, it could happen. But no one can predict where interest rates will go. If the country continues down the road to recession the BoC can try and use interest rate cuts to bring it back.

I don’t know the Durham region, but if the area is seeing price reductions because prices are hitting an affordability limit of people’s income (like Vancouver) then an interest rate hike will just increase downward pressure on prices.

I’ve heard you should plan to buy only if you will live there for 5 or more years. I would do a rent vs. buy comparison and see which puts you further ahead.

If you really value owning instead of renting, you are comfortable with the current prices & interest rates then go a head and buy.

Just don’t over extend yourself and don’t buy out of fear.

]]> By: Ashley http://www.moneysmartsblog.com/is-now-a-good-time-to-buy-a-house/comment-page-1/#comment-8498 Ashley Tue, 14 Oct 2008 19:39:48 +0000 http://www.moneysmartsblog.com/?p=1305#comment-8498 I was wondering if someone would mind giving me some advice. I am goig to be ready to buy my first home soon.( 3 months or so) I would like to move as soon as possbile from where I am renting, but it's not mandatory that I do so right away. I know that some of you are saying wait as the house prices drop, but isn't interest rates known to go up as house prices drop. I was thinking that while the BoC was cutting rates and prices on houses were lower than they have bneen for a bit in the Durham region where I am planning to move, I thought now may be a good time. So again to summarize, I would like to buy a home, I work in a stable market, I am looking to live there for at least 3 years and would like to know if I should buy? Will rates go up as prices go down or am I best to wait? Your advise is most appreciated I was wondering if someone would mind giving me some advice.

I am goig to be ready to buy my first home soon.( 3 months or so) I would like to move as soon as possbile from where I am renting, but it’s not mandatory that I do so right away.

I know that some of you are saying wait as the house prices drop, but isn’t interest rates known to go up as house prices drop.

I was thinking that while the BoC was cutting rates and prices on houses were lower than they have bneen for a bit in the Durham region where I am planning to move, I thought now may be a good time.

So again to summarize, I would like to buy a home, I work in a stable market, I am looking to live there for at least 3 years and would like to know if I should buy? Will rates go up as prices go down or am I best to wait?

Your advise is most appreciated

]]> By: Congratulations to the Starbucks Gift Card Winners This Sunday | Credit Card Information http://www.moneysmartsblog.com/is-now-a-good-time-to-buy-a-house/comment-page-1/#comment-8484 Congratulations to the Starbucks Gift Card Winners This Sunday | Credit Card Information Mon, 13 Oct 2008 06:06:51 +0000 http://www.moneysmartsblog.com/?p=1305#comment-8484 [...] Always a great question, Four Pillars asks whether now is a good time to buy a house! [...] [...] Always a great question, Four Pillars asks whether now is a good time to buy a house! [...]

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