PDA

View Full Version : Calgary Housing Market



OPGForce
03-29-2006, 01:09 AM
What's everyone's take on the Calgary Housing Market? Damm prices of lots and houses are going up every month. Also, the resale market is insane.

I have the potential to buy a 2026 sq. feet house in Copperfield on a 34' wide lot in a quiet "horseshoe culdesac" for $344 K? Does this sound reasonable?

Please share your experiences if you are also shopping are for a new or resale home in Calgary.

redblack
03-29-2006, 01:21 AM
ive been looking for new and used homes for the past 2 months
the house i want to build in evanston is about 340k for 1900 sq ft
but im stil waiting for a lot, if i dont get in this phase, the house will probly go up another 10-15 k.
If you got a lot on hold , i would buy now because the price is just going to get higher.

Weapon_R
03-29-2006, 01:29 AM
Sounds very reasonable. Buy now and sell next year for 390k

gp36912
03-29-2006, 01:44 AM
opg i say buy it, my house is 1700 sq feet in country hills and is going to be going out on the market for half a mil easy

CrvenaZvezda
03-29-2006, 01:56 AM
WOW shit thats expensive, dude 3 years ago when copperfield was just a new new community my parents bought a house in copperfield (i live with them) but yeah its a 1900sq feet house and we only paid 175k.... wow prices went up a lil lol... goodluck copperfields a great community!!!

max_boost
03-29-2006, 02:17 AM
The market is just completely focked up. I am so glad I bought 6 months ago haha I feel bad for those who are looking to buy their first home now. You just can't make up that $75-$100k increase. DAMN!

Kirbs17
03-29-2006, 09:12 AM
Yea, my cousin just bought a 1400 sq ft house in a new development in Coventry, small lot, etc $315,000, and it wont be ready until January. :eek:

HRD2PLZ
03-29-2006, 09:15 AM
market is definitely increasing at an alarming rate. I just paid $17,000 over list price for an investment condo downtown! And it was only on the market less than 12 hours.

I would say the home in Copperfield should be a good investment, the deep South is expanding quickly. Just look at the re-sale values in McKenzie Towne. If you don't jump on that house, you know someone else will... Or rather, in this market a handful of others will.

Thaco
03-29-2006, 09:19 AM
Originally posted by HRD2PLZ
market is definitely increasing at an alarming rate. I just paid $17,000 over list price for an investment condo downtown! And it was only on the market less than 12 hours.

I would say the home in Copperfield should be a good investment, the deep South is expanding quickly. Just look at the re-sale values in McKenzie Towne. If you don't jump on that house, you know someone else will... Or rather, in this market a handful of others will. i am so frightened by this market, i wont be in the market for a house for atleast another 2 years, by then i'm afraid i wont be able to afford a house.

calgarygts
03-29-2006, 09:25 AM
I bought a condo downtown at the start of feb. There is a unit six floors above me (I'm fairly high up already) that is selling for 60k more than I paid and it's one room smaller and 200+ square feet smaller. I'm soooooo glad I bought as soon as I could. Now this seller is probably trying to take advantage of the market and I don't think they'll get quite that much yet, but the fact that they're trying is making me quite happy. Now if I can convince myself that living in a tent is ok, I'll be rich!!!

Aleks
03-29-2006, 09:32 AM
Originally posted by max_boost
The market is just completely focked up. I am so glad I bought 6 months ago haha I feel bad for those who are looking to buy their first home now. You just can't make up that $75-$100k increase. DAMN!

:thumbsup:

what do you guys think of investing in an appartment 1bdrm close to the where the new encana towers will go? To rent out.

HRD2PLZ
03-29-2006, 09:44 AM
Originally posted by Aleks


:thumbsup:

what do you guys think of investing in an appartment 1bdrm close to the where the new encana towers will go? To rent out.

A decent 1 bedroom condo downtown can fetch pretty good rent :thumbsup: My downtown 1 bedroom condo is rented for $925/mo and that covers my mortgage, condo fee's, property tax and insurance. I get to pocket about $25/mo :rofl:

calgarygts
03-29-2006, 09:44 AM
Downtown will always have one of the best, if not the best appreciation because the demand in that area will always be there. With over 250,000 people working in the downtown core everyday the demand for housing will always be strong. If you can afford it I would definitely try to swing a two room, the rent will make up for the difference in mortgage payments.

kaput
03-29-2006, 09:46 AM
.

TurboMedic
03-29-2006, 09:47 AM
My starter home in Tuscany is worth over $250K now....its crazy....cheapest one on MLS is $284K!

calgarygts
03-29-2006, 09:50 AM
Most analyst's have said that all indications are that this is not a bubble but rather a sustainable market increase. With everything in our local economy going to way it is, there is no reason for the prices to slow, stop or fall. Get in as soon as you can. We're still playing catch up to Vancouver, who is still going up as well. I could have waited a year and had a better down payment but acted as soon as possible and am thanking myself already (I bought start of feb). If I were you I'd stretch now and make it work to get the lowest price you can.

HRD2PLZ
03-29-2006, 09:52 AM
Originally posted by kaput
Is this sustainable? Or will it crash? I don't know what to do. It in my best interests to wait a year but is that a smart move if I would be capable of stretching myself thin and acting today?

That's debateable. Some say the market should remain strong, but should level out (like Vancouver and Toronto). Others say the market won't keep and will crash. So, either get in now or sit by and wait.... have 2 investment units now but I think I am done, going to wait and see what happens. If the market does plummet, then I should be able to pick up a few more for a deal :D

ianmcc
03-29-2006, 10:08 AM
Originally posted by OPGForce
What's everyone's take on the Calgary Housing Market? Damm prices of lots and houses are going up every month. Also, the resale market is insane.

I have the potential to buy a 2026 sq. feet house in Copperfield on a 34' wide lot in a quiet "horseshoe culdesac" for $344 K? Does this sound reasonable?

Please share your experiences if you are also shopping are for a new or resale home in Calgary.
It's high but not high for what Copperfield has been selling at. On our street we had three sell recently (within the last 2 weeks) one $379K, $399K asking price both under 1900 sq. ft. The third sold prior to going on MLS. Grab it while you can, probably worth $400k+. Copperfield is nice, we like it a lot.

Celica TVS3
03-29-2006, 10:27 AM
Originally posted by kaput
Is this sustainable? Or will it crash? I don't know what to do. It in my best interests to wait a year but is that a smart move if I would be capable of stretching myself thin and acting today?

The risks are:
1) Oil price falls dramaticly - remember oil hasn't been at $65/b for that long and that is really what's fueling the Alberta economy. - Keep in mind alot of the companies are still making good profits at signifcantly lower prices.

2)Interest rates rise and the cost of borrowing becomes too expensive for many - Although, CHMC is now insuring 35 year mortages.

If you feel comfortable that oil prices will remain high and interest rates will remain low - BUY.

If you want to gamble, before you can actully afford the place, you could assume a mortage in one of those condo conversion projects near downtown for a small amount of money 5% (you pay a premium for the house though). Rent it out untill you're able to make the payments comfortably. You've esentally locked in your future apartment at today's prices/interst rates. If you find yourself in financial trouble just relist it - you're not likely to lose more than the 5% you've invested. It's not like playing startups in the stock market. Even i things get really bad the prices are never going to zero. I've encourged some my friends to do exactly that - except they analyzie everything to death and opertunities pass them by.

I personally bought a new place at the end of the summer for 235k including alot of upgrades and a fully developed basement. The person who bought next to me (same size, almost the same plan & upgrades) had financing issues and had to back out of the deal with the builder. The builder now has relisted their place for $335k. Considering I've only actualy given up 5% of the purcahse price - that's one hell of a return (when i sell it upon possesion).

jdmakkord
03-29-2006, 10:27 AM
We paid $145K for our acreage we built on last year, there is one lot available across the street right now, the asking price........$320K:eek:

Celica TVS3
03-29-2006, 10:29 AM
Originally posted by OPGForce
What's everyone's take on the Calgary Housing Market? Damm prices of lots and houses are going up every month. Also, the resale market is insane.

I have the potential to buy a 2026 sq. feet house in Copperfield on a 34' wide lot in a quiet "horseshoe culdesac" for $344 K? Does this sound reasonable?

Please share your experiences if you are also shopping are for a new or resale home in Calgary.

You would be a fool not to buy it.

People flocking to this city in droves but there are fewer and fewer lots avalible for development. It seems to me that if you have a lot and there are fewer lots avalible for developers to build on - then you're will be worth more. Simple!

G
03-29-2006, 10:29 AM
Originally posted by Thaco
i am so frightened by this market, i wont be in the market for a house for atleast another 2 years, by then i'm afraid i wont be able to afford a house.

This is the main reason why the market it going nuts people are worried they won't be able to afford anything if they wait any longer.

01RedDX
03-29-2006, 10:30 AM
.

blueToy
03-29-2006, 10:49 AM
Originally posted by OPGForce
What's everyone's take on the Calgary Housing Market? Damm prices of lots and houses are going up every month. Also, the resale market is insane.

I have the potential to buy a 2026 sq. feet house in Copperfield on a 34' wide lot in a quiet "horseshoe culdesac" for $344 K? Does this sound reasonable?

Please share your experiences if you are also shopping are for a new or resale home in Calgary.



MY Take , thanks for asking .

I'm old enough to have lived thru this before . The ' never ending boom ' of the 1970's/ early 80's was somewhat very similar to today . Even average folks started to buy homes just to flip , and made piles of cash . BUT , people got greedy , I mean it just seemed too easy to just keep flipping and making money without ever having to do anything except move . The thing was , in very short order , interest rates went skyward and lots and lots and lots of people got caught with mortgages they couldn't afford , and the real estate market almost overnight shriveled up and died . It was kind like just before a Tsunami , the water recedes and you're sitting there wondering WTF ?? Then BAM !! Before you know it you've got this wall of debt and the banker that was your best friend yesterday is now threatening to toss your families butt to the curb unless you can come up with the huge monthly payments .

Now that said , I'm not trying to scare you off from the buying of a dream home thing . But interest rates are slowly creeping up too , so IMHO the best way to get into todays "hot" market would be to make sure that you have as large a down payment as possible , try and have no other monthly payment , and try and have a secondary plan if interest rates were to , say , double .
Here in Alberta things for the moment seem like they will keep going up at least for another couple of years , but beyond that , who really knows , eh ?

Also , what you may want to try is this . Save every dollar you can now to build up a sizable nest egg for a house and plan to buy only when the market isn't so hot . Real estate , like any stock , goes in cycles and try and buy when it cools off or when you think it's reached bottom . One of the problems with this though is that most people have huge problems saving money . It seems like a waste sitting there in a account . BUT , seeing how your home is probably going to be your biggest life long investment , it pays to be wise and prudent .

As for the home in Copperfield . Is this the home you wish to stay in long term ? Are you looking at it only as a short term flip ?

ringmaster
03-29-2006, 11:21 AM
an infill in my community (winston heights) just hit MLS for 719 000.... its like a 30 ft lot and a 1800 sq foot home. :nut:

edit: oh and its not even complete!

red01
03-29-2006, 11:26 AM
the new condo developement "xenexon12th" had dropped their prices by $10,000 within a week as they were asking for more than $500/sqft for a base home ....

But mind you, i love the design of the complex.

sputnik
03-29-2006, 11:38 AM
Originally posted by TurboMedic
My starter home in Tuscany is worth over $250K now....its crazy....cheapest one on MLS is $284K!

I have a Heartland home (Windsor II) in McTowne. Worth close to $280k now!

The BASE model in Auburn Bay is now STARTING at $249,900!

benyl
03-29-2006, 11:53 AM
I signed the initial papers on my house in Royal Oak on February 3rd. In less than two months, the cost of building the exact same house has gone up $40K. By the time my house is finished in November, it should be up at least $100K. I could have gotten the same house 6 months ago for $50K less. Prices are increasing at an increasing rate.

Fivewayradio
03-29-2006, 12:27 PM
I think Bluetoy has some good advice, but I think economics have become a bit more stable in the last 20 years. Economists know that market crashes are brutal at all levels and the goal now is to keep things as stable as possible while maintaining positive growth. Interest rates will likely not rise as rapidly as they did in the 80's (god, remember those rates?!? awful!) and as they do rise there will be plenty of warning, enabling people to lock in to mortgages for several years and minimize the impact, or at least offset it for a few years.

Calgary's market will continue to grow until the demand for houses is met, as long as calgary's economy is strong, and as long as interest rates remain low. Even if all of those factors are met at the same time it's hard to imagine that prices will actually decrease. Despite the poor economy over the last decade, Vancouver's real estate market has slowed, but hasnt declined. Same for Toronto. It's more likely that each of those things will happen incrementally over time, rather than all at once. If that's true, then you can expect the rate of growth to slow over the next couple years, but I doubt you'll see real losses in the next few or even several years.

Remember how much money people lost in the market crash in 2000. That seemed to precipitate Calgary's real estate boom, so I'd suggest that the market here is more robust than the naysayers are giving it credit for.

OPGForce
03-29-2006, 12:35 PM
Originally posted by blueToy




MY Take , thanks for asking .

I'm old enough to have lived thru this before . The ' never ending boom ' of the 1970's/ early 80's was somewhat very similar to today . Even average folks started to buy homes just to flip , and made piles of cash . BUT , people got greedy , I mean it just seemed too easy to just keep flipping and making money without ever having to do anything except move . The thing was , in very short order , interest rates went skyward and lots and lots and lots of people got caught with mortgages they couldn't afford , and the real estate market almost overnight shriveled up and died . It was kind like just before a Tsunami , the water recedes and you're sitting there wondering WTF ?? Then BAM !! Before you know it you've got this wall of debt and the banker that was your best friend yesterday is now threatening to toss your families butt to the curb unless you can come up with the huge monthly payments .

Now that said , I'm not trying to scare you off from the buying of a dream home thing . But interest rates are slowly creeping up too , so IMHO the best way to get into todays "hot" market would be to make sure that you have as large a down payment as possible , try and have no other monthly payment , and try and have a secondary plan if interest rates were to , say , double .
Here in Alberta things for the moment seem like they will keep going up at least for another couple of years , but beyond that , who really knows , eh ?

Also , what you may want to try is this . Save every dollar you can now to build up a sizable nest egg for a house and plan to buy only when the market isn't so hot . Real estate , like any stock , goes in cycles and try and buy when it cools off or when you think it's reached bottom . One of the problems with this though is that most people have huge problems saving money . It seems like a waste sitting there in a account . BUT , seeing how your home is probably going to be your biggest life long investment , it pays to be wise and prudent .

As for the home in Copperfield . Is this the home you wish to stay in long term ? Are you looking at it only as a short term flip ?

We will be putting over 25% down. We will stay long term since the house is big enough for 2 kids. We like Copperfield for many reasons (amenities ("South Trail Crossing" strip mall ownz!), future schools, existing/future access roads, future LRT, cheaper compared to other communites and resale homes).

Orbie
03-29-2006, 12:57 PM
I think that sounds like a reasonable deal OPGForce, if you are ready to move now I wouldn't wait any longer. If you are ok with not moving for a few years, I would probably try to wait it out. There is risk either way but if you want a house in the immediate future, I don't see this fad subsiding anytime soon. I bought my condo over a year ago when things were much much calmer and I was absolutely amazed to see what similar condo's in my building are selling at. It's really outrageous IMO, a condo unit like mine is selling for as much as some of the houses people are listing in this thread. For perspective, sales are almost $100K over what I bought the place for. The worst thing is people are buying them, now I'm definitely not complaining since technically it's great for resale. I just feel bad for all the first time homebuyers in the market now and the prices they face. If this was happening when I was first looking I would barely be able to afford anything.

sputnik
03-29-2006, 04:57 PM
What I wonder about is when the time will come that houses become so expensive that people stop coming to Calgary because employers arent paying enough to be able to afford a house or even rent for that matter. I remember when Toronto was SUPER expensive. Now houses in Toronto and Calgary seem comparable.

There is a breaking point that will be hit eventually. I just wonder when.

benyl
03-29-2006, 05:21 PM
Houses are still relatively cheap compared to some places in the world. Think of europe and asia.

A house is europe usually takes 2-3 generations of people to pay it off. Some people in Calgary are paying their houses off in 5 years or less.

TurboMedic
03-29-2006, 05:44 PM
I agree with benyl....The rest of my family still in europe cannot believe our houses here, they love them and they cost less than half of what they pay for smaller places....We have it cheap here

kaput
03-29-2006, 06:49 PM
.

Thaco
03-29-2006, 06:53 PM
Originally posted by kaput
Cheap or not I'm still fucked by the time I'll be ready to buy. ditto

gp36912
03-29-2006, 06:54 PM
though the bank forecasts say the rates will level out in 2007.

dino_martini
03-29-2006, 08:45 PM
Prices are nuts. my parents bought a 1000sq ft bungalo in Glamorgan in april of last year. Did some renos, tried to rent it but couldnt. Sold it in 2 days for $30,000 over list price. made more than $100,000 in over a year.

danno
03-29-2006, 10:09 PM
i was lucky i bought when i did, although it is a POV condo. it has gone up 60 to 70k in a year and 4 months. not bad for something lots of guys bash. going to hang on to it for a few more months then buy a house, and use my profit as a downpayment.

sputnik
03-30-2006, 08:14 AM
Originally posted by danno
i was lucky i bought when i did, although it is a POV condo. it has gone up 60 to 70k in a year and 4 months. not bad for something lots of guys bash. going to hang on to it for a few more months then buy a house, and use my profit as a downpayment.

I wouldnt bash POV condos. They certainly arent top of the line, but they sell DAMN fast and there seems to be a pretty solid market for them.

Who cares what you buy. Getting in the market with a cheaper condo is better than renting and driving a new car.

Xtrema
03-30-2006, 09:08 AM
Originally posted by dino_martini
Prices are nuts. my parents bought a 1000sq ft bungalo in Glamorgan in april of last year. Did some renos, tried to rent it but couldnt. Sold it in 2 days for $30,000 over list price. made more than $100,000 in over a year.

Rental market is kinda sucks. But it's getting better as more and more people can't afford owning their own place.



Who cares what you buy. Getting in the market with a cheaper condo is better than renting and driving a new car.

That is the truth. Car is only worth it after you already own your own house.

dino_martini
03-30-2006, 09:15 AM
Originally posted by Xtrema


Rental market is kinda sucks. But it's getting better as more and more people can't afford owning their own place. .

Well, we had lots of calls about renting it. Its that, the original owners of the house took out the wall between the second and third bedroom up stairs. To make one huge master bedroom. So, when we tried to rent it, we had to say it was a two bedroom. And no one really wanted that. So we put in two legal size windows in the two rooms down stairs, put in new carpet, new bathroom, tiled the main room and bathroom. Put in floor heating in the bathroom. Tried to rent it, but the people that came my father didnt like. Hes a pretty picky land lord, but I guess you cant be too careful.

So we just sold it, on the market for 2 days list price : 300,000. Sold for 330,000. Made 100,000 in a little under a year. God I love realestate.

HRD2PLZ
03-30-2006, 09:33 AM
Originally posted by Xtrema


Rental market is kinda sucks. But it's getting better as more and more people can't afford owning their own place.


I guess it all depends on location of the rental, etc... I haven't had problems renting my units. With my newest unit downtown, we received over 15 applications over a 1 week period :dunno:

Xtrema
03-30-2006, 09:44 AM
Originally posted by HRD2PLZ
I guess it all depends on location of the rental, etc... I haven't had problems renting my units. With my newest unit downtown, we received over 15 applications over a 1 week period :dunno:

We've owned this place for 10 years now and the amount of rent we charge never did change much. Actually, we just start charging what we charged 10 years ago. Plus last 3-4 years are pretty hard to find good renters (all the good ones buy). Yes, I can rent to anyone walk thru the door but I rather wait for the good ones.

HRD2PLZ
03-30-2006, 11:28 AM
Originally posted by Xtrema


We've owned this place for 10 years now and the amount of rent we charge never did change much. Actually, we just start charging what we charged 10 years ago. Plus last 3-4 years are pretty hard to find good renters (all the good ones buy). Yes, I can rent to anyone walk thru the door but I rather wait for the good ones.

Oh for sure, I have great renters in one unit and the references for the couple I want to rent the other one too are looking very good... But you are right, most of the great tenants buy. I would never rent to just anyone either, too much at stake.

syeve
03-30-2006, 11:49 AM
Originally posted by Fivewayradio
I think economics have become a bit more stable in the last 20 years. Economists know that market crashes are brutal at all levels and the goal now is to keep things as stable as possible while maintaining positive growth. Interest rates will likely not rise as rapidly as they did in the 80's (god, remember those rates?!? awful!) and as they do rise there will be plenty of warning, enabling people to lock in to mortgages for several years and minimize the impact, or at least offset it for a few years.



:werd:

As well, the federal government is NOT going to increase interest rates drastically just because the Calgary housing market is going up, we are in a microeconomy, one that the federal government has little control.

With the general increase in building costs, scarcity of supplies, increaed wages, I think its safe to assume the Calgary housing market will continue to increase, slow down possibly, but defn. not decrease.

Xtrema
03-30-2006, 12:01 PM
Originally posted by syeve
With the general increase in building costs, scarcity of supplies, increaed wages, I think its safe to assume the Calgary housing market will continue to increase, slow down possibly, but defn. not decrease.

I wonder if Harper is successful in the lumber talk, more building material will head south creating a shortage and inflated the housing market even more.

sputnik
03-30-2006, 12:11 PM
Originally posted by syeve
:werd:

As well, the federal government is NOT going to increase interest rates drastically just because the Calgary housing market is going up, we are in a microeconomy, one that the federal government has little control.

With the general increase in building costs, scarcity of supplies, increaed wages, I think its safe to assume the Calgary housing market will continue to increase, slow down possibly, but defn. not decrease.

Actually the Bank of Canada raises interest rates to curb inflation. When prices go up quickly that means inflation is on the rise. If inflation starts going above 2% the BoC raises rates. Calgary is a microeconomy however with the number of people moving to Alberta you can bet that its causing a stir nationally.

I wouldnt be surprised to see the BoC rate around 6-7% in the next couple of years. We will have to see how many homeowners can afford that kind of an increase. All you need is a few hundered homes enter the Calgary market and you will see things start to plateau if not drop a bit.

Here is something else to consider for you folks buying condos (especially those looking to flip them). In Toronto there was a HUGE condo buzz and several buildings went up all at the same time. However once they were all built they all had 5-10% of the units unsold. Imagine for a moment what that does to the resale market when people can buy a new one with immediate possession for the same price that you are trying to sell your used one.

The real estate isnt rock solid. However being a homeowner, I would hope that things dont get bad here.

benyl
03-30-2006, 12:22 PM
The BoC rate does not have a direct effect on mortgage rates. Mortgage rates are based on the Bond Rate which hasn't been changing as much as the overnight lending rate (BoC).

sputnik
03-30-2006, 02:20 PM
Originally posted by benyl
The BoC rate does not have a direct effect on mortgage rates. Mortgage rates are based on the Bond Rate which hasn't been changing as much as the overnight lending rate (BoC).

Variable mortgages are determined by the BoC prime lending rate while fixed rate morgages are determined by the bond rate.

benyl
03-30-2006, 02:31 PM
I guess, but technically a variable rate mortgage is a just a secured LOC.

syeve
03-30-2006, 03:54 PM
Originally posted by sputnik


I wouldnt be surprised to see the BoC rate around 6-7% in the next couple of years. We will have to see how many homeowners can afford that kind of an increase. All you need is a few hundered homes enter the Calgary market and you will see things start to plateau if not drop a bit.



Just what I was thinking, to obtain the idea inflation rate of about 2% interest rates WILL increase over time, my point being that the Calgary/Edmonton corridor will not directly cause the feds to increase interest rates drasically...I dont think there are many situations imaginable that would cause an interest rate hike like they did in the 80's. 21%!!

However, I dont think we will see a long-term decrease in housing prices over the next several years...we may see some fluxuations, but I think the general trend towards higher house prices, similar to Vancouver and Toronto, is most likely.

:dunno:


I wonder if Harper is successful in the lumber talk, more building material will head south creating a shortage and inflated the housing market even more.

Like I said, I think that with the general scarcity of supplies, increased population, increased standard of living etc. we will see higher market prices...if you want to see a good example, just look at basically anywhere in western Europe. Someone else said it, but it take generations to pay for a house over there.

Celica TVS3
03-30-2006, 06:40 PM
While energy is currently inflationary much of the Canadian economy is still experiencing deflation. Just look to the balance of trade with China. Products that currently were produced in North America for $X are now being produced and sold for 1/4 $X. (Think $40 Walmart DVD Player).

Furthermore many sectors in Eastern Canada arn't doing well (manufacturing, automotive...) if the BOC where to raise rates drasticly to keep curb Alberta inflation it would have a brutal affect (politically & economicly) on Ontario.

As we now know mortgage rates are based on the bond market. While short term lending rates are rising longer term rates have actually been falling.


This is my take on the market.
DON'T over leverage yourself and pick up a mortage you can hardly afford or buy rental properties with 5% down.

DO. Buy a place to live in yourself that you can afford to make payments on, even if rates rise.

max_boost
03-30-2006, 10:44 PM
Originally posted by dino_martini
So we just sold it, on the market for 2 days list price : 300,000. Sold for 330,000. Made 100,000 in a little under a year. God I love realestate. :werd: My folks have multiple rental properties, with the recent 25% spike, it's almost equivalent to them winning the lottery. IT'S SICK. For the past 5 years they were nagging me to pick up some rentals like them and I refused to listen. I argued saying mutual funds and stocks was the way to go so I continuously pumped money into that. I also had a car disease where I had to switch cars every two years. Oh man! How I would have given up driving for those 5 years I can be ripping it up in a Ferrari now! Ahhhhhh:rofl: :nut: :banghead:

Oz-
03-31-2006, 10:18 AM
Originally posted by max_boost
:werd: My folks have multiple rental properties, with the recent 25% spike, it's almost equivalent to them winning the lottery. IT'S SICK. For the past 5 years they were nagging me to pick up some rentals like them and I refused to listen. I argued saying mutual funds and stocks was the way to go so I continuously pumped money into that. I also had a car disease where I had to switch cars every two years. Oh man! How I would have given up driving for those 5 years I can be ripping it up in a Ferrari now! Ahhhhhh:rofl: :nut: :banghead:

Sounds like my wife and I, but we listened to my in-laws. We got all in with our inner city side by side that is just under 2k sq ft for just over 200k. Some others that are now down the street, have been selling for 500k+ and we have much nicer flooring, countertops, appliances etc.

But we also scooped up a few condos and a bungalow in the past 12 months. We shall see how this goes, as there are some other opportunities that might be coming up for us in commercial investments.

So yeah, glad that we went the conservative method and gave up on owning a brand new car every 2 years long ago.

rigguy
04-01-2006, 02:44 PM
Originally posted by calgarygts
Downtown will always have one of the best, if not the best appreciation because the demand in that area will always be there. With over 250,000 people working in the downtown core everyday the demand for housing will always be strong. If you can afford it I would definitely try to swing a two room, the rent will make up for the difference in mortgage payments.

I think anywhere you go in alberta is going to be exspensive right now, and will only go up due to the fact the province is now the wealthiest in Canada, and all the oil and gas work that will be going on. It's gonna get real pricey, but if you want a good career especially in oil, Alberta is the place to be right now, along with northern bc.

variable_x
04-03-2006, 01:50 PM
But what happens to the real estate market when the oil and gas industry crashes? People seems to have forgot the crash of oil and gas in 1990s when everyone was getting laid off.

sputnik
04-04-2006, 07:55 AM
Originally posted by variable_x
But what happens to the real estate market when the oil and gas industry crashes? People seems to have forgot the crash of oil and gas in 1990s when everyone was getting laid off.

In ANY job/housing/stock market discussion you can say...

"What do you do when _________________ happens?"

The best advice is not to invest everything into one market. Everything has the potential of dropping in value eventually so the people who have all of their net worth in their house/condo are crazy.

Xtrema
04-04-2006, 09:20 AM
Originally posted by variable_x
But what happens to the real estate market when the oil and gas industry crashes? People seems to have forgot the crash of oil and gas in 1990s when everyone was getting laid off.

Very true. But I think this boom will be prolonged or a mad dash to the finish til the world's economy no longer depends on oil.

With that said, I think we're pretty close to the limit of what people can afford for homes. For the most part, we have caught up with real estate price in major cities in Canada.

G
04-04-2006, 10:11 AM
Originally posted by variable_x
But what happens to the real estate market when the oil and gas industry crashes? People seems to have forgot the crash of oil and gas in 1990s when everyone was getting laid off.

Back in the 80's Calgary was almost a 100% oil city. It has diversified a lot since then so even if o/g crashed Calgary wouldn't be in as bad as shape.

benyl
04-04-2006, 10:23 AM
yeah no kidding. Oil is fueling this surge, but only a few years ago, Oil was in the $20 range and this city was still sort of busy.