Good time to buy first home/condo?

[hustler]

Hey guys with real estate market as it is today do you guys think now is a good time to buy into a place? In particular what do you guys think about buying a downtown condo?

I'm a new grad with a job out of university and I was looking at places downtown, particularly condos which are in development and will not be completed until about 2012. I figure now was a good time but I would love to hear any advice from the more seasoned veterans on this board.

Thanks in advance!

[ExtraSlow]

Condo market is pretty depressed right now, so that might mean it's a good time to buy.
I'm no condo expert though.

[whiskas]

Still looks like a buyers market, take advantage of the low interest rates.

Most importantly you have to look at your current savings and income and see if you can handle it.

[barmanjay]

Commenting on a long term speculation purchase like that is very hard to do.

Many pros and cons.

You really never know what is going to happen.

Lots of people made money speculating , but on the same coin, people lost. (london towers)

Big question you should really ask yourself

Are you willing to lose your initial investment should things go sour again.

If so,.. then go nuts and hope there is another market hiccup, then you can sell and upgrade.

No-one knows whats going to happen in the future,.. only guessing and speculation.

There are more 'unknowns' when buying into future construction.

How will the board be run? what will the monthly condo fees be? will I have guaranteed underground parking or outside stall? will there be a proper reserve fund asset management program in place?

Lots of people got screwed in discovery,.. after the first year or 2 after construction completion.. condo fees went from $175/mo to $400/mo.

[PeterGTiR]

Originally posted by barmanjay


Lots of people made money speculating , but on the same coin, people lost. (london towers)


Do you know how much a one bedroom in one of the London Towers is going for?

[Redlyne_mr2]

Just over a year ago was the best time to buy. Dropping prices and low interest rates. Still not a bad time right now. Calgary market is strong compared to most other places in North America.

[barmanjay]

Originally posted by PeterGTiR


Do you know how much a one bedroom in one of the London Towers is going for?

Funny you should ask Peter

Yes I do

There are currently a total of 13, 1 bed units for sale within the 2 towers with an average listing price of $269k, avg sq/ft = 700

You can get units like what jordan has for much less than the london towers right downtown or in elite areas.

prices are high because the people who bought can't sell for too much less and in some cases are losing their deposit and etc.

Do you know how many 1 bed units sold in the last 3 months? .... 4 and 2 of them were almost 100 days on the market before any action.

6 units in the last year expired or never sold

Not good stats.

London towers will sell, eventually.

I hear of some poor souls who bought in at peak and lost their deposits,

Not saying London Towers are bad in anyway,.. just some people got caught in the peak.

[e36bmw///]

nm

[picmerollin]

good time to rent and save some cash for a purchase once it turns back in to a buyers market, since rates are low it seem like a buyers market however with some changing lending rules affecting affordability (min down payment changes, rising rates, rental income changes etc etc) I think it will turn over towards a real buyers market for those with a solid down payment and income within a year or two.

If you are interested in info that is non-mainstream and totally contrary to what the agents/brokers/lenders (people who will say: buy now or be priced out forever because they base their income on you signing it all away) check out greaterfool.ca.

I take what the mainstream says, then what the non mainstream says and make my choice. FWIW I was going to buy last year but decided after some more research to relax a bit and let the savings grow while the market figures out where it will go. I truly do not think that we will be priced out forever if we don't buy now......but that is what the real estate pumpers/boomers who want to cash out/people who purchased in that last year or two want us to think.

good work on landing a solid job after graduating! now use that big ass brain of yours to find real info and try to protect those future earnings.

[barmanjay]

Originally posted by e36bmw///
Isnt there a new rule coming in effect april 19th, that to get a mortgage you have to put down 20% and be approved for a 5 year fixed even if you want variable

look into it

your info is a little bit mixed up.

the downpayment for primary home buyers hasnt changed to my knowledge. Just your buying power (quaifying amount) will be based on the banks current 5yr fixed (i believe 4.85%)

20% down is a minimum for rental properties and etc.

lots of info in another thread about mortgage rates.

[eblend]

A friend of mine bought a place at the London condos like 1 year ago....he is already thinking of moving out, he said that all the money they pay for condo fees are not going into maintenance, but rather into financing the building of the last tower. He said the management board is shitty. Just passing what I heard.

[in*10*se]

Originally posted by eblend
A friend of mine bought a place at the London condos like 1 year ago....he is already thinking of moving out, he said that all the money they pay for condo fees are not going into maintenance, but rather into financing the building of the last tower. He said the management board is shitty. Just passing what I heard.

i'm on the chocolate condo board. condo fee's don't go to the developers. It goes to the condo corp. just as an FYI. if he actually cares about his condo fees, just ask to look at the audited statements from his condo management company and he'll be able to see where his condo fees are going.

[UndrgroundRider]

Originally posted by hustler
Hey guys with real estate market as it is today do you guys think now is a good time to buy into a place? In particular what do you guys think about buying a downtown condo?

I'm a new grad with a job out of university and I was looking at places downtown, particularly condos which are in development and will not be completed until about 2012. I figure now was a good time but I would love to hear any advice from the more seasoned veterans on this board.

Thanks in advance!

In your situation I would say it's a good time to buy. As other have mentioned, the markets could go either way. You have a degree, a steady job, and you're buying into a starter condo. As a primary residence you would be way better off going this route and building equity than you would be renting. Of course don't just take my word for it, I encourage you to crunch the numbers yourself. For rent in a newer 1-bed condo, you're looking at a ballpark of 1000-1400/month. At 269,000 for a new condo, with 10% down, a variable rate of 2.25% over a 25-year amortization period, you're looking at $1055/month. Factor in $250 for condo fees, and probably another $100 or so for utilities. You're looking at very similar numbers for renting and buying. If you're just looking to get into the market you could even amortize over 30 or 35 years and drop that monthly payment even more.

The one point of caution I would make, is that if you do buy a condo, plan on staying there for a minimum of 5 years. There's a lot of inventory in the condo market, and they're not moving very fast. This will work itself out in the long run, but could make it difficult to sell in the short term. Naturally this just comes with the territory when buying in a buyer's market.

[kaput]

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[Grogador]

Make sure you "qualify" yourself for the mortgage at the historical average of 6% or 8% or whatever it is and see if you can still afford it.

[autosm]

http://www.greaterfool.ca/

Go here if you want an opinion on why not to buy.

If the unit is not built yet read the entry about London condos in Calgary.

I personally would never do a pre construction deal unless I could gain access to a time machine and go back to 2004- 2006. LOL Then sell in 2007.

A little bird tells me that condos built in Calgary will have major problems in the future because of shoddy workmanship during the boom.

Condos built in the 90's in Edgemont recieved a special assesment of 40k to fix leaks.

[lint]

using today's variable rates (2.25) amortized over the next 25 years will only get you into trouble. As will using a 30 or 35 yr amortization to drop the payments. That says you can't afford it.

New grad, just out of university, first job? Oi

[msommers]

I'll be interested in a year buying a condo downtown. I'm thinking on the west end or by O'Connors

[jegger]

2002 was the best time to buy.... for someone who said last year, We are going to see deflation in the 4th quarter of 2010 so if you can hold off untill then you will save some $, On the other hand intrest rates WILL go up again to try and slow down our dollar, Allthough our dollar being at par is nice and all for the general consumer it is bad for our economy as a whole, The us will stop importing things from us due to our dollar being so high and they will keep there money in there contry. Which forces buisness to close which depend on the u.s as one of there majority customers, Which inturn raises unemployment rates.

[kaput]

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[Xtrema]

Interest rate going up, new mortgage rule in place. The action should cool for the next little while. I think you can wait it out.

The only factor that may affect RE prices is energy prices. Oil is climbing but NG is going nowhere. So I don't see a influx of people coming in for jobs in the next 5 years. So RE should stay relatively flat.

[rc2002]

Originally posted by jegger
intrest rates WILL go up again to try and slow down our dollar

Actually higher interest rates in Canada means a higher dollar. The dollar has been appreciating against the US in a large part due to expectations that Canada will increase rates before the US.

No one can accurately predict what markets are going to do. If you're going to be in Calgary for a while and buying is cheaper than renting then buy. Otherwise rent. If you do your research and buy a good property then there will be a lot less downside if the market takes a turn for the worse.

That said, the Canadian government has already proved it'll take drastic measures not to let house prices slide. Dropping house prices destroys consumer confidence and perceived wealth. If a crash is imminent, I'm betting the government will bail out homeowners with taxpayer dollars. If that happens, you might as well be on the receiving end.