Home Rental Pricing *MADDNESS*

[MGCM]

The graph looks like crap in copy/paste(link below) but wtf happened to rental prices in Calgary? Looking at this list makes me want to pack up and move to Saskatchewan............

Houses & Apartments For
RENT IN CALGARY - # OF LISTINGS - AVG PRICE
Calgary Rentals - 4738 - $1,794
Apartments - 939 - $1,441
Basements - 432 - $1,109
Condos - 1124 - $2,077
Duplexes - 185 - $1,934
Houses - 874 - $2,771
Lofts - 14 - $2,092
Main Floors - 223 - $1,516
Parking Spots - 13 - $122
Shared Accommodation - 449 - $713
Storage - 16 - $241
Townhouses - 450 - $1,910


COMMUNITIES - # OF LISTINGS - AVG PRICE
Airdrie - 100 - $1,657
Bearspaw - 5 - $3,749
Chestermere - 21 - $1,597
Cochrane - 61 - $1,832
Dewinton - 7 - $5,877
High River - 13 - $1,267
Okotoks - 25 - $1,727
Springbank - 16 - $7,599
Strathmore - 18 - $1,282

https://www.rentfaster.ca/calgary.php

Feel free to vomit, I almost did.

[rx7_turbo2]

Originally posted by MGCM
The graph looks like crap in copy/paste(link below) but wtf happened to rental prices in Calgary? Looking at this list makes me want to pack up and move to Saskatchewan............

Houses & Apartments For
RENT IN CALGARY - # OF LISTINGS - AVG PRICE
Calgary Rentals - 4738 - $1,794
Apartments - 939 - $1,441
Basements - 432 - $1,109
Condos - 1124 - $2,077
Duplexes - 185 - $1,934
Houses - 874 - $2,771
Lofts - 14 - $2,092
Main Floors - 223 - $1,516
Parking Spots - 13 - $122
Shared Accommodation - 449 - $713
Storage - 16 - $241
Townhouses - 450 - $1,910


COMMUNITIES - # OF LISTINGS - AVG PRICE
Airdrie - 100 - $1,657
Bearspaw - 5 - $3,749
Chestermere - 21 - $1,597
Cochrane - 61 - $1,832
Dewinton - 7 - $5,877
High River - 13 - $1,267
Okotoks - 25 - $1,727
Springbank - 16 - $7,599
Strathmore - 18 - $1,282

https://www.rentfaster.ca/calgary.php

Feel free to vomit, I almost did.

Gotta pay to play:dunno:

What's the solution?

[Fly Fishin']

So glad I stopped renting when I did. But it's good to know I can rent my condo for much more than the mortgage, maybe I can move to fernie.

[firebane]

Based off of that the basement suite I rent is lower than the average but higher than a normal basement suite.

But I also have a lot more with the basement suite than most people have as well so I can't really complain.

We have 2 outdoor parking spots plus have a garage and shared laundry. A massive back yard for use and an area for my bbq.

[Fly Fishin']

More high rises over rolling hills of asphalt shingles would be my preference and some more back yard units like in Toronto.

[Twin_Cam_Turbo]

I rent my townhome out for $400/month more than my mortgage is. Some of my neighbors were asking even $200+ a month more than mine for the same unit. And even then I rent my place for significantly less than the city average for a townhome according to that.

[ercchry]

Try buying... its no cheaper... in fact, its even MORE expensive :thumbsup:

I've said it before, and i'll say it again. If your cost of living is less somewhere else and your skill set transfers... move. Lethbridge is pretty inexpensive

[CanmoreOrLess]

Watch oil sit in the toilet for a year, those rental units will become really well priced. Look down most any street in Calgary and you'll see at least a couple of houses/condos/townhouses per block for sale. By the time all the monthly condo fees, taxes and running costs are factored in, condo owners since 2010ish are losing money. They just don't know it yet and cannot/refuse to sell at the current market rate. At least with those renting, you are free to leave, owners are with the band, they stay with the ship and play on.

[Feruk]

Rental market's just a reflection of the housing market, but with some lag. You don't really expect rentals to stay flat when housing goes up say 30%, do you? Anyone who enters the market and buys a rental would be losing money. Only way to get cheaper rentals is to get housing prices to drop (or interest rates to go back up which is the same thing).

[heavyfuel]

Ahhh. I have nothing negative to rant about in this thread. I feel a bit lost lol

[Sugarphreak]

...

[zipdoa]

Hah! For once I feel lucky to live at the snatch. $550/mon for a master bedroom. Time to start saving for a DP.

[pheoxs]

It's sort of self inflicted, not sure why anyone can be surprised. This may offend people but of all the places I've lived I've never met so many self-entitled people as I have here in Calgary when it comes to housing. People view renting and living in condos as 'being poor' or 'not grown up' far more than anywhere else I've lived. As a result everyone's expectation is to 'grow up' and 'buy a house'. They don't want medium or high density housing, but then complain when housing gets too expensive.

It doesn't help the NIMBY people also fight any kind of sustainable development. Basement suites, condo buildings, high rises, they hate everything that doesn't fit into their view of what a white collar neighborhood should look like.

Less places for people to live = Higher housing market = Higher renting market

[firebane]

Originally posted by pheoxs
It's sort of self inflicted, not sure why anyone can be surprised. This may offend people but of all the places I've lived I've never met so many self-entitled people as I have here in Calgary when it comes to housing. People view renting and living in condos as 'being poor' or 'not grown up' far more than anywhere else I've lived. As a result everyone's expectation is to 'grow up' and 'buy a house'. They don't want medium or high density housing, but then complain when housing gets too expensive.



This is so true and something I came to realize very quickly about living in Calgary.

Reality is its not feasible for most people and those who are owning have had either good luck getting a good job or have done well in life.

[masoncgy]

Move elsewhere... :dunno:

When I moved to Calgary you could get a 2 bdrm basement suite for like $500 a month... when I left... that same place was like $1500. That happened over 10 years, with the bulk of that change occurring in the last 5 years I was there.

It's an expensive city... and when the good times are rolling, it will always be that way.

If you love it there, you have to pay to stick around. If not, time to move elsewhere. I don't suggest Vancouver or Toronto either. haha.

[Super_Geo]

How has rental prices been doing since Q4-2014? Are they still creeping up, or are they starting to drop along with housing/condo prices?

[CanmoreOrLess]

Regina for example, really does not have more affordable rentals compared to Calgary, what they do have... some really dated style-wise rentals. I was assisting a family member last year in finding a south location, two bedroom condo to rent for under $1,700 a month. The south end pickings were slim and very dated in design, half a dozen at any given time.

http://www.padmapper.com/search/apartments/Saskatchewan/Regina/#

[ercchry]

you want crazy? checkout cranbrook, buy a house for $150k... or try and find a rental. if you can its on par with calgary's rental prices... :nut:

[RX_EVOLV]

This makes me feel old. I still remember renting a 1 bed room apartment for $740/month and a basement suite for $650/month including utility. This is only 7 ish years ago.

[Rocket1k78]

Originally posted by RX_EVOLV
This makes me feel old. I still remember renting a 1 bed room apartment for $740/month and a basement suite for $650/month including utility. This is only 7 ish years ago.


Just before the boom you could get a nice 1400sq/ft TH for around $150k and now the exact same places are going for double so rent prices are not that insane imo. I do agree its not an easy task to get into a house now.

[firebane]

Originally posted by Rocket1k78



Just before the boom you could get a nice 1400sq/ft TH for around $150k and now the exact same places are going for double so rent prices are not that insane imo. I do agree its not an easy task to get into a house now.

Even harder to get into a place now since rates went up for people under 10% down payment.

[mr2mike]

Originally posted by Twin_Cam_Turbo
I rent my townhome out for $400/month more than my mortgage is. Some of my neighbors were asking even $200+ a month more than mine for the same unit. And even then I rent my place for significantly less than the city average for a townhome according to that.

MOrtgage is just the beginning of what needs to be covered.
Insurance & taxes will eat you closer to breakeven. Then the excess should be to cover lean times of no renters and/or upkeep and maintenance when it arises.

Also don't discount that you being cheaper can keep tenants happy. If they're good people, they'll appreciate it and treat the place nicer (hopefully).
Gouging can result in people having less appreciation for your property.

Bottom line, can't treat rental market like it's easy street to big money.

[ercchry]

Originally posted by mr2mike

Then the excess should be to cover lean times of no renters and/or upkeep and maintenance when it arises.

its pretty rare to actually have excess... since you still got to pay taxes at the end of the year on your income (which includes the principle you've paid down on the mortgage)

[88CRX]

Originally posted by ercchry


its pretty rare to actually have excess... since you still got to pay taxes at the end of the year on your income (which includes the principle you've paid down on the mortgage)

Which is the biggest crock of shit ever.

Rentals suck haha... I might dump mine this summer.

[Rocket1k78]

Originally posted by mr2mike


MOrtgage is just the beginning of what needs to be covered.
Insurance & taxes will eat you closer to breakeven. Then the excess should be to cover lean times of no renters and/or upkeep and maintenance when it arises.

Also don't discount that you being cheaper can keep tenants happy. If they're good people, they'll appreciate it and treat the place nicer (hopefully).
Gouging can result in people having less appreciation for your property.

Bottom line, can't treat rental market like it's easy street to big money.


:thumbsup: :thumbsup:



Originally posted by 88CRX


Which is the biggest crock of shit ever.

Rentals suck haha... I might dump mine this summer.

Being a landlord is not for everyone but you gotta keep in mind some one else is paying for your property so at the end of the day its worth the hassles. And you probably dont want to be dumping anything this summer.

[sheik_yerbouti]

So you're pantothenateII on reddit eh...

http://www.reddit.com/user/pantothenateII

[2Legit2Quit]

I'm moving to Calgary from Red Deer at the end of the month, some prices are out to lunch but there's "decent" priced housing out there. I sign the lease for a nice 3 bedroom, double car garage in Shawnessy for $1800/month this week. Compared to the half duplex no garage I'm paying $1425/month in Red Deer - granted when I moved into my current home around July last year, the rental market was insanely tight at the time.

[pheoxs]

Keep in mind if you open up kijiji / rent faster right now chances are the ads you are going to see are the ones other people passed over too. If you want a good 'deal' you need to be diligent and constantly watch for things to pop up and then go view them ASAP.

I can post a room in my house for 2000$ a month, and people will see that on kijiji, doesn't mean it'll ever get rented for that though.

[HiTempguy1]

Originally posted by Rocket1k78

Being a landlord is not for everyone but you gotta keep in mind some one else is paying for your property so at the end of the day its worth the hassles.

I've never understood why people think because they have negative cashflow on a property sometimes that that is a bad thing?

At the end of the day, you are paying for an asset. How that is paid for is irrelevant. If someone is paying you close to your monthly payment on your loan to acquire said asset, that's pretty damn good ROI.

But that's my viewpoint :dunno:

[pheoxs]

Originally posted by HiTempguy1


I've never understood why people think because they have negative cashflow on a property sometimes that that is a bad thing?

At the end of the day, you are paying for an asset. How that is paid for is irrelevant. If someone is paying you close to your monthly payment on your loan to acquire said asset, that's pretty damn good ROI.

But that's my viewpoint :dunno:

Yeah, 'breakeven' cashflow wise is still profiting. For a house that's what 800$ a month(?) or 10k$ per year equity gain if your house stays stagnant in value.

Assuming 400k house 20% down your initial payments are 1600/month with 800 being principal

[ercchry]

Originally posted by HiTempguy1


I've never understood why people think because they have negative cashflow on a property sometimes that that is a bad thing?

At the end of the day, you are paying for an asset. How that is paid for is irrelevant. If someone is paying you close to your monthly payment on your loan to acquire said asset, that's pretty damn good ROI.

But that's my viewpoint :dunno:

well its not the most passive thing you can do with your money... so you have to factor that in. it has to beat wall street or whats the point?

[HiTempguy1]

Originally posted by ercchry


well its not the most passive thing you can do with your money... so you have to factor that in. it has to beat wall street or whats the point?

I agree, do you have any simple numbers you'd like to share? I'm genuinely curious :)

This is my viewpoint:

Even if you are "negative net cashflow", you are still "earning" money as your investment (sans downpayment) is being subsidized by someone else. As long as they are paying at least the cost of the interest, you are strictly purchasing the asset "at value". Sure, its not money going direct into your pocket, but it still subsidizes the purchase of the asset. Hopefully it will appreciate. So between appreciation and the "subsidy" you get from your renter, you want it to be lets say at least 8% annual ROI (average return rate of the S&P500 not factoring in inflation).

That's a bit different then you simply buying stock at $X and selling it at $XX.

Housing is not nearly as volatile as the stock market either. Phreak corrected me that there was a brief period (in Calgary) during the Great Recession where housing prices dropped 15%... for like 2 months. And now in under 5 years we are higher than it was then :nut:

Oil swings 5% on a crazy day which is quite often. So its not a very apples to oranges comparison. Your overall return may be a bit lower, but besides for the risk of how much money you are dealing with, it seems much more stable.

I just bought a brand new condo in Edmonton. My family has been involved in owning/renting/building but I've always stayed on the periphery as its been my parents business and I've just helped when I can.

I guess my point is, I honestly don't know anyone who has lost their shirt in real estate. Taken a hit? No doubt. But been completely fuckered if managed appropriately? Nope.

I also know what the stock market did to a lot of people in the downturn!

Edit-
I'm just coming at this from the perspective of joe-schmoe. There are some amateur traders on here that clearly can make the stock market work for them. If you get similiar $/hour ROI (or better) doing stocks, that sounds great. For me, having to deal with humans is easier than stocks haha.

[ercchry]

donald trump bankrupted himself a few times with real estate... probably a few people in detroit and florida too :rofl:

but yeah, you invest in what you know, and hope you know it well enough to turn a profit. factor in your time investment, and anything else (physical assets need maintenance) and pick what works best for you

numbers are pointless though, its all speculation and one point in either direction can change the results for or against very easily.

[HiTempguy1]

Originally posted by ercchry
donald trump bankrupted himself a few times with real estate... probably a few people in detroit and florida too :rofl:

but yeah, you invest in what you know, and hope you know it well enough to turn a profit. factor in your time investment, and anything else (physical assets need maintenance) and pick what works best for you

numbers are pointless though, its all speculation and one point in either direction can change the results for or against very easily.

I completely agree. Lots of entrepreneurs and businessmen have gone bankrupt.

Sometimes the reaction on Beyond to real estate is just humorous to me is all :) Everything in life is a risk, that's why you get mo' money for it haha

[MGCM]

here's what i know, there is nowhere affordable that i can move anymore, this shit is fucking rediculous, and as on June 1st this beyonder will be living in his car:barf:

[ercchry]

Originally posted by MGCM
here's what i know, there is nowhere affordable that i can move anymore, this shit is fucking rediculous, and as on June 1st this beyonder will be living in his car:barf:

rent a room? :dunno:

pretty sure those still only go for $500-$700

[pheoxs]

Originally posted by ercchry


rent a room? :dunno:

pretty sure those still only go for $500-$700

Yeah, if you keep your eyes open you can even find some lower than that. Last year I was renting a room for 450$ in the inner city. With util it came to like 550$ total.

[rx7_turbo2]

Originally posted by MGCM
here's what i know, there is nowhere affordable that i can move anymore, this shit is fucking rediculous, and as on June 1st this beyonder will be living in his car:barf:

Ridiculous is relative.

Calgary isn't that bad all things considered. Renting a tiny apartment for way too much money is pretty good motivation to make more money and buy your own place. At least it was for me.

[MGCM]

Originally posted by ercchry


rent a room? :dunno:

pretty sure those still only go for $500-$700

not when u have a cat


Originally posted by rx7_turbo2


Ridiculous is relative.

Calgary isn't that bad all things considered. Renting a tiny apartment for way too much money is pretty good motivation to make more money and buy your own place. At least it was for me.

been barking up that tree for over 10 years, everytime i get even a little bit of momentum going it blows up in my face. Im not a partier, I cant even drink more than 2 coolers in a day, i dont go out, i drive a car with 300,000km, Ive done almost everything possible to cut out extra spending and its still not enough. Cost of living keeps inflating and I cannot keep up. I thought I had it all figured out with becoming an Electrician but now because of oil business shit has hit the fan and again im back to square 1.

[ercchry]

Originally posted by MGCM


not when u have a cat

still possible... there are other cat owners out there that need roommates :rofl:

[Xtrema]

Originally posted by HiTempguy1
I guess my point is, I honestly don't know anyone who has lost their shirt in real estate. Taken a hit? No doubt. But been completely fuckered if managed appropriately? Nope.

Nobody ever lose their shirt on real estate as long as you keep yourself up to date on the market condition and has enough to cover the mortgage without rent.

The minute you get yourself force to sell, that's when you lose.

Market can drop 10-15%, while I really doubt much landlords will have less than 30% down, if you are forced to sell at bear market, you are still seeing at least 50% of your investment gone.

Suburb rental market has been easing and there are renters that starts to low ball and get away with it. Rentfaster listing that left standing are usually overpriced. There are deal to be had if you don't set your standard too high.

[MGCM]

Originally posted by ercchry


still possible... there are other cat owners out there that need roommates :rofl:

The last time my cat was in a house with other cats it got ugly at times. I would rather not end up with expensive vet bills that i cant pay.

[rx7_turbo2]

Originally posted by MGCM


The last time my cat was in a house with other cats it got ugly at times. I would rather not end up with expensive vet bills that i cant pay.

I'm not directing this at you specifically. But I have this conversation with my brother in law all the time.

He complains there's nowhere reasonable to rent. So I get online and track down a dozen viable options. He then explains all the reasons they won't work. Non smokers only, he smokes. No pets, he has a cat etc etc. So he complains he has no money and rent is too high. Yet he's happy to blow money every month on cat food, smokes and the latest video game or console that's out.

People make decisions that help "keep them down" then complain they're being kept down.

[MGCM]

Originally posted by rx7_turbo2


I'm not directing this at you specifically. But I have this conversation with my brother in law all the time.

He complains there's nowhere reasonable to rent. So I get online and track down a dozen viable options. He then explains all the reasons they won't work. Non smokers only, he smokes. No pets, he has a cat etc etc. So he complains he has no money and rent is too high. Yet he's happy to blow money every month on cat food, smokes and the latest video game or console that's out.

People make decisions that help "keep them down" then complain they're being kept down.

your talkin to someone who went as low as an appartment at the most nasty building in Calgary, Bromly square, behind Calgary tower on 10th Ave. I was on the 10th Floor and we had mice. Constant fire panel issues, my poor cat cut himself a hole in my armchair and would hide there when the fire alarm went off(monthly). After I left that place I promised myself I would NEVER put him thru that ever again. If you can imagine not knowing if your appartment building is on fire or not and not being able to find your cat, not pleasant. I do have an xbox one, purchased it as my only christmas present. Its on the chopping block if I cannot find a cheep enough place to live. My clothes are as outdated and worn out as it gets, I hate fashion and do not particiapte in it. My car does not have fancy rims, not even tinted. I grew up in a family with 5 kids, we never had money, as such I have never cared to have expensive things. I love Lambos, but if I had the money Id rather go buy 10+ struggling single families a good daily driver. I want to be helpful and useful to mankind, not just myself. Im the wrong type of person to be living in a world that is driven by greed, but I do my best.

[rx7_turbo2]

Originally posted by MGCM


your talkin to someone who went as low as an appartment at the most nasty building in Calgary, Bromly square, behind Calgary tower on 10th Ave. I was on the 10th Floor and we had mice. Constant fire panel issues, my poor cat cut himself a hole in my armchair and would hide there when the fire alarm went off(monthly). After I left that place I promised myself I would NEVER put him thru that ever again. If you can imagine not knowing if your appartment building is on fire or not and not being able to find your cat, not pleasant. I do have an xbox one, purchased it as my only christmas present. Its on the chopping block if I cannot find a cheep enough place to live. My clothes are as outdated and worn out as it gets, I hate fashion and do not particiapte in it. My car does not have fancy rims, not even tinted. I grew up in a family with 5 kids, we never had money, as such I have never cared to have expensive things. I love Lambos, but if I had the money Id rather go buy 10+ struggling single families a good daily driver. I want to be helpful and useful to mankind, not just myself. Im the wrong type of person to be living in a world that is driven by greed, but I do my best.

Right on.

Sometimes in life we catch "breaks" but a lot of successful people will also tell you that they had to make "breaks" happen.

[max_boost]

Parents dumping two properties this summer. It's been a good run.

[roopi]

Originally posted by max_boost
Parents dumping two properties this summer. It's been a good run.

Reason? Can't find good tenants or just had enough now?

[Feruk]

Originally posted by Xtrema
Nobody ever lose their shirt on real estate as long as you keep yourself up to date on the market condition and has enough to cover the mortgage without rent.
Just because we haven't seen it here in the last two decades doesn't make your statement anywhere near correct.

[Xtrema]

Originally posted by Feruk

Just because we haven't seen it here in the last two decades doesn't make your statement anywhere near correct.

You can lose on any investment. But a house is still more stable than stock in Gasfrac or Nortel or many others that goes tits up faster than you can dump them.

Even in Detroit, only certain area turned into ghettos, suburbs are fine.

[kenny]

Originally posted by ercchry


still possible... there are other cat owners out there that need roommates :rofl:

Yup! I actually know of a cat owner that is renting out a room in a condo, 15 mins from downtown. Townhouse style condo, has large undeveloped basement so lots of space too.

[max_boost]

Originally posted by roopi


Reason? Can't find good tenants or just had enough now? combo of everything. def have been through a few cycles in the past 20 years. The more I travel I also wonder if I want to have most of my money tied up in yyc or even live here. Fresh air is nice but so boring and if the economy tanks then umm ya. :dunno:

[BigMass]

Originally posted by max_boost
Parents dumping two properties this summer. It's been a good run.

Not speaking to your parents situation specifically, but in general it's going to be interesting when boomers that have most of their retirement savings in real-estate start trying to cash out at the same time.

[heavyfuel]

Originally posted by MGCM


not when u have a cat



been barking up that tree for over 10 years, everytime i get even a little bit of momentum going it blows up in my face. Im not a partier, I cant even drink more than 2 coolers in a day, i dont go out, i drive a car with 300,000km, Ive done almost everything possible to cut out extra spending and its still not enough. Cost of living keeps inflating and I cannot keep up. I thought I had it all figured out with becoming an Electrician but now because of oil business shit has hit the fan and again im back to square 1.

Sounds like me up until Feb. 27 lol

Give Tim a call, I din't think it was possible either. And I made absolutely zero sacrifices.

[bjstare]

Originally posted by Feruk

Just because we haven't seen it here in the last two decades doesn't make your statement anywhere near correct.

Exactly. My grandparents lost a ton of money in their commercial real estate developments in the 80s. And they weren't bad businesspeople by any stretch, the economy just fucked them over.

[Feruk]

Originally posted by Xtrema
You can lose on any investment. But a house is still more stable than stock in Gasfrac or Nortel or many others that goes tits up faster than you can dump them.

Even in Detroit, only certain area turned into ghettos, suburbs are fine.
I don't think a technology stock is a fair comparison to buying a house. A better comparison IMO is a REIT. Those don't go "tits up faster than you can dump them." Different risk profile from Nortel or Gasfrac. I'm not saying housing is a bad investment, not at all. Just saying that if you see only upside and ignore the downside, that's not investing.

[HiTempguy1]

Originally posted by Feruk

I'm not saying housing is a bad investment, not at all. Just saying that if you see only upside and ignore the downside, that's not investing.

I don't think anyone is disagreeing with you.

But in the past 20 years, housing is overall, in my opinion, less volatile than the stock market.

You can literally go from having it all to losing it all with the stock market.

And finally, referring to the whole being an owner and renting it out


My grandparents lost a ton of money in their commercial real estate developments in the 80s

They lost a ton of money probably because they got out of the game while things were bad. So rather than suffering with a paper loss for a while, they made it a real loss. On top of that, if you are over-leveraging yourself to the point of not being able to afford your assets due to paper-losses, you are in too deep :dunno:

[ercchry]

Originally posted by HiTempguy1


I don't think anyone is disagreeing with you.

But in the past 20 years, housing is overall, in my opinion, less volatile than the stock market.

You can literally go from having it all to losing it all with the stock market.

And finally, referring to the whole being an owner and renting it out



They lost a ton of money probably because they got out of the game while things were bad. So rather than suffering with a paper loss for a while, they made it a real loss. On top of that, if you are over-leveraging yourself to the point of not being able to afford your assets due to paper-losses, you are in too deep :dunno:

you could say the same thing about the stock market (real loss vs paper) but the thing is... if you are trading just stocks, you are not leveraged (maybe you have a margin account though and its 2:1 for your money vs lender's)

but with real estate you HAVE to be leveraged for it to make any sense. if you were buying properties in cash you'd be lucky to see 5% ROI. with leverage comes risk, plus you now have to manage a physical asset that has fees and taxes associated with it along with up keep. if anything you should have a mix of things, a balanced portfolio of investments... which is a lot easier to do through the markets... hell you can even buy products that are real estate based (reit) without the risk of actually owning a physical building.

[bjstare]

Originally posted by HiTempguy1


I don't think anyone is disagreeing with you.

But in the past 20 years, housing is overall, in my opinion, less volatile than the stock market.

You can literally go from having it all to losing it all with the stock market.

And finally, referring to the whole being an owner and renting it out



They lost a ton of money probably because they got out of the game while things were bad. So rather than suffering with a paper loss for a while, they made it a real loss. On top of that, if you are over-leveraging yourself to the point of not being able to afford your assets due to paper-losses, you are in too deep :dunno:

So you think companies/individuals that build office buildings and strip malls pay for the development in cash? Or can carry it indefinitely with no lessors to fill the space? :rofl:

[HiTempguy1]

Originally posted by cjblair


So you think companies/individuals that build office buildings and strip malls pay for the development in cash? Or can carry it indefinitely with no lessors to fill the space? :rofl:

Not at all :dunno:

With risk comes reward. If you are going to go put a million dollars (or I guess back then, $300k to $500k) of someone elses money into real-estate, hey, that's your business.

I'm talking like $150k to $200k condos here :rofl: Not being a real-estate tycoon.

ercchry, sure, I agree in essence, besides that stocks are essentially all paper except for the money itself. Its hard to lose 95% of the value of a property as it is a real, physical item that has inherent worth.

And finally, at the end of the day, a meteor could strike the earth making your investments completely worthless and us all dead (in reference to the 80's chatter). I'm still standing behind real-estate vs the stock market though. :)

[ercchry]

yes, but the point is you only need to lose ~20% of the value of a building to lose all your money ;)

[pheoxs]

Originally posted by ercchry
yes, but the point is you only need to lose ~20% of the value of a building to lose all your money ;)

It's no different than buying stock on margin, it multiplies your losses but also multiplies your gains. If the house gains 20% in value you've doubled your investment PLUS the equity you've gained in the mean time.

All the people that bought pre-2007 boom made a killing because their 5% down went up 10x in value. (10k down on a 200k house that became 300k house turns their 10k into 100k)

[ercchry]

Originally posted by pheoxs


It's no different than buying stock on margin, it multiplies your losses but also multiplies your gains. If the house gains 20% in value you've doubled your investment PLUS the equity you've gained in the mean time.

All the people that bought pre-2007 boom made a killing because their 5% down went up 10x in value. (10k down on a 200k house that became 300k house turns their 10k into 100k)

yeah... you dont normally get 5x leverage out of a margin account though... more like 1.5x... unless you buy leveraged products with your leveraged account... then you can easily be in a world of hurt especially if you use leveraged money (like a heloc) to finance your account :rofl:

but you can make poor decisions in all aspects of life...

oh... and you can buy insurance for stocks too... put options :thumbsup:

[MGCM]

all this market talk hurts my brain lol :nut:

[gkAeris]

do you guys remember that one article in the newspaper. someone brought a condo I think at heritage point for 300k and was forced to closed on the deal even though it was only worth 200k once they took possession.

Same with my gf, she brought a condo in Coventry in 2008/9 for 330k, and it is only worth 260k.

I was in the Real Estate game back in 2004, brought and sold many properties until 2013. I just woke up one day and decided to sell it all except for the one I'm living in. I couldn't deal with my renters and was too cheap to hire a management company. LOL I rather do my 8-5 job daily instead... definitely not for everyone. personally I never had a loss, but I know lots of people who invested in RE losing money. Even those condos pre sales that never get built....there is 20-30k just gone!!!

[scboss]

Yeah so much risk when buying prebuild. I almost bought in that heritage building but decided to save more and buy in Victoria park.

I think a good way to judge if you should buy is to check the rental market for the area. I was very worried about moving into a 700 sq ft place but when they told me it had tenants renting for 2200 a month unfurnished I signed that paper asap lol