The Bottom

[Kloubek]

Actually a very good point by lasthuzzah
that I don't think anyone has mentioned yet.

If you consider that a mortgage is paid off in 20 years or even considerably more (what's the max... 30?), the amount you pay now will seem like nothing near the end of the term. While a homeowner is still paying $1500 for their monthly housing expenses, the renter will then be paying $3000. That's a significant difference which must be factored in when considering the rent vs. buy battle.

In the end, the best long-term option is to buy. Pure and simple. If you bounce from city to city and don't stay in one place for very long, perhaps renting is the best option.

[jadeboy]

Originally posted by max_boost
[B
I'm willing to bet if you take the stock market index today vs your average home selling price today, the stock market index will gain a higher % return 5 years from now.
[/B]

I am certain you are correct on this. But that assume you just buying the house as an investment... people buy a house to live and a potential investment.

[ckangarloo]

Inflation helps a homeowner, and it hurts a renter. Over the long run, renters can expect higher and higher rents while a homeowner has the same mortgage payment. Also because of inflation that mortgage payment is going to look pretty pithy in 10 years.

Very true but the place that I am renting in Kelowna just went from $1400 to $1200/mth. I didn't even ask the property manager for a discount. Gave it to me no questions asked.
Inflation isn't guarateed, as it appears we are in a deflationary phase. Will it last? I'm not so sure.

Deflation, here to stay?

[jadeboy]

Originally posted by cmyden


If he really did tell you that, then I would dismiss everything he's ever said to you about investing.

Well.. he made tonness of money on both the market and housing.. he's probably worth 30-40 millions.

[Fivewayradio]

Originally posted by autosm




As said by someone else" when you can buy 3 or 4 nice houses in the USA for the price of one in Calgary somthing is very wrong".

How does this work? Real Estate prices are driven locally but influenced by external economic trends.

If you compare a house in Flint Michigan with one in Ft. McMurray you can expect house prices to be more in one place than the other. Victoria Vs. Kindersley Saskatchewan, Nunavut vs Fredricton, I could go on. It's ridiculous to assume that because the 'average' american home price (which is a fucking idiotic stat to begin with) is less than the Calgary average, that something is fundamentally wrong.

[autosm]

well I did not say it but it makes sense to me

For what I can sell my house for in Calgary I can buy at least 3 the same or better in the Phoenix AZ area.Those same houses at one time were close to the same price that we see in Calgary today. Are we over priced? Time will tell.

The same goes for Florida and California.

[Kloubek]

Originally posted by ckangarloo


Very true but the place that I am renting in Kelowna just went from $1400 to $1200/mth. I didn't even ask the property manager for a discount.

That's pretty cool! I guess the rental market is getting thin, and they want to ensure you stay there rather than go somewhere else.

However, I would not expect this to be a regular trend; 9 times out of 10 the rent will go UP... not down.

[ckangarloo]

Originally posted by Kloubek


That's pretty cool! I guess the rental market is getting thin, and they want to ensure you stay there rather than go somewhere else.

However, I would not expect this to be a regular trend; 9 times out of 10 the rent will go UP... not down.

Wasn't it also the trend for house prices to always go up? I'm just saying...

[AZ REALTY]

Originally posted by autosm
]For what I can sell my house for in Calgary I can buy at least 3 the same or better in the Phoenix AZ area.Those same houses at one time were close to the same price that we see in Calgary today. Are we over priced? Time will tell.

Yes you are correct! To give you a real life example, my neighbor bought his house for $849,000 here in Phoenix in 2006 (the peak) and recently lost it to foreclosure. The bank re-marketed the house and it sold last week for $235,000. This is a 3,000 sq. ft. 5 bed, 4 bath, 3 car garage, with a pool/spa. A comparable home in Calgary right now is probably worth what?........$800,000?

[barmanjay]

Originally posted by AZ REALTY
... A comparable home in Calgary right now is probably worth what?........$800,000?

funny you say that,.. I did a quick search and only 1 at 800k,.. the rest are from 1.4 to 4.4 mil

[AZ REALTY]

Originally posted by barmanjay


funny you say that,.. I did a quick search and only 1 at 800k,.. the rest are from 1.4 to 4.4 mil

I can't imagine spending even 1.4 million for only a 3,000 sq. ft. home. That's $467 per sq. ft. You can buy a custom home here for less than $200 per sq. ft. I showed a house last week for 1.35 million and it was 7,000+ sq. ft.

[BigMass]

Originally posted by AZ REALTY


I can't imagine spending even 1.4 million for only a 3,000 sq. ft. home. That's $467 per sq. ft. You can buy a custom home here for less than $200 per sq. ft. I showed a house last week for 1.35 million and it was 7,000+ sq. ft.

location location location?

[Fivewayradio]

Originally posted by AZ REALTY


Yes you are correct! To give you a real life example, my neighbor bought his house for $849,000 here in Phoenix in 2006 (the peak) and recently lost it to foreclosure. The bank re-marketed the house and it sold last week for $235,000. This is a 3,000 sq. ft. 5 bed, 4 bath, 3 car garage, with a pool/spa. A comparable home in Calgary right now is probably worth what?........$800,000?

This is a specious argument. Why should Phoenix prices have any relation to Calgary's? Are labor and material costs the same? Is demand the same? Is building code the same? What about building specs? Do they need triple-glazed windows, R40 Insulation? What's the average family income there? What's the unemployment rate? Crime stats? GDP? Does that price account for exchange?

Saying "i can buy three houses in phoenix for the price of one in Calgary" doesn't mean anything. I bet I could buy half of Mogadishu if I wanted to but it doesn't mean anything for a whole shitload of reasons.

Oh, wait a second, you're a realtor in arizona who's trying to sell real estate to Canadians. Forget everything I said.

NOW'S A GREAT TIME TO BUY! FUCK, BUY THREE!!! YOU CAN AFFORD IT!!! REAL ESTATE NEVER GOES DOWN!!

[AZ REALTY]

Originally posted by Fivewayradio
This is a specious argument. Why should Phoenix prices have any relation to Calgary's? Are labor and material costs the same? Is demand the same? Is building code the same? What about building specs? Do they need triple-glazed windows, R40 Insulation? What's the average family income there? What's the unemployment rate? Crime stats? GDP? Does that price account for exchange?

How is stating what you can buy in Phoenix a specious argument? All I was stating was how far your money can go in Phoenix versus Calgary. Chill out!

[AZ REALTY]

Originally posted by BigMass


location location location?

I like to call it........timing...location...timing.

[autosm]

Originally posted by Fivewayradio


This is a specious argument. Why should Phoenix prices have any relation to Calgary's? Are labor and material costs the same? Is demand the same? Is building code the same? What about building specs? Do they need triple-glazed windows, R40 Insulation? What's the average family income there? What's the unemployment rate? Crime stats? GDP? Does that price account for exchange?

Saying "i can buy three houses in phoenix for the price of one in Calgary" doesn't mean anything. I bet I could buy half of Mogadishu if I wanted to but it doesn't mean anything for a whole shitload of reasons.

Oh, wait a second, you're a realtor in arizona who's trying to sell real estate to Canadians. Forget everything I said.

NOW'S A GREAT TIME TO BUY! FUCK, BUY THREE!!! YOU CAN AFFORD IT!!! REAL ESTATE NEVER GOES DOWN!!

I detect a bit of anger....Did you buy in 07?

[Fivewayradio]

Originally posted by AZ REALTY


How is stating what you can buy in Phoenix a specious argument? All I was stating was how far your money can go in Phoenix versus Calgary. Chill out!

It's a specious argument because you're comparing Phoenix to Calgary and there's no correlation. The assumption is that because prices in Phoenix are so low Calgary hasn't hit the bottom yet, which might be true, but not due to the implications of your example.

[Fivewayradio]

Nope. Just not a huge fan of people who skew information to make things look more attractive than they are.

[AZ REALTY]

Originally posted by Fivewayradio


It's a specious argument because you're comparing Phoenix to Calgary and there's no correlation. The assumption is that because prices in Phoenix are so low Calgary hasn't hit the bottom yet, which might be true, but not due to the implications of your example.

I am not sure what you were reading, but I was never comparing Calgary to Phoenix. I've lived in both cities I know they are completely different cities for many different factors. I was only giving an example of what homes in Phoenix are selling for in response to autosm's comment that you could sell your house in Calgary and buy 3 homes in Phoenix. I'm knowledgeable about both real estate markets as I own properties both cities.

[TC2002]

Do you think "the bottom" would hit the new home builders? I went to check out Aspen Woods and Auburn Bay areas and their new homes are still the same price before this "recession scare."