Buy a condo now? Or wait a couple years?

[jbabante]

now.

[tm.88]

As everyone has mentioned, it is a buyers market right now and who knows what it will be like in a couple years.
Real Estate is not expected to drop to much further in price and with that being said i feel right now is the time to purchase.

Its a complete gamble though. Who knows, in 2 years time we may see condos 25 % cheaper in the downtown area or they could be 25 % more.

Do you hit or stay on 16? lol

[UndrgroundRider]

You're dreaming if you think condo prices will go up in the next 2-3 years. The market is flooded with vacant condos, with tons more that will be on the market shortly.

I would definitely wait this one out.

[Akagi Redsuns]

Originally posted by tm.88
As everyone has mentioned, it is a buyers market right now and who knows what it will be like in a couple years.
Real Estate is not expected to drop to much further in price and with that being said i feel right now is the time to purchase.

Its a complete gamble though. Who knows, in 2 years time we may see condos 25 % cheaper in the downtown area or they could be 25 % more.

Do you hit or stay on 16? lol

On what basis is real estate not going to drop further though?

Affordability is still at an all time low and prices have been falling since the peak at June/July 2007 (remarkably not that fast). The end of 0% down and 40 year mortgages are near and interest rates are predicted to go up to curb inflation. Inventory is sky high, low sales, lots of vacant property and of course the dreaded credit crunch brought on by the US.

[lint]

Originally posted by Xtrema


You gotta be careful, if you get into any real estate now, you better make sure you'll be in it for at least 2-3 years or you will have have negative equity.

Wouldn't a negative equity situation depend on how much he's putting down?

Although I would agree that if you're going to buy as a primary residence, plan on a 5-10 time frame to ride out any ups and downs. Trying to time the real estate market is just as bad as trying to time the stock market. Buying now makes sense if it's what you need to do. There's plenty of choices and plenty of time to make decisions. No worries about bidding wars and all that speculative crap.

[Toms-SC]

Wait for sure

[Xtrema]

Originally posted by lint
Wouldn't a negative equity situation depend on how much he's putting down?

I guest I meant a negative impact on equity. If you put a 20%, $60K down and the market retreat by another 10%, you'll still lose $30K out of pocket.

If you're going into a condo, you better make sure the unit is unique and desirable or you'll never find a buyer.

[Antonito]

I never really noticed before now, but it occurs to me that the highrise beside me that finished about 8 months ago is still sitting pretty empty. At night I see maybe 6 or 7 lights on...

[lint]

Originally posted by Xtrema


I guest I meant a negative impact on equity. If you put a 20%, $60K down and the market retreat by another 10%, you'll still lose $30K out of pocket.

You don't lose anything out of pocket, that's just a negative position on paper. You'd only realize the loss if you sold the property. In reality, you still live in the same condo, making the same payments (until interest rates move).

Your primary residence should be viewed as a long term investment. Instead, a buy it, flip it, profit model is what many people have come to believe is real estate.

[Xtrema]

Originally posted by lint
Your primary residence should be viewed as a long term investment. Instead, a buy it, flip it, profit model is what many people have come to believe is real estate.

True for a single house. True for condo to a degree. Outrageous condo fee increases and other factors may prompt fire sales and your plan to ride it out in the long term.

[88CRX]

Originally posted by lint


You don't lose anything out of pocket, that's just a negative position on paper. You'd only realize the loss if you sold the property. In reality, you still live in the same condo, making the same payments (until interest rates move).

Your primary residence should be viewed as a long term investment. Instead, a buy it, flip it, profit model is what many people have come to believe is real estate.

Very few people understand this concept.

The value of your home (condo or house) is completely irrelivant untill you go to sell it.

[lint]

Originally posted by Xtrema


True for a single house. True for condo to a degree. Outrageous condo fee increases and other factors may prompt fire sales and your plan to ride it out in the long term.

Those aren't common everyday events. There are always intangibles that will affect your plans. Marriage, career opportunities or relocation for a job. Those are unpredictable and when they occur, you deal with them. Those aren't even the concerns that you pointed out. If you're going to worry about these rare events which are wholly out of your control, might as well sit down and stop looking. You're never going to be comfortable buying a place.

I'm not saying that you can plan for everything. But you can plan for and give yourself wiggle room in case interest rates rise 3%, or your condo fees go up by $200/month. You don't have to stretch yourself so thin now when the getting is good. You can be comfortable now and be tight when things turn, but still be able to keep your place. If your TDS would be at 40% with a condo purchase, maybe rethink and scale back so that it will only be 35%. Then you have some room to move.

People who maxed themselves out with no money down and 40yr mortgages have no room to breathe. And really, just because the lenders give you the rope to hang yourself, doesn't mean you have to slip on the noose.

[2002civic]

I'd wait but thats just me

[core_upt]

The advantage to buying now is choice, and good choices now can mean a place that is easier to sell in market that could still be saturated in the future. Choices could include, more than one parking stall, courtyard facing, as opposed to street or alley facing, not being on a lower floor, closer to elevator, etc. Choices could also include buildings with better management and reserve funds, as well as sellers 'willing to pay X months condo fees' (chances are, they already paid them though!).

Given the selection on the market now, this could be the time to buy a smarter place that will have a stronger future value should the market stay wide open.

[barmanjay]

^^^ there's positive thinking