Author ironpony Posted June 4 Author Share Posted June 4 5 minutes ago, basil67 said: They might go up or they might go down. I've seen more than one real estate crash in my life We can't give advice on your real estate market. Oh I know but if it has always kept going up over the years, and never crashed so far it seems, wouldn't it be reasonable to assume it will most likely keep going up, if everyone has been wrong so far? I know you cannot get give advice but isn't it logical to assume based on probability that it will not if everyone has been wrong over the years? Link to post Share on other sites
basil67 Posted June 4 Share Posted June 4 1 minute ago, ironpony said: I know you cannot get give advice but isn't it logical to assume based on probability that it will not if everyone has been wrong over the years? We can't - and shouldn't - comment on your property market. Link to post Share on other sites
Author ironpony Posted June 4 Author Share Posted June 4 Just now, basil67 said: We can't - and shouldn't - comment on your property market. That makes, sense it's just hard for me to wait based on something unlikely, if that makes sense. Link to post Share on other sites
basil67 Posted June 4 Share Posted June 4 Just now, ironpony said: That makes, sense it's just hard for me to wait based on something unlikely, if that makes sense. We can't comment on this. It's 100% your decision. Link to post Share on other sites
Author ironpony Posted June 4 Author Share Posted June 4 (edited) 1 minute ago, basil67 said: We can't comment on this. It's 100% your decision. Okay thanks. I will speak to a financial advisor first for sure. Thanks! Won't they be the same though, where they want to tell me the option where I will spend the most money? Edited June 4 by ironpony Link to post Share on other sites
basil67 Posted June 4 Share Posted June 4 (edited) 13 minutes ago, ironpony said: Okay thanks. I will speak to a financial advisor first for sure. Thanks! Won't they be the same though, where they want to tell me the option where I will spend the most money? A financial advisor isn't going to try to sell you a house. Their role is to help you look after your own money. That said, if you purely want to know about when to buy into property, how much you should spend and the condition of the property, this is probably not in the skillset of the financial advisor. Edited June 4 by basil67 Link to post Share on other sites
Author ironpony Posted June 4 Author Share Posted June 4 That makes sense. I also thought of hiring an inspector to look over some of the older places to see what condition they are in, but my friends tell me that is an impossible job and inspectors are not psychic, so it's a sham, if they have a point? But also, is it natural for family and friends to give me advice to get a place myself in case my gf left me, or are they thinking too illogically, and too much of a worst case scenario? There are lot of people breaking up and getting divorced today, so maybe that is a likely scenario, and they are just going by others? Link to post Share on other sites
basil67 Posted June 4 Share Posted June 4 4 minutes ago, ironpony said: That makes sense. I also thought of hiring an inspector to look over some of the older places to see what condition they are in, but my friends tell me that is an impossible job and inspectors are not psychic, so it's a sham, if they have a point? But also, is it natural for family and friends to give me advice to get a place myself in case my gf left me, or are they thinking too illogically, and too much of a worst case scenario? There are lot of people breaking up and getting divorced today, so maybe that is a likely scenario, and they are just going by others? I would never buy a property without a building and pest inspection. I cannot answer for your family. Link to post Share on other sites
Author ironpony Posted June 4 Author Share Posted June 4 (edited) 1 minute ago, basil67 said: I would never buy a property without a building and pest inspection. I cannot answer for your family. Okay thanks you very much for the input! Edited June 4 by ironpony Link to post Share on other sites
1HappyGoLucky Posted June 4 Share Posted June 4 On 5/22/2024 at 1:26 PM, ironpony said: My gf and I talked about moving together. I can buy a place with my money since I have more than her and she can help pay rent, and that was the arrangement. However, I feel that some of her needs are perhaps higher than I can meet though. Every place I have looked at is a dump so far that she has been disappointed in. But that's all I can afford on my money is a dump. However, she says she doesn't feel comfortable paying rent to a dump, where she has absolutely no say. But I am the one buying the place though. So therefore, how much say should she have? Although, living with her and her contributing rent will make things a lot easier for sure, and I do want to make her happy. But at the same time, I don't like always saying no, if she doesn't like the fact that it's a dump. There is one place I wanted to buy but lost it because she couldn't say yes to it. But should I let the next place that comes along go, if I want it, or should I just not listen to her and buy it anyway, if I like it and she does not? Thank you for any advice on this. I really appreciate it! I think you are incredibly smart in securing your future and investing in a property. Your family obviously want the best for you and are giving you solid advice. I can also understand your GF not necessarily wanting to rent in an area you can afford to buy. You are not in a marriage and there would be no benefit to her, outside of maintaining a relationship. Have you thought about the possibility of 'rent-vesting' - buying the affordable home, then leasing it out to someone else, if it's positively geared, the rent could cover the mortgage, or close to it. And you could then rent with your GF in a nicer area? Outside of this, I think you need to decide what is more important to you and choose; your relationship with your GF or your financial security. Hint: it's your financial security. Link to post Share on other sites
Will am I Posted June 4 Share Posted June 4 The big question is: are you personally in need of a place to live, or would it only serve the purpose of housing you and your partner together. If (a) get a place for yourself. If (b) patience is better. Link to post Share on other sites
Author ironpony Posted June 4 Author Share Posted June 4 (edited) On 6/2/2024 at 6:10 PM, BaileyB said: Their advice is sound if they expect that your relationship will not be long term. In that case, it would be good for you to get into the housing market and have your own place should the relationship end. You don’t, however, want to buy a “dump” that is going to cost you more in repairs than it will cost you in mortgage payments. That’s not a sound decision in any circumstance. From the perspective of your girlfriend - in now way should she be paying you “rent” in a home that you purchase - not if either of you think that this relationship is going to be long term. That’s unbalanced - in no marriage is one spouse the “landlord” and the other spouse the “tenant.” Whether you eventually marry or live together as common law spouses, she will be entitled to half of the appreciation of the home. As such, that would be a very poor decision for you financially. If you are considering buying a home with your own money and having your girlfriend live with you in that home, you would be wise to consult a lawyer before you make any decisions… Oh I didn't think she would be paying me rent I thought she was just paying me for half the utilities. Unless that would count as rent? Ideally I don't want to dump it seems like that's all I can afford. Unless I should take a different approach therefore? Edited June 4 by ironpony Link to post Share on other sites
BaileyB Posted June 4 Share Posted June 4 (edited) The housing market in Canada is insane right now - like many other places. There is merit to the idea that someone would want to get into the market because housing prices have done nothing but skyrocket these past few years. It’s difficult to imagine that they could continue on this path but… we have seen a bit of a correction recently but no big crash as of yet (and Vancouver is a particularly vulnerable market). A lot of people have been priced out of the market recently - particularly in Vancouver, which I believe is where you are from IP. The prediction is that interest rates are going to start coming down… there will be a lot of people trying to buy. I’d like to think that your real estate agent is trying to offer good advice but the truth is - they are also trying to make a sale. You would be wise to talk with a financial advisor and a lawyer - because your decision re: purchasing will affect your relationship and vice versa. Don’t forget to factor is a lot of money for extra fees - lawyers, land titles, taxes, moving expenses. It’s not just the cost of the house or the mortgage to consider… This is a HUGE decision that you need to feel 100% sure of before you do anything - Edited June 4 by BaileyB 1 Link to post Share on other sites
Author ironpony Posted June 4 Author Share Posted June 4 (edited) 37 minutes ago, BaileyB said: The housing market in Canada is insane right now - like many other places. There is merit to the idea that someone would want to get into the market because housing prices have done nothing but skyrocket these past few years. It’s difficult to imagine that they could continue on this path but… we have seen a bit of a correction recently but no big crash as of yet (and Vancouver is a particularly vulnerable market). A lot of people have been priced out of the market recently - particularly in Vancouver, which I believe is where you are from IP. The prediction is that interest rates are going to start coming down… there will be a lot of people trying to buy. I’d like to think that your real estate agent is trying to offer good advice but the truth is - they are also trying to make a sale. You would be wise to talk with a financial advisor and a lawyer - because your decision re: purchasing will affect your relationship and vice versa. Don’t forget to factor is a lot of money for extra fees - lawyers, land titles, taxes, moving expenses. It’s not just the cost of the house or the mortgage to consider… This is a HUGE decision that you need to feel 100% sure of before you do anything - Oh okay thank you very much. There is this supposed prediction that it will go down, but since it's only skyrocketed up, people seem incorrect on that prediction over the years. And no one is producing any evidence personally, to back up that claim. As for talking to a lawyer, what would I talk to him about in terms of purchasing a home though, or what do lawyers have to do with that? When you say purchasing will effect my relationship, are you thinking of something more specific, or do you just mean in a general sense? Edited June 4 by ironpony Link to post Share on other sites
Author ironpony Posted June 4 Author Share Posted June 4 6 hours ago, 1HappyGoLucky said: I think you are incredibly smart in securing your future and investing in a property. Your family obviously want the best for you and are giving you solid advice. I can also understand your GF not necessarily wanting to rent in an area you can afford to buy. You are not in a marriage and there would be no benefit to her, outside of maintaining a relationship. Have you thought about the possibility of 'rent-vesting' - buying the affordable home, then leasing it out to someone else, if it's positively geared, the rent could cover the mortgage, or close to it. And you could then rent with your GF in a nicer area? Outside of this, I think you need to decide what is more important to you and choose; your relationship with your GF or your financial security. Hint: it's your financial security. Oh I considered this option but I can only afford a home if I put down a certain downpayment. So if I bought another place, I would have no downpayment, and the downpayment seems to count for a lot in affording a place, if that makes sense? Link to post Share on other sites
BaileyB Posted June 4 Share Posted June 4 1 minute ago, ironpony said: As for talking to a lawyer, what would I talk to him about in terms of purchasing a home though, or what do lawyers have to do with that? You will need a lawyer that specializes in real estate transactions for the sale - You should consult a family lawyer to discuss a cohabitation agreement if you purchase the home and cohabitate with your girlfriend. You will want to protect your assets in event of separation - your home being likely the most important asset that you will ever have. Link to post Share on other sites
Author ironpony Posted June 4 Author Share Posted June 4 Just now, BaileyB said: You will need a lawyer that specializes in real estate transactions for the sale - You should consult a family lawyer to discuss a cohabitation agreement if you purchase the home and cohabitate with your girlfriend. You will want to protect your assets in event of separation - your home being likely the most important asset that you will ever have. Oh okay thanks, I already spoke to a lawyer about cohabitations and that is a working progress right now. I didn't think of speaking to a lawyer who specializes in real estate though. Link to post Share on other sites
BaileyB Posted June 4 Share Posted June 4 (edited) 2 minutes ago, ironpony said: So if I bought another place, I would have no downpayment, You can not buy a home without a down payment. And, I believe the laws are changing in BC to prevent people from doing this - actually, I believe they are only able to do this if it’s a long term rental. This is meant to address the shortage of housing and prevent people from buying additional properties and using them as short term rentals. Another good question for a lawyer. Edited June 4 by BaileyB Link to post Share on other sites
BaileyB Posted June 4 Share Posted June 4 (edited) 3 minutes ago, ironpony said: I didn't think of speaking to a lawyer who specializes in real estate though. You will have to give the name of your lawyer to your real estate agent when you buy - you can not purchase a home without a lawyer. And, you need to be prepared for that expense. There are several additional expenses when purchasing or selling a home. Edited June 4 by BaileyB Link to post Share on other sites
Author ironpony Posted June 4 Author Share Posted June 4 3 minutes ago, BaileyB said: You will have to give the name of your lawyer to your real estate agent when you buy - you can not purchase a home without a lawyer. And, you need to be prepared for that expense. There are several additional expenses when purchasing or selling a home. Oh okay thanks, the real estate agent did not mention this so far. Thanks! Link to post Share on other sites
Author ironpony Posted June 4 Author Share Posted June 4 5 minutes ago, BaileyB said: You can not buy a home without a down payment. And, I believe the laws are changing in BC to prevent people from doing this - actually, I believe they are only able to do this if it’s a long term rental. This is meant to address the shortage of housing and prevent people from buying additional properties and using them as short term rentals. Another good question for a lawyer. Oh okay thanks. There are two people I know who are doing this so far so it seems legal, unless they are doing it illegally of course, but they have been doing it for years so long term rentals. I will find out, thanks. But I guess it's not an option for me since I need to have a down payment, which I will not have if I go this route. Link to post Share on other sites
Gaeta Posted June 4 Share Posted June 4 10 hours ago, ironpony said: wouldn't it be reasonable to assume it will most likely keep going up, Everything goes up everywhere. If you look back 30 years ago we could buy a small house for $75K now the same properties go for 450K. But people earned less 30 years ago, cost of living cost less, etc. Yes everything goes up and your revenue should go up as well. If you can only afford a dump in a bad neighborhood then maybe it's time to search for a better paying job. 1 Link to post Share on other sites
BaileyB Posted June 4 Share Posted June 4 (edited) 8 minutes ago, Gaeta said: Yes everything goes up and your revenue should go up as well. And the simple truth is, housing prices have gone up and incomes have not kept pace. The absolute last thing that you want to do is overextend yourself and buy a house that you can not afford - because you think you should get into the market. People get themselves into serious financial trouble by making these kind of optimistic but risky and poorly planned financial decisions… Edited June 4 by BaileyB 1 Link to post Share on other sites
Gaeta Posted June 4 Share Posted June 4 1 hour ago, ironpony said: There are two people I know who are doing this so far so it seems legal, unless they are doing it illegally of course, but they have been doing it for years so long term rentals. When you buy your 1st property your down payment is 5%. When you buy your second property the down payment is 20%. If you live in property #1 and it's a dump with lots of repair how will you be able to save up 20% down payment for your 2nd property? Yes the laws have changed. If you are in Canada and you own a rental property you will be taxed on the part you are not renting. Lets say you have 2 apartments in a house you own and 1 of the apartment is not rented out, you will be taxed on that. Like BaileyB said, it's meant to fight the shortage of rental units. It's called Underused-Housing Tax. Link to post Share on other sites
Gaeta Posted June 4 Share Posted June 4 12 minutes ago, BaileyB said: And the simple truth is, housing prices have gone up and incomes have not kept pace. The absolute last thing that you want to do is overextend yourself and buy a house that you can not afford - because you think you should get into the market. People get themselves into serious financial trouble by making these kind of optimistic but risky and poorly planned financial decisions… I completely agree with you. I am located in a Province where houses are still affordable if you are willing to live further in the suburb or are willing to drive an hour to work. I don't think OP should buy a house unless he moves toward country side or just moves to a different city. My daughter and her boyfriend changed jobs and moved 1.5 hour away to buy a house they could afford. Link to post Share on other sites
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