Real estate dreams

I want to buy real estate right now but I have a horrible fear of the economy collapsing after putting my life savings into the property and being unable to pay my mortgage. These next 5 years seem totally up in the air. Horrific.... and the real estate prices haven't even gone down because the government bailed out all the people who couldn't pay their bills-- AGAIN. Rigged and corrupt system. I'm losing hope.

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Who knows..

Aug 13, 2020 at 10:22pm

Maybe in a few years banks will be sponsoring people to own.. once the market collapses and enough owners can’t afford mortgage payments.. Who will end up with the debts?.. banks of course. Yes, the very same that have been bailed out in recent past. How great would that be if they paid people to own ?!

5 5Rating: 0

Anonymous

Aug 13, 2020 at 10:34pm

Not to be overtly obvious, but you say you are worried about losing, but then you follow that up with observing that the government has stopped people from losing.

If you were one of the ones in, you would have also been one of the ones saved. The ones who lose are the ones not getting in.

I agree the government shouldn’t be bailing people out, but with how governments are afraid to lose elections, bailouts will exist now forevermore.

10 7Rating: +3

As if

Aug 14, 2020 at 3:42am

There's an option? Hells to the No.
Over 40 percent of the BC economy is real estate, related to real estate or highly dependent on it, directly or indirectly. About half of Canada's 2019 GDP growth was FEES related to real estate ownership and transactions - note, that wasn't even appreciation of the real estate itself.
They have no choice. Asset-price inflation can not be allowed to stop. Without continuous support, the market may collapse, and the economy with it. Canada is hooked on debt at every level. And it's hardcore, intravenous, pharmaceutical-grade, prescription-only, black-box-warning hazardous debt.
Thus why the CMHC is freaking out. The "shadow banking" lenders are feeding an explosively growing bubble. They're mostly unregulated and outside the Crown corp's remit. If sh*t goes south, there's no easy way to save it.
Fancy a lost decade or two? How about 50 percent unemployment and permanent CERB? A housing crash would make the Lockdown look like 2008. Careful what you wish for.

11 3Rating: +8

Yup

Aug 14, 2020 at 9:29am

In the market for a 2nd property, but feel it’s too risky right now with all the unknowns. Will wait it out, can’t take a gamble.

4 1Rating: +3

RealEstateGuy

Aug 14, 2020 at 1:39pm

If you can afford to buy a condo or a house I would recommend you do. Real estate is a long game. Its a 25 year investment that pays dividends for your future. There are of course ups and downs but it is impossible to pick a time when you will maximize the upswing. There are some people that have been waiting 20 years for this point and have become priced out.

6 10Rating: -4

People...please

Aug 15, 2020 at 12:18am

Find an online mortgage calculator, and look at how much interest you'll be paying the next 20 years. Hint: you'll be paying for your condo almost twice.
Then factor in property taxes. Strata fees. Mandatory insurance.
And then there's the wild card of repair on the building: in the last year alone, I have known 3 people who had to get their buildings repaired. The least expensive amount was $65k, the next was $74k and the worst was $82k that they had to pay.
They didn't have that money, so a second mortgage was necessary: goodbye retirement funding....

14 0Rating: +14

As if

Aug 15, 2020 at 2:53am

It's said that if you bring a problem, suggest a solution - no one loves to hear you whine.
So here's one:
Tiny homes start under $20k and cost half as much for HVAC and power. They're transportable, and many economic and eco-friendly options are available. Fully customizable and built in about 6 weeks to 6 months (appx). Delivered and assembled in a few days. The quality is way more consistent than conventional construction. Not perfect, but any factory-standard product is more predictable than a bespoke build like a regular house, and especially like a building.
Buy some cheap land, connect utilities for $20-30k, done. Or go off-grid with solar-wind-geothermal-septic. It'll cost a fraction of the condo, for maybe even more space. And the insurance won't ruin you. Put an insulated shed on the property, for storage.
All for less than 50 percent of Vancouver condo prices.
Et voilà. Detached dwelling, no shared walls with the neighbors, low costs. In the future, you can upgrade and sell your old one. The buyers will quite literally take it off your hands. Drop-in replacement with your new shiny abode.
Better yet, do it in a place where the cost of living is 40 percent or less of Vancouver.
In 10 years, you may be able to do that twice or even three times, and avoid having much of your wealth tied up in one house. Or in one country. Or even on one continent.
Because when all your eggs are in one basket, something will eventually come along and kick it. And those eggs will go flying.

7 3Rating: +4

The government makes it hard, not easy.

Aug 15, 2020 at 9:01am

While CMHC is busy making grand plans to slow housing markets, they make it worse for individuals. They won't insure mortgages over 25 years. But if you extend amortization, it lowers payments! I have a reasonable set of pensions, a part time job, a house with good equity, and an stellar credit, but no bank can/will refinance my home to 30 years. The government doesn't think about people, just data and sweeping plans that throw individuals (citizens!) under the bus.
The way interest is applied to housing is just wrong. We shouldn't have to live our lives worried about interest changing every few years. Radical changes needed.

2 2Rating: 0

You people

Aug 15, 2020 at 11:26am

act like a house and a beautiful west coast life full of yoga and cocktails is a fundamental human right. Its not. Its also not a result of corruption, not everything is a conspiracy. Many cities in the world are equally unaffordable. You are not owed anything. Disparity exists. Stop whining about it.

1 4Rating: -3

@As If

Aug 15, 2020 at 3:11pm

And where is this "cheap land" for your tiny house, may I ask?

5 5Rating: 0

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