Looking for some advice/opinions

[RichyrichParticipant 14]

Hey guys I’m looking for some advice/opinions. I’m going to be looking for a new place to live and I am on the fence on what I should do. I’m in Canada and for quite a long time they’ve been saying real estate is over valued but the slowdown doesn’t seem to stop. Prices are high here so if I’m going to buy I really only want to do it once and buying is a big decision but if I buy I own it and no one can take it from me. I have no family in the city that I live in so I can live anywhere. I do have anxiety when I think about these things, fear of making a mistake in my choice and the regret after. So here’s the thing I don’t mind buying and I don’t mind renting. I’ve saved enough money now that I can pay a place cash if I wanted. I’ve lived in the suburbs and I don’t really want to do that, I don’t the like Jones life. I don’t mind living in the jungle (downtown) because I can walk to work but I don’t like the idea of buying a box condo because you don’t actually own anything and the prices are so high to end up owning nothing, I’d rather rent a box. I like the idea of buying out in the country or a waterfront but commuting is not much fun but I’d rather commute to the country than to the suburbs. I’m fortunate because I can do whatever I want but I’m a fence sitter when it comes to decisions. I’d appreciate any thoughts you have, thanks.

[HitmanParticipant]

a home in the country is incredible.
the cost of commuting plus the time it takes is worth it.
when gas prices fluctuate , so does your cost to travel.
if you add up the miles you put on a car, plus gas and toll costs,
that money could go towards a place in the city.
just hitting you with some ideas ..
when you look out the window and a dear is looking back,
the country life may be the move..
city life has everything you want ,
and everything you don’t want..close.

[BeerParticipant 11832]

I bought a condo a while back and really haven’t regretted it. My taxes and condo fees are about 360 a month combined, and renting a similar unit in the same building cost about 800 a month. That is pretty considerable savings vs renting, and I also have equity in the place so when I move I can either rent it out and turn it into a revenue stream or sell it and walk away with a chunk of cash.

A lot of people hate condo fees, which is probably what is turning you off, but mine really aren’t that bad. I pay 230 a month for them, and it includes heat, garbage removal, access to an indoor pool, landscaping(we have an acre lot on the river), snow removal in the winter, water, lighting the hallways and parking lot, and in general just maintaining the place and keeping it nice, like painting and carpeting in common areas, maintaining the roof so we don’t get leaks, and that kind of stuff.

The thing is…all the stuff my condo fees pay for is stuff you’ll either have to pay for or waste your time doing yourself if you own a house anyhow. You just got to do a bit of research before you buy. The board members where I live are mostly retired people, or people who own a few units as rental properties, and in both cases they are interested in keeping the place well maintained but keeping our fees down. My brother on the other hand bought a fancy condo where a lot of the owners are rich people who own one for a vacation spot, and they are constantly voting for all kinds of crazy stupid s~~~ to be done because an extra 50 or 100 bucks a month to them is irrelevant. He’s paying over 400 dollars a month for his fees + taxes. I’d probably be singing a different tune if I bought where he did.

If you want to live in the city and don’t mind apartment living, I’d really suggest doing some more research into condos. I’ve known a few people who have had very negative experiences with them, but my experience with owning a condo has been very positive…I’m so glad I went the condo route instead of renting for the last 10 years and being in a position right now where I have 0 equity and a more expensive monthly payment to keep a roof over my head.

[SolidusXParticipant 854]

I was on the fence as well when it comes to real estate, I am also in Canada in the very expensive BC side. I invest money and day trade for a living and thought about putting my liquid cash into a property….. until I did the math. To buy anything where I live that is not located in the ghetto is going to run you $300k+ for something small $500k+ for a decent place. Not to mention pretty much anything that is available now runs off of strata (which is the worst cash grab and worst waste of your money out there). Property tax is high where I am and the crap they build here is cheapily done.

Owning a home is bloody expensive but to put things in perspective here are some numbers. On a $350k house over 25 years, with 5% down, interest rate at 4%, strata at $250/month, and property tax at .3% you are shelling out:

> $2,088.39 month / $25,060.68 a year mortgage + fees or $626,517.25 for 25 years
> Right away you lose $194,017.25 to interest over 25 years and an additional $75,000.00 to strata over 25 years. That money goes right out the door and gains you nothing.
> All the maintenance and upkeep etc could be in the 10’s of thousands of dollars especially for a new roof every 10 years and structural items.

Now every city is different of course and you already said you could buy a place outright in your area…. but houses today are not what they were used to be 30 years ago. After I ‘mathed’ myself I got sick from seeing all the money waste. I personally do a hybrid scenario…. I rent a place to live as it allows me to be in a nice place and have none of the risk the homeowner has, then with all my excess money I invest in REIT’s (Real Estate Investment Trusts). REIT’s are basically companies that own lots of properties who they rent out to other people. I get all the reward of having the properties in my portfolio without any of the risk of actually owning the property or dealing with renters. I will then gain a dividend cheque every month for essentially doing nothing.

I like the peace of mind that I gain all the benefit of having property in my portfolio without any of the risk of owning the property. I like the fact I can just get up and go and move to a different city if I wanted to without being attached to a home. I also like the fact I can liquidate all my real estate with the click of a mouse and take strait cash with my REIT’s. It really comes down to you though and what your end game is. Mine is to fly to beaches every other month and still get a cheque for really doing nothing.

Knowledge is power..... Don't waste your brain on bullshit

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