TwilightRotary

iTrader: (3)

heyyyy everybody,

i'm in the process of looking for my own house and i was wondering what the general consensus is regarding our current economy.

i've heard now is a good time to buy real estate since property is supposed to be cheap at the moment but i've also heard it's a horrible time since no one knows whats going on jobwise.

basically what do you guys think, should i go for it, or wait it out?

Feds

Depends how secure your job is. If you're sure you can make payments, its not a _bad_ time. That said, things are going to get worse before they get better.

Personal opinion:

1. start stuffing cash into money markets, or ING savings and pad your down payment.
2. WATCH the market. track prices on a spreadsheet even. When you see a bottom AND a decent recovery, then jump in.

Again, personal opinion, but you're looking at ~12-24 months before the recovery starts. thinks will keep going down between now and then.

R.P.M.

iTrader: (3)

If you have a secure job and the funding to do it, then within the next year is going to be the best time to buy a house.

TwilightRotary

iTrader: (3)

thanks guys.

sadly i'm unsure of the security of my job. i'm at the coke ovens of stelco/u.s.steel and have been employed 3 years.
thats not alot of time but due to my knowledge of machinery and the lack of man power, they can no longer lay off based upon seniority.

the coke ovens are the most secure place there but since we are tied to the auto industry even that might not be enough.

either way, i know if i get laid off i will eventually be brought back, it would just be a matter of time.

ourxseven

iTrader: (1)

I'd have to say paying a mortgage (paying for your investment) is always better than paying rent (paying for someone elses investment).

with interest rates very low , it is the best time to "lock in" to a payment you can afford ( 5 year mortgage), that way if they rise you will not get scewed with higher monthly payments . Good plan for the first 5 years of a mortgage generally.

buy something that will give you a mortgage and taxes payment about 75% of what you'd be able to pay in rent to someone . That will leave you some money to cover the other house crap you will need ( rakes , lawnmowers etc. ) or fix ( always something ) it adds up !!!!

Also, if you are single , get something that is rentable to a another person if you get tight for money temporarily , you can get a roommate to help pay YOUR investment off .

don't buy your dream house as your first house

just my too cents

Black91n/a

I'm in a similiar situation, young guy relatively new with specialized knowledge (engineer) at a company that's facing hard times. The fact is, if you're renting and loose your job, you can just walk away with no debt and probably some savings (job cuts in hard times don't always make sense, everyone's vulnerable). If you're paying a mortgage, you're stuck and could be in a lot of trouble if you can't make the payments.

I don't think the market's bottomed, and I'm going to wait at least until the spring to buy. At least by then we might have a better sense of what the economy is doing.

dradon03

iTrader: (2)

Exactly or if you have cash$$$.

Right now the lowering of the rates hurt prices and they are still down 10% without the rate cut it would have been perfect. I have been sitting on a sum myself for 2 years now just waiting....

AdAMxr

go for it, you will more than likly kick yourself down the road if u font!

Terrh

iTrader: (7)

intrest rates will NEVER be this low again, I'm sure.

I'd start looking at houses, just be real picky and buy exactly the one you want! No sense buying something you don't really like in this market.

paul_3rdgen

iTrader: (6)

I have to agree with some of the others things are still going to get worse, don't worry things aren't going to get better over night so you won't miss anything. DON'T RUSH it will be a big mistake. Intrest rates won't climb back up for a while they are still talking about lowering rates agian in the new year. Spring to early summer will give you a good indication to what's going to happen in the real estate market, dec through Feb is usually at a stand still anyway.

sunburn

I bought in Nov 07 and am considering a refi because the rates are insane rightnow. Now is deff a good time to get into something. My wife and I also have been investing in stocks, mostly entertainment companies that are solid and are a safe bet to survive and bounce back down the road and some other "safe bets"

shottaboymaze

(The fact is, if you're renting and loose your job, you can just walk away with no debt and probably some savings)--quote from earlier


this would be true if you are renting from a family/friend, once you are renting, arent you on a lease/contract? by walking away, wouldnt you also be walking away from your agreement?

correct me if im wrong, there are programs provided by the government now that will help those that do get a mortages keep their homes

Snrub

iTrader: (1)

The interest rates actually aren't that great right now, or at least as good as they seem on the surface. The bank of Canada rate is very low, but the rate banks have available are high relative to that rate.

A 5 year fixed mortgage. The best you'll get is ~5%. A friend of mine has 3 fixed term mortgages from 1-3 years back that are all lower than that.

Try to get a car loan from a bank. They're much pickier about who they give one to and the best you'll do is ~9%.

Even a variable rate mortgage, the best you can do is ~1% over prime. My mortgage is .9% under prime.

The low house price theory: People keep saying that prices are down. This is definitely true in TO, Vancouver, Calgary, Edmonton. Elsewhere it's pretty well flat.

I'm not trying to discourage a house purchase, but now or a year from now rates and house prices will likely be the same. I've not heard anyone of credibility say that the economy is suddenly going to bounce back in the next year.

Sizzlenut

Start looking next November after everyone realizes how crappy the market was in the peak summer selling season. That's also going to be when interest rates will be at the lowest for the consumer before inflation takes a hold because of all this $$$ being pumped into the economy. Until next year, hold on to your cash in an ING or PC savings account, buy some gold, silver and/or Japanese Yen if you're worried about the de-valuation of our dollar. I've been in my cheap-a$$ house near Hamilton General waiting by the sidelines for 4 years now. The time is coming, just not yet.

Black91n/a

If you have a lease, then there's usually a penalty for getting out early. If you're just renting, then all you need to do is give one month's notice, then you're free and clear after that. If I lost my job today, I'd only have to pay for January and then I can be gone. I've got more than enough savings to cover that.

Trots*88TII-AE*

iTrader: (11)

I agree with waiting until next early winter. Winter is by far the best time to buy, people don't want to buy and move in in the cold weather. And being that there is so much uncertainty in the whole world right now, a year wouldn't hurt to see where everything sits.

Now, if you can buy a house with income potential in it (what I did last year, and still am in), you can rent out a basement apartment to cover a LARGE majority of your mortgage. Right now, I'm paying the same or less, including ammenities, cable, internet, etc then I would had I rented. Plus, even in the worst economic situations, people always need a place to live, so having an apartment is usually a good income to have even in the worst case scenarios.

Plus, so much of your house then becomes tax deductible! It's win-win dude.