| B.C. Real Estate Crashing Time to Sell !
Posted: 9/30/2008 11:52:20 AM | would think it is best to wait a little for things to bottom out and settle
^^^ Everybody thinking like that panicked by the Wall Street Fallout is part of the Reason they bottom out. But I agree, good sound Advice. | |
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| B.C. Real Estate Crashing Time to Sell !
Posted: 9/30/2008 11:55:45 AM |
Basically its going to get worse before it gets better
Well it usually does...lol
real estate compared to other investment has the build in factor that one still needs to live some place and the free accumulation of capital gains on a residence.
These are off set factors that are much better than RRSP where one only defers the tax into the future for short term tax gain today. When RRSP investment does not keep up with inflation loke savings accounts, GIC's bonds and the like, the investor looses in the end unless one is self administerd and has influence over the investment type and pays no or little fees; ie writing RRSP based mortgages with 10% or more interest return. Stock market investor stats show more than 70% of investors loose money long term, that's a gamble.
When the investment in a residence is linked to a portion of that property finding use as legitimate business and tax write off the final net effect of gain is much safer and better than most other investment speculations. At least there is a good chance one will stay within the inflation and maybe be a little bit ahead of the game.
I certainly would not suggest one to speculate with ones residence as investment as for many people that is the biggest asset they have, but a prudent long term approach looking at all factors, taxes write off and even passing some of it on to ones children.
Those interested to do so would be well advised to seek professional input how to plan for and finalize these steps according to the individuals circumstances and wishes.
Now may be a good time to look and plan for the new or future investment if you are in the market or planning to get in, let things settle, and watch a little up/down swing and slow rise...that'll be the start of the next up phase.
Good luck
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| B.C. Real Estate Crashing Time to Sell !
Posted: 9/30/2008 12:40:15 PM | Dear It's Better Together. Yes, I do own it free and clear. The credit card companies seem to know this as they won't leave me alone. It is not worth a fortune. Yes, you gave me sage advise and if I do as you suggest...use my equity and buy another condo, I suppose I could make some money. But I am busy with school and then, when things really fall apart, the new regime, the peoples party, will be liquidating landlords and people who wear spectacles.
Seriously though. What if they skip on the rent or trash the place? What if I can't find a tenant to lease it at $1200.00 a month?
On the other hand, if I were a wealthy go getter, it might help the cause.  | |
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| B.C. Real Estate Crashing Time to Sell !
Posted: 9/30/2008 5:20:36 PM |
What if I can't find a tenant to lease it at $1200.oo a month?
You would do a credit check on the person who is wanting to rent your property. You would get a 50% damage deposit and last months rent UPFRONT in cash. You would have them sign a lease. You would not rent it out to an unemployed crackhead with 3 kids. ETC.ETC.ETC.
Even though there might be alot of unoccupied condo's in the near future (because most of them were purchased pre-construction by investors) it doesn't mean that rent prices will go down! Why? Because people starting out will not be able to come up with the higher down payments that the banks will now require from buyers....so this will leave alot of people with no choice but to rent. | |
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| B.C. Real Estate Crashing Time to Sell !
Posted: 9/30/2008 5:31:01 PM | | You are right IBT. Maybe I'll do it later. Well pretty soon. Where would I find the time right now? What with school and all. Maybe we could go partners. Like those two people I talked about in a previous post on this thread. Then when the market goes t!ts up again( I mean when it bottoms out and rebounds and then finds an even lower bottom) we would be forced to share the same condo. A one bedroom condo! That's when I make my move! | |
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| B.C. Real Estate Crashing Time to Sell !
Posted: 9/30/2008 9:19:09 PM | | IBT and all just hit a brick wall. Go ahead and buy to rent. You may have your damage deposit and etc. etc. but you will still have tenants that need money coming in. Money coming in is a big problem for most people. My father owned a rental years ago, many to be sure, and he ended up going to court. At a time when jobs and income potential were vast compared to today. He expected too much from his renters, but I would NEVER invest my dollars in rental income. Ever. Again....what is wrong with treating a home as a home and NOT as speculated income.? To all you renters, be proud and free. Let them pay for your inadequate fridge, furnace, leaky roof, anything cosmetic. Look at yourself as our proud and true First Nations...land and property are not subject to ownership. Greed, ignorance and insanity have their roots in this process. | |
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| B.C. Real Estate Crashing Time to Sell !
Posted: 9/30/2008 10:23:33 PM | Ishat believes the prices could possibly come down a wee bit? You can try to hold out but when the prices start to Really fall then you're in trouble. I wouldn't wait until 2010 to sell mine though. Any time you can get 5 times what your house is really worth you should sell. Be selfish or greedy and you could end up getting stuck with it.
But maybe that's no so bad. | |
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| B.C. Real Estate Crashing Time to Sell !
Posted: 9/30/2008 10:55:56 PM |
I would NEVER invest my dollars in rental income
60to70... personally that is not my cup of tea either, BUT this is what smart investors do when the market crashes. They scoop up as many cheap and foreclosed properties as they can afford, then rent them out until the market bounces back..then they sell these properties for a profit.
what is wrong with treating a home as a home and NOT as speculated income?
60to70...Purchasing a home is the biggest investment the average joe makes. It is always wise to speculate what the resale potential will be when the day comes that you do want to sell it. That is why location is so important.
Look at yourself as our proud and true First Nations...land and property are not subject to ownership
Really?? Then why is it alot of First Nations are selling sections of their land and cashing in on their property rights??
Greed, ignorance and insanity have their roots in this process
Ah yes, the rich get richer and the poor get poorer...welcome to the REAL WORLD. | |
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| B.C. Real Estate Crashing Time to Sell !
Posted: 10/2/2008 9:18:15 PM | | You would have too ,if you had suffered under the tryanny of disrespect and prejudice they suffered under in the last four hundred years!! Please read your history. Sorry to see that they falling under the spell of the almighty dollar. There is a rich man with a brain (maybe even a soul) Warren Buffet who addressed the PROBLEM of the rich in conversation with whats his name on PBS last night. He also figures the rich do not pay their share of the taxes we all suffer under. Anyways greed, ignorance and insanity also belong to the wannabes. Debate is good...but a home is still a home...and tied into what the economics of where your live. If you get lucky when you sell, are you really lucky after all? What did this all mean in the bigger picture? | |
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| B.C. Real Estate Crashing Time to Sell !
Posted: 10/4/2008 4:44:42 PM | 60to70
Perhaps you didn't notice where I live. It's called Tsawwassen. Gee... sounds kinda native to me..what do you think? I am well aware of the history of the Native Indians in my country as well as my community.
Anyways...I think you have me pegged all wrong. I am NOT RICH. I am a single mother with two daughters. I have worked at the same job for 30 years.
However, when the lucrative condition of the real estate market and banking systems allowed an average joe like myself an opportunity to make a few extra bucks...buying and flipping property...I jumped at it!!
In regards to Warren Buffett, I too watched that interview with him. The man is amazing! Not only is he brillant..he has a moral compass that most rich pr*cks lack. | |
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| B.C. Real Estate Crashing Time to Sell !
Posted: 10/4/2008 8:08:01 PM | | I did not realize where you lived. I can't comment on your beliefs and attitudes and if I did, I apologize. Yet fundamentally should homes be flipped for profit? Definitely a temptation that is hard to resist. Making a honest living living within a country's or a region's economic capabilities is a good rule of thumb. If you get lucky like Warren then what can I say? I think he also probably ponders his good fortune. How can you not? when you are visited by zillions. We all work within a system that should expect discipline and reflection and probably actually should not promote greed and get rich quick schemes upon doing so. Unfortunately it is not so. But C'est La Vie. Live and let live. | |
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| B.C. Real Estate Crashing Time to Sell !
Posted: 1/5/2009 3:00:53 PM | | I got my assessment in the mail today... no change from last year, so does that mean Victoria has leveled off? How much will my property taxes increase based on the same assessment.. probably lots! | |
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| B.C. Real Estate Crashing Time to Sell !
Posted: 1/5/2009 3:20:07 PM | I have two comments, opinions really...
1) Prices are still headed down, big.
2) Your taxes will go up, big. Taxes really have nothing to do with the assessment in the longrun. Taxes will have everything to do with the revenues needed to keep the city functioning. Also tax assessments do not necessarily reflect current market value. | |
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Xavery
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Joined: 4/22/2007
Msg: 90 | |
| B.C. Real Estate Crashing Time to Sell !
Posted: 1/5/2009 6:06:19 PM | | Poster 88 - I could not see that my assessment was a lot different either here in Vancouver. They tell you on the form how they calculate property taxes. I have noticed a lot of houses our for sale in my hood, but aren't moving, not like before. Perhaps, next year there will be more of a change. | |
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| B.C. Real Estate Crashing Time to Sell !
Posted: 1/6/2009 11:43:04 PM | My mortgage is locked in.. I am not looking to sell...where would I move to?
I have 3 young children...this community has been home for 4o years...I did not buy my house as a flip. It is my home.
Real estate types were not predicting Economic Crisis a few years ago...but I do recall in BC that they predicted sometime back in 2004/05 that the Vancouver market would probably be on the same path as that of Sydney, Austraila prior to the Olympics.
Sydney had at the time basically the same demographics, etc as Vancouver and had the same over inflated housing prices ...skyrocketing prices as Vancouver.....it would be the template to predict what could happen leading up to the Games.
The prediction based on the Sydney template was that 12-18 months prior to the start of the Games the market would peak. Then start to fall.... at @ 10% a year for a few years...eventually the market would recover...prices would go back up....not quite to the inflated prices.
Of course this did not factor in the Global Economic woes we are looking at today.
I would think pple have nothing to worry about if they are locked into a mortgage....save for a rainy day if they were to lose their income... and maintain a good relationship with your banker. Sit tight and ride it out.
I am sitting tight. | |
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| B.C. Real Estate Crashing Time to Sell !
Posted: 1/7/2009 7:05:06 AM |  the markets crashing did nothing for me.....time will tell....took the house of the market .....gonna be slum lord again instead.... | |
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| B.C. Real Estate Crashing Time to Sell !
Posted: 1/23/2009 9:34:33 AM | The listing prices are dropping quickly.
The actual sale prices are dropping.
The speculator Rats are definitely jumping ship.
If I was buying I would be offering 10% to 50% less than the asking price. | |
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| B.C. Real Estate Crashing Time to Sell !
Posted: 1/27/2009 7:03:21 AM | re msg 89,,,I find the assessment too high this year and will have to challenge it. Have challenged in the past and it is pretty easy....now if I can just remember how that song goes.......
Sitting tight here, but my home is a family home so it has more value to me than the market. Does that make my opportunity cost lower?? I figure that up or down, the house value will reflect its share of the market, 100000 loaves of bread no matter what the price, so if I keep it up it has that store of value, unlike other assets.
Municipalities have to tighten belts along with the rest of us. What is the fed:: work plan coming up? Is that borrowed money or found?? | |
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| B.C. Real Estate Crashing Time to Sell !
Posted: 1/27/2009 9:31:41 AM | Definitely the time to start considering a purchase.
I'm planning on buying a larger place than I have now,
but I'm also keeping an eye on the market & how much more prices will drop.
However, the key is to not sell. If you can.
I'm keeping what I have and rent it, as I have that opportunity in my grasp.
I lucked out and bought a new place just before the prices sky-rocketed a few years back.
Minimal mortgage left, some savings for a deposit. Secure job.
It really is a buyers market. | |
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| B.C. Real Estate Crashing Time to Sell !
Posted: 1/27/2009 9:51:47 AM | | Itll be even more of a buyers market next year. unfortunately. conspiracy theoriests have a lot more clout than you would want them to have. | |
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| B.C. Real Estate Crashing Time to Sell !
Posted: 1/27/2009 3:47:21 PM | Stats are that the market price will go down another 9% this year. we'll see about this. im a realtor but no ones an expert on whats going to really happen....
misskitty you re damn cute.. | |
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| B.C. Real Estate Crashing Time to Sell !
Posted: 1/27/2009 4:38:53 PM | I was out today looking at a nice little house that has room for everything I need with nothing extra (small house on a smaller lot - about 25 years old). The house just listed around $440,000. I have a very good realtor I've been working with who said I'd likely get into it for just over $420,000 currently.
I figure like DNUTS45 says that they're "going to drop 9%" (acutally I figured 10%).
So then the house will be worth $378,000 in another 12 months from now (420,000 - 42,000 @10% = 378,000.
My question is.... given that I presently rent at 1,000 a month, pay alll family expenses at about $2,000 a month, and can save about $1,000 a month maximum.... If a house is going to drop $40,000 in the next year.... wouldn't I be better off to stay out of the market? I mean, in the next year the house is expected to drop in value by more than two years of my maximum savings amount.
I considered offering $380,000 for the house on the theory that the seller should cover the 10% loss , but the realtor said not to bother unless I was willing to come up and meet the sellers more than two thirds of the way to their list price of $440,000....
ANY IDEAS greatly appreciated. I need to move pretty soon, I've been in temporary lodging for 18 months at present. | |
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| B.C. Real Estate Crashing Time to Sell !
Posted: 1/27/2009 5:02:24 PM | ^^^^^^^^^^^^^^
Bill the Card
Offer $$ 370,000 or less.
Another more motivated seller is just around the corner.
I hear foreclosures are just starting to slowly creep into the market. | |
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| B.C. Real Estate Crashing Time to Sell !
Posted: 1/27/2009 5:15:46 PM | Depends on where you want to live.
There are deals out there... people trying to offload investment property, offload rentals...and yes there are foreclosures out there.
I would sit tight for a while... I think by Olympic time the prices would be a good 10% lower than today. Again it matters where you live. Some neighbourhoods and communities are still popular and are holding on.
a townhouse in my neighbourhood went for $150K over the asking price May of 2008......by June the market peaked...and there is house 1 block away ...same street... that has been on the market for 6 months...just sold for 120K less the asking price.
sooooooo.. hold on...look around...deals out there...but watch the mortgage rates... I think for a first time buyer you could find a gem still. | |
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