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View Full Version : What to do!???! - HELP



sdimedru
25-01-2007, 12:51 PM
I'm looking for some opinions and/or suggestions in relation to the housing/condo market.

I'm 21 years old, living in an apartment downtown with my girlfriend. I graduated from NAIT last spring and have been working at Stantec since. My girlfriend is finishing her BSc. at the UofA and plans to go back for a masters degree.

We've been talking lately, and are wondering if it's worth getting a condo, or if we should keep renting until she's done school. I have a feeling that we might miss our chance at a $300,000 condo now, and have to get the same one for $450,000 3 years down the road.

I also am investment minded aswell, and wonder if buying a condo now, could prove to be a good investment down the road? Or will the condo prices steady/drop, in which case I should wait!

Anyways, I'm hoping there are some forumers on here that might have experience with going into the housing market and could hand out some good advice!

Thanks in advance
Dru

ps: If I were to buy a condo, it would 100% be downtown.

IanO
25-01-2007, 12:59 PM
comes down to supply and demand.....and in edmonton the supply is relatively low and demand is high. We have a large net in migration and housing prices have pushed 1st time buyers and even many established buyers out of the housing market and into condos.

plus add in:

-more people wanting to live centrally
-expanding downtown work/live/play
-baby boom gen wanting less maintenance lifestyles


we wont see 50% increases like last yr but id bet 15-20% for another yr or 2 and then 5-10%.......then normal growth rates there on.

it is expensive to get in now, but we said that 3 yrs ago with $250,000 condos.

SteveB
25-01-2007, 01:10 PM
Buy now - Edmonton property is still undervalued compared to other major Canadian cities.....and I can see 10+% rises in price for the next 5 to 10 years.

sdimedru
25-01-2007, 01:37 PM
would you buy new or used?

IanO
25-01-2007, 01:50 PM
would you buy new or used?

new if you can, but that is not to say there are not some great older buildings out there......prices will generally be lower but condo fees higher.

sdimedru
25-01-2007, 02:02 PM
would you buy new or used?

new if you can, but that is not to say there are not some great older buildings out there......prices will generally be lower but condo fees higher.

yah Ive heard of older high rise condo's with fees as high as 600/mo. , somthing i don't think I could afford on top of a mortgage payment!

how long till new condo's fees get to be expensive?

Jeff
25-01-2007, 02:12 PM
older? how much older? If buying old scrutinize the reserve fund and the condo board - heavily! condo fees at $600/month is crazeeee! (go see another building - next)

concrete versus wood-frame construction - a key decision point

location, location, location

lifestyle choice - want kid(s), as in short-term/long-term investment (condo, not the kids :) )

snakes on a blog
25-01-2007, 02:15 PM
I'm in an older building and my condo fees are at $180/mo, so it depends. Generally, the older high-rise condos have the highest fees upwards of $300 to $400 / mo.

I would get into the market sooner than later and start off in an older building as the prices will generally be less. you may have to settle in an area that may not be your first preference. then, once in the market, your condo value will keep rising as you're looking for a more ideally suited unit.

Do your research! look at reserve funds, condo fees, location, maintenance of the common property...etc. to get an idea of how the condo is being managed and kept up. http://www.intheknowcondo.com/ is a great tool to start. good luck!

sdimedru
25-01-2007, 02:46 PM
I'm in an older building and my condo fees are at $180/mo, so it depends. Generally, the older high-rise condos have the highest fees upwards of $300 to $400 / mo.

I would get into the market sooner than later and start off in an older building as the prices will generally be less. you may have to settle in an area that may not be your first preference. then, once in the market, your condo value will keep rising as you're looking for a more ideally suited unit.

Do your research! look at reserve funds, condo fees, location, maintenance of the common property...etc. to get an idea of how the condo is being managed and kept up. http://www.intheknowcondo.com/ is a great tool to start. good luck!

appreciate it. thanks

DebraW
25-01-2007, 03:32 PM
I would say get in the market now. Prices will continue to increase for some time to come before they level off IMO.

Owning a home, a condo or a house is never a bad investment as long as you can afford it. Afford it now and afford it if wages donít meet expectations so I would caution that you need to be able to afford it when interest rates, condo fees and taxes rise as well.

I moved to Edmonton in the early mid-80s during the downturn and I remember our real estate agent taking us through many houses in affluent neighbourhoods that were on the market because they were in foreclosure, it was very sad to see peoples lives changed through a shift in the economy. The lesson I learned and have always kept in mind is to not over-buy as location and lifestyle can be found for a reasonable price as long as you do your research and are cautious.

Good luck and happy condo hunting!

RichardS
25-01-2007, 04:44 PM
Buy if that is what you want. The buy vs rent argument is much different than simply looking at what you can afford. It is more about how you want to invest. Real estate is a good investment in the long term. However, I know of several couples that woudl rather rent and let someone else deal with everything imaginable. A long term tenant is GOLD to a landlord, and you will get a lot of say in the building's operation and future w/o condo fees. Take that money and invest it elsewhere.

If you are serious about buying, buy now.

Caesar555
25-01-2007, 08:43 PM
There are more affordable options out there, even downtown. However, you may be looking at a smaller place, and if in an older building, more likely to have problems.
Do your research. Find out who is managing the building, get condo board minutes so you know what the issues are, and make sure the special assessment has been done so the building's problems are out in the open.
Don't wait, you're not going to see cheaper prices for a very long time, if ever. That is of course unless there is a major economic downturn which does not seem likely in the next few years (he says with fingers and toes crossed).

IKAN104
25-01-2007, 09:16 PM
Get in the market right away. Even if it's not your dream home, just get something. You can always move later.

No matter what you buy today, it will be more expensive next year.

Also I would recommend to buy at the top end of your budget because a 15% increase in the value of a $300,000 place is a lot more than a 15% increase in the value of a $150,000 place. If the budget gets too tight you can always downgrade in the future but at least you'll have earned that much more equity in the meantime.

grish
25-01-2007, 09:44 PM
i don't know about getting in the market right away. do you have enough for a downpayment?

if you have a $200,000 mortgage you will pay about $1500-$1700 in m-payments. To get to that level on a $300,000 property you will need to put down $100,000. Go get qualified for a mortgage first and then see if you can buy at these prices.

if you know you can, than we should be asking you how to swing that coming out of NAIT last spring you already have so much in your bank account? :wink: