Is now a bad time to buy?

:lol:

I know that you're bearish on real estate, but that's a reach even for you.

Why wouldn't you? GeoffG is talking about owning an investment, its fair to analyze it as such. RE markets are illiquid when compared to other options, and its nearly impossible to unlock only a portion of profits. If you are going to commit your capital for the long term, usually decades, its important to know what else that money could be doing.

Here is a handy table for those who refuse to give RE investments the same due diligence as any other asset;

https://docs.google.com/spreadsheet/ccc?key=0Aku6wWaKdvsQdEs5dTV4VTdIS3VDZ1lFTjk5NHhvQ3c[HTML_REMOVED]authkey=CJ6p3aUE[HTML_REMOVED]hl=en[HTML_REMOVED]authkey=CJ6p3aUE#gid=0

Why wouldn't you? GeoffG is talking about owning an investment, its fair to analyze it as such. RE markets are illiquid when compared to other options, and its nearly impossible to unlock only a portion of profits. If you are going to commit your capital for the long term, usually decades, its important to know what else that money could be doing.

Here is a handy table for those who refuse to give RE investments the same due diligence as any other asset;

https://docs.google.com/spreadsheet/ccc?key=0Aku6wWaKdvsQdEs5dTV4VTdIS3VDZ1lFTjk5NHhvQ3c[HTML_REMOVED]authkey=CJ6p3aUE[HTML_REMOVED]hl=en[HTML_REMOVED]authkey=CJ6p3aUE#gid=0

nice little chart, but it's missing one important thing - as a rental business you can write off most of those expenses as legitimate business costs.

that will change your ROI pretty significantly.

Why wouldn't you? GeoffG is talking about owning an investment, its fair to analyze it as such.

Treating a primary residence as an investment is for fools. There are many reasons for that, but one of them is …

RE markets are illiquid when compared to other options, and its nearly impossible to unlock only a portion of profits.

Kn.

Treating a primary residence as an investment is for fools. There are many reasons for that, but one of them is …

Kn.

I dont know if you're pointing this out to me, I am certainly in agreement with you.

I was speaking from the perspective of purchasing a property as an investment based on sound fundamentals.

This is more or less impossible anywhere in BC today, unless you choose to conveniently ignore some facts, and fudge the accounting in favour of buying.

English people.

English people.

Find a building you like.
Find a unit you like.
Find the real cost of owning the unit, don't lie to yourself.
Compare this to the cost of renting said unit (look on craigslist, odds are good similiar unit are up for rent, often even the same unit.)

If the cost of renting the same unit is significantly cheaper (as it likely is) consider if paying a monthly "premium" to own a box is something you really want.

Also, to elaborate on my own situation; real cost of owning.

I bought a box in 09, at a discount, and with a favourable mortgage rate. My monthly cost of owning was about $50 cheaper than renting a similar unit. 1 special assessment, 2 strata hikes, and significant increase in utilities and that $50 a month swung to a $75 premium in a hurry.

Since its now supposedly "worth" 10-15% more, the numbers if I were to buy today would be even less favourable.

Edit… I suppose to be fair, I should also account for the possible increase in rent I may have incurred during the same period. Either way, its doesn't paint a much more favourable picture for buying, rent increases have been pretty timid.

Find a building you like.
Find a unit you like.
Find the real cost of owning the unit, don't lie to yourself.
Compare this to the cost of renting said unit (look on craigslist, odds are good similiar unit are up for rent, often even the same unit.)

If the cost of renting the same unit is significantly cheaper (as it likely is) consider if paying a monthly "premium" to own a box is something you really want.

this

makes sense.

This is more or less impossible anywhere in BC today, unless you choose to conveniently ignore some facts, and fudge the accounting in favour of buying.

I would disagree on "anywhere in BC" being too expensive there are lots of places just not in Vancover/okanagan/ the island

http://www.realtor.ca/map.aspx?[HTML_REMOVED]vs=VEResidential[HTML_REMOVED]beds=0-0[HTML_REMOVED]baths=0-0[HTML_REMOVED]owntg=-1[HTML_REMOVED]minp=0[HTML_REMOVED]maxp=0[HTML_REMOVED]area=smithers+bc[HTML_REMOVED]trt=2#acr:false;ac:false;baths:0-0;beds:0-0;fp:false;gar:false;pmin:0;pmax:0;rmin:0;rmax:0;openh:false;pool:false;stories:0-0;buildingstyle:;buildingtypeid:;viewtypeid:;waterfront:false;forsale:true;forrent:false;orderBy:A;sortBy:1;mapZ:9;page:1;mapC:54.7828008234501,%20-127.16812804341299;curView:;

maybe finding the job to support the mortgage payment will be harder but if you go to camp as many seem to be doing what's the dif?

you can get 60 ft of lakefront in smithers/telkwa [HTML_REMOVED]20min from town for well under a million like 6-700K but maybe you won't find a job to pay the mortgage ?

I would disagree on "anywhere in BC" being too expensive there are lots of places just not in Vancover/okanagan/ the island

maybe finding the job to support the mortgage payment will be harder but if you go to camp as many seem to be doing what's the dif?

you can get 60 ft of lakefront in smithers/telkwa [HTML_REMOVED]20min from town for well under a million like 6-700K but maybe you won't find a job to pay the mortgage ?

Facts:

I have the same job that I had in the LM. I've met many folks that have made the same move that I did.

A house comparable to mine would be over 1 million down there,I paid under 300k

There are plenty of jobs…all kinds,not just trades.

Simon, you're wasting your talents and skills down there. Don't tie yorself to some shitty condo in Cloverdale just because the area is familiar to you.

Facts:

I have the same job that I had in the LM. I've met many folks that have made the same move that I did.

A house comparable to mine would be over 1 million down there,I paid under 300k

There are plenty of jobs…all kinds,not just trades.

Simon, you're wasting your talents and skills down there. Don't tie yorself to some shitty condo in Cloverdale just because the area is familiar to you.

I keep on reading about your move, but I don't recall where it was to?

I keep on reading about your move, but I don't recall where it was to?

PG

PG

I went up there to visit and all the sheep were nervous when Hard Tack drove by

I went up there to visit and all the sheep were nervous when Hard Tack drove by

just like when the butcher visits the pigs on the farm

I went up there to visit and all the sheep were nervous when Hard Tack drove by

I'd never heard anyone say "this one reminds me too much of a woman till you came around. No more sheep for you. Maybe a goat next time.