http://canadianmoneyforum.com/ Everything real estate en Mon, 20 May 2013 02:23:55 GMT vBulletin 60 http://canadianmoneyforum.com/images/misc/rss.png http://canadianmoneyforum.com/ http://canadianmoneyforum.com/showthread.php/15548-How-does-a-mortgage-affect-credit?goto=newpost Fri, 17 May 2013 20:35:26 GMT A broker told me that a mortgage does not usually show up on a credit report and doesn't help establish a credit history.
Can anyone confirm or deny? ]]> Real Estate Koala http://canadianmoneyforum.com/showthread.php/15548-How-does-a-mortgage-affect-credit http://canadianmoneyforum.com/showthread.php/15488-Mortgage-rates?goto=newpost Wed, 08 May 2013 03:46:32 GMT What would you prefer? What would you prefer? ]]> Real Estate dogcom http://canadianmoneyforum.com/showthread.php/15488-Mortgage-rates http://canadianmoneyforum.com/showthread.php/15487-Is-a-home-mortgage-a-wise-idea-for-me?goto=newpost Wed, 08 May 2013 00:25:15 GMT I know everyone's situation is different (Do you really want/need a home?) and I'm usually the first to advise people selling their lives basically for massive mortgages however I just wanted the advice of some seasoned homeowners (or maybe seasoned renters who oppose home-owning? :P).

I just turned 24 and got the rather exciting news that my career will be keeping me here (In Halifax) for at least the next 4 years.

Situation:
Not married, 24 years old.
Currently employed as an engineer in the RCN with a salary ~$58k.
Bachelors Degree in Computer Science with NO student debt.
I have a Ford Ranger worth about $18k that I owe about $12k on.
Savings of about $5k.
Currently living in a fairly cushy apartment with live-in girlfriend (Who works retail) for $1000/month (I pay $600 plus $100 light and $40 internet, she pays $400)

Looking at:
There are currently homes in our area, great neighborhood and within a minutes drive to everything essential for sale.
Looking at an 8 year old 3 bedroom, 2.5 Bath 2 story with a fair size yard, garage and finished basement for $275k.
My girlfriend and I would both be supportive of renting the room out to one of our mutual friends who we have experience with living with before for around $350.
My employer would cover the $5000 CMHC mortgage insurance.

Would taking on such a large mortgage in this situation make sense? To me it always screamed no, but the longer I rent the more it feels like I'm throwing money into a fire that could be used to build up equity/something of value for myself. It also seems like given the current all-time low mortgage rates that it would be the best opportunity to get in now before they potentially rise (I know a lot of realtors are using this as their push/marketing statement, but it does have some logic). It also seems like given the market (Halifax), the quality and size of the house and the area that the price is reasonable enough not to plummet in case of another housing bubble.

Anyway, I'd love to hear your two cents whether its sobering criticism or words of encouragement. :) ]]> Real Estate Woody http://canadianmoneyforum.com/showthread.php/15487-Is-a-home-mortgage-a-wise-idea-for-me http://canadianmoneyforum.com/showthread.php/15479-When-to-give-up-on-the-correction?goto=newpost Tue, 07 May 2013 11:05:49 GMT I've had a downpayment for a house for over 10 years but have continued to wait because I always felt houses were over priced. In my area they all trippled in price while wages remained flat, a house that was 90 K is now 270K. I don't see the cost of ownership going down or peoples wages going up so I always thought they would come back in line with inflation. I'm starting to get pretty tired of waiting though, seems like they are just going to keep interest rates super low and keep lending.

If a correction is going to happen how long do you think it will take. If it's a year or two I could wait but if it might be 10-15 years I might as well just bite the bullet. ]]> Real Estate emperor http://canadianmoneyforum.com/showthread.php/15479-When-to-give-up-on-the-correction http://canadianmoneyforum.com/showthread.php/15463-Anyone-with-tips-for-finding-a-good-realtor?goto=newpost Sun, 05 May 2013 06:33:22 GMT So I'm in a bit of an unfortunate position right now.

I purchased a new home back in February and took possession Mid-April. I put my condo up on the market at the end of February and it still hasn't sold, so now I'm supporting both mortgages...not quite what I was hoping for.

My reatlor went on and on how confident she was we could sell my condo in 2 weeks and yet, I've had about 4 showings the entire time it's been up. It's not a run-down place by any means and in a pretty good location with 2 underground stalls, a nice amenities center, etc... I don't think I'm overpriced on it either.

Anyway, her contract was up May 1st so I think I might look elsewhere. She pretty much seems to be doing nothing but texting me if I get a showing to let me know the time and then doesn't even follow up on it to let me know anything about how it went.

Is it possible to have two realtors working for you - I assume not, but yet sometimes I see listings with like four realtors on the page.

I'd really like to get this sold ASAP and going into summer has me a bit worried. ]]> Real Estate ShannonC http://canadianmoneyforum.com/showthread.php/15463-Anyone-with-tips-for-finding-a-good-realtor http://canadianmoneyforum.com/showthread.php/15453-Rental-properties-do-you-personally-deduct-CCA-(Building-Depreciation)?goto=newpost Thu, 02 May 2013 21:53:21 GMT I asked my accountant if I can deduct depreciation on our buildings for rental properties we own. This is her response (below) - I trust her... I asked my accountant if I can deduct depreciation on our buildings for rental properties we own. This is her response (below) - I trust her opinion. I am curious if others deduct CCA on rental property and if so, why specifically? (I am assuming there must be some cases where it's advantageous to do so.)

"Yes you are allowed to deduct CCA on rental property, but CCA cannot be deducted to create a rental loss. Remember though that property appreciates in value (as a general rule) so when you go to sell that property at some point in the future you will have to recapture the CCA and thus will have a large rental profit in the year you sell. Because of this you may not find it beneficial, in the long run, to claim CCA. Especially because you are already in a low tax bracket you will not benefit much from the ability to defer tax with the use of CCA." ]]> Real Estate Addy http://canadianmoneyforum.com/showthread.php/15453-Rental-properties-do-you-personally-deduct-CCA-(Building-Depreciation) http://canadianmoneyforum.com/showthread.php/15445-What-happened-to-the-anticipated-boom-in-Alberta?goto=newpost Wed, 01 May 2013 22:37:37 GMT Since I have recently invested in a condo unit just outside of Edmonton, I am very curious as to what happened to the highly anticipated boom in... Since I have recently invested in a condo unit just outside of Edmonton, I am very curious as to what happened to the highly anticipated boom in Alberta. Lucky for me Don Campbell answered my question in his recent blog and here's a recap I found online for people who don't want to read the entire blog: http://www.viproperties.com/blog/why...nt-booming-yet

I'm quite happy with my investment so far and the rent covers management fees and mortgage for me so I'm not stressed over payments and stuff. I do wish to sell it in 2-3 years though.

Any opinions and thoughts on the market in Alberta? ]]> Real Estate chloev http://canadianmoneyforum.com/showthread.php/15445-What-happened-to-the-anticipated-boom-in-Alberta http://canadianmoneyforum.com/showthread.php/15439-How-big-of-a-mortgage-are-you-comfotable-with?goto=newpost Tue, 30 Apr 2013 14:29:41 GMT We just saw our SIL this weekend. She said she needs a bigger house to accommodate her growing family - mostly for the children toys and playing... We just saw our SIL this weekend. She said she needs a bigger house to accommodate her growing family - mostly for the children toys and playing area.

I asked her if she's done paying off her mortgage on her current home and she looked at me shocked and called me "sick". Her husband and her don't own their house. His mother owns a third of it.

Here's what bothers me. How can someone be so comfortable getting a bigger mortgage when they can't pay off a smaller one? We've always paid off our mortgage on a smaller condo/ house before contemplating buying a bigger one. Am I alone in this thinking???

My other BIL said to me that he will never be able to pay off his mortgage (over 500k). He is 40 years old now. How is he ever going to retire??

Maybe I'm a worry wart but I just don't understand my in-laws thinking. Can anyone please explain to me! ]]> Real Estate piano mom http://canadianmoneyforum.com/showthread.php/15439-How-big-of-a-mortgage-are-you-comfotable-with http://canadianmoneyforum.com/showthread.php/15411-Rent-to-own-proposition?goto=newpost Thu, 25 Apr 2013 06:14:50 GMT I currently am renting at a new residence after being a home-owner for 25 yrs however no/little cash because of divorce settlement.My landlords... I currently am renting at a new residence after being a home-owner for 25 yrs however no/little cash because of divorce settlement.My landlords haven't listed the property yet so I want to approach them with an appealing deal on a rent to own scenario.Because it is not their residence and they don't have a limited company,as I pay them directly,they might be looking for a way to not pay huge capital gains on the property. So I am wondering what options there are to benefit both them and myself as I have no down payment and I'm sure they want to pay as little tax as possible. ]]> Real Estate startingover48 http://canadianmoneyforum.com/showthread.php/15411-Rent-to-own-proposition http://canadianmoneyforum.com/showthread.php/15388-Buyer-wants-to-postpone-signed-and-agreed-closing-date-any-reason-for-us-not-to?goto=newpost Mon, 22 Apr 2013 14:50:20 GMT Hello The closing date for our property sale is in a few weeks (all the subjects were removed from the contract a few weeks ago). However my... Hello

The closing date for our property sale is in a few weeks (all the subjects were removed from the contract a few weeks ago).
However my realtor has informed me the buyers would like to postpone the closing date and put it back by a week, as the buyer of their property in turn needs to delay by a week.

My realtor says there's no consequences for us in doing so, and from out point of view it gives another week contingency to get things moved out of the apartment which is actually good.
However I would like a second opinion as throughout the entire listing and sale process my realtor has given me the impression they just want things finished simply and as soon as possible so they can get their payment.

We are not buying another property so there is no need for us to get the money earlier, there's also no mortgage so we don't have to pay a week's extra mortgage, however we would lose out on a week's worth of interest by not being able to put the money in the bank until a week later, so maybe we could do something like ask that calculated amount as compensation for agreeing to postponing the closing date.

But are there any other consequences we ought to be aware of before agreeing to postpone the closing date?


If we didn't agree to postpone the closing date, and the purchasers were unable to make full payment for our property by that date what would happen?
Thanks ]]> Real Estate mungbeans http://canadianmoneyforum.com/showthread.php/15388-Buyer-wants-to-postpone-signed-and-agreed-closing-date-any-reason-for-us-not-to http://canadianmoneyforum.com/showthread.php/15387-Rent-And-Buy-Need-your-advice?goto=newpost Mon, 22 Apr 2013 14:00:38 GMT Hello *Background:* I am 27 and have 2 sources of income (Full time job + small business). - As of 3 months ago i am now earning... Hello

Background:
I am 27 and have 2 sources of income (Full time job + small business).

- As of 3 months ago i am now earning $13,000-$14,000 per month (after tax which is slowly increasing every month as business is taking off).
- Total savings so far ($60,000 in Savings Account @ 1% nothing too fancy) (no real investment .. been thinking of investing some in index funds/etfs .. my rrsp and tfsa allocations are completely open - never invested in it)
- My monthly expenses ($1300 to parents to help them with their mortgage + $1500) --- Rest goes in saving
- I have no debt
- I do own a share in a house in the oakville area (my parents live in it -- valuation is around $850,000+ at the moment)

Situation:
So me and my wife are looking for a small place to move into. Our preference is oakville/burlington/milton area (2-3 bedroom townhouse or semi would be perfect). Our goal is to get something that we can pay off within the next 3-5 years so we are looking for in the range of like 250,000-300,000ish. Having said that, its almost impossible to find something in that range around this area unless its a condo. I personally prefer to live in a house.

Question
What i am thinking ... since i can't afford to buy something i want to live in (in oakville/burlington area) ... i should rent it instead. I can easily get something we are comfortable in for around 1500-1600 + utilities. To offset me paying my rent, i am thinking of investing in real estate as rental property in a more affordable area. Since i am not going to live in it i am then open to buying it in any location near by like brantford etc which may be more affordable and within my budget.

So my question is, is this something you would advice? What would you do in my situation? I know people have been saying house prices may stabilize and/or market may crash, having said that is it in my best interest to wait a year or so before buying investment property and save up on a bigger down payment? By next year if things go well i can potentially save $120,000+ in addition to my 60k that i have already saved.

Any advice would be appreciated. Thanks! ]]> Real Estate peanutbutter http://canadianmoneyforum.com/showthread.php/15387-Rent-And-Buy-Need-your-advice http://canadianmoneyforum.com/showthread.php/15382-truth-about-lump-sum-for-my-mortgage?goto=newpost Sun, 21 Apr 2013 05:44:19 GMT A year ago I took a mortgage for my house. Trying to be smart about my money and reading articles like this... A year ago I took a mortgage for my house.
Trying to be smart about my money and reading articles like this, I started to make lump sum payments in addition to my required payments.
By the end of first year I got all excited thinking how much money I saved by dumping my extra cash into my mortgage.
Today I was bragging about it to my dad. He smiled and asked me to check 1 thing: find out how much money I did actually save, then subtract total of my lump sum from that amount.
I was shocked when I saw the result. It's negative!

I don't actually save a penny on the total interest of my mortgage! In fact I pay more!
Yes my amortization period is shorter now, but only because I payed more money in my first year... My bank most love me: I took mortgage for 25 years, but will pay it back in 19. For them it'll be the same amount.

Easy to check, for example here.
Let's say:
Amortization Period 25 years,
Mortgage Amount $250000,
Interest Rate 2.7%,
Payment Frequency Monthly,
Total Interest Cost will be $93,524.97.

Now click on 'Add special payments': add Payment Period=1, Lump Sum=12000.
Let's see what I've saved by throwing $12,000 in in my first year.
Now Total Interest Cost will be $82,607.00
PLUS $12,000 that I threw in!!
It comes out as $94607 which is definitely more than $93,524.97.

By the way in the article that I mentioned above, we read this
"By paying an extra $50 a month over the life of the mortgage, John would save over $14,000 and pay off the mortgage two and a half years sooner"
Haha! Do your math $50x12monthsx22.5years = $13500. John saved $14,000? Where? Where did he save it?


Please tell me where I'm wrong. ]]> Real Estate Jocose http://canadianmoneyforum.com/showthread.php/15382-truth-about-lump-sum-for-my-mortgage