Any advice for one looking at buying a home in Calgary? - Page 3
Page 3 of 3 FirstFirst 123
Results 21 to 29 of 29

Thread: Any advice for one looking at buying a home in Calgary?

  1. #21
    Member
    Join Date
    Dec 2016
    Location
    With Nellie
    Posts
    87
    Quote Originally Posted by gladaki View Post
    To be frank, no body knows where market will go.
    Correct.

    I'm not going to attempt to time the market in Calgary. I will buy when I find something suitable that will cost me approximately the same as my current rent or less. So I have $1400/month. to play with. That way it is less likely to negatively affect my savings and retirement plans, except that I'll lose 50k or so that could be working for me in a non-reg account.

    Excel Homes seem to be building some duplexs in Airdrie for low 300s which might work for us.

    Speaking of which...on new builds, is it always best to avoid every upgrade? Or do some upgrades make financial sense on a new home?


  2. #22
    Senior Member sags's Avatar
    Join Date
    May 2010
    Posts
    6,472
    Information on foreclosures on CMHC insured homes, which are the most likely homes to be involved in foreclosures.

    http://www.greaterfool.ca/2014/06/30/mortgage-prison/

    A couple of years ago, the CMHC ordered realtors not to list CMHC insured homes as repossessed homes.

    I don't know if that rule still exists today. It would make it challenging to ferret out repossessions.

    https://www.cmhc-schl.gc.ca/en/corp/..._id=TWT2013_53

    If a CMHC home sells for less than the insured value paid by CMHC to the bank, the CMHC seeks reimbursement of the shortfall from the original debtor. Gail Van-Oxade wrote an summary of the process :

    Course that doesn’t mean CMHC won’t come after you for any difference between what a property had to be sold for and what the insurance coverage was originally. Here’s how the process works:

    Once your mortgage has been in default for 3 months, legal proceedings are started through power of sale and the bank takes possession of your property.

    The bank sells the property and submits a claim to CMHC for any shortfall.

    CMHC gets a judgment against you as the defaulted mortgagor for this shortfall and CMHC tries to collect.

    If this attempt is unsuccessful, the account is forwarded to one of CMHC’s collection agencies.

    http://gailvazoxlade.com/blog/archives/5835

    The "fair market value" concept likely derives from the CMHC avoiding a legal battle over their mitigation of the debt on behalf of the debtor.

    Interesting that according to Garth Turner (in 2014 at least) Saskatchewan is the only province with non-recourse debt.

    Apparently, CMHC insured homes are considered recourse debt in Alberta.
    Last edited by sags; 2017-01-15 at 03:40 AM.
    Someone planted a tree a long time ago and now I sit in the shade.

  3. #23
    Senior Member
    Join Date
    Feb 2014
    Posts
    261
    Quote Originally Posted by bobsyouruncle View Post
    Correct.

    I'm not going to attempt to time the market in Calgary. I will buy when I find something suitable that will cost me approximately the same as my current rent or less. So I have $1400/month. to play with. That way it is less likely to negatively affect my savings and retirement plans, except that I'll lose 50k or so that could be working for me in a non-reg account.

    Excel Homes seem to be building some duplexs in Airdrie for low 300s which might work for us.

    Speaking of which...on new builds, is it always best to avoid every upgrade? Or do some upgrades make financial sense on a new home?
    You wont able to negotiate the house price on new houses, they may throw in 8 to 10k for upgrades. I have been told even for buying new houses it good to take real estate agent they can help in somethings. If you want to negotiate old houses are way to go

  4. #24
    Senior Member
    Join Date
    Mar 2012
    Posts
    3,098
    You can negotiate prices on every home, new builds included. New builds are more likely to throw in "upgrades" instead of cutting prices, but it all depends on the market. If the developer is hurting for money, and desperate to sell, they'll negotiate, if it's a hot market, they probably won't, since they can sell it to someone else.

    As for why foreclosures "aren't always a good deal". The way it works in Canada is the bank is required to get two appraisals done on the property before listing it and that sets the initial price. Often foreclosures are listed exactly the same as every other property around them. The bank is obligated to try for "fair market value", so they aren't going to jump at every low ball offer that comes in just to get it off the books.

    Heck, I've been to court ordered sales where the judge refused all the offers that were submitted and ordered the property to be relisted, even though the property had been listed a long time and had multiple offers from different people.

    As for predicting the future, you're correct, no one can do it. That being said if you see someone driving full speed towards a cliff, there comes a certain point where you've got a pretty good idea of what's going to happen if you understand physics. That's not to say some miracle won't happen, or that you made the determination before the "point of no return" and they are able to make a change, but that also doesn't mean the likelihood of what you are saying is impossible.

    Until interest rates start to rise, most markets have a good chance of recovery. In my opinion the low interest rates allow people to overpay. That being said, let's see the effects of the carbon tax on Alberta first, not to mention Justin's comments about "phasing out the oil sands" and finding out what he meant by that before we say everything is just fine in Calgary.

    In any falling market you always get tiny plateaus where people buy in to get the deals...it doesn't mean they are right, it's just reached the point where they think the prices are a deal. Most of the buyers tend to be fairly uneducated and are just going with their gut. Look at the fall of famous stocks like Nortel, breX, worldcom, Enron, etc. Many people bought in all the way down...it didn't change the fact that the market for them was still going down.

    As for not telling on the listing that it's a foreclosure, that was a stupid idea since they are usually the only listings which are sold "as-is, where-is" and have a schedule A to fill out. They've probably dropped that "requirement" fairly quick as I've never seen it initiated...but there weren't a lot of foreclosures back then either.

    Final note, Saskatchewan isn't the only none-recourse province, Alberta also is non recourse. There were lots of articles about jingle mail from Calgary last year.
    Last edited by Just a Guy; 2017-01-15 at 12:29 PM.
    I'm not JustAGuy (without spaces), or Donald, or <insert name here>.

  5. #25
    Senior Member sags's Avatar
    Join Date
    May 2010
    Posts
    6,472
    Alberta is a non recourse mortgage Province, except for CMHC insured mortgages.

    People can walk away, but CMHC will sue them to recover their losses.

    http://www.cbc.ca/news/canada/calgar...sing-1.3430867

    The best deals I have seen on a home, and a lot of other things like furniture, cars etc.........are estate sales.

    If the home is mortgage free and the beneficiaries want to acquire their money, good deals can be struck.
    Last edited by sags; 2017-01-15 at 10:39 PM.
    Someone planted a tree a long time ago and now I sit in the shade.

  6. #26
    Senior Member
    Join Date
    Jun 2016
    Posts
    253
    We have been renting for three years after downsizing and selling our home. We are leaving for a few months but the plan is to start looking for something to buy when we return.

    We have been watching the market. These are our observations for what it is worth. Condos are definately down. Single family homes under 450K are down a little depending on area. We have seen some attached villas in the 550K-700K range that have been on the market for two years. Listed and re-listed. Several have been empty for some time.

    I think one issue is that some sellers have a false sense of the market. Don't bother with them, you will waste your time. Move on to someone who has priced their home competitively to market and then do your deal. Don't be misled by the real estate boards DOM stat on a property. We know several that are showing 60-70 days. That simply means that the listing expired for a day and the property re-listed.

    Eighteen months ago friends put a low ball offer in on a foreclosure in Cochrane, a town just outside Calgary. The offer was rejected by the bank. That home was still on the market a few months ago but was currently listed for the same amount our friends offered. Foreclosure does not in any way indicate a better price. Indeed, depending on the previous owners or tenants, it could indicate a distressed property whose upgrade costs will exceed any imaginary savings from the foreclosure purchase.

    We purchased a home in Vancouver Lower Mainland in mid 80's just prior to it going into foerclosure. The price was right but we were well aware of the monies that would be required to bring it up to grade. It was not a economic downturn. Rather an alderman/notary who had difficulty distinguishing between trust funds and personal monies. I believe he was given some time in an institution to discern the difference
    Last edited by ian; 2017-01-16 at 02:51 PM.

  7. #27
    Junior Member
    Join Date
    Jan 2017
    Posts
    1
    This is spendlessearnmore. Can't seem to login and seems they changed password to at least 10 characters now.

    Anyways I have a house in Calgary (near Marlborough Mall) I'd like to sell between July to September this year otherwise I'll keep it. Love the area and could see settling my family there but I'd be willing to sell it for $250k (I had previous offers for $260k) without agents involved. Just lawyers and of course home inspectors. The house is 2 storey, 3 bedroom upstairs, basement has 1 bedroom and 1 exercise room, townhouse style with no condo fees, 1600 square feet and property tax about $1400/year.

    I have friends looking after the house that I don't charge rent for and they strongly want to buy the house though are borderline getting mortgage for it. They have first priority though unless someone pays more than $250k. (is that bad of me?)

    If you're interested send me a private message for the address and you can decide if it is right for you or not.

  8. #28
    Senior Member
    Join Date
    Jan 2015
    Posts
    206
    Quote Originally Posted by short stocks View Post
    This is spendlessearnmore. Can't seem to login and seems they changed password to at least 10 characters now.

    Anyways I have a house in Calgary (near Marlborough Mall) I'd like to sell between July to September this year otherwise I'll keep it. Love the area and could see settling my family there but I'd be willing to sell it for $250k (I had previous offers for $260k) without agents involved. Just lawyers and of course home inspectors. The house is 2 storey, 3 bedroom upstairs, basement has 1 bedroom and 1 exercise room, townhouse style with no condo fees, 1600 square feet and property tax about $1400/year.

    I have friends looking after the house that I don't charge rent for and they strongly want to buy the house though are borderline getting mortgage for it. They have first priority though unless someone pays more than $250k. (is that bad of me?)

    If you're interested send me a private message for the address and you can decide if it is right for you or not.
    All I have to is that the area is not very desirable.

  9. #29
    Member
    Join Date
    Dec 2016
    Location
    With Nellie
    Posts
    87
    Quote Originally Posted by gladaki View Post
    You wont able to negotiate the house price on new houses, they may throw in 8 to 10k for upgrades. I have been told even for buying new houses it good to take real estate agent they can help in somethings. If you want to negotiate old houses are way to go
    I wouldn't have been thinking about a new build, but I saw a 3 bed duplex with attached garage and walkout basement for around $335k, and that seems reasonable.

    I think I'd rather be in Calgary than up in Airdrie, though.


Page 3 of 3 FirstFirst 123

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •