Anyone that tries to justify a cottage as an investment just does not get it. It is a lifestyle expense that sometimes pays off. If so great. If not, so what?
Originally Posted by kcowan
I was reading in the paper today that young people prefer condo's because they aren't interested in having families. I think this is right for now but as these people get older they will want out of these stupid condo's and want a real life and want a house with some space for a yard. As much as people like to pretend that they like the condo life most will eventually wish to have a real house of their own. So because of the cost of housing more condo's will be built and the trend will continue but the real money will be for those who hold onto their land long term.
Older people will move into condo's as well but many will hang onto a home as long as they can and will buy the condo when they are closer to deaths door if they must have one. For me personally I hope I never live in a condo.
We paid cash for our cottage and boat in 2008 ,it cost us nearly $10,000 a year for insurance property tax and storage for our boat.Definitely not an investment but we have enjoyed 5 wonderful summers with our children there and when we bought it we were thinking of the kids and their kids using it down the road.I enjoy the peace and quiet there and probably contributes to my ability to continue working as I do.I grew up with Ocean in our backyard and 33 acres of land ,I lived in an apartment first few years in ontario but I could never live in small space anymore.Even the home we moved to ,we have a huge acre lot and the Neighbour has 11 acres.This year we put a small garden in together and we sit outside enjoying our trees.HE is 85 and when we built 3 years ago it was his first neighbour in 30 years ,He is now trying to get a live in so they can stay in their home til the end.
I think the same for principal residence. Rental properties, different story, they provide a steady flow of income. For the most part, cottages, homes, do provide capital appreciation, however most home owners unfortunately do not utilize that equity they have built up in their homes.
Originally Posted by kcowan
Shiller worries about CDN RE: http://www.cbc.ca/news/world/story/2...ng-prices.html
Last edited by Cal; 2012-09-21 at 02:50 PM.
The CBC article is sobering. Thanks for posting Cal. Your point about all personal use property is a good one. Our house in Canmore is down about 25% from the peak in 2007 (the week we bought it I think ). I hope the decline is orderly and gradual, but no doubt it will happen.
The description "condo" seems to be misleading...........as many people assume that it describes a small unit in an apartment tower.
I don't know about other places, but in our location of London, Ontario..........."condo" describes everything from a highrise apartment unit...........or a townhouse unit of some shape or size...........or a full size bungalow attached to each other only by a garage. The townhouse and bungalow units often offer more floor space than single family homes.
The most predominant are mid price range townhouse condos, followed by the higher priced bungalow style..............and a very limited number of lower priced highrise units
A bungalow style condo offers all the same amenities as a full size home.........with none of the maintenance work.
People with kids like single family homes.............but most everyone else it seems don't want the work involved.
Of course it IS different here...........as $250,000 will put people into a nice home or very well appointed condo.
Last edited by sags; 2012-09-22 at 11:10 AM.
When I think of condo I do think of it as a unit in a bigger building and not a townhouse or bungalow. I do believe that a townhouse is a good option if you can't afford the land because at least it can offer you a small yard to tinker around in.