# When did you buy your first house?



## BeautifulAngel (Jun 30, 2017)

I'm 24 years old and I'm currently saving for a house, I feel like I'm a little behind as I only started saving for a house this year.

When did you buy your first house and what tips would you give to a first time home owner?


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## james4beach (Nov 15, 2012)

I'm in my mid 30s and don't have a home, and no immediate plans to buy one. Partly this is because I'm not sure where I will be living in 5 years. I think before you buy a house, you need to be certain you will be staying at that location for at least a few years. I don't have the kind of job stability that requires, so I rent.

When I lived in downtown Toronto, the "you're richer than you think" bank kept trying to talk me into buying an expensive home and taking on a huge mortgage. I am very thankful that I didn't listen to them -- I eventually got laid off and couldn't find another good job in the city.

If I had bought a home, I would have been trapped there. To be honest I still can't understand how everyone is buying homes... are people's jobs really _that_ stable?

And if most jobs are really so much more stable than mine, perhaps people can send me some advice on where to work and have such great job security.


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## Ponderling (Mar 1, 2013)

Well, we waited. I am 51 presently.

I was in shared ownership arrangement where three of us were in on title and mortgage for a 3400sq. ft new build from 92-95.
Bad timing. I made it out with it having cost me on average about $900 a month, which was the going rate of a reasonable apartment at the time.

Rented, with partner, now wife, until 99. First a shared a house with two others, then an older modest apartment for just us.

In 99-03 we were transferred to for work to Australia.
The company paid for the cost of housing there, if we covered any ongoing housing costs in Canada. 
Sure, we said - we had no house to rent out in Canada.
So saved about $150K while there towards a house. 

Don't be in a rush towards your first house. 
Rent can give you heaps more flexibility for labour market opportunities. 

If mortgage rates trend upward and you are mortgaged up the wazoo you could have more mortgage on title than the house is market valued at.
It is called being under water.

In Canada you cannot just walk away from a mortgage. The bank will chase you for any loss it incurs.


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## AltaRed (Jun 8, 2009)

Ponderling said:


> In Canada you cannot just walk away from a mortgage. The bank will chase you for any loss it incurs.


I believe AB and SK (or maybe just one of them) still has non-recourse mortgages. Needs to be checked out.

Bought our first house at age 25 once we decided on starting a family. Have owned 7 more houses since that time and rented 3 times within that period (all 3 US based), all a result of corporate transfers, except the last one, which was a move post-retirement.

My advice: Never buy more than you need for the immediate 5-10 years. Being house poor is a terrible existence. Larger mortgage payments than necessary, higher utilities and insurance and property taxes, and more expense on stuff to fill it does not buy happiness. Be modest and enjoy your relationships, not keeping up with the neighbours and friends. Because of corporate transfers, many of our costs to buy/sell and re-locate were covered by the company BUT we never bought more house than we felt we needed (not wanted). That allowed us to completely wipe out mortgages by age 40.


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## LXG (Feb 16, 2017)

I bought a house in my late 20s. It was pretty foolish, as my mortgage was 4 times my salary at the time, and I had only been in the work force for a couple of years. While I could make the mortgage payments, it delayed my retirement savings quite a bit (although my retirement savings were delayed more by not taking the need for it seriously until my mid-30s than by my expenses). I was lucky, and my house appreciated in value (it could easily have gone the other way) and will be paid off in another 8 years (unless I decide to pay it off early). Despite its modest size (1200 sq ft bungalow), it is big enough to raise a family. I also love my location and my neighbourhood.

BA, I think you've said elsewhere that you are paying down credit card debt and saving for an emergency fund. I think most would agree that you should focus on paying down the credit card debt prior to saving up for a house, and I would want to save the emergency fund prior to saving for a house (although there are different opinions on here about emergency funds).


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## like_to_retire (Oct 9, 2016)

BeautifulAngel said:


> I'm 24 years old and I'm currently saving for a house, I feel like I'm a little behind as I only started saving for a house this year.
> 
> When did you buy your first house and what tips would you give to a first time home owner?


My tip to you would be to buy as soon as you can do so. Rents will continue to rise with inflation forever, but once you buy a house, you've locked yourself in, and there'll be no more increases for the rest of your life as long as you stay in the ownership game. You might eventually sell that home when prices are low, but the subsequent house you purchase will also suffer from a low purchase price, so it's a wash. Same situation if prices are high when you sell. Once you're in the system, you're good. Eventually you'll pay off your mortgage and your golden.

Bought my first home in 1976. Owned multiple homes in three different cities as I moved for my career. Haven't had a mortgage for a long time. 

ltr


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## agent99 (Sep 11, 2013)

like_to_retire said:


> Bought my first home in 1976. Owned multiple homes in three different cities as I moved for my career. Haven't had a mortgage for a long time.
> 
> ltr


We bought our first home about 10 or 11 years after I graduated. $2800 down (10%) Nice house, but we decided to move out of suburbs after 7 years and have been in 2nd house ever since. 

No mortgage for close to 30 yrs! However, utilities and taxes are substantial. As are maintenance and renos. Don't forget to take those into account when making a home purchase.


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## BeautifulAngel (Jun 30, 2017)

AltaRed said:


> I believe AB and SK (or maybe just one of them) still has non-recourse mortgages. Needs to be checked out.
> 
> Bought our first house at age 25 once we decided on starting a family. Have owned 7 more houses since that time and rented 3 times within that period (all 3 US based), all a result of corporate transfers, except the last one, which was a move post-retirement.
> 
> My advice: Never buy more than you need for the immediate 5-10 years. Being house poor is a terrible existence. Larger mortgage payments than necessary, higher utilities and insurance and property taxes, and more expense on stuff to fill it does not buy happiness. Be modest and enjoy your relationships, not keeping up with the neighbours and friends. Because of corporate transfers, many of our costs to buy/sell and re-locate were covered by the company BUT we never bought more house than we felt we needed (not wanted). That allowed us to completely wipe out mortgages by age 40.


Wow congratulations, owning a house at 25 is amazing! 

I completely agree with never buying more than what you need. There is no point in buying a huge house if you can't furnish it.

I also feel like for a $200,000 home I should save $500/month for maintenance and repairs, I like being prepared. 



LXG said:


> I bought a house in my late 20s. It was pretty foolish, as my mortgage was 4 times my salary at the time, and I had only been in the work force for a couple of years. While I could make the mortgage payments, it delayed my retirement savings quite a bit (although my retirement savings were delayed more by not taking the need for it seriously until my mid-30s than by my expenses). I was lucky, and my house appreciated in value (it could easily have gone the other way) and will be paid off in another 8 years (unless I decide to pay it off early). Despite its modest size (1200 sq ft bungalow), it is big enough to raise a family. I also love my location and my neighbourhood.
> 
> BA, I think you've said elsewhere that you are paying down credit card debt and saving for an emergency fund. I think most would agree that you should focus on paying down the credit card debt prior to saving up for a house, and I would want to save the emergency fund prior to saving for a house (although there are different opinions on here about emergency funds).


I agree that I should pay off my credit card before saving for a house and currently I have two TFSA'S one for emergency fund and one for rainy days. Once I pay off my credit card balance ($400), I'll put the money I was putting towards my credit card to savings for a house.

I'm glad everything worked out with your mortgage 



like_to_retire said:


> My tip to you would be to buy as soon as you can do so. Rents will continue to rise with inflation forever, but once you buy a house, you've locked yourself in, and there'll be no more increases for the rest of your life as long as you stay in the ownership game. You might eventually sell that home when prices are low, but the subsequent house you purchase will also suffer from a low purchase price, so it's a wash. Same situation if prices are high when you sell. Once you're in the system, you're good. Eventually you'll pay off your mortgage and your golden.
> 
> Bought my first home in 1976. Owned multiple homes in three different cities as I moved for my career. Haven't had a mortgage for a long time.
> 
> ltr


I feel like if I hurry to buy a home I won't have enough money for repairs, home maintenance, or much else really.
With renting repairs, and maintenance is included in my rent. 



agent99 said:


> We bought our first home about 10 or 11 years after I graduated. $2800 down (10%) Nice house, but we decided to move out of suburbs after 7 years and have been in 2nd house ever since.
> 
> No mortgage for close to 30 yrs! However, utilities and taxes are substantial. As are maintenance and renos. Don't forget to take those into account when making a home purchase.


I will definitely keep all of that in mind, thank you for sharing your experience.


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## AltaRed (Jun 8, 2009)

BeautifulAngel said:


> Wow congratulations, owning a house at 25 is amazing!
> 
> I completely agree with never buying more than what you need. There is no point in buying a huge house if you can't furnish it.


FWIW, it was a cheap duplex in Burlington, ON, had a fuse box rather than circuit breakers, aluminum electrical wiring, and was draftier than swiss cheese. A POS built in 1973 and barely a year old at the time. I had to re-caulk all the windows AND add a second sliding patio door (the existing one was single pane with aluminum frame). The original owners obviously didn't have a clue (didn't have a learner's license to own a home). But we survived that one to move on to the next one, and then the next one.


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## heyjude (May 16, 2009)

I bought my first home at age 33.75 years, when I had become established in a job that I knew had staying power. Prior to that time, I had moved 11 times and lived in three countries. I had been saving for the down payment for about 10 years and was able to put down $60K on am $85K house (the simplest house in a good neighbourhood). Mortgage interest rates were 10.25% so I chose a 6 month term for my $25K mortgage. After that I had an 8.75% APR for one year. By living frugally (no house improvements, no vacations) I was able to pay off the balance at the end of that term. Hence, I was mortgage free in 18 months. I lived in the house for 20 years and sold it for 3 times the purchase price. 

Rule #1 in my book: don't buy until you can be pretty sure you can live in it for 5 years. 10 years is better. 
Rule #2: don't buy too much house. There is no joy, only anxiety, in being house poor. 
Rule #3: location, location, location! 
Rule #4: note the high interest rates, that made it imperative to minimize the life of the mortgage. This could happen to you. The interest rates we have experienced for the past several years are at the extremes of low, and they WILL increase, perhaps as early as next week. Are you ready for higher payments?
Rule #5: sh*t happens. My roof leaked, my garage almost burnt down. Be prepared for significant maintenance and repair bills, especially in a "character" (read: old) house. YouTube has great plumbing tutorials, but my homeowner experience predates YouTube.

That said, I loved owning my home despite the challenges. I had wonderful neighbours, a great area close to work, and I was able to express my personality through renovations, decor and landscaping, once the mortgage was paid off. No regrets!


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## BeautifulAngel (Jun 30, 2017)

AltaRed said:


> FWIW, it was a cheap duplex in Burlington, ON, had a fuse box rather than circuit breakers, aluminum electrical wiring, and was draftier than swiss cheese. A POS built in 1973 and barely a year old at the time. I had to re-caulk all the windows AND add a second sliding patio door (the existing one was single pane with aluminum frame). The original owners obviously didn't have a clue (didn't have a learner's license to own a home). But we survived that one to move on to the next one, and then the next one.


I'm not sure what FWIW means, sorry. Wow well seems like you are very handy, sorry to hear that the house was a piece of work.


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## heyjude (May 16, 2009)

FWIW = for what it's worth


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## BeautifulAngel (Jun 30, 2017)

heyjude said:


> I bought my first home at age 33.75 years, when I had become established in a job that I knew had staying power. Prior to that time, I had moved 11 times and lived in three countries. I had been saving for the down payment for about 10 years and was able to put down $60K on am $85K house (the simplest house in a good neighbourhood). Mortgage interest rates were 10.25% so I chose a 6 month term for my $25K mortgage. After that I had an 8.75% APR for one year. By living frugally (no house improvements, no vacations) I was able to pay off the balance at the end of that term. Hence, I was mortgage free in 18 months. I lived in the house for 20 years and sold it for 3 times the purchase price.
> 
> Rule #1 in my book: don't buy until you can be pretty sure you can live in it for 5 years. 10 years is better.
> Rule #2: don't buy too much house. There is no joy, only anxiety, in being house poor.
> ...


Wow! You're a hard worker and dedicated, I like that! I bet it was an amazing feeling to pay off your mortgage and owning your own home. 
Thank you for the tips I will definitely keep those in mind


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## BeautifulAngel (Jun 30, 2017)

heyjude said:


> FWIW = for what it's worth


Thank you  I'm really not good at net speak or the short forms.


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## Zipper (Nov 18, 2015)

Bought our first house when I was 30... (1973)

Moved after 10 years into a new build and big lot...(1983)

Big mortgage rates gave us incentive to be mortgage free...(1993)

Watched it grow over the years into a forever home after many upgrades and landscaping.

It is a 5 level backsplit and the stairs and gardening have kept Mrs. Zipper and I young after all these years.


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## STech (Jun 7, 2016)

At 26 I had a bunch of money saved up, and was a year into a secure full-time job. I was dead set on putting down 25%, which set my maximum price, and didn't let the mortgage broker or real-estate agent convince me to spend more. It was a nice house, but a starter home. Smartest thing I did was to rent out upstairs while I lived in the basement. I was single, and didn't care if I lived in a basement, nor did I care about all the dumb comments from people who thought I was struggling and confined to living in a basement.

At 29, I could've paid off the house, but instead I put some money into renos and I was getting married. So at 30 the house was paid off, and we had no more tenants. 3 months after being mortgage free, my wife came across our supposed dream home while visiting a friend, and she booked a showing the next day, and then decided to tell me about it :biggrin-new:

Long story short, we bought the house. 2 acre country property, with an 8 year old and very well built home, and in a great area where I wanted my daughter to grow up. For this house, I was able to put down 60%, but I honestly was still very nervous about everything. All I could think in my head was 1/2 million dollar home is crazy for a young family. First year of ownership wasn't really that fun, our finances were razor thin, and I didn't enjoy that the least bit. I knew we had plenty of equity to help us out, but it's still a very crappy feeling.

We watched our budget very carefully, and I got a promotion, which meant a month after my 36th birthday, I made the absolute last mortgage payment I'll ever have, as we have no intentions of ever moving or upgrading from this property. So all in all, 10 years from start to finish. The BIGGEST helping factor, was buying that starter home, renting it out for a few years, and renovating it for a good profit. My wife makes a very average salary, and I do OK, but certainly nothing to write home about.

Plan, budget, and work hard, is the best advice I can give. You're gonna hear A LOT of dumb comments from the Joneses for not keeping up with them. But I tell you in the end, listening to them worry about mortgage rate increases, and a housing crash, just makes me giggle on the inside.


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## like_to_retire (Oct 9, 2016)

heyjude said:


> ........
> Rule #4: note the high interest rates, that made it imperative to minimize the life of the mortgage. This could happen to you. The interest rates we have experienced for the past several years are at the extremes of low, and they WILL increase, perhaps as early as next week. Are you ready for higher payments?
> ...


Yeah, IIRC (if I recall correctly) my first mortgage term renewal was in 1981 and the offers we around 21.25% for five years and around 17.75% for one year. I wanted to take the wonderfully low 17.75%, but all the media insisted that rates were going much higher. I knew I could afford the 21.25%, but would likely lose the house if it was any higher, so I took the five year term. I bought out the mortgage after three years and paid the penalty of three months interest. Expensive stuff.

I wonder how many existing home owners would go under if this happened again.

ltr


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## birdman (Feb 12, 2013)

Married at 23 and bought our first house at 25 in 1970 for $18,500. in the Dunbar area of Vancouver. Had $3000. as a DP, borrowed $5,000., and assumed $10,000. in existing mtge. My salary was $5500. PA and my spouses was $3, 000. Put all my wifes salary on the loan and mortgage for 3 yrs when she became a mother and homemaker. Rapid inflation and promotions for myself enabled us to pay the house off in full by the age of 30. Sold and relocated a couple of times since but a year ago the house was worth $3 million. Old house on a 33 x 120 ft lot but in one of the best locations in the city.
One of the issues now is that people seem to be marrying later in life so the two incomes are missing compared to when we bought. Also, we were fortunate in that we bought and paid off the house before the high inflation of the 1980's.


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## nobleea (Oct 11, 2013)

I would have been 28 when I bought my first condo. Purchase price would have been around 3X income.

My wife to be and I bought our first house together a couple years later and we sold the condo.
In my mind, buying in your early to mid twenties isn't a fantastic idea. You'll more than likely switch jobs at least once. Maybe across the city, maybe across the country. You'll meet someone and find you want a different 'together' place. Just rent and save up.

A lot of young couples/people buy the total fixer upper for their first house. We did that. I notice that insurance companies are getting stingier and stingier when it comes to insuring older houses. Must have 100A electrical service (older homes will have 50 or 60A). They won't insure cast iron drain lines (every home built before early 70's will have this). No galvanized pipe. No aluminum or knob and turn wiring. 
They'll grandfather old homes that are still with owners who insured with them before these changes, but no new ones.
It's weird, because in any given canadian city that's probably 20-30% of the homes in existence.


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## kcowan (Jul 1, 2010)

I was 26 and single when I bought my first house. Got married 6 months later and stayed in the house for 3 years. Moved and bought 2nd house, stayed for 2.5 years. The third city for 8 years. Finally 4th city for 15 years. Now renting with 2nd wife in our 5th city. Purchased a snowbird condo in 2007.


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## Mukhang pera (Feb 26, 2016)

STech said:


> At 26 I had a bunch of money saved up, and was a year into a secure full-time job. I was dead set on putting down 25%, which set my maximum price, and didn't let the mortgage broker or real-estate agent convince me to spend more. It was a nice house, but a starter home. Smartest thing I did was to rent out upstairs while I lived in the basement.





frase said:


> Married at 23 and bought our first house at 25 in 1970 for $18,500. in the Dunbar area of Vancouver. Had $3000. as a DP, borrowed $5,000., and assumed $10,000. in existing mtge. My salary was $5500. PA and my spouses was $3, 000. Put all my wife's salary on the loan and mortgage for 3 yrs when she became a mother and homemaker. Rapid inflation and promotions for myself enabled us to pay the house off in full by the age of 30. Sold and relocated a couple of times since but a year ago the house was worth $3 million. Old house on a 33 x 120 ft lot but in one of the best locations in the city.
> One of the issues now is that people seem to be marrying later in life so the two incomes are missing compared to when we bought. Also, we were fortunate in that we bought and paid off the house before the high inflation of the 1980's.


My situation bears similarities to the above. Married while at university and, in June 1976, used our student loans and savings as a down payment on a triplex in the Kitsilano area of Vancouver (built in 1912; 33' x 110' lot). Many here on CMF like to say that only idiots buy duplexes or triplexes, but it was a good move for a couple with little income. Because we were looking for a NINJA loan (no income, no job, no assets), that meant we had to look for vendor financing. Against a $70,000 purchase price, our vendor agreed to an A/S (agreement for sale) for 5 years at 11%. The monthly payments were $500.53. We rented the basement for $200/mo., the upstairs for $350 and lived on the main floor. It was still a bit of a stretch. We parked our car in the backyard (no garage) for the first year and there it sat for the first year because we did not have the $100 ICBC wanted to insure it. And gas was 67 cents a gallon! The effect of the first "energy crisis". Riding the bus in Vancouver cost 25 cents and was a fair deal. 

Sold the Kits house in 1979 for $95,000 and paid $110,000 for a single-family house on a 60 x 110 lot in MacKenzie Heights area of Vancouver. Close to Dunbar where frase lived. It was soon thereafter that things got a bit crazy. Prices rose quickly, but soon interest rates went crazier. The prime went to 22.75%. Our Heloc (used to finance a down payment on a rental property) was Bank of BC prime plus 1.75%, for a total of 24.5%. On our principal residence we were happy to assume a B of M first mtge. with a principal balance of $62,500 at a very low interest of 10.25%. House prices soon doubled. I would guess our place could have been sold for about $275,000 had we timed it right around early 1982. A year or so later it was down to half of that. The house across the street (same size lot, but built in the 1970s instead of 1914 like ours) went on the market (estate sale) for $450,000. They turned down an offer of $419,000. The place sat empty for 2 years before finally selling for $250,000. 

In those days everyone was crying the blues about the devastation of the Vancouver real estate market, predicting it was over, done, and we would never again see such prices. Many who lost their shirts said they would never again buy real estate and only a fool would do so. We sold out MacKenzie Heights house in 1989 for $525,000. So prices did come back. With a vengeance. We moved to Adera St. (near W. 50th) in South Granville. Lot size 64.7 x 135'. A 1928 house. Paid $770,000. It was soon announced that YVR was to get a "third runway" one mile closer to Vancouver. That did it. Sitting on our back deck we could already hear quite a bit of jet noise both on takeoffs and landings. A new runway a mile closer to us? Forget it! We cried NIMBY (not in my backyard), NIMTO (not in my term of office) and BANANA (build absolutely nothing anywhere near anyone). We sold in what was again in a depressed market, accepting $620,000 and scurried back to MacKenzie Heights. Now you might think that sounds nuts to accept a loss of $150,000. We looked at it that the depressed market affected not only our house, so we would also be paying a lower price to relocate. We bought out next place (built in 1989 on a 32.5 x 127' lot) for $535,000.

FWIW, last time I looked, BC Assessment values the Kits house at about $2.2 million, the first MacKenzie Heights house (which now has a new house on it) at $3 million for the land and $2 million for the building and the second MacKenzie Heights house at about $2.6 million. I will say I find that a rather steep price for just a postage stamp of land. The space between the houses is almost nothing and it's not exactly private. And, while today that shopworn term "bubble" might be apt, today's prices will look cheap in another 20 years or so.

So, in brief compass, I am all for getting into real estate while still young. When we stuck our necks out to buy our first house, my wife was worried about what would become of us if we could not keep up with the payments. She accepted my view that, worst case scenario, we'd get foreclosed off the title and maybe have a small deficiency judgment to pay. More likely, we would be able to sell before getting foreclosed, breaking even or even making a small profit. She also accepted my view that in our early 20s we would have lots of time to recover. 

For the real estate cognoscenti, let me say that I recognize it's a misnomer to speak of an agreement for sale being "foreclosed". That applies only to mortgages. The remedy for an A/S in default is to seek "cancellation". But foreclosure is a term more widely understood.


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## rl1983 (Jun 17, 2015)

Purchased a condo at 27, had 20% down. Still here haha. The market appreciation in the past few years has made it impossible for me to move up and into a townhouse in my dream neighborhood, but I think I'm getting away with murder paying $800/month mortgage while co-workers are paying double that for a rented basement suite. So not all bad.


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## investorted (Feb 27, 2017)

like_to_retire said:


> Yeah, IIRC (if I recall correctly) my first mortgage term renewal was in 1981 and the offers we around 21.25% for five years and around 17.75% for one year. I wanted to take the wonderfully low 17.75%, but all the media insisted that rates were going much higher. I knew I could afford the 21.25%, but would likely lose the house if it was any higher, so I took the five year term. I bought out the mortgage after three years and paid the penalty of three months interest. Expensive stuff.
> 
> I wonder how many existing home owners would go under if this happened again.
> 
> ltr


21.25% interest rate ? :O shocking as per today's standards.
if interest rates increase to that level again, it will not be the question of how many people would go under, but how many people would stay above.


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## like_to_retire (Oct 9, 2016)

BeautifulAngel said:


> I feel like if I hurry to buy a home I won't have enough money for repairs, home maintenance, or much else really.
> With renting, repairs, and maintenance is included in my rent.


Sure, but remember, the landlord doesn't rent apartments for cost. It's a business. They want to be compensated, so you're paying _their_ mortgage, repairs, maintenance, and a profit. I think it's better to pay off your own mortgage, rather than someone elses. 

Time is what makes home ownership work for you. Just as one poster in this thread reveals that he was: _Married at 23 and bought our first house at 25 in 1970 for $18,500_, you can see that if he had decided to rent instead over these many years, he would now be paying the rent rates of day. The $18,500 paid for a house in 1970 seems like pocket change today. That's why you need to get into the game and stay in it for many years. It will pay off eventually, so you can tell people in the future what you paid for your home back in 2017 and everyone will laugh because most people will be keeping that amount in their chequing accounts.

ltr


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## AltaRed (Jun 8, 2009)

We shouldn't get into the rent vs buy debate but it can be more profitable to rent and invest the capital otherwise spent on a house in the in the capital markets instead. Renting is more common than ownership in Europe for example. Of course, one must have the discipline to invest well and consistently along the way and therein lies the weakness. Ownership is forced/disciplined savings. Mind you, it is easy to also go amuck sinking $100's of thousands of dollars into a house too.... upgrades, maintenance, etc, etc, etc. 

There is not necessarily a good answer because much of it also depends on regional influences. Not much money would have been made on RE in places like Saint John, NB. Different story in the economic engine regions of Canada. Overall, I think I have won more often owning than renting, so who knows.


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## like_to_retire (Oct 9, 2016)

AltaRed said:


> ...Of course, one must have the discipline to invest well and consistently along the way and therein lies the weakness. Ownership is forced/disciplined savings.....


And there's the rub. IMO, ownership wins because of forced savings over long periods of time...

ltr


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## The Black Wizard (May 16, 2017)

I'm 37 and have actually never owned a place yet. I live in Toronto and find the market to be overpriced (we can argue about this but my views won't change). So instead of real estate with all of the savings from paying rent we invest in stocks etc. It's worked so far.... We also are in a situation where we have a little one on the way and are going to try and stay where we are for the next couple of years. My wife lives 50 metres from work....so why tinker with it now. Also we pay way below market value for our rental.

Will we buy somewhere.... it is on our 3-5 year plan! Let's see what happens.


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## CalgaryPotato (Mar 7, 2015)

It was in 2002 and I was 24. I still live in that house today. Glad I bought before Calgary houses tripled in price. I can't imagine how helpless young people who want to buy here now feel, let alone those in Vancouver or Toronto.


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## marina628 (Dec 14, 2010)

We bought our first home when we were 24 years old (1992) and sold it 9 years later for $27,000 more than we paid for it.


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## Mookie (Feb 29, 2012)

I bought my first condo for $102,000 in 1994 at age 25, when I moved out from my parent's place. 
I sold the condo in 1997 for $89,000 and bought a starter house with my wife for $237,000.
I sold the starter house in 2004 for $319,000, and bought our current house for $440,000, which could probably sell now for about $1,200,000.

Key things to consider:
- Only buy if you plan to stay in one place for at least 5 years. The costs associated with buying and selling are a killer. I only stayed in that first condo for 3.5 years, but it turned out to be a good time to up-size because the real estate market was down a bit at the time.
- Don't bite off more than you can chew when it comes to debt. The largest mortgage I ever had was $145,000 on the starter house. 
- Even with low mortgage rates, it's wise to do whatever you can to pay down your mortgage fast (assuming all higher interest debt is already paid off).

When we bought our current house in 2004, I thought for sure we were buying at the top of the market, but we needed more space, and were planning to stay for a long time, so we went ahead anyway with the plan to just ride out any corrections. In the past 13 years that we've lived here, the value has gone up tremendously, with only a few minor dips along the way. Whether the next 13 years will be similar, I have no clue.


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## joepipe (Jul 14, 2017)

I'm 38 and haven't bought yet, I recently signed a long term lease for 1900 monthly plus utilities and have $350k in safer dividend paying ETFs and stocks yielding me about $1500 monthly. I live in a 3 bedroom house in one of the best areas in Toronto and it costs me about $900 out of pocket per month. I have no interest in buying a house at these prices and blowing my brains out with a huge mortgage and monthly costs. 

My rent to house price ratio is outstanding and a no brainer for me. 

I'll buy when it makes sense for me.


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## new dog (Jun 21, 2016)

Bought a fixer upper in 1990, interest rates were over 11 percent and had no regrets. Didn't have a lot of money so my priority was replacing the roof and then working on the house bit by bit, year after year. I loved where I lived and wouldn't change a thing. Lived there for over 20 years and even if my house didn't go up a penny I was still far better off then renting.


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## SW20 MR2 (Dec 18, 2010)

Bought our first house in 2006 at 29 years old. We got married in 2004 and lived with my parents to save money for 2 years. In retrospect, it was a mistake because prices rose quicker than our savings. Paid $410k for a house located in the east end of Markham with a mortgage of $310k. We were paying it down aggressively and only had about $50k in the mortgage before we sold it in 2014 for $650k and bought a house in Unionville for $1.03M with a mortgage of $510k. Our current house is probably worth about $1.9M now (maybe a little less with the recent slowdown).


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## Ag Driver (Dec 13, 2012)

Deleted


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## nathan79 (Feb 21, 2011)

Bought condo at age 23 for 90K; sold last year at age 37 for 190K.


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## mortgagebroker (Aug 8, 2017)

BeautifulAngel said:


> I'm 24 years old and I'm currently saving for a house, I feel like I'm a little behind as I only started saving for a house this year.
> 
> When did you buy your first house and what tips would you give to a first time home owner?


Bought my first place at 23, I'm not 27 and own 5 properties. Have only for investment, and never lived in any. Carrying costs are high for any single person even at low purchase prices. I don't think you're behind at all not buying at 24. A lot of people have posted about being house-poor I think that is something you want to avoid. Multi-unit is the way to go for any young millennial IMO. Supplement the mortgage with another unit + you could potentially bring in roommate as well and you're living very cheap.


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## DigginDoc (Sep 17, 2015)

Bought my first in South Vancouver 1972 same area as Frase and Mukhang. Traded up a couple of times and built my last place before selling (too soon) and retiring to Penticton in 2000. Built on acreage. Sold in 2014 and moved to Langley. Couldn't keep the property up. Bought a new townhouse last year. 
Cheers
Doc


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## Rusty O'Toole (Feb 1, 2012)

Don't go by me as I bought my first house at 46 BUT I bought my first rental property when I was 22. 

My brother had a better plan. He bought a vacant lot for $2500 and paid it off over 2 years. This was a private deal with the owner. By the time it was paid off the value had doubled. This gave him enough cash when he sold it, to make a down payment on a nice house. This was in the late 60s. You would have to multiply the prices by 10 to get somewhere near today's values. But don't forget, wages were about 1/10 of today's.

It would be like buying a lot today for $25000 with $5000 down and payments of $800 a month for 2 years. Then selling the lot for $50,000 and making a down payment on a $200,000 house.


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## iamarealtor (Aug 12, 2017)

*power tool*

I am 25 and although I have been working in the real estate sector for the last 7 years I don´t plan to buy a house any sooner... So don´t feel like you are behind. Great tips in this post btw.


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## Freedom (Aug 22, 2017)

My wife and I bought our brand new townhouse in the Fraser Valley (Vancouver area) at age 22 (2013) for 290k with 5% down. At the time the government had a $10,000 cash incentive to be a first time home buyer of a new build. It was definitely a stretch as we had one child (wife stayed at home) and i worked an OK job. We were stretched to the max but made it work and lived an enjoyable life for a couple years enjoying the smaller things in life, like the beautiful area we lived in. 

We ended up moving to a house the property where I worked, rented the townhouse out for two years, and recently sold it, for 519k. Currently wondering what we should do. Housing prices in our area now are insane, being around 700-750k for a 1200sq ft outdated rancher on a 4000sq ft lot, 40 minutes outside Vancouver. Wondering if we wait for a "crash", get in while we can, rent for a while, invest in other things, etc. 

P.S., being house-poor sucks but it ended up working out in our favor. Depends on the level of discipline you have and the "risk" i guess you are willing to take. 

Good Luck.


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## awesomeame (Nov 15, 2011)

My first condo I bought at 25...sold it. First house at 29...sold it. 2nd condo at 34...living here now, but will sell in 2-3yrs. First townhouse at 36. (to be built)

Like others have mentioned I agree staying for at least 5yrs. Don't forget you'll also need money for furnishings, window coverings, and any renos. Window coverings are a ripoff, but it can be a big cost if you have a lot of windows! 

Matt


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## JLA91 (Jan 17, 2019)

I bought my first house on a 5 year fixed rate(currently in it and heading into final year of current mortgage) at 23.I have a little girl on the way now so that might delay things a bit along with probably double the interest rate when I go to renew but I am paying 30 percent more biweekly so it is highly affordable.Hoping the prices don't drop so I can move into a larger home to raise my family in in 5 years or so.


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## *PetePerfectMan* (Jan 24, 2019)

*Same old as you*



BeautifulAngel said:


> I'm 24 years old and I'm currently saving for a house, I feel like I'm a little behind as I only started saving for a house this year.
> 
> When did you buy your first house and what tips would you give to a first time home owner?


I'm 23 years old and currently renting a house. I was planning in buying a house or build a house before I enter my 30's. I'm working and saving money to make it happened. 

My tips for you, *WORK FOR IT*.


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## Mechanic (Oct 29, 2013)

In 1978. Fiance and I got building society loan (mortgage) and bought our first house before our wedding. I moved in and started to redecorate etc with some help from my Dad. Had it all done before the wedding. Can't believe we are only on our 5th place after 40 years. Never regretted buying a house and have guided my kids down the same path.


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## OnlyMyOpinion (Sep 1, 2013)

Mechanic said:


> ... Can't believe we are only on our 5th place after 40 years. Never regretted buying a house and have guided my kids down the same path.


We're still only in our first house after 40 years. We need to get a movin' :05.18-flustered: 
We have owned (and sold) multiple other properties over that time though. 
It was saying goodbye to our house mortgage 35 years ago that made a big difference to investable income.


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## Mechanic (Oct 29, 2013)

OnlyMyOpinion said:


> We're still only in our first house after 40 years. We need to get a movin' :05.18-flustered:
> We have owned (and sold) multiple other properties over that time though.
> It was saying goodbye to our house mortgage 35 years ago that made a big difference to investable income.


I hear you on that one. Whenever there was a rate drop, I would increase payments and or make lump sums. The last several years of mortgages I used variable rates. I have had no mortgage for about 15 years. I did use an LOC for a second place in 2008 but rented it out. Ironically, that was my only bad investment and lost money when I sold it.


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## Dilbert (Nov 20, 2016)

1980 I was 24 years old. House cost $40K in Pointe Claire, QC.


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