# New property



## maddy1234 (Jan 15, 2011)

Hi All,
I am glad to see this website and thanks for all your valuable situation. I hope that you will definitely help me out from the current crisis I am facing.

We are the first time home buyers, and upon several visits to various properties, we are planning to buy a town house condo in Bayview Villas, near Markham. The sqft is 800 and the price is around 3,02,000. (including everything such as taxes, appliances etc)

Could you please let me know your feedback in terms of price and neighbourwood. Also, what would be the appreciation in this area in next 3 years.

Thanks for your advise..

Maddy..


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## I'm Howard (Oct 13, 2010)

http://www.mls.com

Impossibe questions to answer, that is like asking what will the winning numbers be on tonight's 649.


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## sprocket1200 (Aug 21, 2009)

800 sq ft. that is a deal! appreciation will be about 20-22% a year, just like on tv. do it!!!


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## kcowan (Jul 1, 2010)

maddy1234 said:


> ..Also, what would be the appreciation in this area in next 3 years.
> 
> Thanks for your advise..
> 
> Maddy..


If your timeframe is 3 years, you should rethink the purchase.

Long term appreciation should be close to GDP growth +- a %. But that graph would start in 1990. So if it is ahead now, look for a correction.


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## slacker (Mar 8, 2010)

sprocket1200 said:


> 800 sq ft. that is a deal! appreciation will be about 20-22% a year, just like on tv. do it!!!


Buy now, or be priced out forever !! (Just joking)

Be aware of anyone who tells you what (if any) the appreciation is. The real estate market had above average performance for the last 10 years. No one can say if it'll continue, or if it will return to historical norm.


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## the-royal-mail (Dec 11, 2009)

maddy1234 said:


> ... the price is around 3,02,000.


???


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## briant (Jun 23, 2009)

One measure of value that I've used is "$/sq ft". You'll have to do your own research, but in the area I live in, the average is $250/sq foot. I would tailor that metric to the specific home you're looking at, e.g. if it has nice flooring, or counter tops you might want to pay a higher premium for the house.


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## Jon_Snow (May 20, 2009)

Hate to say it( I own property in Vancouver), but prices are more likely to flatline or fall in the next three years than go up... higher interest rates are coming, and with it, massive listings, and with that much supply, lower prices are very likely. Not sure if I'm with Garth Turner and his 25% correction, but I think a bit of a real estate correction is around the corner.


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## sprocket1200 (Aug 21, 2009)

even if they flat line it is ok, you will have your 20% increase this year..!!!

oh, are you supposed to calculate the ROI over multiple years?? damn, Looks like real estate is heading back to its historical 8% or less...

mmm, in a couple of years will be time for some yummy cash deals....


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## Berubeland (Sep 6, 2009)

Appreciation is likely to be 0 or negative after this spring's buying frenzy to "beat the new mortgage rules" 

I really wish people would buy places to live in instead of gambling on appreciation of the real estate market. A whole whack of folks are going to be burned when the gravy train ends... and it always ends.

When the government of Canada increases mortgage requirements 2 times in one year and the banks are urging the Bank of Canada to do it, it's not a good sign.


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## Jon_Snow (May 20, 2009)

Berubeland said:


> Appreciation is likely to be 0 or negative after this spring's buying frenzy to "beat the new mortgage rules"
> 
> I really wish people would buy places to live in instead of gambling on appreciation of the real estate market. A whole whack of folks are going to be burned when the gravy train ends... and it always ends.
> 
> When the government of Canada increases mortgage requirements 2 times in one year and the banks are urging the Bank of Canada to do it, it's not a good sign.


I couldn't agree more.


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## GeniusBoy27 (Jun 11, 2010)

Actually, it all depends on time horizons and if you have the cash flow to handle the fluctuations. I think over the long run, housing values will appreciate by 2-3% with all its variations in-between.


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## K-133 (Apr 30, 2010)

> I really wish people would buy places to live in instead of gambling on appreciation of the real estate market.


I say the same about the stock market. One could argue the same for any economic market, really - financial and non-financial.

Speculation is an important part of our economic paradigm. Unless we shift into a different theory of economics (there are many others than growth), you need them.

"It takes all kinds of people to make the world go round"



> Actually, it all depends on time horizons and if you have *the cash flow to handle the fluctuations*. I think over the long run, housing values will appreciate by 2-3% with all its variations in-between.


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