# trying to get into the market when everythings overpriced?



## jacno (Apr 19, 2012)

I live in winnipeg mb, canada. I'm a first time home buyer and i'm currently saving 20% downpayment.

I'm trying to invest into real estate yet i hear that prices were half of what they were in 2005! I'm displeased that i got to get into real estate investing while i'm in a bad market for buyers.

I wanted to know is there anyway around this? there must be a way to still make it into the real estate business in any market right? 

My plan is to save 20% to save on the pmi (private mortgage insurance, ei, chmc) for several reasons; 
-to save on mortgage to increase my cashflow
-i'm going to rent it out eventually
-my credit score is 627 and my broker told me i need 640 to quilify for chmc, but the thing is i want to buy a fixer upper and do the work myself. So if the market ever goes to garbage at least the house will still have a good chance of retaining the value i bought it for.

Anyone have any opionions?


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## Just a Guy (Mar 27, 2012)

http://www.easysafemoney.com/prepare-to-find-an-investment-property-in-any-market/


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

It seems there are always lots of RE pumpers in this country and even in CMF. Beware.

Investing in real estate? If you're talking about an urban house, prices are at all time highs right now. I don't see how this is a good time to get into this market. You should buy when prices are LOW.

Also look into the RE situation in the US. I think the same thing can easily happen here and I believe this is why the gov't has been propping up RE with CMHC, low interest rates and other such nonsense. Most of the people buying houses these days can't afford them and will be underwater if the gov't is eventually forced to raise interest rates.

You might be able to make some money if you buy something and renovate it yourself, but make sure you factor in your costs of time and materials and do all the math before making any decisions. Personally I think this is the worst time ever to buy.

As far as I can tell, it's RE agents who keep telling us how great the industry is. Yes, if you buy it's great for them. LOL.


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## Cal (Jun 17, 2009)

Assuming you stick to your rule of thumb, it really isn't an issue until you save your proposed 20% down for a property in a price range you are looking at.

Then, you will have to decide, rent for a year or two, or dive right in and buy. Market timing can misfire in RE as well as the markets.


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## GoldStone (Mar 6, 2011)

Just a Guy said:


> http://www.easysafemoney.com/prepare-to-find-an-investment-property-in-any-market/


How many times can you link the same site? You linked it about a dozen times by now. Are you trying to plug your own book? If so, put the link in your signature with a proper disclosure. That would be less spammy.


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## Just a Guy (Mar 27, 2012)

I personally like this site, and think it answers the question he had. I read the site daily and agree with most of it. Do I think a site like this needs promoting, yes. If you read his front page, he asks that if you like what he says, tell people, so I do.

If I find other sites that have information on it and that I read regularly, I also promote it (Like MoneySense.ca). I don't sell their magazine either, but I've pointed to it a number of times as well.

I notice though that the same questions seem to be coming up in different threads, asked in different ways, so I tend to repeat the same advice.


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## GoldStone (Mar 6, 2011)

Just a Guy said:


> Do I think a site like this needs promoting, yes.


So put it in your signature and be done with it.

To post the same link over and over again looks like spam, feels like spam, smells like spam.


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## Just a Guy (Mar 27, 2012)

I post to different articles on the site (I think there are a couple hundred or more), but if it makes you happy, I'll change my signature.


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## GoldStone (Mar 6, 2011)

It's not about making me happy. Try to be a good forum citizen. Your self-promotion clearly crossed the line. See comments by Berubeland in another thread.

http://canadianmoneyforum.com/showt...ant-never-pays?p=126328&viewfull=1#post126328


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## Just a Guy (Mar 27, 2012)

Self-promotion would apply if it were me, though I admit I feel an affinity with the writer, we seem to have lead similar lives, and have similar ideas. I do e-mail him once in a while. But I will cut down on references.

For the record, I pulled up my last 40 posts in my profile. I found 3 references to the site and 2 to money sense. Not exactly every 2nd post. It does seem to apply to the real estate forum more so than others, and if you don't read the others, you probably see it more often.


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## MrMatt (Dec 21, 2011)

Real estate as an investment can be tough.
If the market is overpriced, you're not going to get a good return.

As far as self-promotion.
I'd like to see a "webpages" link in the profile, then I could put my incredibly lame blogs there. I'm not going to put them in posts.


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