# Looking for guidance at 30...



## Lilyukyuk (Nov 30, 2011)

In light of the other threads on here, I'd like to post my own for some guidance, especially in relation to real estate.

I'm 30 and in Alberta. I've been feeling the stress of trying to get into the real estate market as a first time homebuyer.

I do have a place to live right now and it's not urgent that I find something. However, prices seem decent and I have the ability to purchase. The big problem is I am terribly picky (terribly picky, I mean it) when it comes to where I live; I have not found any place yet where I actually want to live. However, I'm worried that if I wait too long the prices will skyrocket and it will preclude me from ever getting into the market. So....

1. Should I keep waiting for the perfect place? 
2. Should I find a super cheap (maybe undervalued) property - try to rent it out - and start there?


----------



## Sampson (Apr 3, 2009)

How many places have you looked at?

We looked at somewhere between 50-70 before finding our first place.

If you have looked at a lot but still can't find one you like, you may have your sights too high.


----------



## Lilyukyuk (Nov 30, 2011)

S: thanks - I'm also in Calgary, and have been looking for over a year. Seen many many places. Totally frustrated and tired. However, I do agree with you that I am overly picky. I grew up in a beautiful home and area and am not willing to deviate (I also had some horrific experiences renting in Edmonton). 

We have some steals in Calgary right now - what are your thoughts about doing an investment property to start rather than a live property?


----------



## Potato (Apr 3, 2009)

Lilyukyuk said:


> I'm worried that if I wait too long the prices will skyrocket and it will preclude me from ever getting into the market. So....
> 
> 1. Should I keep waiting for the perfect place?
> 2. Should I find a super cheap (maybe undervalued) property - try to rent it out - and start there?


To answer the second option first, IMHO no you you shouldn't. Do you want to become a landlord? Does doing so make any financial sense (can you expect a profit)? Buying a place to then rent out does get you into the market, so you're a participant if prices do skyrocket... but why are you worried about that in the first place? If prices stagnate or even go down, you're then saddled with a place you don't even want to live in, and have to play landlord when that may not have been your choice of hobbies.

As for whether you should then keep waiting, that depends. I think you should wait in part just because of my own opinion on housing (it's not getting any more expensive, so take your time). But what's your current status? You say you have a place and are happy with it -- is it perfect? If so, why leave? 

On the other hand, how picky are you being? If you were to step back and re-examine in your mind the places you've rejected, did you reject them because of fixable issues, or minor, livable compromises, or because they just weren't anywhere close to what you were looking for? I mean, you can wait to try to find the perfect place, but you have to accept that some compromise (or renovations) may be needed. So whether to continue to wait in part depends on whether there's a realistic hope of the perfect place coming along, or if your bar is set such that no place will be perfect.


----------



## Saniokca (Sep 5, 2009)

you might want a different perspective before you spend that much money:
www.greaterfool.ca


----------



## Four Pillars (Apr 5, 2009)

Lilyukyuk said:


> S: thanks - I'm also in Calgary, and have been looking for over a year. Seen many many places. Totally frustrated and tired. However, I do agree with you that I am overly picky. I grew up in a beautiful home and area and am not willing to deviate


I would give up. There is no such thing as a perfect house.

You have to get a grip on reality - just because your parents could afford a nice house in a nice area doesn't mean that you can. 

You have to decide if you want to be a home owner or not. Then you look at what you can afford and make your choice from that selection. It doesn't matter what you desire - it's what you can afford.


----------



## Sampson (Apr 3, 2009)

Lilyukyuk said:


> We have some steals in Calgary right now - what are your thoughts about doing an investment property to start rather than a live property?


I wouldn't necessarily agree with this. The housing market seems fairly valued but it could swing either way. Investment in construction within the city is almost near record highs again, all the companies are higher and have big plans for 2012, which means jobs, increased pressure on the rental markets, and possibly increases (probably moderate ones) to the housing market including rents.

However, if events trigger housing crashes elsewhere in Canada, it's hard to imagine we would be spared, and all those attributes I list above will vanish quickly.

Potato has good advice, make the decision based on your immediate needs. I've looked at a lot of properties in the City and it will be difficult to find properties with CAP rates above 3%. Not worth your time or money.


----------



## eulogy (Oct 29, 2011)

Saniokca said:


> you might want a different perspective before you spend that much money:
> www.greaterfool.ca


I thought about posting that when I read "I've been feeling the stress of trying to get into the real estate". I thought it would be appropriate for being horny for real estate. I wasn't sure if it was appropriate as a response though.


----------



## Lilyukyuk (Nov 30, 2011)

Thanks everyone - good advice.

The problem I have is this...if I don't buy now, I feel like things will only get more expensive and then I won't be able to. Is this the wrong mentality? I guess I look at pre-Alberta boom prices (circa 2000-2003) and compare them to now, it scares me.

Re: the perfect place - I guess I need an attitude adjustment. But I'm confused - are we meant to just buy a place we can afford even though we would suffer every minute living there? Or is it better not to buy at all then?


----------



## Plugging Along (Jan 3, 2011)

Here's my thoughts:

As someone else said, you need to see if your expectations are really realistic based on what you can afford. You grew up in a beautiful home, but it was your parents that paid for it. You may want a beautiful (don't many of us), but can you afford what you want. You may think you're being picky, but if you are finding nothing in the price range you are looking for, then perhaps, it is your expectations are not in check. I know Calgary RE, what areas and price range are you looking for? A good way to tell if you are picky verses unrealistic, go to a really really nice home, and see if if you would like to live there, don't look at the price tag. If you are in multi million dollar homes, and still find someone wrong, then you are picky. If you are saying I could live here, but it's way too much, then you are unrealistic. 

Based on the fact that you are getting stressed about being a first time home buyer, and your other post that you are overwhelmed by financial planning. I would hazard to guess that you are not ready to be a landlord. This is no offense meant, but you don't know alot about the market, you seem to get stressed easily, don't have good foundations of finance, amoung a few other things that I am extropolating, I think you would not do well in navigating through the world of being a landlord. It can be very stressful, time consuming, and you have to know what you are doing. If you don't know what you are doing (which that's where we all start), you need to be willing to learned, and not get overwhelmed by it. If you find that you get overwhelmed, stressed easily, or doubt you decisions, you can definately lose money. Being a landlord is just another business, so there is no room for emotions, just results.


----------



## donald (Apr 18, 2011)

Id say take a breather,you said you were struggling to get a grip on the investing world via diy in another thread(totally understandable,normal)So your mind is unsetteld on that front and now on the real estate front your unsettled not knowing which way to go(understandable)

I'm in exactly the same spot as you(i'm in limbo on moving forward,i left homeownership and now looking to get back in)Anyways it would seem to me what you should do is honestly figure out a battle plan for your investing,clear that up first so your mind can be fresh and you got that quadrant down,not that it will be perfect(no such thing)but at least its settled in your phyche.Once you got that figured out then deal with the real estate/home buying.

You got to much going on rightnow in your mind....your not sure about stock investing,your thinking about landloarding ect.....Totally off topic but relevent-are you single?Only reason i ask is sometimes that can even compound decisions too you don't have that extra ''team partner" These are heavy issues so just think things through....take your time...your young...you have some capital...no need to rush.Your just trying to figure out how to manage your finances...things will fall into place...don't stress-out!


----------



## Saniokca (Sep 5, 2009)

eulogy said:


> I thought about posting that when I read "I've been feeling the stress of trying to get into the real estate". I thought it would be appropriate for being horny for real estate. I wasn't sure if it was appropriate as a response though.


I feel like Garth articulates it so much better than me


----------



## Four Pillars (Apr 5, 2009)

Saniokca said:


> I feel like Garth articulates it so much better than me


Garth is a fantastic writer. I don't agree with 99.99% of what he says, but I still love reading it.


----------



## financialnoob (Feb 26, 2011)

1. It depends. If you're thinking about buying a place, living there for 5 years, then using the equity to buy your dream house, you should also factor in that RE agent fees will eat up a lot of the principle payments you made. 

2. If you can find a good deal on an investment property, absolutely. But again, you have to really think about it. Are you factoring in all the relevant costs such as time, maintenance, credit check/legal fees for bad tenants, et cetera. There's a lot more to an investment property than just plopping down some money and collecting some rent. What will you do when a tenant stiffs you on a month's rent? You need to figure this out beforehand. 

The first question that popped into my head is do you want to really own a place? It sounds like you feel pressure to get in while you can, but that's not necessarily the best reason to buy.

As for whether you're being unrealistic or not, I don't know. But what exactly is perfect for YOU? Because there are no perfect houses. What you love, I may hate. And what I love, you may hate. You need to prioritize what matters most to you.

What are the reasons the houses you looked at aren't satisfactory? You should write them down. It gives you a history to review. Are you annoyed at the price compared to what you get? Is it the area or schools or accessibility? Is it the finishes or layout? This may help you gain some perspective on what is more valuable, and what you are willing to pay top dollar for vs. what you can learn to live with. Make a list of what you want and rank it in order.


----------

