# Buy or Wait



## 390limited (Feb 21, 2014)

Hey Everyone,

Wondering if you had any insight.... right now living with my wife and I, are living with my parents.

It's a very large house, and we haven no problems with them. But we would still like to get our own place.

I just have no idea, if now is the right time to buy. While interest rates are low.

1. Buy a house today, and take advantage of the low rates..
2. Wait for rates to go up, and/or house prices to come down "I just don't think this would happen" right away.. 
I doubt they would raise rates high enough to make a difference .25% etc...

I'm hearing 10% drops etc..

Currently are expenses are minimal.. we buy groceries, pay a few bills here and there.

We have around 150k usable saved up, and we both make a decent income for our age.

Thanks for any advice


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## wendi1 (Oct 2, 2013)

Where do you live? And what sort of place would you be looking for?

All RE is local.


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## 390limited (Feb 21, 2014)

wendi1 said:


> Where do you live? And what sort of place would you be looking for?
> 
> All RE is local.


60 mins from Toronto, in the durham region

Looking for a detached... 1900-2200sqft


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## Just a Guy (Mar 27, 2012)

The other thing to remember is there are always good deals out there... Just because real estate is generally overpriced, doesn't mean that a handful of properties aren't. There are always reasons why people need to sell cheap (relocation, estate, foreclosure, etc.).

If you aren't looking you'll never find them of course. With the market being so high, fewer people are looking, but you need to have all your ducks in a row and be ready to pounce if it does come up. 

Patience can be very rewarding.

Also, don't be afraid to negotiate. Try to keep emotions out of the game (real estate is a very emotional game, those who can control theirs have the advantage). Don't be afraid to walk away.

Look at old listing, don't be afraid to make low offers to them. If you're worried about a 10% drop, negotiate for a property price that's 10% below market. I've bought several lately that are much more below that range (but rental properties are a different beast), so it is possible.


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## OurBigFatWallet (Jan 20, 2014)

wendi1 said:


> Where do you live? And what sort of place would you be looking for?
> 
> All RE is local.


Agreed. It would totally depend where you are located. Here in Calgary prices have gone up quite a bit the last year so I would think we are due for a pullback or at least a slowdown in the increases. But other cities may be different


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## My Own Advisor (Sep 24, 2012)

Yeah, all about location.

In Ottawa for example, I don't see prices going down, maybe just not going up as fast.

As per other comments, all depends on location.

Also depends what you are looking for. Saving for a starter house, assuming that, is much different than saving for a dream home.


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## Siwash (Sep 1, 2013)

If you're okay with the in-laws, stay put… the best investment one can make is to not go into debt… you can save a TON of money (even if you're helping with expenses) by sharing living arrangements… why do you think many immigrant groups in Canada are better off than Cdn born?


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## blin10 (Jun 27, 2011)

asking this question on a public forum will get you nowhere... one side will tell you how everything is overpriced and wait for correction, other side will say correction will never happen and if it does it will be small... reality is, nobody knows what will happen and it's all speculation... in my case about 10 years ago, everyone thought prices were too high and housing will crush, I still bought and it did well... now, I'm not saying same thing will happen and prices will rise like crazy in the next 10 years, just giving you my real life example...


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## richard (Jun 20, 2013)

The best time to buy is when the full costs, including all potential long-term outcomes, are affordable in relation to the alternatives, without making it difficult to follow through with your other plans. If that is the case then forget about what the market is doing.


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## dubmac (Jan 9, 2011)

blin10 said:


> one side will tell you how everything is overpriced and wait for correction, other side will say correction will never happen and if it does it will be small... reality is, nobody knows what will happen and it's all speculation


so true...
Have a look at a plot of the TSX & S&P over the past 15 months. I'm in the "everything is overpriced" camp.


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## blin10 (Jun 27, 2011)

dubmac said:


> so true...
> Have a look at a plot of the TSX & S&P over the past 15 months. I'm in the "everything is overpriced" camp.


when SPX made it to 1400 from 700 in '09 it was "overpriced" as well at that time, we're at 1800 right now... I do agree it's high relative to few years back, but the price is what hedge funds pay for it (not regular people)


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## Potato (Apr 3, 2009)

If you're looking for a place on your own why not rent one? If you're happy living with your parents, well, there is going to be no cheaper option than that so the financially optimal solution is obvious. 

If you're keen to move out because no matter how nice or cheap, living with one's parents is not the long-term plan, then whether renting or buying makes sense for you depends on a combination of your area and your plans. I put together this rent-vs-buy calculator for Canadians to help you choose.


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## alex52 (Dec 12, 2013)

Property is a long term investment, which many Canadians don't appreciate. Buy the most expensive house you can afford in the right location and then forget about moving.
I bought my house 20 years ago and at the time seemed expensive, Today the price I paid for it looks such great vlue.
That is what property is all about, the secret is to buy the right property, which is a skill not easily learnt, then hold for the long term.
i have seen people buy over priced property in the wrong location and then keep moving every five years making the realtors rich.


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