old topic, but i think housing market will crash

[neptune]

I just get a funny feeling, being a first time buyer that with the "zero" down payment they are starting here (they started this in the states years ago and look at them now...) that we will shortly follow suit.  any thoughts?

[UrbanCityDreams]

i hope it comes down a bit and level off for a bit...i want to buy another house for the long term to live in, a nice one,

and eventually it will go back up and i will have a few assets.

[Lise]

It'd be nice when some sanity comes back to the housing market. It should happen after the Olympics (I hope).

[neptune]

I just can't imagine condos going higher than $450K in bby, that's what i'm seeing new ones go for!!  its nuts

[NSgirl]

quote:Originally posted by neptune

I just get a funny feeling, being a first time buyer that with the "zero" down payment they are starting here (they started this in the states years ago and look at them now...) that we will shortly follow suit.  any thoughts?

You are smart to be very careful right now!
The stock market has been doing crazy things and some highly respected analyst even predict a possible crash sometime in  October.
[No One really knows] Also with housing,it has gone up quite quickly compared to the past,almost too quickly!
Many people have bought with very little down,hence if interest rates were to take off there would be many forclosures as people would not be able to pay their mortgage payments!I am not sure we will have a complete crash of the housing market but I am pretty sure there will be a correction.At the very least it will level off and stay level for quite a few years like history has shown it always does.
I do not believe the olympics will make all that much difference in our market,my opinion only.
Many people have made hundreds of thousands of dollars profit from their homes which is keeping the market going,but you always need that first time home buyer to buy the starter houses.Prices have gotten to the point many young first time buyers don't have a hope in hell of affording a place.That being said I do believe the market will adjust,it will not keep going stright up with out a dip down or a leveling off! I would bet on it!
good luck on your future house![]
Advice for all wanting to buy,no matter what the market is doing.
Pay as much as possible and as quick as possible to pay your morgage off!Do not listen to the banks when they tell you to remortgage and make smaller monthly payments, after all they are in th business to make money! Interest cost could come to more then the purchase price if you spread it out over many years! Live frugily for the first little while and plunk every cent possible into paying your mortgage off!Trust me we saved hundreds of thousands of dollars on interest alone by doing this![]

[UrbanCityDreams]

market never keeps going up or down but it always goes sideways

[Carrie]

THEY keep saying that it isn't going to ever crash in BC...and they say it with such conviction. I wish it would because the way things are going I don't know if I will ever be able to own a home, plus I don't want to pay those ridiculous prices for such small spaces.

[Shadow]

I think it will level off, but not crash.

[NSgirl]

Carrie
The best thing to do right now is save save save! No matter what is going on with the market! plan to have the biggest down payment possible for your house! This may mean not buying that new car but driving a sh- box for awhile, not going out for dinner and lunch 3 times a week but only  on special occasions. etc it is all a matter of priorities! No one can have it all[at least most people] If home owner ship is what you want ,you will get it! Think positive. Once I thought we couldn't buy either but we did,with lots of being very cheap for a few years!
Look for other areas to invest your money right now while the market is high. Nothing too risky though,the stock market is scary right now! don't give up! You will own your house one day!!!

[Carrie]

quote:Originally posted by NSgirl#13;#10;
Carrie#13;#10;The best thing to do right now is save save save! No matter what is going on with the market! plan to have the biggest down payment possible for your house! This may mean not buying that new car but driving a sh- box for awhile, not going out for dinner and lunch 3 times a week but only  on special occasions. etc it is all a matter of priorities! No one can have it all[at least most people] If home owner ship is what you want ,you will get it! Think positive. Once I thought we couldn't buy either but we did,with lots of being very cheap for a few years!#13;#10;Look for other areas to invest your money right now while the market is high. Nothing too risky though,the stock market is scary right now! don't give up! You will own your house one day!!!#13;#10;

That's encouraging NSGirl, you are right. I am in school right now though so won't really be in the market for a couple of years at least, and hopefully the situation won't be even worse than it is now! But yeah, that down payment is sooo important. I am used to being frugal, so that will never be an issue for me, I am low maintenance!

[neptune]

I think my best course of action is to keep my downpayment saved, perhaps in a low risk mutual fund, collect some cash on the side, and see if the market undergoes a correction.  I can't see these condos being worth 7,8,9hundred thousand over the next 5 years. That means we live in a more expensive place than LaJolla CA, and this ain't no LaJolla!

[NSgirl]

you know even though real-estate has sky rocketed over the past few years,we have made much more money on the stock market,percentage wise! so there is always ways to make money with your money while watching the price of houses. if you are young the worse thing you can do is panic and buy something you cannot really afford! Invest carefully, save your money the best you can.if you feel you absolutely have to jump into the market you could always buy someplace where the market is not as hot and speculate on future growth. Rent out your property and hopefully have enough return on it to cover your mortgage.As long as you can comfortably cover your expenses it wouldn't matter if the market fluctuates a bit,in the long run it will go up. it is when you go over your limit and risk all your money on the expectation the market will go up,that you will get screwed! Now is not a good time to be flipping properties,it is too risky!

[neptune]

good advice nsgirl.

[M Grenade]

there are many places in the states where the real estate market is pretty stagnant already, nice cities too

I'm not an expert at all, but doesn't zero down payment possibly put one in the situation where payments outstrip the value one is getting out of the property, even moreso if a market correction or decline takes place? If a person has to pay $1500 a month mortgage and taxes, not to mention upkeep, for a place that you could rent for half that, perhaps the extra $750 a month could be put into a better performing investment? Of course no one can tell the future, so that could always be debatable one way or the other.