Advice on buying and selling in Calgary

[Jon O.]

Hey guys.
I'm not really a real estate investor. But I realized that any homeowner is somehow an investor
I own a townhouse. Bought it in really bad timing. 2 years before the crash.

In short, after 10 years, the price of our townhouse is about the same.

I'm really upset with what happened. With no equity at all for 10 years.

Now, we're thinking to get a detached house in Calgary within $500K range.

Do you guys think this is the right time? I'm just afraid to lose money again.

Thank you in advance.

 

[Thomas Beyer]

Sell first. Then decide. Perhaps rent for a year or two.

Calgary houses went up in 10 years, from 2006 to 2016. So likely you paid too much. Have your value assessment skills sharpened since ? Can you afford a bigger house ? What is different today than 10 years ago for you personally ?

There is no rush. Calgary prices won't go up anytime soon, in fact the opposite for another year or 2.

 

[Scott Bowland]

Which crash would that of been? The sub-prime mortgage one or the latest with the price of oil dropping so much. Real estate is very much tied into the oil industry in Calgary. I know properties are not selling as fast a they were.

As far as purchasing a new property you haven't lost any money, so purchasing this new property may not be a horrible idea. A detached home is a better investment than a townhome. When real estate does start to go back up I think you will see a better return on the detached home. I would be careful not to over-extend yourself though. If purchasing this house is going to cause any sort of financial strain I would stay where you are.

 

[RedlineBrett]

Hey guys.
I'm not really a real estate investor. But I realized that any homeowner is somehow an investor
I own a townhouse. Bought it in really bad timing. 2 years before the crash.

In short, after 10 years, the price of our townhouse is about the same.

I'm really upset with what happened. With no equity at all for 10 years.

Now, we're thinking to get a detached house in Calgary within $500K range.

Do you guys think this is the right time? I'm just afraid to lose money again.

Thank you in advance.

I'm actually working with a couple that is in your exact situation right now. Your personal residence can not be evaluated the same way that you would an investment property. The correct approach is to use investment fundamentals to enhance your knowledge of the process and outlook for your next property, but the timing and extent of your purchase should ultimately be driven by your lifestyle.

I suspect you have all kinds of equity after 10 years of paying down your loan. Right now there is little in the way of good news if you are a seller. Media is all against you, so it's a great time to be a buyer, and a good time to trade up from a 300k property to a 500k one. Will be very difficult to time the bottom just as many of us (all?) missed the top in 2014. You can negotiate smoking good deals right now and there is lots of selection. If you are going to be living in this property for 10 years and are ready for a move I doubt you will lose money over that time frame.