Relocating to Vancouver - rent vs. buy

[Casesar555]

Hello,

I am looking for some advise. I may be relocating from Calgary to Vancouver, working in Burnaby, and want to avoid repeating a mistake.

I bought my condo in Calgary in 2007, the height of the property boom. Looking at sales listings for my bulding, I would likely not break even on the sales price.

After reading some of the threads on Vancouver, looks like the condo market there may be in a bubble, prices expected to decrease 20% by some estimates.

If I were to move, I am considering selling the condo in Calgary and paying the early payout penalty on my mortgage, 2 years left on a 5 year fixed rate mortgage at 5.14%. Then rent while waiting for the market in Vancouver/Burnaby to settle before buying in again.

Any insight into what else I should be considering here? How do you know when a bubble has formed, then bust and the time is right to buy? Could I use all the speculation of a decline in prices as leverage in a price negotiation for a property in Vancouver? If so, how would I know how much to expect in a price reduction?

Any insight or advise is greatly appreciated, thanks!

 

[KimFranz]

I don`t think that any one can answer your questions - no one has a crystal ball to say what the future will bring. Just look at the economic crisis happening in Europe, do you think that 5 years ago someone could predict it, or if they did, could they predict how much? Not likely.

My best advice to someone moving to any new city is to rent for a while and see if you want to stay there, then what area you want to live in. When you are ready to make a commitment and stay there for a while, then buy. Let the market take care of itself.

Kim


QUOTE (Casesar555 @ Jun 4 2010, 06:54 PM) Hello,

I am looking for some advise. I may be relocating from Calgary to Vancouver, working in Burnaby, and want to avoid repeating a mistake.

I bought my condo in Calgary in 2007, the height of the property boom. Looking at sales listings for my bulding, I would likely not break even on the sales price.

After reading some of the threads on Vancouver, looks like the condo market there may be in a bubble, prices expected to decrease 20% by some estimates.

If I were to move, I am considering selling the condo in Calgary and paying the early payout penalty on my mortgage, 2 years left on a 5 year fixed rate mortgage at 5.14%. Then rent while waiting for the market in Vancouver/Burnaby to settle before buying in again.

Any insight into what else I should be considering here? How do you know when a bubble has formed, then bust and the time is right to buy? Could I use all the speculation of a decline in prices as leverage in a price negotiation for a property in Vancouver? If so, how would I know how much to expect in a price reduction?

Any insight or advise is greatly appreciated, thanks!

 

[Thomas Beyer]

Burnaby is a big place .. it used to be the 2nd biggest city in BC (I think now it is 3rd after Surrey). Within 20 km there are 2 million people and 10 cities: Vancouver, N-Vancouver, District of N.Van, Coquitlam, Surrey, Pt. Moody, Maple Ridge, Langley, Ft. Langley

This takes a while to get a bearing in .. and to discern if a $450,000 townhouse is a great deal or not .. or a $650,000 house with a (illegal) suite is a steal or overpriced !

Also, how does your world look like in 2 or 4 or 6 years ?

Thus, rent if view/stay is less than 6 years ..

Consider buying a house with land (and sub-let rooms/suite) in the 10 cities mentioned if 5+ years is your anticipated stay as real estate prices will be higher in 5-6 years .. but not necessarily in 2 years !!


Related posts:

5 ways to make money http://myreinspace.com/public_forums/General_Discussion/61-3347-5_ways_to_make_money.html

How to get started http://myreinspace.com/public_forums/General_Discussion/61-4391-How_to_get_started_.html

 

[Casesar555]

QUOTE (ThomasBeyer @ Jun 4 2010, 09:48 PM) Burnaby is a big place .. it used to be the 2nd biggest city in BC (I think now it is 3rd after Surrey). Within 20 km there are 2 million people and 10 cities: Vancouver, N-Vancouver, District of N.Van, Coquitlam, Surrey, Pt. Moody, Maple Ridge, Langley, Ft. Langley

This takes a while to get a bearing in .. and to discern if a $450,000 townhouse is a great deal or not .. or a $650,000 house with a (illegal) suite is a steal or overpriced !

Also, how does your world look like in 2 or 4 or 6 years ?

Thus, rent if view/stay is less than 6 years ..

Consider buying a house with land (and sub-let rooms/suite) in the 10 cities mentioned if 5+ years is your anticipated stay as real estate prices will be higher in 5-6 years .. but not necessarily in 2 years !!


Related posts:

5 ways to make money http://myreinspace.com/public_forums/General_Discussion/61-3347-5_ways_to_make_money.html

How to get started http://myreinspace.com/public_forums/General_Discussion/61-4391-How_to_get_started_.html


You have some good points, just have to make some long term plans.

Thanks for the advise.

 

[Minoune79]

Why don`t you rent to own your current place for 24 months (to prevent paying your mortgage penalties) and decide what you will do while your property is being rented? Once your property sells, then you will be in better shape to purchase a good property in Vancouver (ie. you will know what you are looking for exactly as you will have experience living there for a while first).

Rent to own serves several benefits including selling a little higher than market value; getting upfront cash; renting a little above market value; and having your mortgage paid by someone else while your property increases in equity!

I think you would be in a great position to take advantage of this new real estate system.

Josee Guindon
www.ClickMyPlace.com
Edmonton, AB
[email protected]

 

[Thomas Beyer]

QUOTE (Casesar555 @ Jun 6 2010, 04:52 PM) ... just have to make some long term plans.
not necessarily when you`re young .. life unfolds as it unfolds !!

Start planning when some life has been observed !