should i buy right now or wait next six month to year

[Shiva]

Hi

I came to Canada in 2002, and wanted to buy home in that year, but few reasons for not buying
following wife,freinds and relatives` views ,
not aware with market of canada and areas of GTA,
After 2004 , I was observing economic changes, outsourcing,job losses, house values increased much more
and aspecting market correction or crash after 2006

Actually i take responsibility for my above mistakes and wrong decisions for not buying in 2004.

At this point I listen it is great time to buy, but price has not come down or corrected yet, I feel market is warm due to lower interest rate,

should i buy right now or in jan-feb 2010 (if market corrected)? i consider mississauga,milton or brampton to buy, my personal preference is mississauga(winston churchil+thomas). where should i buy? I work in Milton but job can be changed any time, and then renting that property would be my option.


If i use my RRSP to buy that property,and i move somewhere else in future, is there any complication to rent it and buy something at other place to live?

thank you in advance

 

[manojsingh]

My humble request do not over analyse the situation. Take action and buy. Talk with some REIN member if possible and get feed back for your target area.You can use your RRSP only once. You have to qualify for other property also if you rent the first one.Thanks

 

[Dan_Eisenhauer]

What is your long term goal... to own for the long term? or to hold for short term before moving?

If your plan is a short term hold, don`t buy AT ALL. IMO, the increase in value over the next few years will be minimal, and your gain will be less than the expenses incurred by buying and reselling (legal, inspection, appraisal, moving, real estate fees on sale, legal fees on selling, mortgage payout, if any, moving again, etc.)

But, if your plan is to hold for the long term, say 15 years, suppose the market falls another 10%. But, in that time the ppty doubles in value from its current value by 100%. Does it really matter to you that its value fell in the first two or three years of ownership? You will have made a gain on your investment.

If you move and rent the ppty with positive cash flow, does it matter if it falls in value?

Let`s say you try to hang on to buy at the bottom of the market. How are you going to know when the market has bottomed? The only way you will know is 6 months later... after the market has started to recover.

In short the best time to buy investment real estate is NOW.

 

[Shiva]

QUOTE (manojsingh @ Jun 21 2009, 05:07 PM) My humble request do not over analyse the situation. Take action and buy. Talk with some REIN member if possible and get feed back for your target area.You can use your RRSP only once. You have to qualify for other property also if you rent the first one.Thanks


Thanks, I appreciate, can you please give me idea what would be general criteria to be qualified for other property? if I can put minimum 10% downpayment in all purchase and paid up upto 25% before buy another property.
How can I find REIN member who can advise on my target areas.

regards

 

[Shiva]

QUOTE (Dan_Eisenhauer @ Jun 21 2009, 05:41 PM) What is your long term goal... to own for the long term? or to hold for short term before moving?

If your plan is a short term hold, don`t buy AT ALL. IMO, the increase in value over the next few years will be minimal, and your gain will be less than the expenses incurred by buying and reselling (legal, inspection, appraisal, moving, real estate fees on sale, legal fees on selling, mortgage payout, if any, moving again, etc.)

But, if your plan is to hold for the long term, say 15 years, suppose the market falls another 10%. But, in that time the ppty doubles in value from its current value by 100%. Does it really matter to you that its value fell in the first two or three years of ownership? You will have made a gain on your investment.

If you move and rent the ppty with positive cash flow, does it matter if it falls in value?

Let`s say you try to hang on to buy at the bottom of the market. How are you going to know when the market has bottomed? The only way you will know is 6 months later... after the market has started to recover.

In short the best time to buy investment real estate is NOW.


Thanks, you are absolutely right , it is hard to find bottom , and it is good time to buy, I am still learning and I came across method that precisely tell best time to buy or sell if i can find datas, I am sure you can help me with that.we need last 4 years data for each month (minimum 3 to start) and then every months data.

I can calculate and share if I can provided following datas for interested regions

Existing home sales
new home building permits
Morgage loan defaults
Foreclosure sales
interest rates

I am interested to hold property for long time and if possible want to be real estate investor in future.but it need guidence from successful investors like you.

Again thanks and regards

 

[manojsingh]

Come to our Hamilton mastermind meeting on July 12th. Although we meet for Hamilton investment but may be you will find some body who is from mississauga. 80% of the members are REIN members. Send me your email and I will add to our mailing list. Thanks

 

[Goodstuff]

If you plan to buy a place and then move a while later and rent it, one word of advice:

If you buy a house make sure it has a separate entrance for the basement.
You`ll get a lot better cashflow when you rent it. With separate entrances you can rent the upper and lower levels to different people. You make more rent this way.

As for the RRSP withdrawal, make sure you withdraw as much as you can, as this will be your only chance to ever do it.

 

[Dejavu]

QUOTE (Goodstuff @ Jun 22 2009, 01:06 AM) If you plan to buy a place and then move a while later and rent it, one word of advice:

If you buy a house make sure it has a separate entrance for the basement.
You`ll get a lot better cashflow when you rent it. With separate entrances you can rent the upper and lower levels to different people. You make more rent this way.

As for the RRSP withdrawal, make sure you withdraw as much as you can, as this will be your only chance to ever do it.

Be careful if doing this in Mississauga - the city does not allow basement apartments

 

[Shiva]

QUOTE (manojsingh @ Jun 21 2009, 10:02 PM) Come to our Hamilton mastermind meeting on July 12th. Although we meet for Hamilton investment but may be you will find some body who is from mississauga. 80% of the members are REIN members. Send me your email and I will add to our mailing list. Thanks


Thanks, I would like to come , my email id [email protected]

regards

 

[Shiva]

QUOTE (Dejavu @ Jun 22 2009, 06:07 AM) Be careful if doing this in Mississauga - the city does not allow basement apartments


Yes, I heard few guys were in trouble for renting basement which is not legal,

 

[Shiva]

QUOTE (Goodstuff @ Jun 21 2009, 10:06 PM) If you plan to buy a place and then move a while later and rent it, one word of advice:

If you buy a house make sure it has a separate entrance for the basement.
You`ll get a lot better cashflow when you rent it. With separate entrances you can rent the upper and lower levels to different people. You make more rent this way.

As for the RRSP withdrawal, make sure you withdraw as much as you can, as this will be your only chance to ever do it.


that is great idea if basement has permit