Calgary Herald Sunday`s Paper April 27, 2008
- Thread starter UTCVenturesLtd
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QUOTE (UTCVenturesLtd @ May 2 2008, 02:45 PM) ...
Is it better to hold off purchasing til then for a better deal? Interest rates seem to climb a bit in that time as well if i remember correctly.
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Like the stock market, exact timing is dangerous to impossible .. if you have a 3-5 year view (or more) .. then buying in June, September or November is IRRELEVANT .. as long as the asset, its cash-flow and its potential makes sense .. even if it loses $12,000 "on paper" between now and November .. who cares .. as long as it makes sense 3-5 years from now ..
Many a poor retiree is looking back and is saying "I wish I had bought in: 1928, 1935, 1954, 1967, 1989, 1995, 2001, 2005, 2008 .." .. as opposed to "Gee, I wonder what would have happened if those 14 properties I own now would have sold for 2 months after I bought them .."
Get in the game, at the right price, in the right place .. and hold with break even or positive cash-flow .. AND YOU WILL BE FINE 2, 5, 15, 28 years from now !!
Is it better to hold off purchasing til then for a better deal? Interest rates seem to climb a bit in that time as well if i remember correctly.
...
Like the stock market, exact timing is dangerous to impossible .. if you have a 3-5 year view (or more) .. then buying in June, September or November is IRRELEVANT .. as long as the asset, its cash-flow and its potential makes sense .. even if it loses $12,000 "on paper" between now and November .. who cares .. as long as it makes sense 3-5 years from now ..
Many a poor retiree is looking back and is saying "I wish I had bought in: 1928, 1935, 1954, 1967, 1989, 1995, 2001, 2005, 2008 .." .. as opposed to "Gee, I wonder what would have happened if those 14 properties I own now would have sold for 2 months after I bought them .."
Get in the game, at the right price, in the right place .. and hold with break even or positive cash-flow .. AND YOU WILL BE FINE 2, 5, 15, 28 years from now !!
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QUOTE (UTCVenturesLtd @ May 5 2008, 01:55 AM) From the Alberta market, it is in a cooling off period or plateau until we get more in-migration happening again. From what i understand, that could be about 2yrs and then slower paced price increases. As for one financial advisor that i know, he says that with oil companies paying royalty fees or higher fees, they will move their rigs to Sask to do business and the house prices will go down a LOT here in Alberta which he figures would be about 2 1/2 yrs from now. Maybe just keep your eye on the number of listings until they start to dwindle and watch the numbers of those coming to Alberta start to rise. It seems that a lot of the more patient buyers are waiting to see if the prices come down further. I have been looking at advertising for new homes and prices have been slashed $30K in some instances. At some point the gap between the what buyers can afford and price reductions of the sellers, the market will be moving again. Well, although not easy, the numbers do line up for investment rental properties out there right now. Canada is said not to have an overvalued market either.
There still seems to be lots of people coming here and no shortage of renters. While the numbers are lower than the last few years, they are still quite good. Our perspective has become confused over the last couple of years. Over time renters turn into buyers which means there will still be a steady stream of sales over the years. Most of the financial advisors out there seem to be downplaying the Real Estate market (and yet promoting the stock market?). There is still plenty of work in Alberta even if some of the rigs do leave, but once again it`s hard to compare the amount of rigs out there now when the previous years were record years.
Many homes are reducing their prices to sell, but if you look closely these homes were typically overpriced to begin with. The price reductions have reduced them to more realistic prices. If you look at some of the current stats average prices only decreased 1.19% in April this year versus last year for Calgary and area and less than 1% for SFH`s in Calgary metro. The market has been quite flat for the last year and is just waiting to move upwards again. With the huge amounts of inventory currently out there for sale it may take six months, or a year or even longer, but as Thomas points out if it works now it will work for quite a long time.
There still seems to be lots of people coming here and no shortage of renters. While the numbers are lower than the last few years, they are still quite good. Our perspective has become confused over the last couple of years. Over time renters turn into buyers which means there will still be a steady stream of sales over the years. Most of the financial advisors out there seem to be downplaying the Real Estate market (and yet promoting the stock market?). There is still plenty of work in Alberta even if some of the rigs do leave, but once again it`s hard to compare the amount of rigs out there now when the previous years were record years.
Many homes are reducing their prices to sell, but if you look closely these homes were typically overpriced to begin with. The price reductions have reduced them to more realistic prices. If you look at some of the current stats average prices only decreased 1.19% in April this year versus last year for Calgary and area and less than 1% for SFH`s in Calgary metro. The market has been quite flat for the last year and is just waiting to move upwards again. With the huge amounts of inventory currently out there for sale it may take six months, or a year or even longer, but as Thomas points out if it works now it will work for quite a long time.