Looking for a house in BC (Fraser Valley) - Half a million for what???

[G1GY]

Originally Posted by trilinearmipmap

For now it makes more sense to rent than to buy. That alone should tell people that real estate prices are out of line with reality.

When did it ever make more sense to rent than buy?

When the price of property is high that cost is passed on to the tenant.

While the price of buying may be high, the cost of renting is much higher when you take into account that you have zero return on the money you put out as a renter.

If you buy at these prices and take a mortgage on the new outragous 40 year term........ You can still have a renter live in this place and make the mortgage payments for you.

Too many people have missed the chance to become a home owner while waiting for the next crash IMO.

[Slick Fork]

Stay away from a 40 yr mortgage... you'll never pay the principal off. Payments might be a little cheaper, but that's FIFTEEN more years. Just my 2 cents!!

[andsoitgoes]

Originally Posted by Slick Fork

Stay away from a 40 yr mortgage... you'll never pay the principal off. Payments might be a little cheaper, but that's FIFTEEN more years. Just my 2 cents!!

Bi-Weekly payments!!

And we can always refinance once we're doing a bit better. It's not the best option, but if it's that or NOT owning (due to the debt ratio, etc.) - I'd rather own

[fishmaster]

Originally Posted by Slick Fork

Stay away from a 40 yr mortgage... you'll never pay the principal off. Payments might be a little cheaper, but that's FIFTEEN more years. Just my 2 cents!!

I second, stay away. I did a some quick calculations on MLS.
$450,000 over 25 years@6.0=$2879/mon $863700 total paid
$450,000 over 40 years@6.0=$2452/mon $1,176,960 total paid SCARRY!!!!!
Shaun

[andsoitgoes]

Originally Posted by G1GY

When did it ever make more sense to rent than buy?

When the price of property is high that cost is passed on to the tenant.

While the price of buying may be high, the cost of renting is much higher when you take into account that you have zero return on the money you put out as a renter.

If you buy at these prices and take a mortgage on the new outragous 40 year term........ You can still have a renter live in this place and make the mortgage payments for you.

Too many people have missed the chance to become a home owner while waiting for the next crash IMO.

See, that's what I was thinking I wanted to say

I got scared away from the market when we sold our Condo a few years back for a loss of about 25%

Thing is, had we not owned, we would have been throwing that money down the toilet to a rental. Six of one, half dozen of the other, I guess.

I can't risk being afraid again, if I do - I may never own, there may never be a home for our girls.

And like Lex Luthor's father said, the future is in land