+1
I paid off my mortgage as rates were already declining in the late 90s. At the time, I remember thinking that 8% non-tax-deductible interest needed to get off the books as quickly as possible. I can't imagine 20%...
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Pre-Construction Homes
- Thread starter black_CG2
- Start date
+1
I paid off my mortgage as rates were already declining in the late 90s. At the time, I remember thinking that 8% non-tax-deductible interest needed to get off the books as quickly as possible. I can't imagine 20%...
I remember my Bro in law getting caught having to do a one yr mortgage at 17.5% , he held the house but it as painful for him. I cant see us going there again soon , but as others have said, we didnt see 18% coming either.
I'd love to see it, selfishly , since I'm not carrying one, but I would be loaning out cash to those in need. At prime.... I'm a giver.
I'd love to see it, selfishly , since I'm not carrying one, but I would be loaning out cash to those in need. At prime.... I'm a giver.
Yeah, I have a close friend who has moved his family 4 times in 15 years to reduce his mortgage. He's got 2 kids and I have to think that the continuous change has taken a small toll. Then again, military families do it all the time. I guess I'm just the type of person who likes to find "home" and stay there.
That said, if you have the energy to keep flipping, you can do well.
Iceman
Well-known member
Agreed. We lived in Angus for 9 years, my kids are 10 and 11. That was the only house they knew. In September 16 we moved back to Barrie and the kids are still adjusting.
Growing up I moved alot, 12 different schools by grade 12. It really sucks and I've never wanted that for my kids.
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Dresden
Well-known member
You are speaking of Urbancorp and their King Street development iirc.
This isn't quite how it went down. Urbancorp (now defunct) was under several financial distress and the cancellation of the project was a result of that financial situation. The story you mentioned was the rhetoric being spewed by Urbancorp and their feature agents. All smoke and mirrors.
Saw something on the news yesterday about a class action suit against a developer that canceled a project -- same thing?
Sent from the Purple Zone
Probably not, as Dresden said, Urbancorp is dead.
The real estate lawyer that transferred all of the clients deposits to the developer instead of keeping them in trust plead guilty yesterday. The developer cancelled the project and kept the money. She stole 15,000,000 was charged with 142 counts of breach of trust and theft and got 3.5 years. Depending on how much her cut was it may have been a good business decision (obviously it was a terrible moral decision).
Most of it was returned... I think she stole about 2.5M
I've been married for 4 years and we've been buying new construction since we were married... so far this is our 3rd place, and honestly I don't really want to move again. But everytime we bought we waited for 12-18 months for the place to be built and I made money on it and moved 12 months-18 months later (while despositing down on a new place) ... I take the 'profit' portion of the house and put it as part of my 'down' into the next house, having done it 3 times now, I've not seriously increased my mortgage (approx 40k increase) but almost quadrupled the size of my house ...
but at this point, I'm in a place that I like, the house is big enough and moving is such a hassle. but because each was a principle residence, i didn't need to pay any taxes on it.
new construction seems to work out for me ...
but at this point, I'm in a place that I like, the house is big enough and moving is such a hassle. but because each was a principle residence, i didn't need to pay any taxes on it.
new construction seems to work out for me ...
Yeah, if you got the gnads for all the moving you can really upgrade quickly. I wonder though, would someone be taking a chance doing it at the current prices? The slowdown has to happen sometime, no? (but people were saying that in 2008, I know.) I would love to tell my brother and sister-in-law to do what we did and sit on a new build with a long closing, but if the market slows it could really hurt.
IMO there's no point taking the risk for 2+ years waiting on a new build when existing housing is trending 20% a year or more. You can move into a house in February and make 20% by end of summer. To me, that chance is still worth taking. I'd re-evaluate next spring.
I almost pulled the trigger late last year but the new mortgage rules and slow November market had me think twice. It was a totally lost opportunity, the listings I was looking at are already impossible to find now.
I just moved into the house last August 2015. Only got married in 2013. So all my purchases have been done recently.
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Actually, I was thinking of the situation where you buy a new build. It's purchase price is now fixed, and you have 12-18 months to let your current (old) home appreciate. That's what my wife and I did and it cut $130k off our new mortgage.
No doubt, I was just speaking more to the fact that you're locking yourself in for X number of years on a speculation.. so for those who aren't so bullish on the market long-term, its easier to make a quick buck with an existing house.
The CBC is doing a series called No Fixed Address.
This is exactly how to make money. Young people don't plan on anything now and you can really reap the benefits. Someone called me harsh the other day - huh? They have the right to live paycheque to paycheque but I don't have a right to profit?
Most of these featured are between 28 and 35 years old and they are a wet dream to landlords. $2000/month to rent? Yup. What exactly did you expect? I came out of college in '93 and THEN a nice apt/condo to rent was at least a grand, I paid $1100 just off the 401 in Pickering.
My best advice is save all you can (should be saving 20% regardless), get out of rental market asap and as soon as you can buy another property (speculation or not).
This is exactly how to make money. Young people don't plan on anything now and you can really reap the benefits. Someone called me harsh the other day - huh? They have the right to live paycheque to paycheque but I don't have a right to profit?
Most of these featured are between 28 and 35 years old and they are a wet dream to landlords. $2000/month to rent? Yup. What exactly did you expect? I came out of college in '93 and THEN a nice apt/condo to rent was at least a grand, I paid $1100 just off the 401 in Pickering.
My best advice is save all you can (should be saving 20% regardless), get out of rental market asap and as soon as you can buy another property (speculation or not).
The easiest would be just to live at home with the parents to pay off your student loan and then save up for that down payment. Of course this doesn't work for everyone. But there is a huge number of millenials doing this.
strictlye
Well-known member
I bought pre-construction and its the BEST decision I have ever made.
Small down payment, I didn't have to start paying a mortgage for almost a year which gave me time to save for my closing costs. The house has all the finishes that I want. I don't have to gut it and start from scratch to rebuild.
Everyone in my neighbourhood is selling and making $150k - $250 after living in the home for less than 1 year. The prices are sky rocketing and if you get into a first phase of a new development its your best option. Once grocery stores, schools churches start to be built in the neighbourhoods the price goes up drastically.
However, I wouldn't buy a condo pre-construction. Once the property is 75% complete they will start charging you inhabitance fee or something like that. And it can be more than what your mortgage is.
Small down payment, I didn't have to start paying a mortgage for almost a year which gave me time to save for my closing costs. The house has all the finishes that I want. I don't have to gut it and start from scratch to rebuild.
Everyone in my neighbourhood is selling and making $150k - $250 after living in the home for less than 1 year. The prices are sky rocketing and if you get into a first phase of a new development its your best option. Once grocery stores, schools churches start to be built in the neighbourhoods the price goes up drastically.
However, I wouldn't buy a condo pre-construction. Once the property is 75% complete they will start charging you inhabitance fee or something like that. And it can be more than what your mortgage is.
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