True, to get the house your want that is sensible....buying on paper makes sense to get a house you want, on a lot you want, finished to your specification.
If the houses had appreciated 200K between purchase and construction would the buyers be calling up Mattamy asking for a price adjustment because the contract price didn't match fair market value?
This is a good reminder that in the short term, real estate is not a guaranteed positive return investment.
Likewise. We were approved for 25% more than we felt we could manage comfortably and with a moderate increase in rates. Industry people were trying to sell us on being housepoor - especially the bank and broker. Our agent however was a good guy and had a more genuine interest in us finding the right home than the one that got him the most commission.So glad I didn't listen to my agent, broker, bank 'advisor' to take on an addition 200k debt...
Likewise. We were approved for 25% more than we felt we could manage comfortably and with a moderate increase in rates. Industry people were trying to sell us on being housepoor - especially the bank and broker. Our agent however was a good guy and had a more genuine interest in us finding the right home than the one that got him the most commission.
.
An old neighbour of mine... bought 21 years before I did ( he bought in early 80s).. and He was still waiting for the place to get back up to what he paid for it when I sold in 2008.
Doesn't always work out in the long term either.
I've said it many times over, bankers and brokers are not your friends. Their business is putting you as deep down the rabbit hole as the regulations allow.
It's not always their fault, people will over buy to 'satisfy' a dream. Arithmetic isn't for everyone.
Likewise. We were approved for 25% more than we felt we could manage comfortably and with a moderate increase in rates.
There's got to be more to the story. The market took a swoop in the early 80's and then crashed..
We were approved for nearly twice what we ended up spending.
I’m glad we bought modestly because here we are in our mid 40’s with it almost paid off.
That’s what I thought as well, I think his friend is telling a tall tale - yes, there were issues in 2008, but nobody that bought a house back then (overpriced at the time, or not) is not barely breaking even or underwater today. The same as how these people who overpaid for these houses today won’t be underwater anymore 30-40 years from now.
We were approved for nearly twice what we ended up spending.
I’m glad we bought modestly because here we are in our mid 40’s with it almost paid off.
There's got to be more to the story. The market took a swoop in the early 80's and then crashed.
In 1980 you could buy a basic single family home for around $100G's then the same places swooped to $150G's before they crashed. Now those homes are in the million range. In 2008 they would still be tons more than $150G.
Unique properties could be different.
The market went on a tear starting 1985. A 1500 sq' new home on a 60x120' lot in Stouffville or a 1/2 acrre lot in Holland Landing cost about $100,000. By 1989 those houses were worth $325K. The market took a tumble and they went down to about 200K in 92 - it was a housing bubble, more speculators than potential owners. That was a pretty big correction.There's got to be more to the story. The market took a swoop in the early 80's and then crashed.
In 1980 you could buy a basic single family home for around $100G's then the same places swooped to $150G's before they crashed. Now those homes are in the million range. In 2008 they would still be tons more than $150G.
Unique properties could be different.