HousingJan 25, 2020
nventiveITISWHAT

Invest in a house now or later

Hi blinders, I d love to hear some advise for investing in condo. I am planning to buy a condo and rent it out. Maybe a few years later I can sell it when the price is good. For personal reason, I could not get a mortgage this year. With my saving, I could only afford second-hand condo either 5+ years in downtown or newer ones at not optimal location. Should I just save up and invest next year for a new condo at good location becuz i can get mortgage next year? Or I should buy a condo now for starter? ps: i m new to investment TC: 90k in Canada

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Google several Jan 25, 2020

Real estate is all about location. Especially if it's an investment property, optimize for location. Of course, I know nothing about the Canadian market except it's expensive.

nventive ITISWHAT OP Jan 25, 2020

I see the location is super important. But now I can only afford 5+ year old house in good location, not sure if it’s still worth it. I feel old house does not go up as quick as new house

Apple LC->TC Jan 25, 2020

Don’t know about Canadian market but 5+ year doesn’t seem that big a deal

TripAdvisor raja6 Jan 25, 2020

Now or never

SAP olva73 Jan 25, 2020

In real-estate, time is money. If you can buy now, buy something now. Sell when you want a bigger/nicer unit. In other words, do both: buy now and save for a bigger unit tomorrow. Real-estate provides a multiplier on returns. It’s like margin trading in stocks. In USA, I put 20% down and get 10% roi on purchase price, after accounting for the small cash I have in, it’s 5x or 50% roi. Great leveraged returns. Double your down-payment money every 2-years.

Intel vAew43 Jan 25, 2020

Don’t assume that fed fueled doubling will happen all the time .. average return for real estate is 3% .. none of these prices are going to stay 😀.. when is guess for everybody (remember that market can remain irrational for a long time) Now if u intend to stay at that place for 15+ years (a long time and seeing real estate not as an investment and more as a home) .. you can buy anytime ..

SAP olva73 Jan 25, 2020

Real-estate is a long term investment. Speculation runs significant risk. Rental Investments are very much competitive with other actively traded stocks. Apologies, if this was all about “owning vs renting” as an individual. Naturally, for the passive investor, stocks require less work and headache ... albeit, you lose out on the hedge against housing inflation when you are a renter. https://www.landlordology.com/real-estate-vs-stock-market/

Intel vAew43 Jan 25, 2020

Real estate should not be your prime investment in developed countries, where historically the return has been 3 % ...While stocks have yielded 10% and Bonds 6% historically.. Also, now is probably the worst time for real estate because of fed fueled rally (read about fed balance sheet/ new QE) ... the story is different in emerging markets for real estate

IBM s.w. taffy Jan 25, 2020

I really don't recommend buying condos in Canada. Too many shitty builders and low qual buildings if buying new. Too much condo corruption in second-hand ones. Also, north-facing condos get zero sunlight because of the sun angle, and all the cheap units face north. Condo owners are just miserable in general. Ultimately what's the point of making money if not for peace of mind and comfort. Literally don't even think about condos unless you're ready to drop 1 mil on a nice south facing unit in a well-managed Tridel or similar. Better to rent an apartment and deck it out with good furniture, and put your money in an index fund like XGRO.

Twitter 🐨 koala Jan 25, 2020

Only newbs buy condos.

Oracle fSIW60 Jan 25, 2020

Now