Comments on: Is the Bidding Lust Over?

By: Today’s economy media pack – 2010.07.30 | BrighterLife.ca

Today’s economy media pack – 2010.07.30 | BrighterLife.ca — Fri, 16 Dec 2011 18:38:20 +0000

[...] Gail Vaz-Oxlade Making Money Make Sense. Is the bidding lust over? “Over the past year, the average home in Vancouver has risen in price to almost $1 million. Yup, you can get a nice little 2000 square foot place for a cool mil.” [...]

By: Shine

Shine — Sat, 03 Dec 2011 15:04:27 +0000

What Canali said is so true. I would rather live in a small place but not get too worried paying my mortgage than getting a big house which I will never enjoy since I will be out there most of my time working for it.

By: canali

canali — Sun, 07 Nov 2010 02:31:00 +0000

Nov/2010…yeah it’s NUTS here in the lower mainland (vancouver) BC..and with BOC marc carney suggesting an RE correction could happen alligned with high consumer debt (read: people being mortgaged to the teeth and high cc debt) it makes me wonder if as a single person (who missed the boat) in my mid 40s will I ever ”own” a place …. I was preapproved for $230k…but would have to look at coquitlam or pt coquitlam (would prefer pt moody since it’s closer) and if am going to get into market will wait the next 2-4 mo to see what is happening (garth turner and his ‘greater fool’ blog thinks things are going to slide downwards for instance…yet no one can really predict with full accuracy.

if i do get in i would try to buy as cheap a condo as possible (in good condition, good area, near tranportation and amenities) to allow wiggle room for when interest rates DO go up, along with all the financial curve balls that life tosses at you…I want a place sure: but i also want to enjoy life and still sleep soundly at night knowing i can build up my RSP and emergency funds too in addition to paying my mortgage….

wish that there was some club out here in bc I could join for late comers in my age bracket who want to buy a home (for some equity buildup towards their retirement)…but we have to be careful, esp with condos: they’re always for the most part the last to rise but the first to fall.

By: Dire Warnings from a BANK! « gailvazoxlade.com

Dire Warnings from a BANK! « gailvazoxlade.com — Mon, 04 Oct 2010 10:49:59 +0000

[...] at the end of July I did a blog about the bidding war that has driven Canada’s house prices through the roof. In some places, it takes more than half [...]

By: Canadian Real Estate Carnaval – First Edition | Landlord Rescue

Canadian Real Estate Carnaval – First Edition | Landlord Rescue — Thu, 30 Sep 2010 12:10:35 +0000

[...] Vax Oxlade sent Is The Bidding Lust Over? from her personal finance blog Gail Vax Oxlade – Making Money Make Sense Gail’s all [...]

By: Rachelle

Rachelle — Tue, 28 Sep 2010 19:06:34 +0000

Dear Gail,

I would like to invite you to submit this article or any other you choose to the First Edition of the Canadian Real Estate Carnival.

I did a posting about it here, http://landlordrescue.ca/wordpress/canadian-real-estate-blog-carnival/

And you send the link to Canadianrealestatecarnaval@gmail.com

I would be honored to receive your submission.

Rachelle

The first edition will be going up live… September 30th.

By: Today's economy media pack – 2010.07.30 | Today's economy blog

Today's economy media pack – 2010.07.30 | Today's economy blog — Fri, 30 Jul 2010 13:16:40 +0000

By: Q&A: Do men in happy and loving relationships “look”? | 97 Steps To A Happy Relationship

Fri, 30 Jul 2010 10:26:22 +0000

[...] Is the Bidding Lust Over? « gailvazoxlade.com [...]

By: Ann

Ann — Fri, 30 Jul 2010 04:18:50 +0000

@Cynthia – Where I am, one million dollars will buy a two-bedroom, apartment-style condo that’s approximately 1200 square feet. It’s not size that matters. In real estate, it’s about location. And the view.

By: Cynthia

Cynthia — Fri, 30 Jul 2010 01:25:42 +0000

I found this in a report from Wellesey Institute: “Eight of the ten least affordable rental areas in Canada are in Ontario. The worst rental zone in the country is Windsor, and other Ontario communities in the top ten are (in descending order): Ottawa, Toronto, London, Hamilton, Oshawa, Sudbury and Kitchener2.” These # from CMCH

I live in Sudbury, rent for a 1 bedroom averages around $800. Fortunately, We have a 2 bedroom, and the average for a 2 bedroom is $850. Our rent will $860 come September, but we’re still ahead of some of our neighbours who are 1k/month for the same apt size.

I am in the process of looking and buying my 1st home. Out city has a 1st homebuyer 2nd mortgage of 10% up to 15k, for a house up to a sale of a home for $203,809. Let me tell you, not many houses in that bracket anymore.

I think there was analyst from the CIBC a couple weeks ago said the Canadian housing market was overpriced by 14%. This was driven by a booming economy, and the need for greedy. Who needs the biggest house on the block.

By: Melanie Reformed Spender

Melanie Reformed Spender — Thu, 29 Jul 2010 23:25:08 +0000

We bought a house very much within our means (60k) and I’m happy that our market allows us to have our wonderful home for such a reasonable price. With our student loan payments and me about to go on mat leave, we still don’t feel like we have a lot of money, even though we both have good jobs. In those expensive markets, I don’t know how people manage to afford a house and family until student loans are gone…

By: Mo D.

Mo D. — Thu, 29 Jul 2010 20:14:52 +0000

When my husband and I were pre-approved for a 210K mortgage about 7 years ago, my husband thought the bank was crazy! When I called to say we found a great condo apt. for 130K, they said “Are you sure you don’t want to shop around and get something bigger or better?”. I laughed and said, “Nope, we like what we found, thanks” Our mortgage is lower than the rent we were paying, and we already knew about the condo fees, property taxes, etc. I will ALWAYS be thankful that we didn’t let ourselves be talked into getting a home that was fancier, flashier, and more “upscale”…. buying a home within our means has definitely the smart way to go!

By: Kathleen

Kathleen — Thu, 29 Jul 2010 20:05:34 +0000

A lot of good messages here. Just because the bank approves you for the moon, doesn’t mean you should buy it! My husband and I were approved for a decent mortgage (around $450K) but that would not have been enough money to buy a nice detached house with a nice sized lot in a nice part of Toronto. Where I was renting an apartment in Toronto, it was a nice neighbourhood but the detached homes were going for easily $700K. Yikes! Not what I would consider a “starter” home.

So, we looked for a city where we could both find jobs and that we could easily afford housing and a life of raising two kids. Voila! We moved near Niagara Falls. And we did it without breaking the bank.

We bought a lovely house in a great neighbourhood for much less than what we were apporoved for, saved for our 20% downpayment, had extra money for closing costs, moving expenses, and furnishings, and didn’t touch our retirement savings, nor our emergency funds, nor the kids’ RESPs. Yay for us!

@Jason — keep on saving! It’s worth it to be patient and to be able to afford where you live.

By: pepgirl

pepgirl — Thu, 29 Jul 2010 18:44:12 +0000

I am thrilled that you guys actually responded to my post.
I should add that despite all the grumbling…we would only ever leave BC if my hubby’s national company transferred him to something much bigger and better. Otherwise, we’ll stay put! Being close to extended family is good for our young-ish family.

By: Maureen

Maureen — Thu, 29 Jul 2010 18:25:20 +0000

Our young friends have decided to look for a house and were pre-approved for a mortgage – $470,000. They are thrilled and I am nervous for them. They only have a $20,000 downpayment (?how do they even get approval?) and of course this mortgage approval is based on two salaries. In January they moved into a new rental house for which they are paying $1200 a month – up $400 from their apartment. They complained about that huge change to their finances but bought a puppy so had no choice since they were not allowed a dog in the apartment. So I can just imagine how a $450,000 mortgage is going to shock them. They earn good money and are saving for retirement but spend big – lots of vacations and only brand name goods. They seem to think their life style is not going to change. Surprise!

I live in the Yukon and about 6 years ago the prices for houses quadrupled – still less than down south but expensive non-the-less. Our prices are actually going to keep going up because all the land is owned by the territorial government and they only release so much every year for the land lotteries and private people are bidding against contractors.

The young uns asked my husband and I what we thought they should do. We kind of hesitated but I have no control when someone actually ASKS for my advice so this is what we told them. Find out what the mortgage payment on the $450,000 would be. Stay in the rental for a couple more years and put the difference between the rent and mortgage into savings for a bigger down payment OR if desperate for a house buy one for approximately half what you have been approved for and put the difference between the two mortgages ($250,000 vesus $450,000) in the bank so that you can move up the property ladder in a few years.

They seemed disappointed with our advice and sadly have already seen the house of their dreams. Oh if only someone had told us to do this and have patience when we started out. Instead of course we went for broke (literally) and bought the house the bank said we could afford. Yes, we could afford the mortgage but basically nothing else. No house is worth being mortgage poor.