The BC Real Estate Discussion Thread

[JM_]

one thing to try @Sean Monahan if you haven't already is tracking all your spending with a tool like Mint. Once you have the data you can see where you can possibly save or make change (https://mint.intuit.com). Its free too btw.

 

 

[Sean Monahan]

1 hour ago, JM_ said:

 

your answer lies in looking at the basic calc - can you afford the extra $180 per month for certainty?  https://www.tangerine.ca/en/products/borrowing/tangerine-mortgage/.  run your current scenario vs a fixed one and see if you can handle the cost. So from tangerine e.,g. 1.5% 5 year variable is 1,200 per month.  5 year fixed is 1380. 

 

We went the other way from a lot of people last year and went for a 10 year mortgage, locked in at 2.1%. For us the bit of extra cost was worth the certainty as we're looking at early retirement and wanted to lock in our last mortgage and eliminate that risk.

 

You are on the other end of things, just starting out but also in a risky climate. If you can switch to a lower cost mortgage provider (assuming the penalty to get out isn't too high) that could help things as well. We really had a good experience with Tangerine and see no reason to pay more to BMO e.g. for the pleasure of it. 

 

 

 

I’m not sure I’d get much of a better rate on it. The mortgage broker gave me quotes from maybe 6-8 different lenders and TD was giving me the best rate at 1.5%. I believe the next best was 1.65%, I’m not sure who that was from though. My own bank (BMO) was absolutely no help and I felt even downright unprofessional- they all but laughed at me when they asked what I make, what I had saved for the down payment, etc. 
 

I should give my mortgage broker a call and ask her to review those pros and cons on fixed vs variable again. I found her to be very helpful as someone who was getting into the market for the first time. 

14 minutes ago, JM_ said:

one thing to try @Sean Monahan if you haven't already is tracking all your spending with a tool like Mint. Once you have the data you can see where you can possibly save or make change (https://mint.intuit.com). Its free too btw.

 

 

I’ve been on Mint for a few years now, I think going back to spring 2018 when I really began saving money in earnest. It’s a solid app that most people could really stand to benefit from. I’ve got a $40 phone plan, use the free gym at my condo, don’t eat out, etc. I was always a fairly “cheap” person but Mint really helped illustrate where your money can just sort of disappear to. 
 

I think I mentioned it on the previous page but I’ve been doing these cost saving measures preemptively more than out of necessity.  I could afford to eat more than I do, heat my place, etc but I choose not to so I can maybe save a little slush fund for when these interest hikes comes. I’m a pretty utilitarian type of guy so this stuff doesn’t bother me at all. 
 

 

One thing I thought of this morning- who’s the person to talk to about this? A financial advisor? Mortgage broker? Both? 

[JM_]

1 hour ago, Sean Monahan said:

I’m not sure I’d get much of a better rate on it. The mortgage broker gave me quotes from maybe 6-8 different lenders and TD was giving me the best rate at 1.5%. I believe the next best was 1.65%, I’m not sure who that was from though. My own bank (BMO) was absolutely no help and I felt even downright unprofessional- they all but laughed at me when they asked what I make, what I had saved for the down payment, etc. 
 

I should give my mortgage broker a call and ask her to review those pros and cons on fixed vs variable again. I found her to be very helpful as someone who was getting into the market for the first time. 

I’ve been on Mint for a few years now, I think going back to spring 2018 when I really began saving money in earnest. It’s a solid app that most people could really stand to benefit from. I’ve got a $40 phone plan, use the free gym at my condo, don’t eat out, etc. I was always a fairly “cheap” person but Mint really helped illustrate where your money can just sort of disappear to. 
 

I think I mentioned it on the previous page but I’ve been doing these cost saving measures preemptively more than out of necessity.  I could afford to eat more than I do, heat my place, etc but I choose not to so I can maybe save a little slush fund for when these interest hikes comes. I’m a pretty utilitarian type of guy so this stuff doesn’t bother me at all. 
 

 

One thing I thought of this morning- who’s the person to talk to about this? A financial advisor? Mortgage broker? Both? 

certainly both can't hurt to talk to. If you could switch to a low fixed mortgage where the new bank actually paid the penalty to cancel your old one early as posted above with Coast, thats pretty sweet, I haven't seen that often. 

 

Your broker won't recommend Tangerine as they don't pay brokers, but its worth comparing it to why they say. The one we have is assumable, which is a great option to have when you sell if the rates really go up high. 

 

Nice thing is you are in the market, and that matters most. 

 

 

[The Arrogant Worms]

2 hours ago, Sean Monahan said:

I’m not sure I’d get much of a better rate on it. The mortgage broker gave me quotes from maybe 6-8 different lenders and TD was giving me the best rate at 1.5%. I believe the next best was 1.65%, I’m not sure who that was from though. My own bank (BMO) was absolutely no help and I felt even downright unprofessional- they all but laughed at me when they asked what I make, what I had saved for the down payment, etc. 
 

I should give my mortgage broker a call and ask her to review those pros and cons on fixed vs variable again. I found her to be very helpful as someone who was getting into the market for the first time. 

I’ve been on Mint for a few years now, I think going back to spring 2018 when I really began saving money in earnest. It’s a solid app that most people could really stand to benefit from. I’ve got a $40 phone plan, use the free gym at my condo, don’t eat out, etc. I was always a fairly “cheap” person but Mint really helped illustrate where your money can just sort of disappear to. 
 

I think I mentioned it on the previous page but I’ve been doing these cost saving measures preemptively more than out of necessity.  I could afford to eat more than I do, heat my place, etc but I choose not to so I can maybe save a little slush fund for when these interest hikes comes. I’m a pretty utilitarian type of guy so this stuff doesn’t bother me at all. 
 

 

One thing I thought of this morning- who’s the person to talk to about this? A financial advisor? Mortgage broker? Both? 

I would recommend going  to Red Flag Deals and read the Real Estate forum.

 

https://forums.redflagdeals.com/real-estate-f169/

 

And in particular the Mortgage Rates topic.

 

https://forums.redflagdeals.com/official-mortgage-rates-thread-351105/3993/

 

 

 

Lots of great advice and  information to be had there.  Some mortgage brokers post there also and give advice.

 

 

Edited January 23, 2022 by The Arrogant Worms

[Russ]

On 1/22/2022 at 10:55 AM, Sean Monahan said:

Looking for advice/opinions here. I'm 28, single/single income, and bought my first place last year. 1BR condo in Cloverdale/Langley. It's 2 blocks from one of the proposed Skytrain stations and 4 from another, so I think it has good potential as something to sell later on or to keep as an income property. Right now it costs me about $1500 per month for mortgage, strata, and insurance. Hypothetically, in a few years if I had a girlfriend/wife to move out with I could rent this place out and likely bring in a bit of profit each month.

 

Now here's where I'm nervous. I qualified for my mortgage on a 5 year variable rate at 1.5% (variable rate was the mortgage broker's recommendation). Obviously since I qualified I can afford my place. Where I get nervous is at the though of climbing interest rates. Despite the stress test, I'm not entirely confident I could keep paying my mortgage if interest rates climbed to >5%. I'm almost certain that if they hit say >6.5% I would default on my mortgage within a year, assuming my income hasn't changed meaningfully in that time (which of course is something that is possible. I'm not ruling that out). We've all seen the way our cost of living in general has increased so much the last few years and will continue to for the foreseeable future with the way inflation is going. 

 

I paid $367K for this place with 20% down ($73 500), $20K of which was a "gift" from my parents. There's been three comparable units in my building that have sold since I moved in, with the most recent being a unit one floor below me that sold for $390K in December. A guy I work with is in the market for a 1BR and I half-jokingly told him I'd part with mine for $400K, to which he said he'd do it. Selling this place for $400K would mean I'd be walking away with about ~$106K, right? Minus the $20K back to my parents and there was some sort of first-time buyers program or exemption I qualified for that the mortgage broker told me I'd have to pay back I think it was $15K if I sold or rented this place out within the first year of ownership. Tack on some fees for realtors/lawyers (I guess I could cut out a realtor in this scenario? Maybe? Might also be a terrible idea, not sure) on top of that, and I could walk away from a $400K sale of my unit with maybe $60K in my pocket? Obviously it would suck to lose that $15K for the first-time owner thing, but my thinking here is this: Even with that penalty, I'd be walking way from here with a profit of several thousand in just a few months time. More importantly, I'd be walking away from the risk of defaulting on my mortgage. 

 

I read about the debt crisis in Canada and it makes me worry about what the market could look like in a few years. I can't remember the exact numbers, but I've read that if interest rates climbed something like 3 or 4%, a fairly significant 'X' number of Canadians would default on their mortgage within a year. A precipitous situation, no doubt. I can only assume that this would lead to a fairly meaningful market correction, right? My thinking was what if I sell my place, sit on my cash or maybe safely invest it somehow and keep saving in the meantime, then try to buy back into the market after the correction? "Buy the dip", so to speak.

 

I'm not really sure what to do. Money's tight for me and I worry about this a lot. Hell, I'm only eating about 10-12 meals per week these last few weeks to save money after getting hit with a special levy to pay for some relatively minor damage to the building caused by the flooding in November. I buy what's on sale, live a cheap social life (dog walks with friends, hang out at home and split a 6 pack, etc), don't heat my home and spend my time at home with the lights off other than when I'm cooking. I've gone over it several times and I'm not sure where I could pare back my expenses much more. I don't want to talk to my parents about it, mostly because I feel they've already helped me enough but also because it's a little embarrassing. My anonymity amongst you fine folks helps. And before some boomer wants to tell me to shut up and work harder or something to that effect. I spent a little more than a year working two full-time jobs as well as coaching baseball/doing hitting lessons to save up the down payment for this place. I ran off about 5 hours of sleep split into two naps. It was only 5 years ago I was coming out of uni with about $35K in debt. I've been working my ass off and pinching pennies for several years now to climb out of that debt (which at one point seemed completely insurmountable and is really the reason I always worry so much about money now) and get into the market. I don't want to end up catching a falling knife here.

 

I apologize for the long windedness but I had to talk to somebody about it. And yes, in order to continue to pay my mortgage post-interest hike I could pick up a second job again. Currently I still coach baseball and do a bit of side work for my uncle in addition to my full time job. I should've added that it's not just simply the ability to pay the mortgage that worries me, but also being stuck with a place that's seriously devalued and having a mortgage that's not commensurate with its value anymore (a la the US in 2008 on a more minor scale I guess?)

 

Thanks to anybody who takes the time to read this. If you have any sort of advice I'd love to hear it.

I am no where near qualified, but I HIGHLY doubt the Feds (liberals or conservatives) would ever allow rates to go up to a point where many many people are defaulting.  Plus many people have locked into 5 year rates, generallly variables are less than fixed even with rising rates .

 

Honestly, if I am in your position, don't get out and sit on cash.  I did that prior to this massive run up, have been on cash for over a year and my wife still can't find a damn house and the bastards keep rising.  We both regret ever selling, we had reasons, but no one saw this run up coming like this.

[HI5]

4 hours ago, Russ said:

I am no where near qualified, but I HIGHLY doubt the Feds (liberals or conservatives) would ever allow rates to go up to a point where many many people are defaulting.  Plus many people have locked into 5 year rates, generallly variables are less than fixed even with rising rates .

 

Honestly, if I am in your position, don't get out and sit on cash.  I did that prior to this massive run up, have been on cash for over a year and my wife still can't find a damn house and the bastards keep rising.  We both regret ever selling, we had reasons, but no one saw this run up coming like this.

Can’t they crank up HELOC rates at 30 days notice?

[taxi]

6 hours ago, Russ said:

I am no where near qualified, but I HIGHLY doubt the Feds (liberals or conservatives) would ever allow rates to go up to a point where many many people are defaulting.  Plus many people have locked into 5 year rates, generallly variables are less than fixed even with rising rates .

 

Honestly, if I am in your position, don't get out and sit on cash.  I did that prior to this massive run up, have been on cash for over a year and my wife still can't find a damn house and the bastards keep rising.  We both regret ever selling, we had reasons, but no one saw this run up coming like this.

I just locked into a super low 5 year rate. My hope is that rates increase in the short term, inflation cools, and then they start to lower rate again. I also took out a massive mortgage. Something I would not normally due. However, with inflation likely to be in the 10% range for the next couple of years, inflation will make a huge dent on the mortgage. I bought at the beginning of the massive run up. My realtor tells me the house has already increased in value by about $150k, which covers my transactional/upgrade costs and a little bit on top of that.

 

Right now over half of our mortgage payment is going to principle, and we have a renter in the basement paying $2,200.00. We're basically paying the same in mortgage as we were in rent, with all that payment going towards equity. For the next 5 years our position is looking pretty good, but I would be lying if I said I wasn't very nervous about what's going to happen in 5 years.

[Russ]

Wtf? This was a house I wanted to look at back in December at the 1.1 price. Got bought way over, there's zero comparisons as to the condition of the house for that price tag, popped up a week later looking for a renter for the house at $3500/month on Facebook and now it's listed again 35 days later for slightly less than they paid a month ago? Man I don't drink enough.... 

 

I can almost guarantee this was money laundering lol

 

 

Edited January 26, 2022 by Russ

[taxi]

21 hours ago, Russ said:

Wtf? This was a house I wanted to look at back in December at the 1.1 price. Got bought way over, there's zero comparisons as to the condition of the house for that price tag, popped up a week later looking for a renter for the house at $3500/month on Facebook and now it's listed again 35 days later for slightly less than they paid a month ago? Man I don't drink enough.... 

 

I can almost guarantee this was money laundering lol

 

 

Listing prices are meaningless. It's now the standard strategy to list for $200-500k less than you actually expect to get to start a bidding war.

 

The other sale may have fallen through as well.

[WilliG]

useful info! I'm planning to buy a house in Florida this year. I've found a few nice houses near the ocean, hope I'll move without any issues. I found local florida movers service, they provide flexible moving services for residential and commercial moving in Florida. And have affordable prices.

Edited March 11, 2022 by WilliG

[Warhippy]

3 hours ago, WilliG said:

useful info! I'm planning to buy a house this year

May the odds be ever in your favor

[bishopshodan]

I'm gonna list my rental property. I will feel bad for the renters. However, they have had it good...4 years at $1100 per month ( no increases) when most other comparable properties are double that at least.

 

I've had it for about 15 years and I think it's time. I don't think the market is going to drop but then again my gut is telling me not to think and to listen to my instincts. Plus, it's paid off so I can do a lot with what I get. 

 

I might buy a small lot to develop one day or even look at a commercial unit. 

 

[JM_]

32 minutes ago, bishopshodan said:

I'm gonna list my rental property. I will feel bad for the renters. However, they have had it good...4 years at $1100 per month ( no increases) when most other comparable properties are double that at least.

 

I've had it for about 15 years and I think it's time. I don't think the market is going to drop but then again my gut is telling me not to think and to listen to my instincts. Plus, it's paid off so I can do a lot with what I get. 

 

I might buy a small lot to develop one day or even look at a commercial unit. 

 

wise move imo, with interest rates creeping up. Love the idea of a development lot, the wife and I have been playing with that idea for a while. 

 

Also, wth $1100? what are you, Gandhi? 

[Warhippy]

1 hour ago, bishopshodan said:

I'm gonna list my rental property. I will feel bad for the renters. However, they have had it good...4 years at $1100 per month ( no increases) when most other comparable properties are double that at least.

 

I've had it for about 15 years and I think it's time. I don't think the market is going to drop but then again my gut is telling me not to think and to listen to my instincts. Plus, it's paid off so I can do a lot with what I get. 

 

I might buy a small lot to develop one day or even look at a commercial unit. 

 

Don't feel bad.  It will literally set you up for life.

 

I bought my house for $422,500 last year.  I was offered $700,000 for it.  I asked one of the realtors I shoot for if I could get $800,000.  He laughed and said $800k might be a bit high, ask for $850k instead.

 

He wasn't kidding.  At all.  I've been back and forth for almost 5 years on moving to Airdrie or Okotoks Alberta because both of my daughters have indicated their educational aspirations would be best served in the Calgary area or UVIC. For their financial health, Alberta would be the best bet because the island is entirely unaffordable.

 

A good friend of mine who's daughter just turned 19 is looking at a $300k apartment/condo for his daughter just off campus from SAIT because she can't afford UVIC.

 

For my wife and I, we have a sizeable nest egg and a potential $800k home sale in front of us.  For our daughters to be ensured that they'd have a home in the area to not only live while going to university to save up while also having privacy we've considered moving to the area again

 

https://www.realtor.ca/real-estate/24187924/2825-prairie-springs-green-sw-airdrie-prairie-springs

 

https://www.realtor.ca/real-estate/24189381/838-fairways-green-nw-airdrie-fairways

 

Looking at those listings, I had to find a comparable in Penticton or the Penticton area.

 

The closest for age, size and suitability started at $1.2 million.

 

Do what you feel is necessary my dude.  It sucks, it hurts but selling now and cashing in also sets you up VERY well for when the markets do in fact implode; which I firmly believe is in fact a certainty within the next 14 months for numerous reasons.  Having a million ish in disposable cash to invest once housing tanks by 30% to 50% will set you up very very well.

[bishopshodan]

1 hour ago, JM_ said:

wise move imo, with interest rates creeping up. Love the idea of a development lot, the wife and I have been playing with that idea for a while. 

 

Also, wth $1100? what are you, Gandhi? 

They're a nice young couple that only planned to stay 2 years. Then covid hit, she lost her job...etc.

 

Yep, I can be a bit of a softy but I like the thought that I helped these kids out a bit. 

 

2 minutes ago, Warhippy said:

Don't feel bad.  It will literally set you up for life.

 

I bought my house for $422,500 last year.  I was offered $700,000 for it.  I asked one of the realtors I shoot for if I could get $800,000.  He laughed and said $800k might be a bit high, ask for $850k instead.

 

He wasn't kidding.  At all.  I've been back and forth for almost 5 years on moving to Airdrie or Okotoks Alberta because both of my daughters have indicated their educational aspirations would be best served in the Calgary area or UVIC. For their financial health, Alberta would be the best bet because the island is entirely unaffordable.

 

A good friend of mine who's daughter just turned 19 is looking at a $300k apartment/condo for his daughter just off campus from SAIT because she can't afford UVIC.

 

For my wife and I, we have a sizeable nest egg and a potential $800k home sale in front of us.  For our daughters to be ensured that they'd have a home in the area to not only live while going to university to save up while also having privacy we've considered moving to the area again

 

https://www.realtor.ca/real-estate/24187924/2825-prairie-springs-green-sw-airdrie-prairie-springs

 

https://www.realtor.ca/real-estate/24189381/838-fairways-green-nw-airdrie-fairways

 

Looking at those listings, I had to find a comparable in Penticton or the Penticton area.

 

The closest for age, size and suitability started at $1.2 million.

 

Do what you feel is necessary my dude.  It sucks, it hurts but selling now and cashing in also sets you up VERY well for when the markets do in fact implode; which I firmly believe is in fact a certainty within the next 14 months for numerous reasons.  Having a million ish in disposable cash to invest once housing tanks by 30% to 50% will set you up very very well.

Thanks for your input.

I think you are on point.

You know I have been in this thread for years saying to hold. Even when the tides looked to be turning, and I was right.

But now, as you say, in the next couple years we could see some turbulence. 

 

I bought this place for $180k  ....will be listing for around $700k. It's paid off, all cake but I will be looking at more than 100k in CG tax and fees etc..

It's a small two bedroom detached on a 1/4 acre with some war wounds but it is solid and is in the best hood in the area. Also has peak-a-boo water view. 

A few doors down is a empty lot at .45 acre and they want $699. 

[Warhippy]

Just now, bishopshodan said:

They're a nice young couple that only planned to stay 2 years. Then covid hit, she lost her job...etc.

 

Yep, I can be a bit of a softy but I like the thought that I helped these kids out a bit. 

 

Thanks for your input.

I think you are on point.

You know I have been in this thread for years saying to hold. Even when the tides looked to be turning, and I was right.

But now, as you say, in the next couple years we could see some turbulence. 

 

I bought this place for $180k  ....will be listing for around $700k. It's paid off, all cake but I will be looking at more than 100k in CG tax and fees etc..

It's a small two bedroom detached on a 1/4 acre with some war wounds but it is solid and is in the best hood in the area. Also has peak-a-boo water view. 

A few doors down is a empty lot at .45 acre and they want $699. 

So after everything is said and done you'll still walk away over $400k ahead after taxes/fees and closing costs + your initial investment.  That $600k+ will be an amazing nest egg for you and I dare say, gold is mighty hot right now for an investment.

[JM_]

26 minutes ago, bishopshodan said:

They're a nice young couple that only planned to stay 2 years. Then covid hit, she lost her job...etc.

 

Yep, I can be a bit of a softy but I like the thought that I helped these kids out a bit. 

 

Thanks for your input.

I think you are on point.

You know I have been in this thread for years saying to hold. Even when the tides looked to be turning, and I was right.

But now, as you say, in the next couple years we could see some turbulence. 

 

I bought this place for $180k  ....will be listing for around $700k. It's paid off, all cake but I will be looking at more than 100k in CG tax and fees etc..

It's a small two bedroom detached on a 1/4 acre with some war wounds but it is solid and is in the best hood in the area. Also has peak-a-boo water view. 

A few doors down is a empty lot at .45 acre and they want $699. 

thats a great return, you won't regret it. We downsized a couple of year ago (decide to do it early) and the nice feeling that comes with being debt free is hard to replace. 

 

Where are you thinking of buying a lot?

[bishopshodan]

16 minutes ago, JM_ said:

 

Where are you thinking of buying a lot?

I would look at anywhere central Island.

Mostly because I know the areas and I am close, with resources.  I have a few trades people in the fam including myself and could keep development costs down because of that. 

 

What I would actually like to do is go in on a large parcel with some of the family but that takes some planning and fair commitment.

[Warhippy]

3 minutes ago, bishopshodan said:

I would look at anywhere central Island.

Mostly because I know the areas and I am close, with resources.  I have a few trades people in the fam including myself and could keep development costs down because of that. 

 

What I would actually like to do is go in on a large parcel with some of the family but that takes some planning and fair commitment.

I hear Coombes is nice

[bishopshodan]

5 minutes ago, Warhippy said:

I hear Coombes is nice

You hear right.

Coombs is, farms, industrial and tourist stuff. They put their goats on the roof in that silly place. It's beautiful.

Around Qualicum, Errington is good value in the area.

But even a bit more north...the Island is going crazy with growth.

 

I'm am, no kid, wearing a 'republic of vancouver island' t-shirt right now. We could be a country one day.