Can someone tell me what is happening with the real estate market here?

[KoreanHockeyFan]

6 hours ago, Lancaster said:

What you're proposing is similar to the Smith Maneuver.  

It's more of hassle (paperwork, taxes), but does help you build equity quicker.  

 

As long as you are really discipline, it's not a bad option to choose.  This is assuming you are really discipline and you're the type that goes, "Tax refund?  That's going into my investment accounts" and not one of those "Tax refunds?!  Woo-hoo!  Las Vegas here I come!  Hookers and blow!"

I've been trying to get my tax refunds to $0. 

 

Just found out about the T1213 form to proactively reduce my tax deductions.

[Lancaster]

3 hours ago, TGokou said:

Pretty sure what he suggested is not the Smith Manoevre. Smith Manoevre implies borrowing money and leveraging your investment. He is only taking the extra cashflow to invest which is just regular investing with actual cash.

Well yeah... I didn't say it was the Smith maneuver, I just said similar.

Similar in the sense that he is foregoing paying down the money owe (quicker) and instead seeking better returns elsewhere.  

 

Alternatively, he can choose to have a readvanceable mortgage to utilize, but that's another can of worms. 

[Russ]

Those rat bastards. Wife and I had our eye on this house for a while, saw it relisted then gone in January figured it was gone, nope just jacked up 250k. Think I should offer them 1.4 just as a F U and see if I get lucky. It's currently 2nd cheapest in the area but isn't as nice as the ones higher. 

 

 

Edited April 7, 2021 by Russ

[Russ]

9 hours ago, Nucksfollower1983 said:

dont know if its been said or not but I am going to put my tin foil hat on here and suggest there is some speculators cartel out there putting in these offers on each others properties to try and drive up prices.

 

Impossible NDP said they would fix all the liberals issues.

 

*puts different colored Leipsic on a pig*

 

 

[Jester13]

22 hours ago, stawns said:

I'd buy an empty lot(s) and build something.  Money won't be a huge issue I don't think.

 

I've been looking at places on SS and I coujd swing a 3 acre piece, build a container home and set myself up for a cannabis license and still not have a mortgage

 

Do it. You'll never regret owning and living on SS or Pender. Great little communities with the best weather in Canada all year round. 

 

11 hours ago, Nucksfollower1983 said:

dont know if its been said or not but I am going to put my tin foil hat on here and suggest there is some speculators cartel out there putting in these offers on each others properties to try and drive up prices.

 

It wouldn't surprise me if it's true. When you hear rumours about it happening, those rumours often have some truth to them.

[Sean Monahan]

12 hours ago, bishopshodan said:

I'm considering selling my rental and buying in PEI.

 

What a beautiful place with amazing prices. 

 

 

Something like this,

https://www.realtor.ca/real-estate/22107801/21352-rte-12-seacow-pond-seacow-pond

It’s the best place on Earth. Don’t blow the secret. 
 

I’ve seen farmers leave a wagon of potatoes out by the road with a coffee can. You’d probably get robbed blind doing that in Greater Vancouver but the honour system actually works out there. 

[Russ]

16 minutes ago, Sean Monahan said:

It’s the best place on Earth. Don’t blow the secret. 
 

I’ve seen farmers leave a wagon of potatoes out by the road with a coffee can. You’d probably get robbed blind doing that in Greater Vancouver but the honour system actually works out there. 

Wife's talked about moving there. Only thing that keeps us is good jobs and family for our kids and friends. 

[stawns]

59 minutes ago, Jester13 said:

 

Do it. You'll never regret owning and living on SS or Pender. Great little communities with the best weather in Canada all year round. 

 

 

It wouldn't surprise me if it's true. When you hear rumours about it happening, those rumours often have some truth to them.

I lived on Vic and spent a decent amount of time around the Islands.  I'd probably be more rural and water and utilities would be my concern

[Sean Monahan]

1 hour ago, Russ said:

Wife's talked about moving there. Only thing that keeps us is good jobs and family for our kids and friends. 

Awesome people, beautiful place, cheap living. Tough winters and limited economic opportunities are the drawbacks I guess. 
 

I believe they’ve seen an increase in real estate prices over the last year or so but you can still buy a house in Charlottetown for relative peanuts. 

[Jester13]

1 hour ago, stawns said:

I lived on Vic and spent a decent amount of time around the Islands.  I'd probably be more rural and water and utilities would be my concern

Lots of off-grid options these day

[PhillipBlunt]

3 hours ago, Sean Monahan said:

It’s the best place on Earth. Don’t blow the secret. 
 

I’ve seen farmers leave a wagon of potatoes out by the road with a coffee can. You’d probably get robbed blind doing that in Greater Vancouver but the honour system actually works out there. 

A place where the honor system works is a place worth living in and being a part of.

[stawns]

7 minutes ago, Jester13 said:

Lots of off-grid options these day

yeah, that's what I was thinking too.......water would be my biggest concern as they've had droughts and I'm a farmer

[thrago]

On 4/5/2021 at 6:54 PM, KoreanHockeyFan said:

Any opinions on how long to amortize your mortgage for? 

 

I've been constantly debating between a shorter amortization period to be debt free quicker, or amortize the loan for 25 years and be disciplined enough to take the additional monthly cash flow and invest in assets that would have a higher return than the 2-3% mortgage rate I'd realistically be getting in today's market. I've been learning towards 25 years since I could also choose to make lump sum payments during the term of my mortgage to pay down the principal faster whenever I feel like I want to. 

 

I know everyone's circumstances are different, but in my case, I'm in a younger age group so I was thinking my longer time horizon gives me more time to build wealth via investing the additional cash flow. 

This is what I always do when I get a new mortgage I do a 25 year term then I set my payments to the amount that I am comfortable paying.  So for example I just renewed my mortgage that has 20 years left on it my payments are just over $600 bi weekly I asked them to instead take $1000.00 which brings my mortgage down to about 12 years.

 

The advantage to this is if for some reason I fall on hard times I can call my bank and I'm right back to my $600 payments.  Where as if I locked into a 12 year term I am stuck paying $1000 bi weekly till the end of the term.  You can also do an extra 20% payment yearly I believe if you have extra money.

[aGENT]

22 hours ago, stawns said:

yeah, that's what I was thinking too.......water would be my biggest concern as they've had droughts and I'm a farmer

Cisterns, rain barrels etc? I'd imagine most are on well water on the smaller islands, eh?

[Gurn]

3 minutes ago, aGENT said:

Cisterns, rain barrels etc? I'd imagine most are on well water on the smaller islands, eh?

I believe it is mandated that all new dwellings on the islands must have rain catchment sytems.

The islands are just huge rocks covered with some dirt, so ground water is minimal. A few small lakes are not really enough.

[4petesake]

22 hours ago, PhillipBlunt said:

A place where the honor system works is a place worth living in and being a part of.

Out here in the Fraser Valley we can still buy peppers, tomatoes & other vegetables, eggs, flowers, etc., all on the honor system. I have to admit it does make you feel a little better about people when you see these stands.

[stawns]

10 minutes ago, gurn said:

I believe it is mandated that all new dwellings on the islands must have rain catchment sytems.

The islands are just huge rocks covered with some dirt, so ground water is minimal. A few small lakes are not really enough.

yeah, water would be my big concern.  Cannabis doesn't grow so well without water!

[Down by the River]

Does anyone know how it works when you own a home and want to sell it and buy another but need the equity from the old home for the down payment on the new home? Do you have to sell the old house first, or can you show the bank that you have equity from the down payments/mortgage payments on the old home and so they'll basically just lend you the money until your old home sells? Trying to understand how to arrange/plan for selling and buying at the same time despite needing $ from the equity built up from the old home to purchase the new home.

[BCNeil]

6 hours ago, Down by the River said:

Does anyone know how it works when you own a home and want to sell it and buy another but need the equity from the old home for the down payment on the new home? Do you have to sell the old house first, or can you show the bank that you have equity from the down payments/mortgage payments on the old home and so they'll basically just lend you the money until your old home sells? Trying to understand how to arrange/plan for selling and buying at the same time despite needing $ from the equity built up from the old home to purchase the new home.

Bridge financing? 

[BPA]

8 hours ago, Down by the River said:

Does anyone know how it works when you own a home and want to sell it and buy another but need the equity from the old home for the down payment on the new home? Do you have to sell the old house first, or can you show the bank that you have equity from the down payments/mortgage payments on the old home and so they'll basically just lend you the money until your old home sells? Trying to understand how to arrange/plan for selling and buying at the same time despite needing $ from the equity built up from the old home to purchase the new home.

Talk to your bank and realtor.  You can also add a clause in your bid (subject to sale of your house).  However, more subjects on your bid will probably reduce you chances of it being the winning bid.