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0 pointsOJFord3y ago0 comments

It's a bit of a fool's errand to follow that advice though, you could have been doing renting in urban Canada for years (decades even?) being told a crash is coming any day now eh has too. And now it's extremely unlikely that one would wipe out the compounded growth from if you'd bought when you first thought of it.

I think if it's to live in, just do it. Save market-timing for a second home/investment/flip - and even then be opportunistic in an observed dip rather than waiting for it to happen.

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4 comments · 2 top-level

refurb3y ago· 2 in thread

That’s a funny statement considering parts of Toronto are down 30% in the past 4 months and the Bank of Canada hasn’t finish hiking rates.

OJFordOP3y ago

I'm not Canadian or particularly familiar, but that's 30% down having done something like 300% since 2009 right? So if you've been renting for the last 13 years waiting this to pounce, you're hardly going to be patting yourself on the back thinking it was such a smart move.

Unless you mean having bought there 4m ago would suck? Well, sure, but this 'advice' is only for a home, where you live, not an investment property. And as for looking right now vs. waiting short-term for prices to drop (and paying rent meanwhile) - that's surely priced in. Suppose it could still make sense to someone personally if it put them in a better mortgage position (at the risk of a worse rate).

refurb3y ago

People who bought 2 years ago would now end up selling for less than what they bought.

Some places will bottom out at 50% of current price. That means if you bought since 2016 or so your house is worth less than when you bought it.

cbanek3y ago

I think if it's to live in, AND you can afford it AND it makes sense financially on a fixed rate mortgage, go for it. You are absolutely right on market timing, but that doesn't mean it'll go up forever, but over time, it does seem to generally go up a bit. But it's not really an investment, its a place to live, so don't pay so much on a mortgage that you are risking your financial health - think it should be about equal to rent or maybe a little more.

Just remember, turkeys think everything is great, until Halloween, when they get put in the freezers for Thanksgiving. If you look at the graph of their weight from birth to death it's always going up, so it should go up forever. But on Halloween it'll go down a bit, then level out forever. ;)

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