pawn

Retire 10 years before the guy that sinks his money into a condo. ;^)

pawn

Give me the numbers and I'll tell you how dumb she is:

1. What she put down (back in those days it had to be minimum 25%).
2. What interest rate she paid.
3. How long her mortgage was and how long she owned the home after
paying off the mortgage.

I'm willing to throw down a little wager here (for respect dammit!) :
I'll bet I can prove the numbers come out to about the same, or not
even as high, as what she could have earned had she invested the
original money + carrying costs, + mortgage payments and then carrying
costs for the remaining time after paying off the mortgage.

In fact, here ya go:

Assumptions:

- 25% down + closing costs: let's say $6000.
- 6% average investment rate, 6% average mortgage rate.
- 25 year mortgage term, 25 year ownership term afterwards

The original mortgage would have taken about $100/mo to payoff with
those numbers (15, 000 mortgage, 6% interest rate, 25 yr term).

I think it's reasonable to add $50/mo for remaining carrying costs, for
the time of her mortgage, and then let's say an average $100/mo for the
remining time of her ownership, right up until today. I find these
numbers conservative, but you can argue.

With her initial $6,000 and an annuity of $150/mo, she would have banked
$130,738 after the 25 year mortgage term.

Then, with a $100/mo carrying cost payment, after another 25 years, she
would have banked a total of $653,040.

Who said anyhting about 25 years? Didn't she own the house for a number
of years after paying it off? A house worth $20, 000 then and $550, 000
now must be at least 40 or 50 years old.

aw

Yes, he said he was doing well, but without any numbers, it's hard to see
exactly how 'well' he is doing. I was doing 'well' the time I bought my
condo but I couldn't afford a house all by myself. For me, it was cheaper
buying vs renting and I had something to sell to help me trade up. There's
no way I could have purchased my current home (still being built) without
the help of my previous purchases.


Perhaps the OP could have purchased a small house (who knows without real
number) but it will definately not be as new as the condo he bought.

I'm sure if most people could own their own house, they would buy it. But
the reality is that most people just can't afford it.

aw

pawn

You...with a but. Me....with a maybe. ;^)

Seriously, you have to be willing to rent out your ba*****t. I have a
fully finished ba*****t, with two beautiful bedrooms and a 2nd family
room. I never set foot in these rooms, and yet, I'd rather see them
empty until the end of creation, than to have to routinely bump into my
"tenant". The very idea sends chills down my spine. To each his own,
though..

pawn

True enough. The Greater Toronto market has been similar. I see this
all leveling out though. This whole discussion is now too "investment
heavy" (I know I started it). To be honest, for me the real issue is I
would never want to live in a condo: it takes away the whole reason for
owning a home (for me that is).

bear

My advice is to ignore this thread...seriously though just remember
that the land pimps job is to talk you into buy the house/ condo
whether it is the right one for you or not. Do Not feel any loyalty
towards them, you are just dollar signs to those lowlife s*** ****ers
no matter what they say or do.

As for some of the crap in this thread... owning your own place is
cool, even if all you own is the bathroom and the bank owns the rest.
Being able to sit on the throne and know that it is yours, one of
life's great pleasures
The only downside that I have ever come across is when something
breaks it is your problem.
As for the Vancouver market, well it was the prices 10 years ago that
made us decide to pack our bags and move to the rock to raise our
kids. Best decision we ever made.


Rod

pawn

I should have clarified: I deeply hate most people. Obvious exceptions
are my wife, my dog and hopefully my unborn child.

doug patton

yep.. I have a hard time letting strangers into my ba*****t too.... I just
get the feeling my rnter would be the "nice quiet guy.. kept to
himself....never said much......"

Doug

barnaby

If you are holding a property long term and looking for an appreciation in
value to match a decent index fund, and didn't do anything very silly when
making your purchase, the tax advantages *might* make your primary residence
an attractive investment. Picking the right neighbourhood would help a lot.

But if you are serious about making money, you buy, reno/decorate, and sell.
You don't wait twenty-five years to make a paper profit into something a
little more substantial. You take the profit and re-invest (when you find a
deal) with a better debt ratio.

If you don't take your profit near the top of the value curve that trails
off after the reno, you missed a window and you'll have to re-invest to
position your property at it's best potential.

Fresh flooring, fresh paint . . . that new car smell and feel is always
worth a premium.

barnaby

wouldnt the skanky hooker be raising you?